§ 58-41-20. Notice of nonrenewal, premium rate increase, or change in coverage required. - North Carolina Statutes

§58‑41‑20.  Notice of nonrenewal, premium rate increase, or changein coverage required.

(a)        No insurer mayrefuse to renew an insurance policy except in accordance with the provisions ofthis section, and any nonrenewal attempted or made that is not in compliancewith this section is not effective.  This section does not apply if thepolicyholder has insured elsewhere, has accepted replacement coverage, or hasrequested or agreed to nonrenewal.

(b)        An insurer mayrefuse to renew a policy that has been written for a term of one year or lessat the policy's expiration date by giving or mailing written notice ofnonrenewal to the insured not less than 45 days prior to the expiration date ofthe policy.

(c)        An insurer mayrefuse to renew a policy that has been written for a term of more than one yearor for an indefinite term at the policy anniversary date by giving or mailingwritten notice of nonrenewal to the insured not less than 45 days prior to theanniversary date of the policy.

(d)        Except as providedin G.S. 58‑41‑25, whenever an insurer lowers coverage limits orraises deductibles or premium rates other than at the request of thepolicyholder, the insurer shall give the policyholder written notice of suchchange at least 30 days in advance of the effective date of the change.

(e)        The notice requiredby this section must be given or mailed to the insured and any designatedmortgagee or loss payee at their addresses shown in the policy or, if notindicated in the policy, at their last known addresses.  Proof of mailing issufficient proof of notice.  The notice of nonrenewal must state the precisereason for nonrenewal.  Failure to send this notice to any designated mortgageeor loss payee invalidates the nonrenewal only as to the mortgagee's or losspayee's interest.

(f)         Copies of thenotice required by this section shall also be sent the agent or broker ofrecord; however, failure to send copies of the notice to such persons shall notinvalidate the nonrenewal. (1985 (Reg. Sess., 1986), c. 1027, s. 14; 1987, c.441, ss. 3, 4.)