Current through Register 1531, September 27, 2024
(1)
Required Content of Notices of Non-renewal. Notices of
Non-renewal must be in writing and must includet he following information:
(a) A title which indicates the nature of the
Notice;
(b) The complete name and
address of the Person requesting Non-renewal;
(c) The complete name and address of the
Person to whom the Notice of Non-renewal is sent;
(d) The policy number or other identifier
specifying the Motor Vehicle Insurance Policy being non-renewed;
(e) The date on which the non-renewing Motor
Vehicle Insurance Policy will expire; and
(f) An Insurer must comply with all
Massachusetts laws and regulations relating to non-renewal of a Motor Vehicle
Insurance Policy. An Insurer that issues a Notice of Non-renewal must state the
reason for the Non-renewal. An Insurer may not use phrases such as
"underwriting reasons" as the reason for Non-renewal. An Insurer must inform
the Policyholder of the specific facts on which the Insurer based its decision
not to renew the Motor Vehicle Insurance Policy.
(2)
Required Language of Notices
of Non-renewal. A Notice of Non-renewal that an Insurer issues to
a Policyholder of a private passenger Motor Vehicle Insurance Policy also must
include the following language, unless the Commissioner approves alternate
language.
IMPORTANT NOTICE TO POLICYHOLDERS
You must have compulsory motor vehicle insurance in order to
keep your motor vehicle registered in Massachusetts. We have notified the
Registrar of Motor Vehicles and you of our intent to non-renew your motor
vehicle insurance policy.
You must replace your policy as soon as possible. The Registrar
of Motor Vehicles will cancel your motor vehicle registration if it does not
receive a new certificate of insurance covering your motor vehicle before your
current policy expires. You may contact an insurance company directly, or work
with a licensed insurance agent to obtain new insurance from a company that the
insurance agent represents.
If no insurance company is willing to insure you, you may be
eligible to obtain motor vehicle insurance through the Massachusetts residual
market plan. Almost all insurance agents and all insurance companies are
authorized to help you apply to the plan. If you apply for insurance through
the plan, you will not be able to choose an insurer, but you will be assigned
to an insurance company. In some cases, you may not be able to obtain coverage
through the plan that is identical to the insurance coverage that was not
renewed.
This notice shall not be deemed a refusal under M.G.L. c. 175,
§ 113D to issue a motor vehicle liability policy or to execute a motor
vehicle liability bond as surety.
(3)
Procedures for Delivering a
Notice of Non-renewal.
(a)
Notification Procedures Applicable to Insurers. An
Insurer must give written Notice that it will not renew an existing Motor
Vehicle Insurance Policy 45 days in advance of the policy expiration date.
Notices of Non-renewal must be given as follows:
1. For policies with expiration dates between
April 1, 2009 and March 31, 2010, the Insurer shall send the Notice of
Non-renewal to the insurance producer of record, regardless of whether that
insurance producer is then appointed as an agent of the Insurer.
2. For policies with expiration dates on or
after April 1, 2010, the Insurer shall send the Notice of Non-renewal to the
insurance producer of record only if that producer is then appointed as an
agent of the Insurer. If the Insurer has terminated that insurance producer's
agent appointment, the Insurer must send the Notice of Non-renewal to the
Policyholder.
3. For all policies,
if the insurance producer of record no longer is licensed as an insurance
producer by the Commissioner, the Insurer shall send the Notice of Non-renewal
to the Policyholder.
(b)
Notification Procedures Applicable to Insurance
Producers.
1. The insurance
producer who receives a Notice of Non-renewal from an Insurer shall send a copy
of the Notice of Non-renewal to the Policyholder within 15 days of receiving
such Notice, unless another Insurer has issued a Motor Vehicle Insurance Policy
covering the motor vehicle insured under the non-renewing Motor Vehicle
Insurance Policy.
2. An insurance
producer who receives a Notice of Non-renewal from a Policyholder must notify
the Insurer promptly that the Policyholder does not intend to renew the Motor
Vehicle Insurance Policy.
(c)
Notification Procedures to
the Registrar of Motor Vehicles. The Insurer shall send the Notice
of Non-renewal to the Registrar of Motor Vehicles at least 45 days prior to the
expiration of the Policy in accordance with procedures of the Registrar of
Motor Vehicles.
(d)
Effect of Failure to Comply with Non-renewal Notice
Requirements.
1. An Insurer that
fails to comply with the statutory requirements related to a Notice of
Non-renewal, or that sends such Notice of Non-renewal and then subsequently
renews the Motor Vehicle Insurance Policy, must, at the Policyholder's request,
issue motor vehicle insurance coverage of at least the same type and amount as
existed on the non-renewed Motor Vehicle Insurance Policy.
2. The failure of an insurance producer to
comply with the requirements for sending a Notice of Non-renewal to a
Policyholder or to an Insurer may be grounds for revoking an insurance
producer's license and may be considered an unfair or deceptive act or practice
in the business of insurance.
(e)
Insurer Notice of
Reinstatement of a Motor Vehicle Insurance Policy After Issuing Notice of
Non-renewal. An Insurer that reinstates a Motor Vehicle Insurance
Policy after issuing a Notice of Non-renewal must notify the Registrar of Motor
Vehicles of such reinstatement in accordance with the procedures prescribed by
the Registrar of Motor Vehicles.
