§ 27-23-21 — Reasons for Cancellation

(a) No notice of cancellation of a policy of automobile liability insurance shall be effective unless it is based on one or more of the following reasons:
(1) Nonpayment of premium;
(2) The policy was obtained through a material misrepresentation;
(3) Any insured violated any of the terms and conditions of the policy;
(4) The named insured failed to disclose fully his motor vehicle accidents and moving traffic violations for the preceding 36 months if called for in the application;
(5) The named insured failed to disclose in his written application or in response to inquiry by his broker, or by the insurer or its agent information necessary for the acceptance or proper rating of the risk;
(6) Any insured made a false or fraudulent claim or knowingly aided or abetted another in the presentation of such a claim;
(7) Failure to maintain membership in any group or organization when such membership is a prerequisite to the purchase of such insurance;
(8) The named insured or any other operator who either resides in the same household or customarily operates an automobile insured under such policy:
a. Has within the 36 months prior to the notice of cancellation had his driver’s license under suspension or revocation;
b. Is, or becomes, subject to epilepsy or heart attacks, and such individual does not produce a certificate from a physician testifying to his unqualified ability to operate a motor vehicle safely;
c. Has an accident record, conviction record (criminal or traffic), physical, mental, or other condition which is such that his operation of an automobile might endanger the public safety;
d. Has within the 36 months prior to the notice of cancellation been addicted to the use of narcotics or other drugs;
e. Uses alcoholic beverage to excess;
f. Has been convicted or forfeited bail during the 36 months immediately preceding the notice of cancellation for:
1. Any felony;
2. Criminal negligence resulting in death, homicide, or assault arising out of the operation of a motor vehicle;
3. Operating a motor vehicle while in an intoxicated condition or while under the influence of drugs;
4. Being intoxicated while in, or about, an automobile or while having custody of an automobile;
5. Leaving the scene of an accident without stopping to report;
6. Theft or unlawful taking of a motor vehicle;
7. Making false statements in an application for a driver’s license; or
g. Has been convicted of or forfeited bail for three or more violations, within the 36 months immediately preceding the notice of cancellation, of any law, ordinance, or regulation limiting the speed of motor vehicle laws of any state, violation of which constitutes a misdemeanor, whether or not the violations were repetitions of the same offense or different offenses; or
(9) The insured automobile is:
a. So mechanically defective that its operation might endanger public safety;
b. Used in carrying passengers for hire or compensation; provided, however, that the use of an automobile for a car pool shall not be considered use of an automobile for hire or compensation;
c. Used in the business of transportation of flammables or explosives;
d. An authorized emergency vehicle;
e. Changed in shape or condition during the policy period so as to increase the risk substantially; or
f. Subject to an inspection law and has not been inspected or, if inspected, has failed to qualify.
(b) This section shall not apply to any policy of automobile liability insurance which has been in effect less than 60 days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.

Legislative History

(Acts 1971, No. 407, p. 707, §485.2.)