It’s time for the next installment of Holcomb Dunbar law series “Insurance Law from A to Z.” This was put together by our litigation group who practice in the insurance law arena. Of course, if you have questions about these or any other topics please do not hesitate to contact us.
This week’s installment – Cancellation
The statutory cancellation scheme for auto policies applies once the initial policy has remained in effect for 60 days. Miss. Code Ann. § 83-11-3(2). Cancellation may be for any reason prior to the 60th day of the initial policy term as long as it is mailed or delivered by the insurer prior to that date. Id.
Once the 60 day time period has passed an insurer may only cancel a policy based on (1) nonpayment of a premium; (2) the suspension or revocation of an insured’s driver’s license or motor vehicle registration, or (3) the insured’s failure to make timely payment of dues to an association or organization as required by the policy. Miss. Code Ann. § 83-11-3(1).
Cancellation requires 30 days notice for any reason other than non-payment of premium. Cancellation for non-payment of premium requires at least 10 days notice. Miss. Code Ann. § 83-11-5.
Miss. Code Ann. § 83-5-28 applies the above general guidelines to cancelations, reductions, or non-renewals of liability insurance coverage, fire insurance coverage, or single premium multiperil insurance coverage.
Notice of non-renewal must be given at least thirty (30) days in advance. Miss. Code Ann. § 83-11-7. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal. Miss. Code Ann. § 83-11-7.
The information contained in this post is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, there may be omissions or inaccuracies in information contained in this report. Accordingly, the information in this report is provided with the understanding that the authors are not herein engaged in rendering legal, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with legal or other competent advisers. Before making any decision or taking any action, you should consult with your counsel or the attorneys at Holcomb Dunbar.