Current through Register Vol. 54, No. 49, December 7, 2024
Section 61.10 - Nonapplicability of the acts(a) Some insurers affect a renewal of their outstanding policies of automobile insurance merely by sending a renewal premium notice to the insured a reasonable period of time in advance of the expiration date of his policy. The insured need only make a timely payment of the premium due in order to keep his policy in force. In such a situation the mailing by the insurer of the renewal premium notice does constitute such a manifestation of willingness by the insurer to renew as to come within the purview of section 6(1) of act of June 5, 1968 (P. L. 140, No. 78) (40 P. S. § 1008.6(1)). If the insured fails to pay the renewal premium when due, the policy shall terminate in accordance with its terms. No further notice to the insured by the insurer of an intention not to renew for nonpayment of premium shall be necessary.(b) Mere nonpayment of the premium by the insured will not be considered "such action" as to come within the purview of section 6(2) of act of June 5, 1968 (P. L. 140 No. 78) (40 P. S. § 1008.6(2)). Some more affirmative act on the part of the insured shall be necessary, such as a statement by the insured to his agent that he does not want his policy to be renewed or an obtaining by the insured of another policy which he intends shall supersede his current policy.(c) The 60-day period referred to in section 6(3) of act of June 5, 1968 (P. L. 140, No. 78) (40 P. S. § 1008.6(3)) is intended to provide to insurers a reasonable period of time, if desired, to investigate thoroughly a particular risk while extending coverage during the period of investigation. Should an insurer, after the investigation, conclude that it does not wish to remain on the risk, it may cancel the policy, provided that its action is not in violation of section 3 of act of June 5, 1968 (P. L. 140, No. 78) (40 P. S. § 1008.3). A cancellation of the policy is exempt from the purview of act of June 5, 1968 (P. L. 140, No. 78) by the provisions of section 6(3) thereof except as otherwise provided by this subsection and section 3 of the act of June 5, 1968 (P. L. 140, No. 78). However, for purposes of review by the Department in order to determine whether the action by the insurer is in violation of section 3 of act of June 5, 1968, (P. L. 140, No. 78) (40 P. S. § 1008.3), the cancellation shall be considered to be a refusal to write. Therefore, an individual who has been cancelled by an insurer during this 60-day period may obtain from the insurer the reasons for the action of the insurer and may request a review by the Insurance Department as set forth in section 8(b) of the act of June 5, 1968 (P. L. 140, No. 78) (40 P. S. § 1008.8(b)).