60A.351 RENEWAL OF INSURANCE POLICY WITH ALTERED RATES.
If an insurance company licensed to do business in this state offers or purports to offer to
renew any commercial liability and/or property insurance policy at less favorable terms as to the
dollar amount of coverage or deductibles, higher rates, and/or higher rating plan, the new terms,
the new rates and/or rating plan may take effect on the renewal date of the policy if the insurer has
sent to the policyholder notice of the new terms, new rates and/or rating plan at least 30 days
prior to the expiration date. If the insurer has not so notified the policyholder, the policyholder
may elect to cancel the renewal policy within the 60-day period after receipt of the notice. Earned
premium for the period of coverage, if any, shall be calculated pro rata upon the prior rate. This
section does not apply to ocean marine insurance, accident and health insurance, reinsurance,
and coverage under the federal Terrorism Risk Insurance Act.
This section does not apply if the change relates to guide "a" rates or excess rates also known
as "consent to rates" or if there has been any change in the risk insured.
History: 1986 c 455 s 58; 1987 c 337 s 21; 1994 c 485 s 65; 2002 c 330 s 2; 2005 c 74
s 6; 2007 c 104 s 1