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

        515.129  CANCELLATION OR NONRENEWAL OF COMMERCIAL
      UMBRELLA OR EXCESS POLICIES OR CONTRACTS.
         1.  As used in this section, "umbrella or excess insurance
      policy" means a commercial line policy or contract of insurance
      providing liability or property coverage over one or more underlying
      policies or over a specified amount of self-insured retention.
      Umbrella or excess insurance policy includes policies or contracts
      written over an umbrella or excess insurance policy or policies.
         2.  An umbrella or excess insurance policy which has not
      previously been 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.
         3.  An umbrella or excess insurance policy which has been renewed
      or which has been in effect for sixty or more days shall not be
      canceled by the insurer, except as provided in section 515.127,
      subsections 2 and 3, unless notice has been mailed or delivered to
      the insured as required by this section or unless at least one of the
      following conditions occurs:
         a.  A material change in the limits, scope of coverage, or
      exclusions in one or more of the underlying policies.
         b.  Cancellation or nonrenewal of one or more of the
      underlying policies where the policies are not replaced without
      lapse.
         c.  A reduction in the financial rating or grade of one or
      more of the insurers insuring one or more of the underlying policies
      based on an evaluation by a recognized financial rating organization.

         4.  A notice of cancellation is not effective unless mailed by
      certified mail or delivered to the named insured and any loss payee
      at least ten days prior to the effective date of cancellation.  A
      notice of cancellation shall include the reason for cancellation of
      the umbrella or excess insurance policy.  A post office department
      certificate of mailing to the named insured at the address shown in
      the umbrella or excess policy is proof of receipt of the mailing;
      however, such a certificate of mailing is not required if
      cancellation is for nonpayment of premium.
         5.  An insurer shall not fail to renew an umbrella or excess
      insurance policy except by notice to the insured as provided in this
      section; however, an insurer may condition renewal of an umbrella or
      excess insurance policy upon requirements relating to the underlying
      policy or policies.  If the requirements are not satisfied as of the
      expiration date of the umbrella or excess insurance policy, or thirty
      days after mailing or delivery of the notice, whichever is later, the
      conditional renewal notice shall be deemed to be an effective notice
      of nonrenewal.  This subsection 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.
         6.  A notice of nonrenewal is not effective unless mailed by
      certified mail or delivered to the named insured and any loss payee
      at least forty-five days prior to the expiration date of the umbrella
      or excess insurance policy.  If the insurer fails to meet the notice
      requirements of this subsection 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 umbrella
      or excess policy.
         7.  Sections 515.127 and 515.128 are not applicable to umbrella or
      excess insurance policies except as provided in subsection 3.  

         Section History: Recent Form

         90 Acts, ch 1234, §40
         C91, § 515.81C
         2007 Acts, ch 152, § 13, 60
         CS2007, § 515.129
         2008 Acts, ch 1074, §10 

         Footnotes

         Former § 515.129 transferred to § 515.148; 2007 Acts, ch 152, § 37