IC 27-7-6
Chapter 6. Cancellation of Automobile Insurance Policies
IC 27-7-6-1 Limitations on power of issuance, cancellation, and nonrenewal
Sec. 1. The issuance, cancellation, and nonrenewal of automobile
insurance policies by insurers shall be subject to the limitations set
out in this chapter. (Formerly: Acts 1969, c.332, s.1.) As amended by P.L.252-1985,
SEC.263; P.L.121-1990, SEC.8.
IC 27-7-6-2 "Automobile insurance policy", "automobile liability coverage",
and "policy" defined
Sec. 2. "Automobile insurance policy" means a policy delivered
or issued for delivery in this state or covering a motor vehicle
required to be registered in this state providing coverage for bodily
injury and property damage liability, medical payments, and
uninsured motorists or any combination thereof, and insuring as the
named insured a natural person or more than one (1) natural persons
related to each other, resident of the same household, and under
which the insured vehicles therein designated are as:
(a) a motor vehicle of the private passenger or station wagon
type that is not used as a public or livery conveyance for
passengers, nor rented to others; or
(b) any other four-wheel motor vehicle with a load capacity of
one thousand five hundred (1,500) pounds or less which is not
used in the occupation, profession, or business of the insured;
provided, however, that this chapter shall not apply:
(1) to any policy issued under an automobile assigned risk
plan;
(2) to any policy insuring more than four (4) automobiles; or
(3) to pay policy covering garage, automobile sales agency,
repair shop, service station, or public parking place
operation hazards.
"Automobile liability coverage" includes only coverage of bodily
injury and property damage liability, medical payments and
uninsured motorists coverage.
"Policy" shall be deemed to mean a policy providing automobile
liability coverage. (Formerly: Acts 1969, c.332, s.2.) As amended by P.L.252-1985,
SEC.264.
IC 27-7-6-3 "Renewal" or "to renew" defined
Sec. 3. "Renewal" or "to renew" means the issuance and delivery
by an insurer of a policy replacing at the end of the policy period a
policy previously issued and delivered by the same insurer insuring
the same insured, or the issuance and delivery of a certificate or
notice extending the term of a policy beyond its policy period or
term; provided, however, that any policy with a policy period or term
of six (6) months or less and any policy with no fixed expiration date
shall for the purposes of this chapter be considered as if written for
a policy period or term of six (6) months; and provided further, that
any policy written for a term longer than one (1) year shall for the
purposes of this chapter be considered as if written for successive
policy periods or terms of one (1) year, and such policy may be
terminated by the insurer at the expiration of any annual period upon
giving twenty (20) days notice of cancellation prior to such
anniversary date, and such cancellation shall not be subject to any
other provisions of this chapter. (Formerly: Acts 1969, c.332, s.3.) As amended by P.L.252-1985,
SEC.265.
IC 27-7-6-4 Notice of cancellation; authorized reasons
Sec. 4. A notice of cancellation by an insurer of an automobile
insurance policy as defined in this chapter shall be effective only if
such cancellation is for one (1) or more of the following reasons:
(a) Nonpayment of premium which is defined to mean for the
purposes of this chapter the failure of the named insured to
discharge when due any of his obligations in connection with
the payment of premiums on a policy, or any installment of such
premium whether the premium is payable directly to the insurer
or its agent or indirectly under any premium finance plan or
extension of credit.
(b) The driver's license or motor vehicle registration of the
named insured or of any other operator who either resides in the
same household or customarily operates an automobile insured
under the policy has been denied or has been under suspension
or revocation during the policy period or the existence of one
(1) or more grounds for such denial, suspension, or revocation
has become known.
(c) The named insured or any other operator who either resides
in the same household or customarily operates an automobile
insured under the policy:
(1) is under treatment for epilepsy or heart disease and does
not produce a certificate from a physician testifying to the
operator's unqualified ability to operate a motor vehicle
safely; or
(2) uses drugs or alcoholic beverages to excess.
(d) Fraud, willful misrepresentation, or concealment on the part
of any insured in respect to any material fact or circumstance
relating to the issuance or continuance of the policy or relating
to a loss.
(e) Violation of any terms or conditions of the policy.
(f) The place of residence of the insured or the state of
registration or license of the insured automobile is changed to
a state or country in which the insurer is not licensed.
