Ask PIA

Ask PIA is a members-only searchable database featuring hundreds of member questions answered by our highly-qualified technical specialists

Browse by topic

Cancellation / nonrenewal issues

290031-00

Premium-financed return premium

We have several trucking policies written through a managing general agent. They are telling us that when they return premiums on premium-financed policies they cannot return the premium to our agency. They say they are required by law to return the premium to the premium-finance company. Is this correct?

290073-00

Nonrenewals and curative attempts by the insured

If a carrier issues a legal and timely notice of nonrewal for failure to provide minimum information necessary to accurately rate the policy, does the policyholder have a chance to provide the information and prevent the nonrenewal?

290165-00

Cancellation of premium-financed policies

If a premium-finance company cancels a policy, is it necessary for a managing general agent to send a cancellation notice to the mortgagee?

290166-00

Agent advances premium, requests cancellation for nonpayment

Can the agent notify certificate holders and additional named insureds when the agent has advanced the premium and then has to request cancellation for nonpayment? We are thinking this might get the client to pay up; otherwise, we will be stuck with a 25% minimum premium charge by the insurance company for this policy.

290276-00

Bank fails to pay insurance premium

My client’s homeowners policy was canceled for nonpayment after the bank which holds the mortgage failed to pay the premium. Subsequently there was a loss. What can my client do?

290315-00

Commercial-lines cancellation—short rate

My client got a commercial policy from a carrier but then we found a better rate for the same coverage elsewhere. He didn’t pay the first month’s premium on time, but plans to pay it. My client received a policy cancellation from the carrier canceling on a short-rate basis. Is this allowed in New Jersey?

900281-00

Cancellation at policyholder’s request—effective date

Is a company required to cancel flat when the policyholder presents evidence that another policy was obtained for the same risk, and became effective on the date the policyholder wants to cancel?