31 Pa. Code § 61.5 - Notice of cancellation or refusal to renew; requirements
Notices of cancellation or refusal to renew shall meet the following requirements:
(1) The form
shall be clearly labeled: "Notice of Cancellation or Refusal to
Renew."
(2) The form shall be given
to the insured.
(3) The date, not
less than 30 days after the date of delivery or mailing, on which the
cancellation or refusal to renew is to become effective shall be clearly
indicated. If the cancellation or nonrenewal is due to nonpayment of premium
the effective date may be 15 days from the date of delivery or
mailing.
(4) Space shall be
provided for the insurer to provide the specific reasons for the cancellation
or refusal to renew. In the alternative, the insurer may include a statement
that the reasons will be supplied upon the written request of the insured. The
statement shall specify that the request shall be mailed or delivered to the
insurer not less than 20 days prior to the effective date. The statement shall
further indicate that the insurer will supply the reasons within 5 days of its
receipt of the request.
(5) If the
cancellation or refusal to renew is based upon nonpayment of premium and the
insurer notifies the insured less than 30 days prior to the effective date of
the cancellation or nonrenewal, the insurer shall give the insured a period of
at least 10 days to request the specific details of the reason for such
cancellation or nonrenewal.
(6) The
reasons for the cancellation shall be clear and complete. Upon request of the
insured if the cancellation is for nonpayment of premium the insurer shall
specify the amount of premium due, the date when it was due and to whom it was
to be paid. If the premium was financed, the name and address of the
organization financing the premium shall also be given. If the cancellation is
because the driver's license or motor vehicle registration of the named insured
has been under suspension or revocation the notice shall specify the date of
such revocation or suspension and the name of the administrative or judicial
body ordering such action. The reasons for nonrenewal shall be clear and
complete. They shall be stated such that a person of average intelligence and
education can understand them.
(7)
The form shall include advice that the insured has a right to request review of
the insurer's action as provided in §
61.6 (relating to appeal
procedures) within 10 days of receipt of the reasons for cancellation or
nonrenewal. In so doing the notice shall include the following:
(i) Advice that review may be requested by
signing a copy of the form in a space provided and sending it to one of the
regional offices of the Insurance Department.
(ii) The addresses of the four regional
offices of the Insurance Department.
(8) If the reasons for the cancellation or
nonrenewal are not included in the notice, the notice shall include advice that
the insured has a right to request review of the insurer's action within 10
days of receipt of the specific reason for the insurer's action. The statement
of the insurer's reasons shall also comply with the requirements in paragraph
(7).
(9) The form must include
advice to the insured that he or she may be eligible for insurance under the
Pennsylvania Automobile Insurance Plan.
(10) Each provision of the notice shall be
set forth in clear and understandable terms. To assure adequate notice, the
notice shall be set in roman type no smaller than ten point modern type, two
points leaded, except where a larger type size is required.
(11) A recommended form of notice which would
meet the requirements of the foregoing provisions is given in Appendix
A.
(12) A recommended form of
notice which would meet the requirements of the foregoing provisions if the
notice states that reasons for nonrenewal or cancellation will be supplied upon
request of the insured is given in Appendix B.
(13) A recommended form of a statement to the
insured of the reasons for the cancellation or nonrenewal of the policy if the
reasons were not given in the notice to the insured is set forth in Appendix
C.
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