Provided, however, that a change or substitution in policy form shall
not be deemed to be a cancellation within the intent of this chapter;
provided, further, that nothing in this section shall apply to
nonrenewals. This section shall not apply to any policy or coverage
which has been in effect less than sixty (60) days at the time notice
of cancellation is mailed or delivered by the insurer unless it is a
renewal policy. (Formerly: Acts 1969, c.332, s.4.) As amended by P.L.252-1985,
SEC.266.
IC 27-7-6-5 Notice of cancellation; time for mailing or delivery; notice to
insurance producer
Sec. 5. No notice of cancellation of a policy to which section 4 of
this chapter applies shall be effective unless mailed or delivered by
the insurer to the named insured at least twenty (20) days prior to the
effective date of cancellation; provided, however, that where
cancellation is for nonpayment of premium at least ten (10) days
notice of cancellation accompanied by the reason therefor shall be
given. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana, notice of intent to
cancel shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer. Unless the reason accompanies or is included in
the notice of cancellation, the notice of cancellation shall state or be
accompanied by a statement that upon written request of the named
insured, mailed or delivered to the insurer not less than fifteen (15)
days prior to the effective date of cancellation, the insurer will
specify the reason for such cancellation. This section shall not apply
to nonrenewal. (Formerly: Acts 1969, c.332, s.5.) As amended by P.L.252-1985,
SEC.267; P.L.178-2003, SEC.45.
IC 27-7-6-6 Notice of intention not to renew; time for mailing or delivery;
notice to insurance producer
Sec. 6. (a) No insurer shall fail to renew a policy unless it shall
mail or deliver to the named insured, at the address shown in the
policy, at least twenty (20) days' advance notice of its intention not
to renew. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana notice of intent not to
renew shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer.
(b) This section shall not apply:
(1) if the insurer has manifested its willingness to renew; or
(2) in case of nonpayment of premium.
However, notwithstanding the failure of an insurer to comply with
this section, the policy shall terminate on the effective date of any
other insurance policy with respect to any automobile designated in
both policies.
(c) A notice of intention not to renew 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.
(d) Renewal of a policy shall not constitute a waiver or estoppel
with respect to grounds for cancellation which existed before the
effective date of such renewal. (Formerly: Acts 1969, c.332, s.6.) As amended by P.L.160-2003,
SEC.24; P.L.178-2003, SEC.46; P.L.97-2004, SEC.98.
IC 27-7-6-7 Proof of mailing notice
Sec. 7. Proof of mailing of notice of cancellation, or of intention
not to renew or of reasons for cancellation, to the named insured at
the address shown in the policy shall be sufficient proof of notice. (Formerly: Acts 1969, c.332, s.7.)
IC 27-7-6-8 Notice of possible eligibility under assigned risk plan
Sec. 8. When a policy providing automobile liability coverage is
cancelled, other than for nonpayment of premium, or in the event of
failure to renew a policy providing automobile liability coverage to
which section 6 of this chapter applies, the insurer shall notify the
named insured of his possible eligibility for automobile liability
insurance through other insurers or through the automobile liability
assigned risk plan. Such notice shall accompany or be included in the
notice of cancellation or the notice of intent not to renew. (Formerly: Acts 1969, c.332, s.8.) As amended by P.L.252-1985,
SEC.268.
IC 27-7-6-9 Compliance with request for reason for cancellation or
nonrenewal; time limits
Sec. 9. Where the reason for cancellation does not accompany or
is not included in the notice of cancellation, the insurer shall upon
written request of the named insured, mailed or delivered to the
insurer not less than fifteen (15) days prior to the effective date of
cancellation, specify in writing the reason for such cancellation. Such
reason shall be mailed or delivered to the named insured within five
(5) days after receipt of such request. (Formerly: Acts 1969, c.332, s.9.)
