A. Effective sixty
(60) days after the inception date of a policy, or if the policy is a renewal,
effective immediately, the company shall not exercise its right to cancel the
policy unless it is based on one (1) or more of the following reasons:
1. Non-payment of premium; whether payable
directly to the company or its agent or indirectly under any premium finance
plan or extension of credit, or
2.
The driver's license or motor vehicle registration of the named insured or any
other operator who either resides in the same household or customarily operates
an automobile insured under the policy has been under suspension or revocation
or cancellation of the license during the policy period, or, if the policy is a
renewal, during its policy period, or
3. The insurance was obtained through
fraudulent misrepresentation (subject to the limitation in §
2.10 of this
Part), or
4. There has been a
violation of any of the terms or conditions of the policy, or
5. The named insured or any other operator of
the automobile either resident in the same household or who customarily
operates the automobile is subject to epilepsy or heart attacks, provided such
individual cannot produce a certificate from a physician testifying to
unqualified ability to operate a motor vehicle, or
6. The named insured or any other operator of
the automobile either resident in the same household or who customarily
operates the automobile has been convicted of or forfeits bail for three (3) or
more violations, committed within a period of eighteen (18) months, of any
ordinance or regulation limiting the speed of motor vehicles or any provision
constituted a misdemeanor by the motor vehicle laws of any state, or
7. The named insured or any other operator of
the automobile either resident in the same household or who customarily
operates the automobile has been convicted of or forfeits bail during the
thirty-six (36) months immediately preceding the effective date of the policy,
or during the policy term, for;
a. any felony,
or
b. homicide or assault arising
out of the operation of a motor vehicle, or criminal negligence in the
operation of a motor vehicle resulting in death, or
c. operating a motor vehicle while in an
intoxicated condition or, while under the influence of drugs, or
d. leaving the scene of an accident without
stopping to report, or
e. theft of a
motor vehicle, or
f. making false
statements in an application for a driver's license.
B. During the policy period no
modification of automobile physical damage coverage (except coverage for loss
caused by collision) whereby provision is made for the application of a
deductible amount not exceeding one hundred dollars ($100) shall be deemed a
cancellation of the coverage or of the policy. This section shall not apply to
the failure to renew a policy.
C.
This Section shall not apply to policies issued pursuant to R.I. Gen. Laws
§§
31-33-8 and
31-47-16 through the Rhode Island
Automobile Insurance Plan. Cancellation of those policies is governed solely by
the terms of the Plan Manual as filed with and approved by the
Department.
