20-1632
|
20-1632. Cancellation, nonrenewal and reduction of limits for reasons other than nonpayment of premium; notices to insured; refund of unearned premium A. A notice by the insurer to the policyholder of nonrenewal, cancellation or reduction in the limits of liability or coverage for reasons other than nonpayment of premium shall be mailed to the named insured by certified mail or United States post office certificate of mailing at least ten days prior to the effective date of such nonrenewal, cancellation or reduction in limits of liability or coverage, except that notice of nonrenewal under section 20-1631, subsection E shall be mailed at least forty-five days before the effective date of the nonrenewal. Such notice shall include or be accompanied by all of the following: 1. A statement in writing of the specific facts which constitute the reasons, consistent with section 20-1631, for such action by the insurer and a notice indicating the named insured's right to complain to the director of the insurer's action within ten days after receipt of the notice by the insured. 2. Notice of the insured's possible eligibility for insurance through the automobile assigned risk plan, and the notice shall state that all information included in the notice is given pursuant to this article. 3. A refund of unearned premium, except a premium that has been financed or remitted to the insurer by a company that is affiliated with the insurer and that bills and collects premiums on the insurer's behalf. In the case of a notice of cancellation or nonrenewal of a policyholder whose premium payment is collected and remitted by the insurer's affiliate, the insurer shall refund any unearned premium to the policyholder within ten days after the policy cancellation. For the purposes of this paragraph, "affiliate" and "affiliated" have the same meaning prescribed in section 20-481. B. Failure of the insurer to comply with subsection A of this section shall invalidate any cancellation, nonrenewal or reduction in limits of liability or coverage. C. If a premium has been financed, a refund of unearned premium shall be returned as provided in section 6-1416. |