2005 California Insurance Code Sections 660-669.5 CHAPTER 10. CANCELLATION OR FAILURE TO RENEW

INSURANCE CODE
SECTION 660-669.5

660.  As used in this chapter:
   (a) "Policy" means an automobile liability, automobile physical
damage, or automobile collision policy, or any combination thereof,
delivered or issued for delivery in this state, insuring a single
individual or individuals residing in the same household, as named
insured, and under which the insured vehicles therein designated are
of the following types only:
   (1) A motor vehicle of the private passenger or station wagon type
that is not used as a public or livery conveyance for passengers,
nor rented to others; or
   (2) Any other four-wheel motor vehicle with a load capacity of
1,500 pounds or less; provided, however, that this chapter shall not
apply (i) to any policy issued under an automobile assigned risk
plan, or (ii) to any policy insuring more than four automobiles, or
(iii) to any policy covering garage, automobile sales agency, repair
shop, service station, or public parking place operation hazards; or
   (3) A motorcycle.
   (b) "Automobile liability coverage" includes only coverage of
bodily injury and property damage liability, medical payments, and
uninsured motorists coverage.
   (c) "Automobile physical damage coverage" includes all coverage of
loss or damage to an automobile insured under the policy except loss
or damage resulting from collision or upset.
   (d) "Automobile collision coverage" includes all coverage of loss
or damage to an automobile insured under the policy resulting from
collision or upset.
   (e) "Renewal" or "to renew" means to continue coverage with either
the insurer which issued the policy or an affiliated insurer, as
defined in Section 1215, for an additional policy period upon
expiration of the current policy period of a policy, provided that if
coverage is continued with an affiliated insurer, it shall be the
same or broader coverage as provided by the present insurer, and the
insured shall be notified in writing at least 20 days prior to
expiration of the current policy period of all of the following:  (1)
That the insurer has determined that it will not offer renewal of
the policy with the present insurer, (2) That it is offering
replacement in an affiliated insurer, and (3) That the insured may
obtain in writing the reasons for the change in insurers if he or she
requests in writing not later than one month following the
expiration of the policy period the reason or reasons for the change
in insurers.  Any policy with a policy period or term of six months
or less, whether or not made continuous for successive terms upon the
payment of additional premiums, shall for the purpose of this
chapter be considered as if written for a policy period or term of
six months.  Any policy written for a term longer than one year, or
any policy with no fixed expiration date, shall for the purpose of
this chapter, be considered as if written for successive policy
periods or terms of one year.
   (f) "Nonpayment of premium" means failure of the named insured to
discharge when due any of his obligations in connection with the
payment of premiums on a policy, or any installment of such premium,
whether the premium is payable directly to the insurer or its agent
or indirectly under any premium finance plan or extension of credit.
   (g) "Cancellation" means termination of coverage by an insurer
(other than termination at the request of the insured) during a
policy period.
   (h) "Nonrenewal" means a notice by the insurer to the named
insured that the insurer is unwilling to renew a policy.
   (i) "Expiration" means termination of coverage by reason of the
policy having reached the end of the term for which it was issued or
the end of the period for which a premium has been paid.
661.  (a) A notice of cancellation of a policy shall be effective
only if it is based on one or more of the following reasons:
   (1) Nonpayment of premium.
   (2) The driver's license or motor vehicle registration of the
named insured or of 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 during the policy
period or, if the policy is a renewal, during its policy period or
the 180 days immediately preceding its effective date.
   (3) Discovery of fraud by the named insured in pursuing a claim
under the policy provided the insurer does not rescind the policy.
   (4) Discovery of material misrepresentation of any of the
following information concerning the named insured or any resident of
the same household who customarily operates an automobile insured
under the policy:
   (A) Safety record.
   (B) Annual miles driven in prior years.
   (C) Number of years of driving experience.
   (D) Record of prior automobile insurance claims, if any.
   (E) Any other factor found by the commissioner to have a
substantial relationship to the risk of loss.
