(a) After a policy of commercial risk insurance, other than workers' compensation insurance and automobile insurance issued under a residual market mechanism as described in section 38a-329, has been in effect for more than sixty days, or after the effective date of a renewal policy, no insurer may cancel any policy unless the cancellation is based on the occurrence, after the effective date of the policy or renewal, of one or more of the following conditions: (1) Nonpayment of premium; (2) conviction of a crime arising out of acts increasing the hazard insured against; (3) discovery of fraud or material misrepresentation by the insured in obtaining the policy or in perfecting any claim thereunder; (4) discovery of any wilful or reckless act or omission by the insured increasing the hazard insured against; (5) physical changes in the property which increase the hazard insured against; (6) a determination by the commissioner that continuation of the policy would violate or place the insurer in violation of the law; (7) a material increase in the hazard insured against; or (8) a substantial loss of reinsurance by the insurer affecting this particular line of insurance. If the basis for cancellation is nonpayment of premium, at least ten days' advance notice shall be given and the insured may continue the coverage and avoid the effect of the cancellation by payment in full at any time prior to the effective date of cancellation. If the basis for cancellation is conviction of a crime arising out of acts increasing the hazard insured against, discovery of fraud or material misrepresentation by the insured in obtaining the policy or in perfecting any claim thereunder, discovery of any wilful or reckless act or omission by the insured increasing the hazard insured against or a determination by the commissioner that continuation of the policy would violate or place the insurer in violation of the law, at least ten days' advance notice shall be given. In all other cases, at least sixty days' advance notice shall be given. Notwithstanding the provisions of this section, the advance notice period for cancellation of any professional liability policy, as defined in section 38a-393, shall be at least ninety days. No notice of cancellation shall be required if such policy is transferred from an insurer to an affiliate of such insurer for another policy with no interruption of coverage and contains the same terms, conditions and provisions, including policy limits, as the transferred policy, except that the insurer to which the policy is transferred shall not be prohibited from applying its rates and rating plans at the time of renewal. No notice of cancellation shall be effective unless it is sent, by registered or certified mail, mail evidenced by a United States Post Office certificate of mailing or, if agreed between the insurer and the named insured, by electronic means evidenced by a delivery receipt, or delivered by the insurer to the named insured by the required date.
(b) No surplus lines insurer shall be deemed to be eligible to write coverage for risks as provided in sections 38a-741 to 38a-744, inclusive, and 38a-794, unless such insurer complies with the requirements of subsection (a) of this section.
(P.A. 86-98, S. 2, 6; P.A. 87-18; 87-128; 87-175, S. 2, 4; P.A. 88-82, S. 2; P.A. 90-90, S. 1; P.A. 01-113, S. 33, 42; P.A. 06-109, S. 3; P.A. 12-145, S. 7; P.A. 19-125, S. 5.)
History: P.A. 87-18 exempted automobile insurance issued under a residual market mechanism from the provisions of the section; P.A. 87-128 established advance notice requirements for the various bases of cancellation and set mailing and delivery requirements for the notice to be effective; P.A. 87-175 added Subsec. (b), making the requirements of Subsec. (a) applicable to surplus lines insurers; P.A. 88-82 amended Subsec. (a) to require a 90-day advance notice period for cancellation of any professional liability policy; P.A. 90-90 made technical changes in Subsec. (a); Sec. 38-185x transferred to Sec. 38a-324 in 1991; P.A. 01-113 amended Subsec. (b) to delete reference to Sec. 38a-795, effective September 1, 2002; P.A. 06-109 amended Subsec. (a) to provide that no notice of cancellation is required if policy is transferred from insurer to affiliate of insurer for another policy; P.A. 12-145 amended Subsec. (b) to delete reference to Sec. 38a-777, effective June 15, 2012; P.A. 19-125 amended Subsec. (a) by adding provision re notice by electronic means and making a technical change, effective July 1, 2019.