IC 27-7-6-10 Exemption from liability for statements made in giving reasons for
cancellation or nonrenewal
Sec. 10. There shall be no liability on the part of and no cause of
action of any nature shall arise against the commissioner of insurance
or against any insurer, its authorized representative, its insurance
producers, its employees, or any firm, person, limited liability
company, or corporation furnishing to the insurer information as to
reasons for cancellation, for any statement made by any of them in
any written notice of cancellation, or in any other communication,
oral or written specifying the reasons for cancellation, or the
providing of information pertaining thereto, or for statements made
or evidence submitted at any hearings conducted in connection
therewith. (Formerly: Acts 1969, c.332, s.10.) As amended by P.L.8-1993,
SEC.426; P.L.178-2003, SEC.47.
IC 27-7-6-11 Dispute as to truth of reason for cancellation; hearing; findings;
effect; fee
Sec. 11. (a) In the event the truth of the reason or reasons for
cancellation is disputed by the named insured, the insured may, not
later than ten (10) days prior to the effective date of such
cancellation, apply in writing to the commissioner of insurance for
a hearing. Such application shall state wherein such reason or
reasons are false and a copy of such application shall be mailed or
delivered to the insurer on the same date it is submitted to the
commissioner.
(b) If the commissioner finds that the application was made in
good faith and does in fact present a dispute as to the truth or
existence of valid grounds for cancellation, the commissioner shall,
within a reasonable time after receipt of such application and upon
ten (10) days notice to the named insured and the insurer, hold a
hearing on the matter. The findings of the commissioner shall be
final and shall be issued in writing to the parties within five (5) days
after the hearing.
(c) In the event of a finding that no reason for cancellation in fact
exists, the cancellation shall be of no effect and the notice shall be
rescinded.
(d) In the event of a finding that one (1) or more reasons for
cancellation do in fact exist, the cancellation shall be effective as of
the date stated in the cancellation notice.
(e) No investigation, defense, or other action undertaken by the
insurer during the period between the date of cancellation stated in
the notice and the date the commissioner issued findings shall be
deemed a waiver of any rights or defenses on the part of such insurer.
(f) Any application for a hearing shall be accompanied by a filing
fee of twenty dollars ($20) as a condition precedent to such hearing.
Such fee shall be returned to the named insured if the finding is in
the insured's favor, but otherwise shall be retained by the department
of insurance. (Formerly: Acts 1969, c.332, s.11.) As amended by P.L.3-1989,
SEC.154. IC 27-7-6-12 Person with a disability; automobile policy
Sec. 12. (a) As used in this section, "person with a disability"
means a person who is under a disability as defined by the federal
Social Security Administration guidelines (42 U.S.C. 416).
(b) After June 30, 1990, an insurer may not cancel, fail to renew,
or refuse to issue an automobile insurance policy to a person with a
disability who holds a valid driver's license solely because of the
disability, nor may an insurer cancel, fail to renew, or refuse to issue
an automobile insurance policy under conditions less favorable to
persons with a disability than persons without a disability. As added by P.L.121-1990, SEC.9. Amended by P.L.99-2007,
SEC.191.
IC 27-7-6
Chapter 6. Cancellation of Automobile Insurance Policies
IC 27-7-6-1 Limitations on power of issuance, cancellation, and nonrenewal
Sec. 1. The issuance, cancellation, and nonrenewal of automobile
insurance policies by insurers shall be subject to the limitations set
out in this chapter. (Formerly: Acts 1969, c.332, s.1.) As amended by P.L.252-1985,
SEC.263; P.L.121-1990, SEC.8.
IC 27-7-6-2 "Automobile insurance policy", "automobile liability coverage",
and "policy" defined
Sec. 2. "Automobile insurance policy" means a policy delivered
or issued for delivery in this state or covering a motor vehicle
required to be registered in this state providing coverage for bodily
injury and property damage liability, medical payments, and
uninsured motorists or any combination thereof, and insuring as the
named insured a natural person or more than one (1) natural persons
related to each other, resident of the same household, and under
which the insured vehicles therein designated are as:
(a) a motor vehicle of the private passenger or station wagon
type that is not used as a public or livery conveyance for
passengers, nor rented to others; or
(b) any other four-wheel motor vehicle with a load capacity of
one thousand five hundred (1,500) pounds or less which is not
used in the occupation, profession, or business of the insured;
provided, however, that this chapter shall not apply:
(1) to any policy issued under an automobile assigned risk
plan;
(2) to any policy insuring more than four (4) automobiles; or
(3) to pay policy covering garage, automobile sales agency,
repair shop, service station, or public parking place
operation hazards.
