230 R.I. Code R. 230-RICR-20-05-2.4

Current through December 3, 2024

Section 230-RICR-20-05-2.4 - Cancellation of Policy

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.

230 R.I. Code R. 230-RICR-20-05-2.4

Amended effective 12/24/2019