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State
California
IC Sec 675-679.7 CANCELLATION AND FAILURE TO RENEW CERTAIN PROPERTY INSURANCE

INSURANCE CODE
SECTION 675-679.7





675. (a) Except as provided in Sections 676.8 and 679.6, this
chapter shall apply to policies of insurance, other than automobile
insurance and workers' compensation insurance, on risks located or
resident in this state which are issued and take effect or which are
renewed after the effective date of this chapter and insuring any of
the following contingencies:
(1) Loss of or damage to real property which is used predominantly
for residential purposes and which consists of not more than four
dwelling units.
(2) Loss of or damage to personal property in which natural
persons resident in specifically described real property of the kind
described in paragraph (1) have an insurable interest, except
personal property used in the conduct of a commercial or industrial
enterprise.
(3) Legal liability of a natural person or persons for loss of,
damage to, or injury to, persons or property, but not including
policies primarily insuring risks arising from the conduct of a
commercial or industrial enterprise.
(b) This chapter shall not be construed so as to modify or negate
any of the provisions of Chapter 3 (commencing with Section 330) of
Part 1 of Division 1, nor to destroy any rights or remedies therein
provided.
(c) On and after January 1, 2000, an insurer may not refuse to
renew a policy of insurance specified in subdivision (a) solely on
the grounds that a claim is pending under the policy. This
subdivision is not applicable to claims made under coverage for loss
or damage caused by the peril of earthquake as provided in Chapter
8.5 (commencing with Section 10081) or Chapter 8.6 (commencing with
Section 10089.5), of Part 1 of Division 2.



675.1. In the case of a total loss to the primary insured structure
under a residential policy subject to Section 675, the following
provisions apply:
(a) If reconstruction of the primary insured structure has not
been completed by the time of policy renewal, the insurer, prior to
or at the time of renewal, and after consultation by the insurer or
its representative with the insured as to what limits and coverages
might or might not be needed, shall adjust the limits and coverages,
write an additional policy, or attach an endorsement to the policy
that reflects the change, if any, in the insured's exposure to loss.
The insurer shall adjust the premium charged to reflect any change in
coverage.
(b) The insurer shall not cancel coverage while the primary
insured structure is being rebuilt, except for the reasons specified
in subdivisions (a) to (e), inclusive, of Section 676. The insurer
shall not use the fact that the primary insured structure is in
damaged condition as a result of the total loss as the sole basis for
a decision to cancel the policy pursuant to subdivision (e) of that
section.
(c) Except for the reasons specified in subdivisions (a) to (e),
inclusive, of Section 676, the insurer shall offer to, at least once,
renew the policy in accordance with the provisions of subdivision
(a) if the total loss to the primary insured structure was caused by
a disaster, as defined in subdivision (b) of Section 1689.14 of the
Civil Code, and the loss was not also due to the negligence of the
insured.
(d) With respect to policies of residential earthquake insurance,
the California Earthquake Authority, or any insurer, including a
participating insurer, as defined in subdivision (i) of Section
10089.5, may defer its initial implementation of this section until
no later than October 1, 2005.
(e) With respect to a residential earthquake insurance policy
issued by the California Earthquake Authority, the following
provisions apply:
(1) The participating insurer that issued the underlying policy of
residential property insurance on the primary insured structure
shall consult with the insured as to what limits and coverages might
or might not be needed as required by subdivision (a).
(2) The California Earthquake Authority, in lieu of meeting the
requirements of subdivision (a), shall establish procedures and
practices that allow it to reasonably accommodate the needs and
interests of consumers in maintaining appropriate earthquake
insurance coverage, within the statutory and regulatory limitations
on the types of insurance coverages and the coverage limits of the
policies that the authority may issue.



675.5. (a) In addition to any policy of insurance specified in
Section 675, this chapter shall apply to policies of commercial
insurance issued or issued for delivery in this state which are
issued and take effect or are renewed on or after January 1, 1987.
(b) As used in this section, commercial insurance means commercial
multiperil, commercial property, commercial liability, commercial
special multiperil, commercial comprehensive multiperil, errors and
omissions liability, and professional liability insurance, and any
other insurance not included in subdivision (d) which covers any of
the following contingencies:
(1) Loss of or damage to real property used or owned by a
commercial or industrial enterprise.
(2) Loss of or damage to personal property, except personally
owned motor vehicles, used in the conduct of a commercial or
industrial enterprise.
(3) Legal liability of any person for loss of, damage to, or
injury to persons or property, arising from the conduct of a
commercial or industrial enterprise.
(c) As used in this section, the term commercial or industrial
enterprise includes a business operated for profit, a professional
practice, a nonprofit organization, or a governmental entity.
(d) As used in this section, the term commercial insurance does
not include any of the following:
(1) Worker's compensation insurance.
(2) Insurance provided pursuant to the California FAIR plan or the
California automobile assigned risk plan.
(3) Disability insurance.
(4) Automobile insurance covered by Section 660 and property
insurance covered by Section 675.
(5) Ocean marine insurance.
(6) Fidelity and surety insurance.
(7) Surplus line insurance.
(8) Reinsurance.
(9) Any insurance, other than professional liability insurance for
malpractice, errors, or omissions, for which premiums are determined
on a retrospective rating basis.
(10) Nuclear liability insurance.
(11) Nuclear property insurance.



