CANCELLATION OR REFUSAL TO RENEW COMMERCIAL INSURANCE
417-C:1 Grounds for Cancellation.
I. A notice of cancellation of a policy, to which RSA 417-C:2 applies, shall be effective only if it is based on one or more of the following reasons:
(a) Nonpayment of a premium, including nonpayment of any additional premiums due from an audit conducted in accordance with law for the prior policy term; or
(b) Fraud or material misrepresentation affecting the policy or in the presentation of a claim thereunder, or violation of any of the terms or conditions of the policy; or
(c) A change in the risk that substantially increases a hazard insured against after insurance coverage has been issued or renewed.
II. An insurer shall cancel a policy at the specific request of the insured.
III. Paragraph I shall not apply to any policy or coverage which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.
IV. This section shall not apply to nonrenewal.
Source. 1986, 227:1. 2000, 166:6. 2009, 215:11. 2012, 100:3, eff. July 28, 2012. 2020, 37:42, eff. Sept. 27, 2020. 2021, 50:2, eff. July 24, 2021.
417-C:2 Notice of Cancellation.
I. No notice of cancellation shall be effective unless mailed, physically delivered, or electronically delivered by the insurer or its agent to the named insureds at least 60 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium or substantial increase in hazard, or the cancellation notice is mailed, physically delivered, or electronically delivered within the first 60 days of the effective date for new policies, at least 10 days' notice of cancellation shall be given. In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's compliance with the requirement that the reason for cancellation be specified.
II. The commissioner shall have the authority to waive any provision of paragraph I upon the written request of an insurer specifying the reasons therefor.
III. This section shall not apply to nonrenewal.
Source. 1986, 227:1. 2000, 166:7. 2002, 207:20. 2009, 215:12, eff. Sept. 13, 2009. 2018, 132:7, eff. July 29, 2018. 2021, 57:4, eff. July 24, 2021.
417-C:3 Notice of Nonrenewal.
No insurer shall refuse to renew a policy at its expiration or anniversary if written for a term of more than one year unless such insurer or its agent shall mail, physically deliver, or electronically deliver to the named insureds advance notice of its intention not to renew. The notice shall be at least 60 days in advance of the policy's scheduled expiration or anniversary date. If all or any part of the 60-day notice is not in advance of the expiration or anniversary date, renewal coverage shall be provided on the same terms and conditions as the expiring policy until the 60-day notice requirement has been fulfilled. This section shall not apply in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. However, notwithstanding the failure of an insurer to comply with this section, any coverage shall terminate on the effective date of any other coverage acquired by the insured to the extent the acquired coverage substantially duplicates coverages of the renewal. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.
Source. 1986, 227:1. 2002, 207:21, eff. May 16, 2002. 2021, 57:4, eff. July 24, 2021.
417-C:4 Renewals; Premiums.
I. Any renewal premium increase in excess of 25 percent is controlled by the provisions of RSA 417-C:3. The notice may indicate that renewal is conditioned upon the premium increase without reference to nonrenewal.
II. Any renewal premium increase of 25 percent or less shall not be implemented until the insured has had a minimum of 30 days' notice of the renewal premium.
III. If the applicable 60-day notice period required by RSA 417-C:3 or 30-day notice period required by paragraph II is not satisfied in advance of the policy's scheduled expiration or anniversary date, renewal coverage shall be provided, on a pro rata basis, at the rates or premiums in effect under the expiring policy until the applicable 60-day or 30-day notice requirement has been fulfilled. This paragraph shall not apply if the insured accepts the renewal policy.
IV. Development of renewal premium for the purpose of determining the percentage of change from expiring premium shall be based on the same coverages, conditions, and ratable exposures as those contained in the expiring policy.
Source. 1986, 227:1. 2002, 207:22, eff. May 16, 2002. 2021, 57:4, eff. July 24, 2021.
417-C:5 Repealed by 2002, 207:23, eff. May 16, 2002.
Scope of Chapter
417-C:6 Scope of Chapter.
This chapter shall only apply to policies of insurance providing fire, inland marine, multi-peril, casualty and liability policies, and shall not apply to mortgage guaranty insurance, surety bonds, workers' compensation policies regulated under RSA 281-A or any policies provided and controlled by RSA 417-A or RSA 417-B.
Source. 2002, 207:18. 2009, 215:13. 2015, 92:1, eff. Aug. 4, 2015.