§ 3427. Gap insurance; cancellation, renewal and other provisions. (a)\nDefinitions. As used in this section:\n (1) "Covered policy" means, for purposes of this section, a policy or\ncontract of gap insurance, issued or issued for delivery in this state,\non a risk located or resident in this state.\n (2) "Nonpayment of premium" means the failure of the named insured to\ndischarge any obligations in connection with the payment of premiums on\na policy of insurance or any installment of such premium, whether the\npremium is payable directly to the insurer or its agent, or indirectly\nunder any premium finance plan or extension of credit. Payment to the\ninsurer, or to an agent or broker authorized to receive such payment,\nshall be timely, if made within fifteen days after the mailing to the\ninsured of a notice of cancellation for nonpayment of premium.\n (b) Lessor gap insurance:\n (1) A covered policy of lessor gap insurance shall be subject to all\nthe provisions of section three thousand four hundred twenty-six of this\narticle, except as otherwise provided in this section.\n (2) Subject to the notice requirements of subsection (c) of section\nthree thousand four hundred twenty-six of this article, a covered policy\nof lessor gap insurance may be cancelled only for:\n (A) one or more of the bases for cancellation set forth in\nsubparagraphs (A) through (D), and (F) through (H) of paragraph one of\nsubsection (c) of section three thousand four hundred twenty-six of this\narticle;\n (B) material change in the nature or extent of the risk, occurring\nafter issuance or last annual renewal anniversary date of the policy,\nwhich causes the risk of loss to be substantially and materially\nincreased beyond that contemplated at the time the policy was issued or\nlast renewed; or\n (C) if the policy automatically provides coverage for the gap amount\nwaived under new leases entered into by the lessor, or acquired by the\nlessor's assignee, the lessor's or assignee's (whichever is the insured)\nfailure to provide, within sixty days or as otherwise specified in the\npolicy, the insurer with the name and address of each lessee and other\ninformation reasonably required by the insurer.\n (c) Lessee gap insurance: (1) Except as provided in this section, the\nprovisions of sections three thousand four hundred twenty-five and three\nthousand four hundred twenty-six of this article shall not apply to a\ncovered policy of lessee gap insurance.\n (2) During the first sixty days a covered policy of lessee gap\ninsurance is initially in effect, no cancellation shall become effective\nuntil twenty days after written notice is mailed to the first named\ninsured at the mailing address shown in the policy, except for the bases\nfor cancellation set forth in subparagraphs (A) through (H) of paragraph\none of subsection (c) of section three thousand four hundred twenty-six\nof this article for which fifteen days notice shall be given.\n (3) After a covered policy of lessee gap insurance has been in effect\nfor sixty days, or on or after the effective date if the policy is a\nrenewal, no cancellation or nonrenewal shall become effective until\nfifteen days after written notice is mailed or delivered to the first\nnamed insured at the mailing address shown in the policy and\ncancellation or nonrenewal is conditioned upon the termination of the\nlease for reasons other than a total loss of the personal property\ncaused by its theft or physical damage, or is based on one or more of\nthe reasons set forth in subparagraphs (A) through (H) of paragraph one\nof subsection (c) of section three thousand four hundred twenty-six of\nthis article; except that where the lease is for ten years or longer,\nthe policy may be cancelled or nonrenewed forty-five days after written\nnotice is mailed or delivered to the first named insured at the mailing\naddress shown in the policy if the cancellation or nonrenewal is to be\neffective upon the tenth anniversar
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