676. After a policy specified in Section 675 has been in effect for
60 days, or, if the policy is a renewal, effective immediately, no
notice of cancellation shall be effective unless it is based on the
occurrence, after the effective date of the policy, of one or more of
the following:
(a) Nonpayment of premium, including nonpayment of any additional
premiums, calculated in accordance with the current rating manual of
the insurer, justified by a physical change in the insured property
or a change in its occupancy or use.
(b) Conviction of the named insured of a crime having as one of
its necessary elements an act increasing any hazard insured against.

(c) Discovery of fraud or material misrepresentation by either of
the following:
(1) The insured or his or her representative in obtaining the
insurance.
(2) The named insured or his or her representative in pursuing a
claim under the policy.
(d) Discovery of grossly negligent acts or omissions by the
insured or his or her representative substantially increasing any of
the hazards insured against.
(e) Physical changes in the insured property which result in the
property becoming uninsurable.


676.1. (a) The arbitrary cancellation of a policy of homeowners'
insurance solely on the basis that the policyholder has a license to
operate a family day care home at the insured location shall subject
the insurer to administrative sanctions authorized by this code
unless, there has been a material misrepresentation of fact, the risk
has changed substantially since the policy was issued, there has
been a nonpayment of premium, or the insurer no longer writes
homeowners policies.
(b) The arbitrary refusal to renew a policy of homeowners'
insurance solely on the basis that the policyholder has a license to
operate a family day care home at the insured location shall subject
the insurer to administrative sanctions authorized by this code
unless, there has been a material misrepresentation of fact, the risk
has changed substantially since the policy was issued, there has
been a nonpayment of premium, or the insurer no longer writes
homeowners' policies. For purposes of this subdivision, an insured's
purchase of a policy of homeowner's insurance to cover a new,
primary residence from the same insurer which insured his or her
previous primary residence, provided that the insurer then
underwrites homeowners' insurance in the geographic area containing
the new residence, shall be deemed a renewal of the policy on the
previous, primary residence.
(c) It shall be against public policy for a residential property
insurance policy to provide coverage for liability for losses arising
out of, or in connection with, the operation of a family day care
home. This coverage shall only be provided by a separate endorsement
or insurance policy for which premiums have been assessed and
collected.



