§ 59.6. Notice of cancellation or refusal to renew; requirements.
Notices of cancellation or refusal to renew shall meet the following requirements:
(1) The form shall be clearly labeled: ‘‘Notice of Cancellation or Refusal to Renew.’’
(2) The form shall be given to the insured in duplicate.
(3) The date, not less than 30 days after the date of delivery or mailing, on which such cancellation or refusal to renew is to become effective shall be clearly indicated.
(4) Space must be provided for the insurer to provide the specific reason or reasons for the cancellation or refusal to renew.
(5) The reasons given for cancellation or refusal to renew shall be clear and complete. If the reason is a material misrepresentation, fraudulent statement, omission or concealment of fact material to the acceptance of the risk, or to the hazard assumed by the company, made by the insured, the insurer shall specify what statements, omissions or concealments it relied on for its action.
(6) If the reason is a substantial change or increase in the hazard, the insurer shall specify the changes or increased hazards it relied on for its actions. If the reason is the failure to pay a premium, the insurer shall specify the amount due, and the date when it was due.
(7) The form shall include that advice that the insured has a right to request review of the insurer’s action as provided in § 59.7 (relating to appeal procedure), within ten days of receipt of the notice. In so doing the notice shall include:
(i) Advice that review may be requested by signing a copy of the form in a space provided and sending it to one of the regional offices of the Insurance Department.
(ii) The addresses of the four regional offices of the Insurance Department.
(8) The form shall include advice to the insured that he or she may be eligible for insurance under the Pennsylvania Fair Plan Act or the Pennsylvania Auto Insurance Plan.
(9) Each provision of the notice shall be set forth in clear and understandable terms. To assure adequate notice, the form label shall be set at the top of the form in roman type no smaller than 14 point modern type, all capitals. The remainder of the notice shall be set in roman type no smaller than ten point modern type, two points leaded.
(10) A recommended form of notice which would meet the requirements of the foregoing provisions is given in Appendix A.
Cross References This section cited in 31 Pa. Code § 59.13 (relating to foreign language requirement).
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