Section 97.06 - Policy Non-renewal(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.