   Any insured who negligently misrepresents information described in
this paragraph may avoid cancellation by furnishing corrected
information to the insurer within 20 days after receiving notice of
cancellation and agreeing to pay any difference in premium for the
policy period in which the information remained undisclosed.
   (5) A substantial increase in the hazard insured against.
   (b) This section shall not apply to any policy or coverage that
has been in effect less than 60 days at the time notice of
cancellation is mailed or delivered by the insurer unless it is a
renewal policy.
   (c) Modification of automobile physical damage coverage by the
inclusion of a deductible not exceeding one hundred dollars ($100)
shall not be deemed a cancellation of the coverage or of the policy.
   (d) This section shall not apply to nonrenewal.
662.  No notice of cancellation of a policy to which Section 661
applies shall be effective unless mailed or delivered by the insurer
to the named insured, lienholder, or additional interest at least 20
days prior to the effective date of cancellation; provided, however,
that where cancellation is for nonpayment of premium, at least 10
days' notice of cancellation accompanied by the reason therefor shall
be given.  Unless the reason accompanies or is included in the
notice of cancellation, the notice of cancellation shall state or be
accompanied by a statement that upon written request of the named
insured, mailed or delivered to the insurer not less than 15 days
prior to the effective date of cancellation, the insurer will specify
the reason for such cancellation.
   This section shall not apply to nonrenewal.
662.1.  Proof of mailing or delivery of a notice of cancellation to
a lienholder or an additional interest on a policy to which this
chapter applies shall be sufficient to terminate the interest of the
parties provided the notice is mailed or delivered at least the
maximum number of days prior to termination of the parties' interest
as required by Section 662.  For purposes of this section, "delivery"
includes electronic transmittal or facsimile or personal delivery.
No lienholder or additional interest shall require a more restrictive
form of notice.
663.  (a) Before policy expiration, an insurer shall deliver to or
mail to the named insured, at the address shown on the policy, one of
the following:
   (1) At least 20 days before expiration, a written or verbal offer
of renewal of the policy, contingent upon payment of premium as
stated in the offer.
   (2) At least 30 days before expiration, a written notice of
nonrenewal of the policy, including the statement required by Section
666.
   (b) (1) An insurer that delivers a verbal offer to renew that is
declined by an insured shall, at least 20 days before expiration of
the policy, deliver to or mail to the named insured, at the address
shown on the policy, a written confirmation of the offer and
rejection.
   (2) An insurer that attempts to satisfy subdivision (a) with a
verbal offer to renew, but is unable to contact the named insured
directly at least 20 days before policy expiration, shall, at least
20 days before policy expiration, deliver to or mail to the named
insured, at the address shown on the policy, a written offer to renew
the policy, contingent upon payment of premium as stated in the
offer.
   (c) In the event that an insurer fails to give the named insured
either an offer of renewal or notice of nonrenewal as required by
this section, the existing policy, with no change in its terms and
conditions, shall remain in effect for 30 days from the date that
either the offer to renew or the notice of nonrenewal is delivered or
mailed to the named insured.  A notice to this effect shall be
provided by the insurer to the named insured with the policy or the
notice of renewal or nonrenewal. Notwithstanding the failure of an
insurer to comply with this section, the policy shall terminate on
the effective date of any other replacement or succeeding automobile
insurance policy procured by the insured, or his agent or broker,
with respect to any automobile designated in both policies.
   (d) The insurer shall not be required to notify the named insured,
or any other insured, of nonrenewal of the policy if the insurer has
mailed or delivered a notice of expiration or cancellation, on or
prior to the 30th day preceding expiration of the policy period.
663.5.  (a) No insurer shall fail to renew a policy solely on the
basis of the age of the insured.
   (b) On and after January 1, 2000, no insurer shall fail to renew a
policy solely on the grounds that a claim is pending under the
policy.  This subdivision shall not be construed to limit an insurer'
s ability to nonrenew a policy based upon a directive from the
commissioner for solvency or other financially related issues.  This
subdivision shall not be construed to limit an insurer's right to
cancel a policy pursuant to Section 676.