676.2. (a) This section applies only to policies of commercial
insurance which are subject to Section 675.5.
(b) After a policy has been in effect for more than 60 days, or if
the policy is a renewal, effective immediately, no notice of
cancellation shall be effective unless it complies with Section
677.2 and it is based on the occurrence, after the effective date of
the policy, of one or more of the following:
(1) Nonpayment of premium, including payment due on a prior policy
issued by the insurer and due during the current policy term
covering the same risks.
(2) A judgment by a court or an administrative tribunal that the
named insured has violated any law of this state or of the United
States having as one of its necessary elements an act which
materially increases any of the risks insured against.
(3) Discovery of fraud or material misrepresentation by either of
the following:
(A) The insured or his or her representative in obtaining the
insurance.
(B) The named insured or his or her representative in pursuing a
claim under the policy.
(4) Discovery of willful or grossly negligent acts or omissions,
or of any violations of state laws or regulations establishing safety
standards, by the named insured or his or her representative, which
materially increase any of the risks insured against.
(5) Failure by the named insured or his or her representative to
implement reasonable loss control requirements which were agreed to
by the insured as a condition of policy issuance or which were
conditions precedent to the use by the insurer of a particular rate
or rating plan, if the failure materially increases any of the risks
insured against.
(6) A determination by the commissioner that the loss of, or
changes in, an insurer's reinsurance covering all or part of the risk
would threaten the financial integrity or solvency of the insurer.
A certification made under penalty of perjury to the commissioner by
an officer of the insurer of the loss of, or change in, reinsurance
and that the loss or change will threaten the financial integrity or
solvency of the insurer if the cancellation of the policy is not
permitted shall constitute such a determination unless disapproved by
the commissioner within 30 days of the filing. There shall be no
extensions to this 30-day period.
(7) A determination by the commissioner that a continuation of the
policy coverage would place the insurer in violation of the laws of
this state or the state of its domicile or that the continuation of
coverage would threaten the solvency of the insurer.
(8) A change by the named insured or his or her representative in
the activities or property of the commercial or industrial enterprise
which results in a material added risk, a materially increased risk
or a materially changed risk, unless the added, increased, or changed
risk is included in the policy.
(c) After a policy has been in effect for more than 60 days, or if
the policy is a renewal, effective immediately upon renewal, no
increase in the rate upon which the premium is based, reduction in
limits, or change in the conditions of coverage shall be effective
during the policy period unless a written notice is mailed or
delivered to the named insured and the producer of record at the
mailing address shown on the policy, at least 30 days prior to the
effective date of the increase, reduction, or change. Subdivision
(a) of Section 1013 of the Code of Civil Procedure is applicable if
the notice is mailed. The notice shall state the effective date of,
and the reasons for, the increase, reduction, or change.
That increase, reduction, or change shall not be effective unless
based upon one of the following reasons:
(1) Discovery of willful or grossly negligent acts or omissions,
or of any violations of state laws or regulations establishing safety
standards by the named insured which materially increase any of the
risks or hazards insured against.
(2) Failure by the named insured to implement reasonable loss
control requirements which were agreed to by the insured as a
condition of policy issuance or which were conditions precedent to
the use by the insurer of a particular rate or rating plan, if the
failure materially increases any of the risks insured against.
(3) A determination by the commissioner that loss of or changes in
an insurer's reinsurance covering all or part of the risk covered by
the policy would threaten the financial integrity or solvency of the
insurer unless the change in the terms or conditions or rate upon
which the premium is based is permitted.
(4) A change by the named insured in the activities or property of
the commercial or industrial enterprise which results in a
materially added risk, a materially increased risk, or a materially
changed risk, unless the added, increased, or changed risk is
included in the policy.
(5) With respect to a change in the rate of a policy of
professional liability insurance for a health care provider, the
insurer's offer of renewal notifies the policyholder that the insurer
has an application filed pursuant to Section 1861.05 pending with
the commissioner for approval of a change in the rate upon which the
premium is based, and the commissioner subsequently approves the rate
change, or some different amount for the policy period. The change
shall not be retroactive.
(d) The Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340), Chapter 4 (commencing with Section 11370), and
Chapter 5 (commencing with Section 11500) of Title 2 of Division 3 of
the Government Code) shall not apply to a determination pursuant to
paragraph (6) or (7) of subdivision (b) or paragraph (3) of
subdivision (c). The commissioner shall charge an insurer who
requests a determination pursuant to paragraph (6) or (7) of
subdivision (b) a fee sufficient to recover the costs of making the
determination. If the commissioner does not act upon a request by a
insurer to cancel or change a policy pursuant to those provisions
within 30 days, the request shall be deemed to be approved.
(e) This section shall not prohibit an insurer from increasing a
premium during the policy period, if the increase is calculated in
accordance with the current rating manual of the insurer, and is
justified by a physical change in the insured property or by a change
in the activities of the commercial or industrial enterprise which
materially increases any of the risks insured against.
(f) This section shall not apply to a transfer of a policy without
a change in its terms or conditions or the rate upon which the
premium is based between insurers which are members of the same
insurance group.



676.3. Nothing in Section 676.2 shall preclude the imposition of
remedial underwriting action upon coverage insuring dentists or
physicians and surgeons against legal liability arising from the
rendering of professional services by an insured licensed pursuant to
Chapter 4 (commencing with Section 1600) or Chapter 5 (commencing
with Section 2000) of Division 2 of the Business and Professions
Code, respectively, if remedial underwriting action is imposed
pursuant to the recommendation of an underwriting committee advising
the insurer; provided that a majority of the members of that
committee are licensed pursuant to the chapter of Division 2 of the
Business and Professions Code that is applicable to that particular
insured, and written notification of the proposed remedial
underwriting action is first given to the insured, and the insured is
afforded not less than 30 days to present opposition or argument to
the underwriting committee as to why the remedial underwriting action
should be modified or withheld, prior to any imposition thereof.
Remedial underwriting action includes all actions described in
subdivision (c) of Section 676.2. Remedial underwriting action
imposed pursuant to this section shall not be subject to Article 7
(commencing with Section 1858) of Chapter 9 of Part 2, but nothing in
this section shall deny the right of the commissioner to
investigate, pursue enforcement action, and seek other remedies as
authorized by Article 1 (commencing with Section 12919) of Chapter 2
of Division 3.
It is the intent of the Legislature to encourage peer review by
insurers providing coverage to persons engaged in the provision of
health services and the adoption of conditions of coverage which are
intended to protect the public.



