Within the Contract Conditions (Unit 6, Lesson 1), Cancellation/Non-Renewal there appears to be an inconsistency. It says insurer has to give 20-day notice of cancellatin within first 90 days and afterward give a 45-day notice of non-renewal. That's fine. Next paragraph states "although commercial property policies require a 90-days notice for nonrenewal, a commercial residential property policy requires a 100-day notice to the insured. ??????? Are they required to give 45 days or 90 days??
Hey Grisel,
On p. 93 of the study manual, it states:
"Florida law requires an insurer to give the insured at least 45 days advance written notice of non-renewal..."
"The insurer must also give 45 days advance written notice of cancellation..."
"For cancellation for nonpayment of premium, 10 days written notice..."
"For cancellation other than for nonpayment of premium during the first 90 days the policy is in force, at least 20 days advance notice..."
On p. 94 of the study manual, it states:
"Non-renewal of a commercial residential property policy requires a 100-day notice to the insured while non-renewal of any other type of non-residential commercial property policy requires a 45-day notice."
To answer your question:
Insurers are required to give a 100-day notice for non-renewal of COMMERCIAL RESIDENTIAL property.
Insurers are also required to give a 45-day notice for non-renewal of any other type of NON-RESIDENTIAL COMMERCIAL property.
I hope this explanation helps! If not, I'm sure Jan wouldn't mind if you emailed her any further questions!
Cancellation: 20 days written notice during first 90 days 45 days written notice after first 90 days 10 days written notice for nonpayment of premium
Non-renewal: 45 days written notice for non-residential commercial property 100 days written notice for commercial residential property
Gee Chris - why would Grisel need to reach out to me with further questions when you're answer is so good! Seriously, great response Chris.
Grisel, please let me know if this still isn't clear.
Thank you. So, first 90 days for COMMERCIAL Property, it's 20 days for non renewal. After 90 days its 45 days non renewal. For non payment it's 10 days across the board. For COMMERCIAL RESIDENTIAL, it says its 100 days but is that for the first 90 days or after 90 days? There is only one figure and doesn't specify for which and if so, what's the number of days for the other time period? If its 100 days for non renewal during first 90 days for COML RESIDENTIAL, then how many days for non renewal after the first 90 days? It's not completely stated. Is it 45 days for first 90 days then 100 after 90 days?
The only other further explanation states that, "If the commercial residential insured has had coverage with the same company or company group for a period of at least 5 years the company must give 120 days' notice of cancellation or renewal."
I would just remember that for COMMERCIAL RESIDENTIAL, non-renewal requires a 100-day notice, unless the insured has been w/ the company for at least 5 years, in which case its 120 days' notice for either non-renewal or cancellation.
For cancellation of COMMERCIAL RESIDENTIAL, a 45-day notice is required for both commercial residental and non-commercial residential.
It's highly unlikely that within the first 45 days of a commercial residential policy the insurance company would send out a non-renewal, thus it's a 100-days notice for non-renewal specifically.
Thank you Jan & Christopher. What continues to be missed, though, is that the number of days varies depending on whether policy is in effect 90 days or less versus more than 90 days. For example, for COMMERCIAL Non-renewal, there's a 20 day notice required if 90 days or less and 45 day notice more than 90 days with 10 day notice for Non-payment.
- Staying with COMMERCIAL only, what are Cancellation conditions for policies < 90 days and > 90 days?
- Skipping to COMMERCIAL RESIDENTIAL Non-renewal, what is the breakdown there for <90 days and > 90 days? It says 100 day notice but is that regardless of number of days policy is in effect? It doesn't explain this in the manual or the online course.
- What is the breakdown for COMMERCIAL RESIDENTIAL for Cancellation for <90 days and > 90 days?
I know that non-payment is 10 days across the board. It is also clear that if the policy has been with same carrier that 120 days is the notice for both Cancellation and Non-renewal.
I wish I could upload a spreadsheet so I can better demonstrate the missing pieces from the manual. Sorry for the continued confusion!
I wish I could more specifically answer your question, but the manual is mute on the issue and I don't want to speculate. I can only assume (I know, I know) that if the conditions aren't expressly stated for both before and after the first 90 days, the requirement is regardless of this threshold.
Maybe this will help. It's all you need to know about Commercial Property Cancellation/Non-renewal.
Non-payment of premium - 10 days
Cancellation during first 90 days of policy - 20 days
Cancellation any time after first 90 days of
policy - 45 days
Non-renewal of commercial residential policy - 100 days
Non-renewal of non-commercial residential policy - 45 days
Cancellation or non-renewal of commercial
residential property insured for 5 or more years - 120 days
This is better but still doesn't cover Non-renewal for COMMERCIAL Property less than 90 and more than 90 days in effect AND the Cancellation figures are they for both Commercial Property and Commercial Residential Property policies or just Commercial? Also, I see Non-renewal for Commercial and Non-commercial Residential above but nothing about Cancellation. Does the Cancellation information above apply to Commercial Residential as well?
Grisel,
Non-payment of premium - 10 days
Cancellation during first 90 days of policy - 20 days
Cancellation any time after first 90 days of
policy - 45 days