2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515 - INSURANCE OTHER THAN LIFE
515.127 - CANCELLATION OF COMMERCIAL LINES POLICIES OR CONTRACTS.

        515.127  CANCELLATION OF COMMERCIAL LINES POLICIES OR
      CONTRACTS.
         1.  A commercial line policy or contract of insurance, except a
      policy or contract for crop hail or multiperil crop insurance, which
      has not been previously renewed may be canceled by the insurer if it
      has been in effect for less than sixty days at the time notice of
      cancellation is mailed or delivered.
         2.  A commercial line policy or contract of insurance, except a
      policy or contract for crop hail or multiperil crop insurance, which
      has been renewed or which has been in effect for more than sixty days
      shall not be canceled unless at least one of the following conditions
      occurs:
         a.  Nonpayment of premium.
         b.  Misrepresentation or fraud made by or with the knowledge
      of the insured in obtaining the policy or contract, when renewing the
      policy or contract, or in presenting a claim under the policy or
      contract.
         c.  Actions by the insured which substantially change or
      increase the risk insured.
         d.  Determination by the commissioner that the continuation of
      the policy will jeopardize the insurer's solvency or will constitute
      a violation of the law of this or any other state.
         e.  The insured has acted in a manner which the insured knew
      or should have known was in violation or breach of a policy or
      contract term or condition.
         3.  A commercial line policy or contract of insurance, except a
      policy or contract for crop hail or multiperil crop insurance, may be
      canceled at any time if the insurer loses reinsurance coverage which
      provides coverage to the insurer for a significant portion of the
      underlying risk insured and if the commissioner determines that
      cancellation because of loss of reinsurance coverage is justified.
      In determining whether a cancellation because of loss of reinsurance
      coverage is justified, the commissioner shall consider all of the
      following factors:
         a.  The volatility of the premiums charged for reinsurance in
      the market.
         b.  The number of reinsurers in the market.
         c.  The variance in the premiums for reinsurance offered by
      the reinsurers in the market.
         d.  The attempt by the insurer to obtain alternate
      reinsurance.
         e.  Any other factors deemed necessary by the commissioner.
         4.  A commercial line policy or contract of insurance, except a
      policy or contract for crop hail or multiperil crop insurance, shall
      not be canceled except by notice to the insured as provided in this
      subsection.  A notice of cancellation shall include the reason for
      cancellation of the policy or contract.  A notice of cancellation is
      not effective unless mailed or delivered to the named insured and a
      loss payee at least ten days prior to the effective date of
      cancellation, or if the cancellation is because of loss of
      reinsurance, at least thirty days prior to the effective date of
      cancellation.  A post office department certificate of mailing to the
      named insured at the address shown in the policy or contract is proof
      of receipt of the mailing; however, such a certificate of mailing is
      not required if cancellation is for nonpayment of premium.  

         88 Acts, ch 1112, §406
         C89, § 515.81A
         93 Acts, ch 88, §17; 2007 Acts, ch 152, § 11
         CS2007, § 515.127
         Referred to in § 515.125, 515.126, 515.129, 515D.5, 515D.7
         See § 515D.5, 515D.7