Insurers would give 90 days' notice before many coverage changes

Insurers would give 90 days' notice before covered cancellations, refusals to renew, or renewals with higher prices or worse terms. The rules cover certain policy nonrenewals and renewal changes, separate home and auto policies, and anniversary cancellations of longer-than-one-year or indefinite policies with a cancellation clause. Cancellation for unpaid premiums would require at least 10 days' notice for covered auto policies and at least 20 days for home policies. General nonrenewal rules would allow other statutory deadlines or longer policy deadlines. They would exclude customers who obtain or accept replacement coverage, request or agree to nonrenewal, or have policies expressly labeled nonrenewable. The rule for worse renewal terms would exclude rate changes caused by a changed type or amount of insured risk. Auto nonrenewal rules would exclude unpaid premiums, an insurer willing to renew, or acceptable replacement coverage secured by an agent or broker at least 20 days before the policy anniversary or end date. The 90-day notice would come before cancellation, policy expiration, or the anniversary date, depending on the rule.

Insurers or insurance agents would explain decisions to cancel or refuse to renew covered policies. The provisions cover general cancellation and nonrenewal notices, with separate requirements for home insurance and auto insurance that covers harm to others. The general duty to provide information behind the decision would not apply when unpaid premiums are the reason and the notice says so. Home and covered auto cancellation notices would still need to state the reason when cancellation is for unpaid premiums. Auto nonrenewal requirements would have exceptions for unpaid premiums, an insurer willing to renew, and certain replacement coverage. Under the general disclosure rule, insurers or agents would provide the information behind their decision when sending the cancellation or nonrenewal notice.

Customers could fix stated problems, and insurers would consider their efforts before deciding whether to renew. The provisions cover policy nonrenewals, including insurance on homes where customers live, and covered auto cancellation notices. Customers could send proof of their fixes. Insurers would consider the fixes, but renewal would not be guaranteed. General nonrenewal protections would exclude customers who obtain or accept replacement coverage, request or agree to nonrenewal, or have policies expressly labeled nonrenewable. A separate provision would let customers address reasons in covered auto cancellation notices and require insurers to consider those actions. Customers would need to address the stated problems within the applicable notice period.