Iowa Admin. Code r. 191-20.54 - Cancellation; nonrenewal and limitations; review of eligibility
(1) The Plan shall
not cancel or refuse to renew a policy issued by the Plan except for the
following reasons:
a. Facts as confirmed by
inspection or investigation that would have been grounds for nonacceptance of
the risk by the Plan had they been known to the Plan at the time of
acceptance.
b. Changes in the
physical condition of the property or other changed conditions as confirmed by
inspection or investigation that make the risk uninsurable pursuant to
paragraph 20.54(1)"i."
c. Nonpayment of premiums.
d. At least 65 percent of the rental units in the building are
unoccupied, and the insured has not received prior approval from the Plan of a
rehabilitation program that necessitates a high degree of
unoccupancy.
e. Unrepaired damage
exists and the insured has stated that repairs will not be made, or such time
has elapsed as clearly indicates that the damage will not be
repaired.
f. After a loss,
permanent repairs have not been commenced within 60 days following payment of
the claim, unless there are known to be extenuating circumstances. The 60-day
period starts upon acceptance of payment of the claim.
g. There is good cause to believe, based on
reliable information, that the building will be burned for the purpose of
collecting the insurance on the property. The removal of damaged salvageable
items, such as normally permanent fixtures, from the building shall be
considered under this paragraph when the insured can provide no reasonable
explanation for such removal.
h. A
named insured or loss payee or other person having a financial interest in the
property being convicted of the crime of arson or a crime involving a purpose
to defraud an insurance company. The fact that an appeal has been entered shall
not negate the use of this paragraph.
i. The property has been subject to more than two losses, each
loss amounting to at least $500 or 1 percent of the insurance in force,
whichever is greater, in the immediately preceding 12-month period, or more
than three such losses in the immediately preceding 24-month period, provided
that the cause of such losses is due to the conditions that are the
responsibility of the owner named insured or due to the actions of any person
defined as an insured under the policy.
j. Material misrepresentation in any statement to the
Plan.
k. On homeowners policies,
excessive theft or liability losses.
(2) The Plan shall terminate all insurance
contracts in accordance with Iowa Code sections
515.125,
515.127, and
515.128.
(3) At the completion of 36 months of
coverage and prior to the completion of 48 months, each risk shall be reviewed
for its eligibility for coverage in the voluntary market. The risk shall be
submitted by the Plan to the producer of record, if any, for a search of the
voluntary market. If the producer resubmits the risk to the Plan, the risk must
be resubmitted with a new application and a written statement from the producer
that a search of the voluntary market was performed.
Notes
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