20-1677. Notice of premium or coverage
changes
A. An insurer shall mail or deliver to the named insured at the mailing address
shown on the policy written notice of premium increase, change in deductible or reduction
in limits or substantial reduction in coverage at least sixty days before the expiration
date of the policy. If the insurer fails to provide the sixty days' notice, the coverage
provided to the named insured remains in effect until notice is given or until the
effective date of replacement coverage obtained by the named insured, whichever occurs
first.
B. Notice is considered given sixty days following the date of mailing or delivery
of the notice. If the insured elects not to renew, any earned premium for the period of
extension of the terminated policy shall be calculated pro rata at the lower of the
current or previous year's rate. If the insured accepts the renewal, the premium
increase, if any, and other changes are effective the day following the prior policy's
expiration or anniversary date.
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