California Insurance Code 663 – (a) Before policy expiration, an insurer shall deliver to or …
(a) Before policy expiration, an insurer shall deliver to or mail to the named insured, at the address shown on the policy, one of the following:
(1) At least 20 days before expiration, a written or verbal offer of renewal of the policy, contingent upon payment of premium as stated in the offer.
Terms Used In California Insurance Code 663
- 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
- Expiration: means termination of coverage by reason of the policy having reached the end of the term for which it was issued or the end of the period for which a premium has been paid. 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
- to renew: means to continue coverage with either the insurer which issued the policy or an affiliated insurer, as defined in Section 1215, for an additional policy period upon expiration of the current policy period of a policy, provided that if coverage is continued with an affiliated insurer, it shall be the same or broader coverage as provided by the present insurer, and the insured shall be notified in writing at least 20 days prior to expiration of the current policy period of all of the following:
California Insurance Code 660
(2) At least 30 days before expiration, a written notice of nonrenewal of the policy, including the statement required by Section 666.
(b) (1) An insurer that delivers a verbal offer to renew that is declined by an insured shall, at least 20 days before expiration of the policy, deliver to or mail to the named insured, at the address shown on the policy, a written confirmation of the offer and rejection.
(2) An insurer that attempts to satisfy subdivision (a) with a verbal offer to renew, but is unable to contact the named insured directly at least 20 days before policy expiration, shall, at least 20 days before policy expiration, deliver to or mail to the named insured, at the address shown on the policy, a written offer to renew the policy, contingent upon payment of premium as stated in the offer.
(c) In the event that an insurer fails to give the named insured either an offer of renewal or notice of nonrenewal as required by this section, the existing policy, with no change in its terms and conditions, shall remain in effect for 30 days from the date that either the offer to renew or the notice of nonrenewal is delivered or mailed to the named insured. A notice to this effect shall be provided by the insurer to the named insured with the policy or the notice of renewal or nonrenewal. Notwithstanding the failure of an insurer to comply with this section, the policy shall terminate on the effective date of any other replacement or succeeding automobile insurance policy procured by the insured, or his agent or broker, with respect to any automobile designated in both policies.
(d) The insurer shall not be required to notify the named insured, or any other insured, of nonrenewal of the policy if the insurer has mailed or delivered a notice of expiration or cancellation, on or prior to the 30th day preceding expiration of the policy period.
(e) This section shall become operative on January 1, 2019.
(Repealed (in Sec. 6) and added by Stats. 2013, Ch. 369, Sec. 7. (SB 251) Effective January 1, 2014. Section operative January 1, 2019, by its own provisions.)