Connecticut General Statutes 38a-316g – Cancellation of homeowners insurance policies. Notice refund of excess premium
(a)(1) Except as provided in subsection (b) of this section, no insurer that delivers, issues for delivery, renews, amends or endorses a homeowners insurance policy in this state on or after July 1, 2021, that is subject to the requirements of sections 38a-663 to 38a-696, inclusive, shall cancel such policy unless:
Terms Used In Connecticut General Statutes 38a-316g
- another: may extend and be applied to communities, companies, corporations, public or private, limited liability companies, societies and associations. See Connecticut General Statutes 1-1
- Fraud: Intentional deception resulting in injury to another.
- Insurance: means any agreement to pay a sum of money, provide services or any other thing of value on the happening of a particular event or contingency or to provide indemnity for loss in respect to a specified subject by specified perils in return for a consideration. See Connecticut General Statutes 38a-1
- Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy. See Connecticut General Statutes 38a-1
- Policy: means any document, including attached endorsements and riders, purporting to be an enforceable contract, which memorializes in writing some or all of the terms of an insurance contract. See Connecticut General Statutes 38a-1
- State: means any state, district, or territory of the United States. See Connecticut General Statutes 38a-1
(A) If such policy is not a renewal policy and has been in effect for fewer than sixty days, such insurer sends a written cancellation notice to the named insured:
(i) At least ten days before the effective date of such cancellation for nonpayment of premium disclosing:
(I) Such cancellation;
(II) That the named insured may avoid such cancellation and continue coverage under such policy by paying, before the effective date of such cancellation, such unpaid premium; and
(III) That any excess premium, if not tendered by the insurer, shall be refunded to the named insured upon demand by the named insured; or
(ii) At least thirty days before the effective date of such cancellation for any reason other than nonpayment of premium disclosing:
(I) Such cancellation;
(II) The reason for such cancellation;
(III) The effective date of such cancellation; and
(IV) That any excess premium, if not tendered by the insurer, shall be refunded to the named insured upon demand by the named insured; or
(B) If such policy is not a renewal policy and has been in effect for at least sixty days, or if such policy is an effective renewal policy, such insurer sends a written cancellation notice to the named insured:
(i) At least ten days before the effective date of such cancellation for nonpayment of premium disclosing:
(I) Such cancellation;
(II) That the named insured may avoid such cancellation and continue coverage under such policy by paying, before the effective date of such cancellation, such unpaid premium; and
(III) That any excess premium, if not tendered by the insurer, shall be refunded to the named insured upon demand by the named insured; or
(ii) At least thirty days before the effective date of such cancellation for fraud or misrepresentation of any material fact made by the named insured in obtaining coverage under such policy that, if discovered by such insurer, would have caused such insurer not to issue or renew such policy, as applicable, or any physical change in the covered property that materially increases a hazard insured against under such policy disclosing:
(I) The effective date of such cancellation; and
(II) That any excess premium, if not tendered by the insurer, shall be refunded to the named insured upon demand by the named insured.
(2) No insurer may cancel a homeowners insurance policy described in subparagraph (B) of subdivision (1) of this subsection for any reason other than:
(A) Nonpayment of premium;
(B) Fraud or misrepresentation of any material fact made by the named insured in obtaining coverage under such policy that, if discovered by the insurer, would have caused the insurer not to issue or renew such policy, as applicable; or
(C) Any physical change in the covered property that materially increases a hazard insured against under such policy.
(3) No notice of cancellation required under subdivision (1) of this subsection shall be effective unless such notice is sent to the named insured by registered mail, certified mail or mail evidenced by a certificate of mailing, or, if agreed by the insurer and the named insured, by electronic means evidenced by a delivery receipt.
(b) No notice of cancellation is required under subsection (a) of this section if the homeowners insurance policy is transferred from the insurer to an affiliate of such insurer for another policy with no interruption of coverage and 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 such insurer’s rates and rating plans at the time of renewal.
(c) The named insured under a homeowners insurance policy described in subsection (a) of this section may cancel such policy at any time by sending to the insurer that delivered, issued for delivery, renewed, amended or endorsed such policy a written notice disclosing the effective date of such cancellation.