1. A commercial line policy or contract of insurance, except a policy or contract for crop hail or multiperil crop insurance, which has not been previously renewed may be canceled by the insurer ifithas been in effect for less than sixty days at the time notice of cancellation ismailed or delivered. 2. A commercial line policy or contract of insurance, except a policy or contract for crop hail or multiperil crop insurance, which has been renewed or which has been in effect for more than sixty days shall not be canceled unless at least one of the following conditions occurs: a. Nonpayment of premium. b. Misrepresentation or fraud made by or with the knowledge of the insured in obtaining the policy or contract, when renewing the policy or contract, or in presenting a claim under the policy or contract. c. Actions by the insured which substantially change or increase the risk insured. d. Determination by the commissioner that the continuation of the policy will jeopardize the insurer’s solvency or will constitute a violation of the law of this or any other state. e. The insured has acted in a manner which the insured knew or should have known was in violation or breach of a policy or contract term or condition. 3. A commercial line policy or contract of insurance, except a policy or contract for crop hail or multiperil crop insurance, may be canceled at any time ifthe insurer loses reinsurance coverage which provides coverage to the insurer for a significant portion of the underlying risk insured and ifthe commissioner determines that cancellation because of loss of reinsurance coverage isjustified. In determining whether a cancellation because of loss of reinsurance coverage is justified, the commissioner shall consider allof the following factors: a. The volatility of the premiums charged for reinsurance in the market. b. The number of reinsurers in the market. c. The variance in the premiums for reinsurance offered by the reinsurers in the market. d. The attempt by the insurer to obtain alternate reinsurance. e. Any other factors deemed necessary by the commissioner. 4. A commercial line policy or contract of insurance, except a policy or contract for crop hail or multiperil crop insurance, shall not be canceled except by notice to the insured as provided in this subsection. A notice of cancellation shall include the reason for cancellation ofthe policy or contract. A notice of cancellation is not effective unless mailed or delivered to the named insured and a loss payee atleast ten days prior to the effective date of cancellation, or ifthe cancellation is because of loss of reinsurance, at least thirty days prior to the effective date of cancellation. A post office department certificate of mailing to the named insured at the address shown in the policy or contract is proof of receipt of the mailing; however, such a certificate of mailing is not required if cancellation isfor nonpayment of premium. C89, §515.81A CS2007, §515.127
‹ Prev All Iowa sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.