Common use of Cancellation of Policies in Effect For 60 Days Or More Clause in Contracts

Cancellation of Policies in Effect For 60 Days Or More. If this policy has been in effect 60 days or more or is a renewal of a policy issued by us, we may cancel or nonrenew only on the anniversary date unless the cancellation is for the reasons set forth below and by giving the required notice at least as required by statute. The reasons are: (1) A condition, factor or loss experience material to insurability has changed substantially or a substantial condition, factor or loss experience material to insurability has become known during the policy term. Notice of cancellation will be delivered or mailed at least 60 days before the effective date of cancellation. (2) Loss of reinsurance or a substantial decrease in reinsurance has occurred, which loss or decrease shall, at the time of cancellation, be certified to the Insurance Commissioner as directly affecting in-force policies. Notice of cancellation will be delivered or mailed at least 60 days before the effective date of cancellation. (3) The insured has made a material misrepresentation which affects the insurability of the risk. Notice of cancellation will be delivered or mailed at least 15 days before the effective date of cancellation. (4) The policy was obtained through fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the company. Notice of cancellation will be delivered or mailed at least 60 days before the effective date of cancellation. (5) The insured has failed to pay a premium when due, whether the premium is payable directly to the company or its agents or indirectly under a premium finance plan or extension of credit. Notice of cancellation will be delivered or mailed at least 15 days before the effective date of cancellation. (6) The insured has requested cancellation. (7) Material failure to comply with policy terms, conditions or contractual duties. Notice of cancellation will be delivered or mailed at least 60 days before the effective date of cancellation. (8) Other reasons that the Insurance Commissioner may approve. Notice of cancellation will be delivered or mailed at least 60 days before the effective date of cancellation. The policy may be cancelled from inception upon discovery by us that the policy was obtained through fraudulent statements, concealment of facts or omissions material to the acceptance of the risk or to the hazard assumed by us.