§ 10-4-113 — Exemptions

(1) The commissioner shall have authority to grant
reasonable exemptions from the provisions of sections 10-4-107, 10-4-108 (1), 10-4-109 (1), 10-4-109.5, 10-4-109.7, 10-4-110 (1), and 10-4-110.5 if compliance therewith is
shown to be impracticable. Such exemptions may be granted to individual
companies or by insurance line, type, or class and may be based on any of the
following reasons:

(a) If the primary insurer, due to forces outside its control, has lost all or a
significant portion of its reinsurance and the insurer can provide proof that the
continuance of coverage or the continuance of the same premium and coverage
would endanger the direct insurer's solvency;

(b) If a policy issued in this state covers risks with multistate locations,
except with respect to coverages applicable to locations within this state;

(c) If the insurer is obligated and fails to send advance notice of cancellation
or nonrenewal to any designated mortgagee or loss payee or motor carrier
commission;

(d) If the insured has replaced his coverage or has specifically requested
cancellation. The insurer must maintain in its file properly documented proof that
termination was made at the request of the insured. This applies also to reduction in
coverage specifically requested by the insured.

(e) If the policy has been in effect for less than sixty days at the time the
notice is mailed or delivered, unless the policy is a renewal policy, and there has
been a material misrepresentation or nondisclosure to the insurer of a material fact
at the time of acceptance of the risk;

(f) If the policy is a policy written for a period of less than six months or a
binder with a specific expiration date and the insured knows in advance that
coverage will not be continued on expiration;

(g) If an insurer has become insolvent and cancellation is ordered by a
rehabilitator or liquidator;

(h) If a risk is canceled and rewritten with the same insurer in order to obtain
common expiration dates;

(i) If a named insured fails to comply with loss control recommendations
which the insured agreed would be implemented as a condition of issuance of the
policy;

(j) Such other exemptions as the commissioner may determine are
reasonable and necessary; or

(k) If the insurer is providing coverage for exempt commercial policyholders,
as defined pursuant to section 10-4-1402 and rules adopted by the commissioner
pursuant to that section.

Legislative History

Source: L. 86: Entire section added, p. 578, � 1, effective July 1. L. 99: (1)(k) added, p. 390, � 18, effective January 15, 2000.