230 R.I. Code R. 230-RICR-20-20-1.4

Current through October 15, 2024

Section 230-RICR-20-20-1.4 - Cancellation

A. Permissible Cancellations. If coverage has not been in effect for sixty (60) days and the policy is not a renewal, cancellation shall be effected by giving, mailing or delivering a written notice to the first-named insured at the mailing address shown on the policy and, if applicable, to the insurance producer of record, at least thirty (30) days before the cancellation's effective date. After coverage has been in effect for more than sixty (60) days or after the effective date of a renewal policy, no insurer shall cancel a policy unless the cancellation is based on at least one of the following reasons:

1. Nonpayment of premium;

2. Fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy, or in presenting a claim under the policy;

3. Activities or omissions on the part of the named insured which increase any hazard insured against, including a failure to comply with loss control recommendations;

4. Change in the risk which increases the risk of loss after insurance coverage has been issued or renewed, including but not limited to an increase in exposure due to regulation, legislation, or court decision;

5. Loss or decrease of the insurer's reinsurance covering all or part of the risk or exposure covered by the policy;

6. Determination by the Commissioner of Insurance that the continuation of the policy would jeopardize a company's solvency or would place the insurer in violation of the insurance laws of this state;

7. Owner or occupant incendiarism;

8. Violation or breach by the named insured of any policy terms or conditions;

9. Constructive or actual total loss of the insured property;

10. Such other reasons as may be approved by the Commissioner of Insurance.

B. Notification of Cancellation

1. Notice of cancellation of insurance coverage by an insurer shall be in writing and shall be given, mailed or delivered to the first-named insured at the mailing address as shown on the policy and, if applicable, to the insurance producer of record. Notices of cancellation based on §§ 1.4(A)(2) through (10) of this Part shall be given, mailed or delivered at least thirty (30) days prior to the effective date of the cancellation. Notices of cancellation based upon § 1.4(A)(1) of this Part shall be given, mailed or delivered at least ten (10) days prior to the effective date of cancellation. The notice shall state the effective date of cancellation.

2. The insurer shall provide the first-named insured with a written statement setting forth the reason(s) for the cancellation where;

a. the named insured requests such a statement in writing; and

b. the named insured agrees in writing to hold the insurer harmless from liability for any communication giving notice of or specifying the reasons for a cancellation or for any statement made in connection with an attempt to discover or verify the existence of conditions which would be a reason for cancellation under this regulation.

C. Nothing in this section shall require an insurer to provide a notice of cancellation or a statement of reasons for cancellation where cancellation for non-payment of premium is effected by a premium finance agency or other entity pursuant to a power of attorney or other agreement executed by or on behalf of the insured.

230 R.I. Code R. 230-RICR-20-20-1.4