Section 26-A301. PROCEDURE FOR CANCELLATION OR NONRENEWAL

 

301.1Cancellation by an insurer shall be permissible and effective with respect to a policy only if each of the conditions in this section is met with respect to that cancellation in addition to the conditions set forth in § 300. Unless the insurer complies with each of the conditions specified in this section, a policyholder has a right to renewal for an additional period of time equivalent to the expiring term if the agreed term is a year or less, or for one year if the agreed term is longer than one year.

 

301.2Notice of a cancellation or nonrenewal shall be given by the insurer to the insured at least thirty (30) days prior to the proposed date of cancellation, or in the case of nonrenewal, thirty days prior to the end of the policy period.

 

301.3The notice shall be mailed or delivered in a manner reasonably designed to assure delivery to the last known address of the insured. The envelope containing the notice shall be labelled "Important Insurance Notice" in at least eighteen (18) point or larger type.

 

301.4Thirty (30) days prior to a proposed date of cancellation the insurer shall also furnish a copy of the notice to the Commissioner of Insurance; provided no copy need be furnished the Commissioner prior to a cancellation for non-payment of premium, or in any case of nonrenewal.

 

301.5At least five (5) days before sending the notice of cancellation or nonrenewal referred to in §§ 301.1 - 301.4 the insurer shall notify the insurance agent or broker who wrote the policy being nonrenewed or cancelled.

 

301.6The notice of cancellation or nonrenewal referred to in §§ 301.1 - 301.4 shall set forth a reasonable explanation of the ground or grounds relied upon by the insurer as the basis of cancellation or nonrenewal.

 

301.7The notice of cancellation or nonrenewal referred to in §§ 301.1 - 301.4 shall advise the insured of his or her possible eligibility for insurance under the District of Columbia Insurance Placement Act, the District of Columbia Automobile Insurance Plan, or other similar plans existing at the time of the notice, and shall advise him or her where and how to inquire as to eligibility for coverage under the plan or plans, and shall advise him or her of all appeal rights and the appeal procedures under § 308.