676.4. Nothing in Section 676.2 shall preclude, while the policies
are in force, changes in the rate upon which the premium is based or
the conditions of coverage, or both, of policies insuring health care
facilities licensed pursuant to Chapter 2 (commencing with Section
1250) of Division 2 of the Health and Safety Code, if the change is
imposed pursuant to the recommendation of a health care facility
professional liability advisory committee advising the insurer;
provided that a majority of the members of the committee are duly
authorized representatives of health care facilities licensed
pursuant to that Chapter 2 (commencing with Section 1250) of Division
2 of the Health and Safety Code, and written notification of the
change is given to all affected insureds at least 30 days prior to
any such change.



676.5. (a) This section applies only to policies of commercial
insurance which are subject to Section 675.5.
(b) Except as provided in subdivision (c), for purposes of this
chapter only, a policy with no fixed expiration, or with a term of
less than one year, shall be considered to be a policy for a term of
one year, and a policy written for a term of more than one year shall
be considered as if written for successive terms of one year.
(c) For purposes of this chapter, a policy shall be considered to
be for a term of less than one year if the policy is issued for a
specific risk which does not continue beyond the period of the
policy, or if the insured requests a policy for a term of less than
one year.



676.6. (a) This section applies to commercial umbrella liability
insurance policies, commercial excess liability insurance policies,
and commercial excess property insurance policies.
(b) As used in this section:
(1) "Umbrella liability insurance policy" means an insurance
policy providing liability coverage per person or per occurrence or
per claim, when written over one or more underlying liability
policies or over a specified amount of self-insured retention.
(2) "Excess liability insurance policy" means an insurance policy
providing liability covrage per person or per occurrence or per claim
when written over one or more underlying liability policies. Excess
liability policies shall include policies written over umbrella
liability policies.
(3) "Excess property insurance policy" means a policy providing
property coverage per occurrence or per location when written over
one or more underlying property insurance policies or a specified
amount of self-insured retention.
(c) After a policy defined in subdivision (b) of this section has
been in effect for more than 60 days, or if the policy is a renewal,
effective immediately, no notice of cancellation shall be effective
unless it complies with Section 677. 2, is based on one or more of
the grounds set forth in subdivision (b) of Section 676.2, or is
based on one or more of the following:
(1) A material change in limits, type or scope of coverage, or
exclusions in one or more of the underlying policies.
(2) Cancellation or nonrenewal of one or more of the underlying
policies where such policies are not replaced without lapse.
(3) A reduction in financial rating or grade of one or more
insurers, insuring one or more underlying policies based on an
evaluation obtained from a recognized financial rating organization.

(d) A notice of nonrenewal shall not be required in any of the
following situations:
(1) The transfer of, or renewal of, a policy without a change in
its terms or conditions or the rate on which the premium is based
between insurers which are members of the same insurance group.
(2) The policy has been extended for 90 days or less, if the
notice required in subdivision (c) has been given prior to the
extension.
(3) The named insured has obtained replacement coverage or has
agreed, in writing, within 60 days of the termination of the policy,
to obtain that coverage.
(4) The policy is for a period of no more than 60 days and the
insured is notified at the time of issuance that it may not be
renewed.
(5) The named insured requests a change in the terms or conditions
or risks covered by the policy within 60 days prior to the end of
the policy period.
(6) The insurer has made a written offer to the insured, within
the time period specified in subdivision (c), to renew the policy
under changed terms or conditions or at a changed premium rate. As
used herein, "terms or conditions" includes, but is not limited to, a
reduction in limits, elimination of coverages, or an increase in
deductibles.



