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

        515.128  NONRENEWAL OF COMMERCIAL LINES POLICIES OR
      CONTRACTS.
         1.  An insurer shall not fail to renew a commercial line policy or
      contract of insurance except by notice to the insured as provided in
      this section.  Nonrenewal of a commercial line policy or contract
      includes a decision by the insurer not to renew the policy or
      contract, an increase in the premium of twenty-five percent or more,
      an increase in the deductible of twenty-five percent or more, or a
      material reduction in the limits or coverage of the policy or
      contract.  However, a premium charge which is assessed after the
      beginning date of the policy period for which the premium is due
      shall not be deemed a premium increase for the purpose of this
      section.
         2.  A notice of nonrenewal is not effective unless mailed or
      delivered by the insurer to the named insured and any loss payee at
      least forty-five days prior to the expiration date of the policy.  If
      the insurer fails to meet the notice requirements of this section,
      the insured has the option of continuing the policy for the remainder
      of the notice period plus an additional thirty days at the premium
      rate of the existing policy or contract.  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.
         3.  This section applies to all forms of commercial property and
      casualty insurance written pursuant to this chapter.  It does not
      apply if the insurer has offered to renew or if the insured fails to
      pay a premium due or any advance premium required by the insurer for
      renewal.  A notice of nonrenewal is not required if the insured is
      transferred from an insurer to an affiliate for future coverage as a
      result of a merger, acquisition, or company restructuring and if the
      transfer results in the same or broader coverage.  

         Section History: Recent Form

         88 Acts, ch 1112, §407
         C89, § 515.81B
         2002 Acts, ch 1111, §18; 2007 Acts, ch 152, § 12
         CS2007, § 515.128
         Referred to in § 515.125, 515.126, 515.129, 515D.7
         See § 515D.7 

         Footnotes

         Former § 515.128 transferred to § 515.147; 2007 Acts, ch 152, § 36