IC 27-1-31

    

Chapter 31. Cancellation and Nonrenewal of Commercial
Property and Casualty Insurance


IC 27-1-31-1

Application of chapter

    

Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to all lines of commercial property and casualty insurance.

    (b) This chapter:

        (1) does not apply to the cancellation or nonrenewal of
automobile insurance policies, as restricted under IC 27-7-6;
and

        (2) does not affect requirements applying to:

            (A) the cancellation of medical malpractice insurance
policies under IC 34-18-13-4 (or IC 27-12-13-4 before its
repeal); or

            (B) the cancellation of property or liability insurance by a
creditor under IC 24-4.5-4-304.

As added by P.L.271-1987, SEC.4. Amended by P.L.2-1993,
SEC.149; P.L.224-1993, SEC.1; P.L.1-1998, SEC.148.


IC 27-1-31-2

Grounds for cancellation; notice of cancellation

    

Sec. 2. (a) An insurer may not cancel a policy of insurance that
the insurer has written that has been in effect more than ninety (90)
days unless:

        (1) the insured under the policy has failed to pay the premium;

        (2) there is a substantial change in the scale of risk covered by
the policy;

        (3) the insured has perpetrated a fraud or material
misrepresentation upon the insurer;

        (4) the insured has failed to comply with reasonable safety
recommendations; or

        (5) reinsurance of the risk associated with the policy has been
cancelled.

    (b) An insurer shall provide a written notice of cancellation to a
person insured under a policy issued by the insurer at least:

        (1) forty-five (45) days before cancelling the policy for any
reason set forth in subsection (a)(2), (a)(4), or (a)(5);

        (2) twenty (20) days before cancelling the policy for the reason
set forth in subsection (a)(3); or

        (3) ten (10) days before cancelling the policy for the reason set
forth in subsection (a)(1).

As added by P.L.271-1987, SEC.4. Amended by P.L.162-1988,
SEC.3.


IC 27-1-31-2.5

Notice of cancellation

    

Sec. 2.5. An insurer may cancel a policy of insurance that the
insurer has written that has been in effect ninety (90) days or less by


providing a written notice of cancellation to a person insured under
the policy at least:

        (1) ten (10) days before cancelling if an insured has failed to
pay a premium;

        (2) twenty (20) days before cancelling if the insured has
perpetrated a fraud or material misrepresentation upon the
insurer; or

        (3) thirty (30) days before cancelling for any other reason.

As added by P.L.162-1988, SEC.4.


IC 27-1-31-3

Notice of nonrenewal

    

Sec. 3. (a) If an insurer refuses to renew a policy of insurance
written by the insurer, the insurer shall provide written notice of
nonrenewal to the insured:

        (1) at least forty-five (45) days before the expiration date of the
policy, if the coverage provided is for one (1) year, or less; or

        (2) at least forty-five (45) days before the anniversary date of
the policy, if the coverage provided is for more than one (1)
year.

    (b) A notice of nonrenewal is not required if:

        (1) the insured is transferred from an insurer to an affiliate of
the insurer for future coverage as a result of a merger, an
acquisition, or a company restructuring;

        (2) the transfer results in the same or broader coverage; and

        (3) the insured approves the transfer.

As added by P.L.271-1987, SEC.4. Amended by P.L.160-2003,
SEC.23.