676.7. (a) No admitted insurer, licensed to issue and issuing
homeowner's or tenant's policies, as described in Section 122, shall
(1) fail or refuse to accept an application for that insurance or to
issue that insurance to an applicant or (2) cancel that insurance,
solely on the basis that the applicant or policyholder is engaged in
foster home activities in a licensed foster family home or licensed
small family home, as defined in Section 1502 of the Health and
Safety Code.
(b) Coverage under policies described in subdivision (a) with
respect to a foster child shall be the same as that provided for a
natural child. However, unless specifically provided in the policy,
there shall be no coverage expressly provided in the policy for any
bodily injury arising out of the operation or use of any motor
vehicle, aircraft, or watercraft owned or operated by, or rented or
loaned to, any foster parent.
(c) It is against public policy for a policy of homeowner's or
tenant's insurance subject to this section to provide liability
coverage for any of the following losses:
(1) Claims of a foster child, or a parent, guardian, or guardian
ad litem thereof, of a type payable by the Foster Family Home and
Small Family Home Insurance Fund established by Section 1527.1 of the
Health and Safety Code, regardless of whether the claim is within
the limits of coverage specified in Section 1527.4 of the Health and
Safety Code.
(2) An insurer shall not be liable, under a policy of insurance
subject to this section, to any governmental agency for damage
arising from occurrences peculiar to the foster-care relationship and
the provision of foster-care services.
(3) Alienation of affection of a foster child.
(4) Any loss arising out of licentious, immoral, or sexual
behavior on the part of a foster parent intended to lead to, or
culminating in, any sexual act.
(5) Any loss arising out of a dishonest, fraudulent, criminal, or
intentional act.
(d) There shall be no penalty for violations of this section prior
to January 1, 1987.
(e) Insurers may provide a special endorsement to a homeowners' or
tenants' policy covering claims related to foster care that are not
excluded by subdivision (c).
(f) Insurers may provide by a separate policy for some or all of
the claims related to foster care that are excluded by subdivision
(c).


676.8. (a) This section applies only to policies of workers'
compensation insurance.
(b) After a policy is in effect, no notice of cancellation shall
be effective unless it complies with the notice requirements of this
section and is based upon the occurrence, after the effective date of
the policy, of one or more of the following:
(1) The policyholder's failure to make any workers' compensation
insurance premium payment when due.
(2) The policyholder's failure to report payroll, to permit the
insurer to audit payroll as required by the terms of the policy or of
a previous policy issued by the insurer, or to pay any additional
premium as a result of a audit of payroll as required by the terms of
the policy or of a previous policy.
(3) The policyholder's material failure to comply with federal or
state safety orders or written recommendations of the insurer's
designated loss control representative.
(4) A material change in ownership or any change in the
policyholder's business or operations that materially increases the
hazard for frequency or severity of loss, requires additional or
different classifications for premium calculations, or contemplates
an activity excluded by the insurer's reinsurance treaties.
(5) Material misrepresentation by the policyholder or its agent.
(6) Failure to cooperate with the insurer in the insurer's
investigation of a claim.
(c) A policy shall not be canceled for the conditions specified in
paragraph (1), (2), (5), or (6) of subdivision (b) except upon 10
days' written notice to the policyholder by the insurer. A policy
shall not be canceled for the conditions specified in paragraph (3)
or (4) of subdivision (b) except upon 30 days' written notice to the
policyholder by the insurer, provided that no notice is required if
an insured and insurer consent to the cancellation and reissuance of
a policy effective upon a material change in ownership or operations
of the insured. If the policyholder remedies the condition to the
insurer's satisfaction within the specified time period, the policy
shall not be canceled by the insurer.
(d) Nothing in this section shall preclude, while policies are in
force, changes in the premium rate required or authorized by law,
regulation, or order of the commissioner, or otherwise agreed to
between the policyholder and insurer.
(e) Any policy written for a term longer than one year, or any
policy with no fixed expiration date, shall be considered as if
written for successive policy periods of one year.



676.9. (a) This section applies to policies covered by Sections 675
and 675.5.
(b) No insurer issuing policies subject to this section shall deny
or refuse to accept an application, refuse to insure, refuse to
renew, cancel, restrict, or otherwise terminate, or charge a
different rate for the same coverage, on the basis that the applicant
or insured person is, has been, or may be, a victim of domestic
violence.
(c) Nothing in this section shall prevent an insurer subject to
this section from taking any of the actions set forth in subdivision
(b) on the basis of criteria not otherwise made invalid by this
section or any other act, regulation, or rule of law. If
discrimination by an insurer is not in violation of this section but
is based on any other criteria that are allowable by law, the fact
that the applicant or insured is, has been, or may be the subject of
domestic violence shall be irrelevant.
(d) For purposes of this section, information that indicates that
a person is, has been, or may be a victim of domestic violence is
personal information within the meaning of Article 6.6 (commencing
with Section 791) of Chapter 1 of Part 2.
(e) No insurer that issues policies subject to this section, and
no person employed by or under contract with an insurer that issues
policies subject to this section, shall request any information the
insurer or person knows or reasonably should know relates to acts of
domestic violence or an applicant's or insured's status as a victim
of domestic violence, or make use of this information however
obtained, except for the limited purpose of complying with legal
obligations, verifying a person's claim to be a subject of domestic
violence, or cooperating with a victim of domestic violence in
seeking protection from domestic violence or facilitating the
treatment of a domestic violence-related medical condition. This
subdivision does not prohibit an insurer from asking an applicant or
insured about a property and casualty claim, even if the claim is
related to domestic violence, or from using information thereby
obtained in evaluating and carrying out its rights and duties under
the policy, to the extent otherwise permitted by this section and
other applicable law.
(f) As used in this section, "domestic violence" means domestic
violence as defined in Section 6211 of the Family Code.



