Louisville, KY – (WiredPRNews.com) There are many reasons that auto insurance companies can use as a basis for ending an insurer-policyholder relationship. But when and how an insurer can cease writing coverage for an individual depends very much on the circumstances.
To add clarity to this matter, regulators in the Bluegrass State have made available online a useful publication about the cancellation and nonrenewal of Kentucky car insurance policies. It specifies how these two actions differ as well as the circumstances under which each may happen.
Although both cancellation and nonrenewal result in an insurance company’s denial of coverage to a driver, cancellation can sever the relationship at any time during a policy period, while nonrenewal can only take place at the expiration of a policy.
Legally acceptable causes for cancellation in the state include nonpayment of premium, revocation or suspension of license or registration, fraud or misrepresentation and the possibility that an insurer would be in violation of Kentucky law if it continued to provide coverage to an individual. The state requires insurers to give policyholders an at-least 20-day notice of cancellation for most causes.
Insurers must give a much earlier notice for nonrenewal — 75 days before the policy is up for renewal. Nonrenewal will, however, go into effect immediately if a policy is scheduled for renewal but no premium is paid by the beginning of the new coverage period. Readers interested in finding out the reasons that insurers are prohibited from using as cause for nonrenewal can be found by accessing the publication through the department’s website.
An important point stressed by the department is that an insurer’s decision can be based on the actions of “anyone who lives in your home or who regularly drives the insured vehicle,” not just the holder of a policy.
To read more about Kentucky auto insurance issues, readers can go to http://www.onlineautoinsurance.com/kentucky/ where visitors will also be able to use the free quote-comparison generator to efficiently generate personally tailored quotes from a variety of carriers.
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