Cited. 239 C. 658.
Structure Connecticut General Statutes
Chapter 700 - Property and Casualty Insurance
Section 38a-305. (Formerly Sec. 38-107). - Additional powers of fire insurance companies.
Section 38a-307. (Formerly Sec. 38-98). - Standard form.
Section 38a-308. (Formerly Sec. 38-99). - Provisions of policy or contract.
Section 38a-310. (Formerly Sec. 38-101). - Combination standard form of fire insurance policy.
Section 38a-312. (Formerly Sec. 38-103). - Renewal certificates.
Section 38a-313. (Formerly Sec. 38-104). - Replacement insurance.
Section 38a-313b. - Coverage for perishable food donated by certain food establishments.
Section 38a-314. (Formerly Sec. 38-105). - Conditions to be stated in body of policy.
Section 38a-315. (Formerly Sec. 38-106). - Form of policies in other states.
Section 38a-316. (Formerly Sec. 38-114). - Premium notes subject to set-off.
Section 38a-316e. - Matching of adjacent items under real property covered loss.
Section 38a-316f. - Flood insurance coverage offering.
Section 38a-316g. - Cancellation of homeowners insurance policies. Notice refund of excess premium.
Section 38a-317. (Formerly Sec. 38-114g). - Owner of mobile home eligible for homeowners policy.
Section 38a-321. (Formerly Sec. 38-175). - Liability of insurer under liability policy.
Section 38a-322. (Formerly Sec. 38-185v). - Binders for personal and commercial risk insurance.
Section 38a-322a. - Certificate of insurance. Prohibitions. Investigation.
Section 38a-323c. - Notice of late fee amount and applicability re personal risk insurance policies.
Section 38a-327. (Formerly Sec. 38-17a). - Regulations on claims-made policies.
Section 38a-330. - Transfer of policy to affiliate due to merger or acquisition. Notice.
Section 38a-331. - Healthy Homes Fund. Surcharge.
Section 38a-334. (Formerly Sec. 38-175a). - Minimum provisions in automobile liability policies.
Section 38a-335a. - Disclosure of automobile insurance policy limits.
Section 38a-336. (Formerly Sec. 38-175c). - Uninsured and underinsured motorist coverage.
Section 38a-336a. - Underinsured motorist conversion coverage.
Section 38a-336b. - Subrogation against owner or operator of underinsured motor vehicle prohibited.
Section 38a-336c. - Claims for uninsured or underinsured motorist benefits.
Section 38a-337. (Formerly Sec. 14-130). - Apportionment of risks.
Section 38a-340. (Formerly Sec. 38-175e). - Binders, renewal endorsements and evidences of renewal.
Section 38a-342. (Formerly Sec. 38-175g). - Bases for cancellation.
Section 38a-344. (Formerly Sec. 38-175j). - Proof of notice.
Section 38a-345. (Formerly Sec. 38-175k). - Notice of possible eligibility for assigned risk plan.
Section 38a-346. (Formerly Sec. 38-175l). - Liability of persons furnishing information to insured.
Section 38a-351a. - Collision deductible included in subrogation demand.
Section 38a-363. (Formerly Sec. 38-319). - Definitions.
Section 38a-370. (Formerly Sec. 38-326). - Residual liability insurance.
Section 38a-371. (Formerly Sec. 38-327). - Mandatory security requirements.
Section 38a-379. (Formerly Sec. 38-335). - Civil action to enforce rights and obligations.
Section 38a-385. (Formerly Sec. 38-341). - Assigned risk plan.
Section 38a-388. (Formerly Sec. 38-350). - Conflict with chapters 246, 247, 248.
Section 38a-389. - Filing of rates to reflect premium savings. Prior rate approval.
Section 38a-397. - Portable electronics insurance.
Section 38a-398. - Travel Insurance.
Section 38a-398a. - Travel insurance and suicide. Prohibition on coverage exclusion.