676.10. (a) This section applies to policies covered by Section
675, 675.5, or 676.5 if the insured is a religious organization
described in clause (i) of subparagraph (A) of paragraph (1) of
subsection (b) of Section 170 of Title 26 of the United States Code,
an educational organization described in clause (ii) of subparagraph
(A) of paragraph (1) of subsection (b) of Section 170 of Title 26 of
the United States Code, or other nonprofit organization described in
clause (vi) of subparagraph (A) of paragraph (1) of subsection (b) of
Section 170 of Title 26 of the United States Code that is organized
and operated for religious, charitable, or educational purposes, or a
reproductive health services facility, as defined in subdivision (h)
of Section 423.1 of the Penal Code, or its administrative offices.
(b) No insurer issuing policies subject to this section shall
cancel or refuse to renew the policy, nor shall any premium be
excessive or unfairly discriminatory solely on the basis that one or
more claims has been made against the policy during the preceding 60
months for a loss that is the result of a hate crime committed
against the person or property of the insured, or an
anti-reproductive-rights crime.
(c) As it relates to this section, if determined by a law
enforcement agency, a "hate crime" may include any of the following:

(1) By force or threat of force, willfully injure, intimidate,
interfere with, oppress, or threaten any other person in the free
exercise or enjoyment of any right or privilege secured to him or her
by the Constitution or laws of this state or by the Constitution or
laws of the United States because of the other person's race, color,
religion, ancestry, national origin, disability, gender, or sexual
orientation, or because he or she perceives that the other person has
one or more of those characteristics. However, the foregoing
offense does not include speech alone, except upon a showing that the
speech itself threatened violence against a specific person or group
of persons and that the defendant had the apparent ability to carry
out the threat.
(2) Knowingly deface, damage, or destroy the real or personal
property of any other person for the purpose of intimidating or
interfering with the free exercise or enjoyment of any right or
privilege secured to the other person by the Constitution or laws of
this state or by the Constitution or laws of the United States,
because of the other person's race, color, religion, ancestry,
national origin, disability, gender, or sexual orientation, or
because he or she perceives that the other person has one or more of
those characteristics.
(d) As it relates to this section, if determined by a law
enforcement agency, "anti-reproductive-rights crime" shall have the
meaning set forth in subdivision (a) of Section 13776 of the Penal
Code, and shall also include a violation of subdivision (e) of
Section 423.2 of the Penal Code, if the crime results in a covered
loss under a policy subject to this section.
(e) Upon cancellation of or refusal to renew a policy subject to
this section after an insured has submitted a claim to the insurer
that is the result of a hate crime committed against the person or
property of the insured, or an anti-reproductive-rights crime, the
insurer shall report the cancellation or nonrenewal to the
commissioner.
(f) A violation of this section shall be an unfair practice
subject to Article 6.5 (commencing with Section 790) of Chapter 1 of
Division 2.
(g) Nothing in this section shall prevent an insurer subject to
this section from taking any of the actions set forth in subdivision
(b) on the basis of criteria not otherwise made invalid by this
section or any other act, regulation, or law.



677. (a) All notices of cancellation shall be in writing, mailed to
the named insured at the address shown in the policy, or to his or
her last known address, and shall state, with respect to policies in
effect after the time limits specified in Section 676, (1) which of
the grounds set forth in Section 676 is relied upon, and (2) that,
upon written request of the named insured, mailed or delivered to the
insurer within 15 days of the date of cancellation, the insurer
shall specify the reason for the cancellation except where the reason
is for nonpayment of premium and is so stated in the cancellation
notice.
(b) For purposes of this section, a lienholder's copy of those
notices shall be deemed mailed if, with the lienholder's consent, it
is delivered by electronic transmittal, facsimile, or personal
delivery.