"Automobile liability coverage" includes only coverage of bodily
injury and property damage liability, medical payments and
uninsured motorists coverage.
"Policy" shall be deemed to mean a policy providing automobile
liability coverage. (Formerly: Acts 1969, c.332, s.2.) As amended by P.L.252-1985,
SEC.264.
IC 27-7-6-3 "Renewal" or "to renew" defined
Sec. 3. "Renewal" or "to renew" means the issuance and delivery
by an insurer of a policy replacing at the end of the policy period a
policy previously issued and delivered by the same insurer insuring
the same insured, or the issuance and delivery of a certificate or
notice extending the term of a policy beyond its policy period or
term; provided, however, that any policy with a policy period or term
of six (6) months or less and any policy with no fixed expiration date
shall for the purposes of this chapter be considered as if written for
a policy period or term of six (6) months; and provided further, that
any policy written for a term longer than one (1) year shall for the
purposes of this chapter be considered as if written for successive
policy periods or terms of one (1) year, and such policy may be
terminated by the insurer at the expiration of any annual period upon
giving twenty (20) days notice of cancellation prior to such
anniversary date, and such cancellation shall not be subject to any
other provisions of this chapter. (Formerly: Acts 1969, c.332, s.3.) As amended by P.L.252-1985,
SEC.265.
IC 27-7-6-4 Notice of cancellation; authorized reasons
Sec. 4. A notice of cancellation by an insurer of an automobile
insurance policy as defined in this chapter shall be effective only if
such cancellation is for one (1) or more of the following reasons:
(a) Nonpayment of premium which is defined to mean for the
purposes of this chapter the failure of the named insured to
discharge when due any of his obligations in connection with
the payment of premiums on a policy, or any installment of such
premium whether the premium is payable directly to the insurer
or its agent or indirectly under any premium finance plan or
extension of credit.
(b) The driver's license or motor vehicle registration of the
named insured or of any other operator who either resides in the
same household or customarily operates an automobile insured
under the policy has been denied or has been under suspension
or revocation during the policy period or the existence of one
(1) or more grounds for such denial, suspension, or revocation
has become known.
(c) The named insured or any other operator who either resides
in the same household or customarily operates an automobile
insured under the policy:
(1) is under treatment for epilepsy or heart disease and does
not produce a certificate from a physician testifying to the
operator's unqualified ability to operate a motor vehicle
safely; or
(2) uses drugs or alcoholic beverages to excess.
(d) Fraud, willful misrepresentation, or concealment on the part
of any insured in respect to any material fact or circumstance
relating to the issuance or continuance of the policy or relating
to a loss.
(e) Violation of any terms or conditions of the policy.
(f) The place of residence of the insured or the state of
registration or license of the insured automobile is changed to
a state or country in which the insurer is not licensed.
Provided, however, that a change or substitution in policy form shall
not be deemed to be a cancellation within the intent of this chapter;
provided, further, that nothing in this section shall apply to
nonrenewals. This section shall not apply to any policy or coverage
which has been in effect less than sixty (60) days at the time notice
of cancellation is mailed or delivered by the insurer unless it is a
renewal policy. (Formerly: Acts 1969, c.332, s.4.) As amended by P.L.252-1985,
SEC.266.
IC 27-7-6-5 Notice of cancellation; time for mailing or delivery; notice to
insurance producer
Sec. 5. No notice of cancellation of a policy to which section 4 of
this chapter applies shall be effective unless mailed or delivered by
the insurer to the named insured at least twenty (20) days prior to the
effective date of cancellation; provided, however, that where
cancellation is for nonpayment of premium at least ten (10) days
notice of cancellation accompanied by the reason therefor shall be
given. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana, notice of intent to
cancel shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer. Unless the reason accompanies or is included in
the notice of cancellation, the notice of cancellation shall state or be
accompanied by a statement that upon written request of the named
insured, mailed or delivered to the insurer not less than fifteen (15)
days prior to the effective date of cancellation, the insurer will
specify the reason for such cancellation. This section shall not apply
to nonrenewal. (Formerly: Acts 1969, c.332, s.5.) As amended by P.L.252-1985,
SEC.267; P.L.178-2003, SEC.45.
