31.08.15.06

.06 Cancellation of Binder or Policy During Underwriting Period.

A. An insurer may cancel a binder or policy during the 45-day underwriting period if the risk does not meet the underwriting standards of the insurer.

B. Cancellation for Reason Other than Nonpayment of Premium.

(1) Except as provided in §B(2) of this regulation, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall:

(a) Provide the insured with a written notice of cancellation that clearly and specifically states the insurerís actual reason for the cancellation; and

(b) Send the notice of cancellation to the named insuredís last known address by a first- class mail tracking method not less than 15 days before the effective date of the cancellation.

(2) With respect to workersí compensation insurance, an insurer that cancels a policy or binder under this regulation for a reason other than nonpayment of premium shall:

(a) Provide the insured with a written notice of cancellation that clearly and specifically states the insurerís actual reason for the cancellation;

(b) Send the notice of cancellation to the named insuredís last known address by a first-class mail tracking method not less than 15 days before the effective date of the cancellation; and

(c) File a copy of the notice of cancellation with the designee of the Workersí Compensation Commission.

C. Cancellation for Nonpayment of Premium.

(1) An insurer that cancels a policy or binder under this regulation for nonpayment of premium shall:

(a) Provide the insured with a written notice of cancellation that states the insurerís intent to cancel the policy or binder for nonpayment of premium; and

(b) Send the notice of cancellation to the named insuredís last known address by a first-class mail tracking method not less than 10 days before the effective date of the cancellation.

(2) In the case of a policy or binder of workersí compensation insurance, the insurer shall comply with the requirements of §C(1) of this regulation and shall file a copy of the notice of cancellation with the designee of the Workersí Compensation Commission.