(a) A notice of cancellation of a policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium, at least 10 days’ notice of cancellation accompanied by the reason for the cancellation shall be given. Unless the reason accompanies or is included in the notice of cancellation, the notice of cancellation shall state or be accompanied by a statement that upon written request of the named insured, mailed or delivered to the insurer not less than 15 days prior to the effective date of cancellation, the insurer will specify the reason for the cancellation.

(b) This section shall not apply to nonrenewal.

Terms Used In California Insurance Code 662

  • Cancellation: means termination of coverage by an insurer (other than termination at the request of the insured) during a policy period. See California Insurance Code 660
  • Nonpayment of premium: means failure of the named insured to discharge when due any of his obligations in connection with the payment of premiums on a policy, 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. See California Insurance Code 660
  • Nonrenewal: means a notice by the insurer to the named insured that the insurer is unwilling to renew a policy. See California Insurance Code 660
  • Policy: means an automobile liability, automobile physical damage, or automobile collision policy, or any combination thereof, delivered or issued for delivery in this state, insuring a single individual or individuals residing in the same household, as named insured, and under which the insured vehicles therein designated are of the following types only:

    California Insurance Code 660

  • State: means the State of California, unless applied to the different parts of the United States. See California Insurance Code 28

(c) Notices made to lienholders pursuant to this section may be done electronically with the consent of the lienholder.

(Amended by Stats. 2013, Ch. 321, Sec. 2. (AB 1391) Effective January 1, 2014.)

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