IC 27-7-6-6 Notice of intention not to renew; time for mailing or delivery;
notice to insurance producer
Sec. 6. (a) No insurer shall fail to renew a policy unless it shall
mail or deliver to the named insured, at the address shown in the
policy, at least twenty (20) days' advance notice of its intention not
to renew. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana notice of intent not to
renew shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer.
(b) This section shall not apply:
(1) if the insurer has manifested its willingness to renew; or
(2) in case of nonpayment of premium.
However, notwithstanding the failure of an insurer to comply with
this section, the policy shall terminate on the effective date of any
other insurance policy with respect to any automobile designated in
both policies.
(c) A notice of intention not to renew 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.
(d) Renewal of a policy shall not constitute a waiver or estoppel
with respect to grounds for cancellation which existed before the
effective date of such renewal. (Formerly: Acts 1969, c.332, s.6.) As amended by P.L.160-2003,
SEC.24; P.L.178-2003, SEC.46; P.L.97-2004, SEC.98.
IC 27-7-6-7 Proof of mailing notice
Sec. 7. Proof of mailing of notice of cancellation, or of intention
not to renew or of reasons for cancellation, to the named insured at
the address shown in the policy shall be sufficient proof of notice. (Formerly: Acts 1969, c.332, s.7.)
IC 27-7-6-8 Notice of possible eligibility under assigned risk plan
Sec. 8. When a policy providing automobile liability coverage is
cancelled, other than for nonpayment of premium, or in the event of
failure to renew a policy providing automobile liability coverage to
which section 6 of this chapter applies, the insurer shall notify the
named insured of his possible eligibility for automobile liability
insurance through other insurers or through the automobile liability
assigned risk plan. Such notice shall accompany or be included in the
notice of cancellation or the notice of intent not to renew. (Formerly: Acts 1969, c.332, s.8.) As amended by P.L.252-1985,
SEC.268.
IC 27-7-6-9 Compliance with request for reason for cancellation or
nonrenewal; time limits
Sec. 9. Where the reason for cancellation does not accompany or
is not included in the notice of cancellation, the insurer shall upon
written request of the named insured, mailed or delivered to the
insurer not less than fifteen (15) days prior to the effective date of
cancellation, specify in writing the reason for such cancellation. Such
reason shall be mailed or delivered to the named insured within five
(5) days after receipt of such request. (Formerly: Acts 1969, c.332, s.9.)
IC 27-7-6-10 Exemption from liability for statements made in giving reasons for
cancellation or nonrenewal
Sec. 10. There shall be no liability on the part of and no cause of
action of any nature shall arise against the commissioner of insurance
or against any insurer, its authorized representative, its insurance
producers, its employees, or any firm, person, limited liability
company, or corporation furnishing to the insurer information as to
reasons for cancellation, for any statement made by any of them in
any written notice of cancellation, or in any other communication,
oral or written specifying the reasons for cancellation, or the
providing of information pertaining thereto, or for statements made
or evidence submitted at any hearings conducted in connection
therewith. (Formerly: Acts 1969, c.332, s.10.) As amended by P.L.8-1993,
SEC.426; P.L.178-2003, SEC.47.
IC 27-7-6-11 Dispute as to truth of reason for cancellation; hearing; findings;
effect; fee
Sec. 11. (a) In the event the truth of the reason or reasons for
cancellation is disputed by the named insured, the insured may, not
later than ten (10) days prior to the effective date of such
cancellation, apply in writing to the commissioner of insurance for
a hearing. Such application shall state wherein such reason or
reasons are false and a copy of such application shall be mailed or
delivered to the insurer on the same date it is submitted to the
commissioner.
(b) If the commissioner finds that the application was made in
good faith and does in fact present a dispute as to the truth or
existence of valid grounds for cancellation, the commissioner shall,
within a reasonable time after receipt of such application and upon
ten (10) days notice to the named insured and the insurer, hold a
hearing on the matter. The findings of the commissioner shall be
final and shall be issued in writing to the parties within five (5) days
after the hearing.
(c) In the event of a finding that no reason for cancellation in fact
exists, the cancellation shall be of no effect and the notice shall be
rescinded.
(d) In the event of a finding that one (1) or more reasons for
cancellation do in fact exist, the cancellation shall be effective as of
the date stated in the cancellation notice.
