§ 515.129 — Cancellation or nonrenewal of commercial umbrella or excess policies or contracts

Iowa § 515.129

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 515: INSURANCE OTHER THAN LIFE

Text

contracts.
1. As used in this section, “umbrella or excess insurance policy” means a commercial line
policy or contract of insurance providing liability or property coverage over one or more
underlying policies or over a specified amount of self-insured retention. Umbrella or excess
insurance policy includes policies or contracts written over an umbrella or excess insurance
policy or policies.
2. An umbrella or excess insurance policy which has not previously been renewed may
be canceled by the insurer if it has been in effect for less than sixty days at the time notice of
cancellation is mailed or delivered.
3. An umbrella or excess insurance policy which has been renewed or which has been in
effectforsixtyormoredaysshallnotbecanceledbytheinsurer, exceptasprovidedinsection
515.127, subsections 2 and 3, unless notice has been mailed or delivered to the insured as
required by this section or unless at least one of the following conditions occurs:
a. A material change in the limits, scope of coverage, or exclusions in one or more of the
underlying policies.
b. Cancellationornonrenewalofoneormoreoftheunderlyingpolicieswherethepolicies
are not replaced without lapse.
c. A reduction in the financial rating or grade of one or more of the insurers insuring one
43 INSURANCE OTHER THAN LIFE, §515.129B
or more of the underlying policies based on an evaluation by a recognized financial rating
organization.
4. Anoticeofcancellationisnoteffectiveunlessmailedbycertifiedmailordeliveredtothe
named insured and any loss payee at least ten days prior to the effective date of cancellation.
A notice of cancellation shall include the reason for cancellation of the umbrella or excess
insurance policy. A post office department certificate of mailing to the named insured at the
address shown in the umbrella or excess policy is proof of receipt of the mailing; however,
such a certificate of mailing is not required if cancellation is for nonpayment of premium.
5. An insurer shall not fail to renew an umbrella or excess insurance policy except by
notice to the insured as provided in this section; however, an insurer may condition renewal
ofanumbrellaorexcessinsurancepolicyuponrequirementsrelatingtotheunderlyingpolicy
or policies. If the requirements are not satisfied as of the expiration date of the umbrella or
excess insurance policy, or thirty days after mailing or delivery of the notice, whichever is
later, the conditional renewal notice shall be deemed to be an effective notice of nonrenewal.
This subsection does not apply if the insurer has offered to renew or if the insured fails to pay
a premium due or any advance premium required by the insurer for renewal.
6. A notice of nonrenewal is not effective unless mailed by certified mail or delivered to
the named insured and any loss payee at least forty-five days prior to the expiration date of
the umbrella or excess insurance policy. If the insurer fails to meet the notice requirements
of this subsection the insured has the option of continuing the policy for the remainder of the
notice period plus an additional thirty days at the premium rate of the existing umbrella or
excess policy.
7. Sections 515.127 and 515.128 are not applicable to umbrella or excess insurance
policies except as provided in subsection 3.