664.  Proof of mailing of notice of cancellation, or of intention
not to renew or of reasons for cancellation, to the named insured at
the address shown in the policy or to the named insured's latest
known address, shall be sufficient proof of notice.
664.5.  Any insurer who requires periodic physical examinations of
an insured as a condition of renewal of a policy shall pay the cost
of such physical examinations, except that an insurer shall not pay
any cost if it elects to accept the certified written results of an
insured's physical examination voluntarily conducted within 12 months
preceding the policy expiration or renewal date.
665.  When a policy of automobile liability insurance is canceled,
other than for nonpayment of premium, or in the event of failure to
renew a policy of automobile liability insurance to which Section 663
applies, the insurer shall notify the named insured of his possible
eligibility for automobile liability insurance through the automobile
liability assigned risk plan.  Such notice shall accompany or be
included in the notice of cancellation or the notice of intent not to
renew.
666.  Where the reason for cancellation does not accompany or is not
included in the notice of cancellation, the insurer shall upon
written request of the named insured, mailed or delivered to the
insurer not less than 15 days prior to the effective date of
cancellation, specify in writing the reason for such cancellation.
Such reason shall be mailed or delivered to the named insured within
five days after receipt of such request.
667.  There shall be no liability on the part of, and no cause of
action of any nature shall arise against, the Insurance Commissioner
or against any insurer, its authorized representative, its agents,
its employees, or any firm, person, or corporation furnishing to the
insurer information as to reasons for cancellation or nonrenewal, for
any statement made by any of them in any written notice of
cancellation or nonrenewal, or in any other communication, oral or
written, specifying the reasons for cancellation or nonrenewal, or
the providing of information pertaining thereto, or for statements
made or evidence submitted at any hearings conducted in connection
therewith.
667.5.  Unless a policy specifically provides otherwise, the
cancellation of a policy, or any change in the policy, executed by an
insurer, at the request of the named insured designated on the
declarations page of the policy, shall be binding upon any other
insured or named insured.
   Notice of cancellation or an endorsement evidencing the named
insured's request shall be mailed or delivered to the address stated
in the policy to all individuals or to all entities designated as
named insureds on the declarations page of the policy.
668.  Section 663 shall not apply to policies of liability insurance
issued pursuant to assigned risk plans.
668.5.  No cancellation of a policy or coverage of insurance subject
to this chapter but not subject to Section 661 or 662 (because it
has been in effect less than 60 days) shall be effective unless a
notice of cancellation subject to Sections 664 and 665, when
applicable, but not to any other provision of this chapter, be mailed
or delivered by the insurer to the named insured not later than the
59th day following its effective date and at least 10 days prior to
the effective date of cancellation.
669.  Any insurer willfully violating any provisions of Section 663
is guilty of a misdemeanor and is punishable by a fine of not
exceeding one thousand dollars ($1,000) for each violation thereof.
669.5.  No insurer shall fail to renew any private automobile
insurance policy of a peace officer, member of the California Highway
Patrol, or firefighter, with respect to his or her operation of a
private motor vehicle, for the reason that the insured has been
involved in an accident while operating an authorized emergency
vehicle, as defined in subdivision (a) of Section 165 of the Vehicle
Code or in paragraph (1) or (2) of subdivision (b) or (f) of Section
165 of the Vehicle Code, in the performance of his or her duty during
the hours of his or her employment.  As used in this section, "peace
officer" means every person defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 and Section 830.6 of the Penal
Code, and "firefighter" means every person defined in Section 50925
of the Government Code.
   In the case of a volunteer firefighter, this section applies to
the regular employer of the volunteer firefighter to the extent that
the involvement of the volunteer firefighter in the accident shall
not be cause for the employer's insurer's decision to renew the
employer's insurance policy as it applies to the employee covered by
this section.


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