(e) No investigation, defense, or other action undertaken by the
insurer during the period between the date of cancellation stated in
the notice and the date the commissioner issued findings shall be
deemed a waiver of any rights or defenses on the part of such insurer.
(f) Any application for a hearing shall be accompanied by a filing
fee of twenty dollars ($20) as a condition precedent to such hearing.
Such fee shall be returned to the named insured if the finding is in
the insured's favor, but otherwise shall be retained by the department
of insurance. (Formerly: Acts 1969, c.332, s.11.) As amended by P.L.3-1989,
SEC.154. IC 27-7-6-12 Person with a disability; automobile policy
Sec. 12. (a) As used in this section, "person with a disability"
means a person who is under a disability as defined by the federal
Social Security Administration guidelines (42 U.S.C. 416).
(b) After June 30, 1990, an insurer may not cancel, fail to renew,
or refuse to issue an automobile insurance policy to a person with a
disability who holds a valid driver's license solely because of the
disability, nor may an insurer cancel, fail to renew, or refuse to issue
an automobile insurance policy under conditions less favorable to
persons with a disability than persons without a disability. As added by P.L.121-1990, SEC.9. Amended by P.L.99-2007,
SEC.191.
IC 27-7-6
Chapter 6. Cancellation of Automobile Insurance Policies
IC 27-7-6-1 Limitations on power of issuance, cancellation, and nonrenewal
Sec. 1. The issuance, cancellation, and nonrenewal of automobile
insurance policies by insurers shall be subject to the limitations set
out in this chapter. (Formerly: Acts 1969, c.332, s.1.) As amended by P.L.252-1985,
SEC.263; P.L.121-1990, SEC.8.
IC 27-7-6-2 "Automobile insurance policy", "automobile liability coverage",
and "policy" defined
Sec. 2. "Automobile insurance policy" means a policy delivered
or issued for delivery in this state or covering a motor vehicle
required to be registered in this state providing coverage for bodily
injury and property damage liability, medical payments, and
uninsured motorists or any combination thereof, and insuring as the
named insured a natural person or more than one (1) natural persons
related to each other, resident of the same household, and under
which the insured vehicles therein designated are as:
(a) a motor vehicle of the private passenger or station wagon
type that is not used as a public or livery conveyance for
passengers, nor rented to others; or
(b) any other four-wheel motor vehicle with a load capacity of
one thousand five hundred (1,500) pounds or less which is not
used in the occupation, profession, or business of the insured;
provided, however, that this chapter shall not apply:
(1) to any policy issued under an automobile assigned risk
plan;
(2) to any policy insuring more than four (4) automobiles; or
(3) to pay policy covering garage, automobile sales agency,
repair shop, service station, or public parking place
operation hazards.
"Automobile liability coverage" includes only coverage of bodily
injury and property damage liability, medical payments and
uninsured motorists coverage.
"Policy" shall be deemed to mean a policy providing automobile
liability coverage. (Formerly: Acts 1969, c.332, s.2.) As amended by P.L.252-1985,
SEC.264.
IC 27-7-6-3 "Renewal" or "to renew" defined
Sec. 3. "Renewal" or "to renew" means the issuance and delivery
by an insurer of a policy replacing at the end of the policy period a
policy previously issued and delivered by the same insurer insuring
the same insured, or the issuance and delivery of a certificate or
notice extending the term of a policy beyond its policy period or
term; provided, however, that any policy with a policy period or term
of six (6) months or less and any policy with no fixed expiration date
shall for the purposes of this chapter be considered as if written for
a policy period or term of six (6) months; and provided further, that
any policy written for a term longer than one (1) year shall for the
purposes of this chapter be considered as if written for successive
policy periods or terms of one (1) year, and such policy may be
terminated by the insurer at the expiration of any annual period upon
giving twenty (20) days notice of cancellation prior to such
anniversary date, and such cancellation shall not be subject to any
other provisions of this chapter. (Formerly: Acts 1969, c.332, s.3.) As amended by P.L.252-1985,
SEC.265.
