New York Insurance Statutes
McGentrix wrote:I spoke with the NYS insurance questions people in the government and they suggested I find a new insurer. They said State Farm is acting within the bounds of the law.
Bastards!
Hi McGentrix:
Your NYS insurance people aren't very bright. They ought to know the law and they ought not misinform the public.
Based upon the New York statute, State Farm may not elect to non-renew your homeowner's policy during the required policy period (three years from the date of the last renewal) unless nonrenewal is based upon a ground for which the policy could have been cancelled (e.g., conviction of certain crimes, fraudulent claims, willful or reckless acts increasing the hazards, property deterioration which makes the property uninsurable.)
Here is a clip from your pertinent state statute:
New York State Consolidated Laws
Insurance - Index
http://assembly.state.ny.us/leg/?cl=52
ARTICLE 34 INSURANCE CONTRACTS-PROPERTY/CASUALTY
http://assembly.state.ny.us/leg/?cl=52&a=22
Relevant provisions:
§ 3425. Certain property/casualty insurance policies; cancellation and renewal provisions; agents` contracts and brokers` accounts.
(a) This section shall apply to covered policies of insurance as defined in paragraphs one, two and three hereof . . .
(2) "Covered policy" also means a contract of insurance, referred to in this section as "
personal lines insurance", other than a contract of insurance defined in paragraph one hereof, issued or issued for delivery in this state, on a risk located or resident in this state, insuring any of the following contingencies: (A) loss of or damage to
real property used predominantly for
residential purposes . . . .
(6) "Renewal" or "to renew" means the issuance and delivery by an insurer, at the end of the policy period, of a policy superseding a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term of a policy beyond its policy period or term; provided, however, that any policy with a policy period or term of less than one year shall, for the purpose of this section, be considered as if written for a policy period or term of one year, or any policy with no fixed expiration date, shall, for the purpose of this section, be considered as if written for successive policy periods or terms of one year.
(7) With respect to
personal lines insurance, "
required policy period" means a period of
three years from the date as of which
a covered policy is first issued or
is voluntarily renewed. . . .
(10) "Nonpayment of premium" means the failure of the named insured to discharge any obligation in connection with the payment of premiums on a policy of insurance or any installment of such premium, whether the premium is payable directly to the insurer or its agent, or indirectly under any premium finance plan or extension of credit. Payment to the insurer, or to an agent or broker authorized to receive such payment, shall be timely, if made within fifteen days after the mailing to the insured of a notice of cancellation for nonpayment of premium . . . .
(b) During the first sixty days a covered policy is in effect, no notice of cancellation shall be issued or be effective unless it states or is accompanied by a statement of the specific reason or reasons for such cancellation.
(c) After a covered policy has been in effect for sixty days, or upon the effective date if the policy is a renewal,
no notice of cancellation shall be issued to become effective unless required pursuant to a program approved by the superintendent as necessary because a continuation of the present premium volume would be hazardous to the interests of policyholders of the insurer, its creditors or the public, or
unless it is based on one or more of the following:
(2) With respect to personal lines insurance policies:
(A) nonpayment of premium, provided, however, that a notice of cancellation on this ground shall inform the insured of the amount due;
(B) conviction of a crime arising out of acts increasing the hazard insured against;
(C) discovery of fraud or material misrepresentation in obtaining the policy or in the presentation of a claim thereunder;
(D) discovery of willful or reckless acts or omissions increasing the hazard insured against;
(E) physical changes in the property insured occurring after issuance or last annual anniversary date of the policy which result in the property becoming uninsurable in accordance with the insurer`s objective, uniformly applied underwriting standards in effect at the time the policy was issued or last voluntarily renewed; or
(F) a determination by the superintendent that the continuation of the policy would violate or would place the insurer in violation of this chapter.
(d)
(1) Unless the insurer, at least forty-five but not more than sixty days in advance of the end of the policy period, mails or delivers to the named insured, at the address shown in the policy, a written notice of its intention not to renew a covered policy, or to condition its renewal upon change of limits or elimination of any coverages, the named insured shall be entitled to renew the policy upon timely payment of the premium billed to the insured for the renewal. The specific reason or reasons for nonrenewal or conditioned renewal shall be stated in or shall accompany the notice. . . .
(e)
With respect to personal lines insurance policies, no notice of nonrenewal or conditional renewal of a covered policy shall be issued to become effective during the required policy period unless it is based upon a ground for which the policy could have been cancelled.
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Again, based upon the New York statute, State Farm may not elect to non-renew your homeowner's policy during the required policy period (three years from the date of the last renewal) unless nonrenewal is based upon a ground for which the policy could have been cancelled (e.g., conviction of certain crimes, fraudulent claims, willful or reckless acts increasing the hazards, property deterioration which make the property uninsurable.)