230 R.I. Code R. 230-RICR-20-05-11.12

Current through December 3, 2024

Section 230-RICR-20-05-11.12 - Cancellation and Nonrenewal

A. All Insurers participating in this Program and the Association on their own business shall give thirty (30) days notice prior to cancellation or non-renewal of any risk eligible under this Program except in the following cases:

1. Owner or occupant incendiarism;

2. Material misrepresentation;

3. Non-payment of premium;

4. At least sixty-five percent (65%) of the rental units in the building are unoccupied, and the insured has not obtained prior approval from the participating Insurer or the Association of a rehabilitation plan which necessitates a high degree of unoccupancy;

5. Loss or damage exists and the insured has stated or such time has elapsed as clearly indicates that the damage will not be repaired;

6. Following a loss, permanent repairs following satisfactory adjustment of loss have not commenced within sixty (60) days;

7. Property has been abandoned or there has been removal of undamaged salvageable items from the building and the insured can give no reasonable explanation for such removal;

8. Utilities such as electric, gas, or water services have been disconnected and the insured has failed to pay his account for such services within one hundred twenty (120) days, or real estate taxes have not been paid for a two (2) year period after the taxes have become delinquent (real estate taxes shall not be deemed to be delinquent for this purpose even if they are due and constitute a lien, so long as a grace period remains under local law during which such taxes may be paid without penalty).

9. Where reliable information that good cause exists to believe that the building will be burned for the purpose of collecting the insurance on the property;

10. Conviction or unresolved indictment of a named insured or loss payee or any other person having a financial interest in the property of the crime of arson or crime involving a purpose to defraud an insurance company;

11. Where the building has been subject to more than two (2) fires, each loss amounting to at least one percent (1%) of the insurance in force in any twelve (12) month period; or more than three (3) such fires in any twenty four (24) month period, provided that the cause of such fires is due to conditions which are the responsibility of the owner-named insured;

12. Any reason which would have been grounds for declination of the risk under this regulation if such reason had been known or had been present at the time of acceptance and becomes known or present during the policy period.

13. Any reason which renders a residential rental property owner ineligible for lead liability coverage under §20-05-9.10 of this Title shall be grounds to cancel or non-renew a policy which provides lead liability coverage, as follows:

a. A residential rental property owner who fails to remediate lead violations which occur after June 30, 2004 on any property within ninety (90) days of the issuance of a notice of violation.

b. A residential rental property owner who owns only one (1) property and has more than one (1) unremediated dwelling unit at which a child was poisoned prior to July 1, 2004.

c. A residential rental property owner who owns two (2) or more properties and has more than two (2) unremediated dwelling units at which a child was poisoned prior to July 1, 2004.

B. When a policy is cancelled or non-renewed, other than for non-payment of premiums or the insured's having obtained substitute coverage or if the policy had been issued through the Association, the insurer shall notify the insured and the insured's producer, if any, of possible eligibility for insurance through the Association. Such notice shall accompany or be included in the cancellation or non-renewal notice. The notice must be clearly identifiable by the insured. The notice must provide information on how to contact the Association, including address and telephone number(s), including a toll free number, and, alternatively, to contact a licensed insurance producer for assistance in obtaining coverage through the Association.

C. Any cancellation upon less than thirty (30) days notice arising out of any of the conditions listed above in § 11.12 of this Part shall follow a procedure which includes as a minimum, notification to the insured by the Association of the cancellation, with a copy to the Commissioner, giving the reasons for the action and setting forth the insured's right to appeal to the Commissioner for review of the cancellation. The cancellation shall stand unless the Commissioner rules otherwise.

230 R.I. Code R. 230-RICR-20-05-11.12