677.2. (a) This section applies only to policies covered by Section
675.5.
(b) A notice of cancellation shall be in writing and shall be
delivered or mailed to the producer of record, provided that the
producer of record is not an employee of the insurer, and to the
named insured at the mailing address shown on the policy.
Subdivision (a) of Section 1013 of the Code of Civil Procedure is
applicable if the notice is mailed.
The notice of cancellation shall include the effective date of the
cancellation and the reasons for the cancellation.
(c) The notice of cancellation shall be given at least 30 days
prior to the effective date of the cancellation, except that in the
case of cancellation for nonpayment of premiums or for fraud the
notice shall be given no less than 10 days prior to the effective
date of the cancellation. Notice of a proposed cancellation pursuant
to subdivision (d) of Section 676.2 given prior to a finding of the
commissioner shall satisfy the requirements of this section if it is
given no less than 30 days prior to the effective date of the
cancellation and if it states that cancellation will be effective
only upon the approval of the commissioner.
(d) This section applies only to cancellations pursuant to Section
676.2.



677.4. A notice of cancellation with respect to a policy covered
under Section 675 shall be delivered at least 20 calendar days prior
to the effective date of the cancellation, except that in the case of
a cancellation for nonpayment of premiums, or for fraud, the notice
shall be given at least 10 calendar days prior to the effective date
of the cancellation. Subdivision (a) of Section 1013 of the Code of
Civil Procedure is applicable if the notice is mailed.



678. (a) At least 45 days prior to policy expiration, an insurer
shall deliver to the named insured or mail to the named insured at
the address shown in the policy, either of the following:
(1) An offer of renewal of the policy contingent upon payment of
premium as stated in the offer, stating each of the following:
(A) Any reduction of limits or elimination of coverage.
(B) The telephone number of the insurer's representatives who
handle consumer inquiries or complaints. The telephone number shall
be displayed prominently in a font size consistent with the other
text of the renewal offer.
(2) A notice of nonrenewal of the policy. That notice shall
contain each of the following:
(A) The reason or reasons for the nonrenewal.
(B) The telephone number of the insurer's representatives who
handle consumer inquiries or complaints. The telephone number shall
be displayed prominently in a font size consistent with the other
text of the notice of nonrenewal.
(C) A brief statement indicating that if the consumer has
contacted the insurer to discuss the nonrenewal and remains
unsatisfied, he or she may have the matter reviewed by the
department. The statement shall include the telephone number of the
unit within the department that responds to consumer inquiries and
complaints.
(b) In the event an insurer fails to give the named insured either
an offer of renewal or notice of nonrenewal as required by this
section, the existing policy, with no change in its terms and
conditions, shall remain in effect for 45 days from the date that
either the offer to renew or the notice of nonrenewal is delivered or
mailed to the named insured. A notice to this effect shall be
provided by the insurer to the named insured with the policy or the
notice of renewal or nonrenewal.
(c) Any policy written for a term of less than one year shall be
considered as if written for a term of one year. Any policy written
for a term longer than one year, or any policy with no fixed
expiration date, shall be considered as if written for successive
policy periods or terms of one year.
(d) This section applies only to policies of insurance specified
in Section 675.


678.1. (a) This section applies only to policies of insurance of
commercial insurance that are subject to Sections 675.5 and 676.6.
(b) A notice of nonrenewal shall be in writing and shall be
delivered or mailed to the producer of record and to the named
insured at the mailing address shown on the policy. Subdivision (a)
of Section 1013 of the Code of Civil Procedure shall be applicable if
the notice is mailed.
(c) An insurer, at least 60 days, but not more than 120 days, in
advance of the end of the policy period, shall give notice of
nonrenewal, and the reasons for the nonrenewal, if the insurer
intends not to renew the policy, or to condition renewal upon
reduction of limits, elimination of coverages, increase in
deductibles, or increase of more than 25 percent in the rate upon
which the premium is based.
(d) If an insurer fails to give timely notice required by
subdivision (c), the policy of insurance shall be continued, with no
change in its terms or conditions, for a period of 60 days after the
insurer gives the notice.
(e) With respect to policies defined in subdivision (b) of Section
676.6, in addition to the bases for conditional renewal set forth in
subdivision (c), an insurer may also condition renewal upon
requirements relating to the underlying policy or policies. If the
requirements are not satisfied as of (1) the expiration date of the
policy, or (2) 30 days after mailing or delivery of such notice,
whichever is later, the conditional renewal notice shall be treated
as an effective notice of nonrenewal, provided the insurer has sent
written confirmation to the first named insured and the producer of
record that the conditions were not met and that coverage ceased at
the expiration date shown in the expiring policy.
(f) A notice of nonrenewal shall not be required in any of the
following situations.
(1) The transfer of, or renewal of, a policy without a change in
its terms or conditions or the rate on which the premium is based
between insurers that are members of the same insurance group.
(2) The policy has been extended for 90 days or less, if the
notice required in subdivision (c) has been given prior to the
extension.
(3) The named insured has obtained replacement coverage or has
agreed, in writing, within 60 days of the termination of the policy,
to obtain that coverage.
(4) The policy is for a period of no more than 60 days and the
insured is notified at the time of issuance that it may not be
renewed.
(5) The named insured requests a change in the terms or conditions
or risks covered by the policy within 60 days prior to the end of
the policy period.
(6) The insurer has made a written offer to the insured, within
the time period specified in subdivision (c), to renew the policy
under changed terms or conditions or at a changed premium rate. As
used herein, "terms or conditions" includes, but is not limited to, a
reduction in limits, elimination of coverages, or an increase in
deductibles.