IC 27-7-6-4 Notice of cancellation; authorized reasons
Sec. 4. A notice of cancellation by an insurer of an automobile
insurance policy as defined in this chapter shall be effective only if
such cancellation is for one (1) or more of the following reasons:
(a) Nonpayment of premium which is defined to mean for the
purposes of this chapter the failure of the named insured to
discharge when due any of his obligations in connection with
the payment of premiums on a policy, or any installment of such
premium whether the premium is payable directly to the insurer
or its agent or indirectly under any premium finance plan or
extension of credit.
(b) The driver's license or motor vehicle registration of the
named insured or of any other operator who either resides in the
same household or customarily operates an automobile insured
under the policy has been denied or has been under suspension
or revocation during the policy period or the existence of one
(1) or more grounds for such denial, suspension, or revocation
has become known.
(c) The named insured or any other operator who either resides
in the same household or customarily operates an automobile
insured under the policy:
(1) is under treatment for epilepsy or heart disease and does
not produce a certificate from a physician testifying to the
operator's unqualified ability to operate a motor vehicle
safely; or
(2) uses drugs or alcoholic beverages to excess.
(d) Fraud, willful misrepresentation, or concealment on the part
of any insured in respect to any material fact or circumstance
relating to the issuance or continuance of the policy or relating
to a loss.
(e) Violation of any terms or conditions of the policy.
(f) The place of residence of the insured or the state of
registration or license of the insured automobile is changed to
a state or country in which the insurer is not licensed.
Provided, however, that a change or substitution in policy form shall
not be deemed to be a cancellation within the intent of this chapter;
provided, further, that nothing in this section shall apply to
nonrenewals. This section shall not apply to any policy or coverage
which has been in effect less than sixty (60) days at the time notice
of cancellation is mailed or delivered by the insurer unless it is a
renewal policy. (Formerly: Acts 1969, c.332, s.4.) As amended by P.L.252-1985,
SEC.266.
IC 27-7-6-5 Notice of cancellation; time for mailing or delivery; notice to
insurance producer
Sec. 5. No notice of cancellation of a policy to which section 4 of
this chapter applies shall be effective unless mailed or delivered by
the insurer to the named insured at least twenty (20) days prior to the
effective date of cancellation; provided, however, that where
cancellation is for nonpayment of premium at least ten (10) days
notice of cancellation accompanied by the reason therefor shall be
given. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana, notice of intent to
cancel shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer. Unless the reason accompanies or is included in
the notice of cancellation, the notice of cancellation shall state or be
accompanied by a statement that upon written request of the named
insured, mailed or delivered to the insurer not less than fifteen (15)
days prior to the effective date of cancellation, the insurer will
specify the reason for such cancellation. This section shall not apply
to nonrenewal. (Formerly: Acts 1969, c.332, s.5.) As amended by P.L.252-1985,
SEC.267; P.L.178-2003, SEC.45.
IC 27-7-6-6 Notice of intention not to renew; time for mailing or delivery;
notice to insurance producer
Sec. 6. (a) No insurer shall fail to renew a policy unless it shall
mail or deliver to the named insured, at the address shown in the
policy, at least twenty (20) days' advance notice of its intention not
to renew. In the event such policy was procured by an insurance
producer duly licensed by the state of Indiana notice of intent not to
renew shall be mailed or delivered to the insurance producer at least
ten (10) days prior to such mailing or delivery to the named insured
unless such notice of intent is or has been waived in writing by the
insurance producer.
(b) This section shall not apply:
(1) if the insurer has manifested its willingness to renew; or
(2) in case of nonpayment of premium.
However, notwithstanding the failure of an insurer to comply with
this section, the policy shall terminate on the effective date of any
other insurance policy with respect to any automobile designated in
both policies.
(c) A notice of intention not to renew 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.
(d) Renewal of a policy shall not constitute a waiver or estoppel
with respect to grounds for cancellation which existed before the
effective date of such renewal. (Formerly: Acts 1969, c.332, s.6.) As amended by P.L.160-2003,
SEC.24; P.L.178-2003, SEC.46; P.L.97-2004, SEC.98.
IC 27-7-6-7 Proof of mailing notice
Sec. 7. Proof of mailing of notice of cancellation, or of intention
not to renew or of reasons for cancellation, to the named insured at
the address shown in the policy shall be sufficient proof of notice. (Formerly: Acts 1969, c.332, s.7.)
