Section 375.003

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2014   

  375.003.  Notice of cancellation, how given — reinstatement, when. — 1.  Except as provided in subsection 2 of this section, no notice of cancellation of a policy to which section 375.002 applies shall be effective unless mailed or delivered by the insurer to the named insured at least thirty days prior to the effective date of cancellation.

  2.  Where cancellation is for nonpayment of premium at least ten days' notice of cancellation shall be given and such notice shall contain the following notice or notice substantially similar in bold conspicuous type: "THIS POLICY IS CANCELLED EFFECTIVE AT THE DATE AND TIME INDICATED IN THIS NOTICE.  THIS IS THE FINAL NOTICE OF CANCELLATION WE WILL SEND PRIOR TO THE EFFECTIVE DATE AND TIME OF CANCELLATION INDICATED IN THIS NOTICE.".

  3.  The notice shall state the insurer's actual reason for proposing the action, the statement of reason to be sufficiently clear and specific so that a person of average intelligence can identify the basis for the insurer's decision without further inquiry.  Generalized terms such as "personal habits", "living conditions", or "poor morals" shall not suffice to meet the requirements of this subsection.  The notice shall also state that the insured may be eligible for insurance through the Missouri basic property insurance inspection and placement program.

  4.  Issuance of a notice of cancellation under subsection 1 or 2 of this section constitutes a present and unequivocal act of cancellation of the policy.

  5.  An insurer may reinstate a policy cancelled under subsection 1 or 2 of this section at any time after the notice of cancellation is issued if the reason for the cancellation is remedied.  An insurer may send communications to the insured, including but not limited to billing notices for past due premium, offers to reinstate the policy if past due premium is paid, notices confirming cancellation of the policy, or billing notices for payment of earned but unpaid premium.  The fact that a policy may be so reinstated or any such communication may be made does not invalidate or void any cancellation effectuated under subsection 1 or 2 of this section or defeat the present and unequivocal nature of acts of cancellation as described under subsection 4 of this section.

  6.  This section shall not apply to nonrenewal.

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(L. 1977 S.B. 300 § 3, A.L. 2014 S.B. 691)