§ 3879. Cancellation of fire and casualty insurance

(a) A notice of cancellation of a policy, to which section 3880 of this title applies, unless that policy is otherwise controlled by chapter 113, subchapter 2 of this title, shall be effective only if it is based on one or more of the following reasons:

(1) nonpayment of premium; or

(2) fraud or material misrepresentation affecting the policy or in the presentation of a claim thereunder, or violation of any of the terms or conditions of the policy; or

(3) substantial increase in hazard provided that cancellation for this reason shall be effective only after prior approval of the Commissioner.

(b) This section shall not apply to any policy or coverage which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.

(c) This section shall not apply to nonrenewal. (Added 1977, No. 223 (Adj. Sess.), § 4.)