IC 27-7-6-8 Notice of possible eligibility under assigned risk plan
Sec. 8. When a policy providing automobile liability coverage is
cancelled, other than for nonpayment of premium, or in the event of
failure to renew a policy providing automobile liability coverage to
which section 6 of this chapter applies, the insurer shall notify the
named insured of his possible eligibility for automobile liability
insurance through other insurers or through the automobile liability
assigned risk plan. Such notice shall accompany or be included in the
notice of cancellation or the notice of intent not to renew. (Formerly: Acts 1969, c.332, s.8.) As amended by P.L.252-1985,
SEC.268.
IC 27-7-6-9 Compliance with request for reason for cancellation or
nonrenewal; time limits
Sec. 9. Where the reason for cancellation does not accompany or
is not included in the notice of cancellation, the insurer shall upon
written request of the named insured, mailed or delivered to the
insurer not less than fifteen (15) days prior to the effective date of
cancellation, specify in writing the reason for such cancellation. Such
reason shall be mailed or delivered to the named insured within five
(5) days after receipt of such request. (Formerly: Acts 1969, c.332, s.9.)
IC 27-7-6-10 Exemption from liability for statements made in giving reasons for
cancellation or nonrenewal
Sec. 10. There shall be no liability on the part of and no cause of
action of any nature shall arise against the commissioner of insurance
or against any insurer, its authorized representative, its insurance
producers, its employees, or any firm, person, limited liability
company, or corporation furnishing to the insurer information as to
reasons for cancellation, for any statement made by any of them in
any written notice of cancellation, or in any other communication,
oral or written specifying the reasons for cancellation, or the
providing of information pertaining thereto, or for statements made
or evidence submitted at any hearings conducted in connection
therewith. (Formerly: Acts 1969, c.332, s.10.) As amended by P.L.8-1993,
SEC.426; P.L.178-2003, SEC.47.
IC 27-7-6-11 Dispute as to truth of reason for cancellation; hearing; findings;
effect; fee
Sec. 11. (a) In the event the truth of the reason or reasons for
cancellation is disputed by the named insured, the insured may, not
later than ten (10) days prior to the effective date of such
cancellation, apply in writing to the commissioner of insurance for
a hearing. Such application shall state wherein such reason or
reasons are false and a copy of such application shall be mailed or
delivered to the insurer on the same date it is submitted to the
commissioner.
(b) If the commissioner finds that the application was made in
good faith and does in fact present a dispute as to the truth or
existence of valid grounds for cancellation, the commissioner shall,
within a reasonable time after receipt of such application and upon
ten (10) days notice to the named insured and the insurer, hold a
hearing on the matter. The findings of the commissioner shall be
final and shall be issued in writing to the parties within five (5) days
after the hearing.
(c) In the event of a finding that no reason for cancellation in fact
exists, the cancellation shall be of no effect and the notice shall be
rescinded.
(d) In the event of a finding that one (1) or more reasons for
cancellation do in fact exist, the cancellation shall be effective as of
the date stated in the cancellation notice.
(e) No investigation, defense, or other action undertaken by the
insurer during the period between the date of cancellation stated in
the notice and the date the commissioner issued findings shall be
deemed a waiver of any rights or defenses on the part of such insurer.
(f) Any application for a hearing shall be accompanied by a filing
fee of twenty dollars ($20) as a condition precedent to such hearing.
Such fee shall be returned to the named insured if the finding is in
the insured's favor, but otherwise shall be retained by the department
of insurance. (Formerly: Acts 1969, c.332, s.11.) As amended by P.L.3-1989,
SEC.154. IC 27-7-6-12 Person with a disability; automobile policy
Sec. 12. (a) As used in this section, "person with a disability"
means a person who is under a disability as defined by the federal
Social Security Administration guidelines (42 U.S.C. 416).
(b) After June 30, 1990, an insurer may not cancel, fail to renew,
or refuse to issue an automobile insurance policy to a person with a
disability who holds a valid driver's license solely because of the
disability, nor may an insurer cancel, fail to renew, or refuse to issue
an automobile insurance policy under conditions less favorable to
persons with a disability than persons without a disability. As added by P.L.121-1990, SEC.9. Amended by P.L.99-2007,
SEC.191.