678.2. The provisions of subdivisions (c) and (e) of Section 678.1
which prohibit notice of nonrenewal earlier than 120 days in advance
of the end of the policy period shall not apply to professional
liability policies issued to health care providers.




678.3. (a) There shall be no liability on the part of, and no cause
of action of any nature shall arise against, any insurer which
issues professional liability insurance policies to health care
providers or its authorized representatives, agents, or employees, or
any licensed insurance agent or broker, for any statement made,
unless shown to have been made in bad faith, by any of them in any of
the following:
(1) A written notice of nonrenewal, or any other oral or written
communication specifying the reasons for nonrenewal of a policy
issued to a health care provider.
(2) Any communication providing information pertaining to the
nonrenewal.
(3) Evidence submitted at any court proceeding or informal inquiry
in which the nonrenewal is an issue.
(b) This section shall apply only to nonrenewals for which written
notice is provided by the insurer on or after January 1, 2006.
(c) This section shall remain in effect only until January 1, 2011,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2011, deletes or extends that date.



678.5. No policy specified in Section 675 that is issued, amended,
or renewed on or after January 1, 1990, may be canceled, and an
insurer may not refuse to renew such a policy solely on the grounds
of corrosive soil conditions if the policy or renewal policy contains
an existing exclusion for payment of loss for that peril.




679. There shall be no liability on the part of, and no cause of
action of any nature shall arise against, any insurer or its
authorized representatives, agents, or employees, or any licensed
insurance agent or broker, for any statement made, unless shown to
have been made in bad faith with malice in fact, by any of them in
(a) any written notice of cancellation or in any other oral or
written communication specifying the reasons for cancellation, (b)
any communication providing information pertaining to such
cancellation, or (c) evidence submitted at any court proceeding or
informal inquiry in which such cancellation is an issue.




679.5. Proof of mailing of a notice of cancellation and the reasons
therefor or of intention not to renew to the named insured at the
address shown in the policy shall be sufficient proof of the notice
required by this chapter.


679.6. The commissioner may, after hearing, exempt from the
provisions of this chapter insurance in respect to any risk or class
of risk that is eligible under Section 1763 for placement with
nonadmitted insurers by and through licensed surplus line brokers
upon a finding by him that application of this chapter would diminish
or tend to diminish the availability, or substantially increase the
cost, of such insurance.



679.7. (a) Upon receiving a written request from an insured or the
agent or broker of record where authorized by the insured, an insurer
shall provide a premium and loss history report to the requesting
party for the account's tenure or the three-year period ending with
the inception of the current policy period, whichever is shorter,
plus loss experience during the current policy period that is in
force if any of the following occur:
(1) The policy is canceled or nonrenewed.
(2) The policyholder requests the information within 60 days prior
to the renewal date of an existing policy.
(3) The policyholder's current insurer's rating is downrated by a
nationally recognized insurance rating service to a financial rating
below secure or good or to a rating that would negatively impact the
ability of the policyholder to conduct its business operations.
(4) The policyholder's current insurer is conserved by the
department under Section 1011, or is ordered to cease writing
business under Sections 1065.1 and 1065.2.
The premium and loss history report, and the loss experience
information for the current policy period, shall be provided within
10 business days of receiving the request.
(b) This section applies only to policies of commercial insurance
that are subject to Sections 675.5 and 676.6, except for professional
liability insurance.
(c) This section shall not apply to a policyholder who, through
automated or other means, is provided direct, ongoing access to
claims information by the insurer.
(d) For purposes of this section, a loss history report includes,
but is not limited to, a list of individual claims detailed by date
of claim and total incurred and paid losses.