If you have not registered for members-only sevices from PIA click here.
Browse by topic
Cancellation / nonrenewal issues
Calculating the 60-45 day-notice time frame for personal lines
An insurance company sent a homeowner client of ours a nonrenewal notice. It was mailed on Oct. 1, and the policy expiration date is Nov. 30. Is this a valid nonrenewal notice, or did they send it too soon? It seems to us that they provided 61 days’ notice, which is outside the statutory time frame.
No short-rate for premium-financed policies
What is the minimum-earned premium rule of premium-financed policies?
Cancellation—premium-financed policies
Is an insurance company required to issue its own cancellation notice to the policyholder when a premium-financed policy is canceled for nonpayment?
Company not required to forego earned premium, accept LPR
We issued a binder for a client. Ultimately, they decided to go with another carrier instead. This was a year ago. The carrier is billing for the earned premium and it will not accept a lost policy release to cancel flat. We sent the carrier a copy of the other carrier’s policy, but this did not change its mind. Is the carrier required to accept the lost policy release?
Termination rights under Section 3425(j) extend to brokers
As an insurance wholesaler, our firm accepts business from licensed insurance brokers. If we terminate a broker’s agreement, is the broker entitled to certain protections under Section 3425(j) of the Insurance Law for the personal lines policies placed pursuant to the agreement?
Commercial insurance policy cancellation based on an insured’s failure to comply with an insurer’s recommendations
Is an insured’s failure to comply with an insurer’s recommendations, in and of itself, a valid basis for canceling a new or renewed commercial-lines insurance policy?
Cancellation/nonrenewal—workers’ compensation
Are workers’ compensation policies subject to the cancellation/nonrenewal rules of New York State Insurance Law Section 3426?
Renewal conditioned upon a new application
Sometimes our insured does not return their professional liability renewal application prior to the policy expiration; or does complete the application, receives a renewal proposal, but then does not order the renewal before expiration. Can the insurer expire the policy without further notice?
Cancellation notices—producers
Must an insurer that cancels an insurance policy in accordance with New York Insurance Law Section 3425 provide cancellation notices to all insurance agents and brokers that may be within the chain of producers of a particular policy?
Authorized representative to receive cancellation notice
Is a cancellation notice effective if an insurance company fails to provide cancellation notice to the authorized insurance agent or broker that the insured designates to receive information on the insured’s behalf?
Cancelling binders
Are insurance carriers allowed to retract/cancel a binder after it has been issued if they discover losses during the underwriting process?
Can an insurer require cancelling an auto policy to cancel a homeowners policy?
I have a client who has their home and auto with the same insurer. The client wants to cancel their homeowners policy, but the insurer is saying they need to cancel their auto policy too. Is this allowed?
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?