§36-3639.

§36-3639.
   
   A. The provisions of this section apply to commercial property
   insurance policies, commercial casualty insurance policies, and
   commercial fire insurance policies.
   
   B. As used in this section:
   
   1. "Renewal" or "to renew" means the issuance or offer of issuance by
   an insurer of a policy succeeding a policy previously issued and
   delivered by the same insurer or an insurer within the same group of
   insurers, or the issuance of a certificate or notice extending the
   term of an existing policy for a specified period beyond its
   expiration date;
   
   2. "Nonpayment of premium" means the failure or inability of the named
   insured to discharge any obligation in connection with the payment of
   premiums on a policy of insurance subject to this section, whether
   such payments are payable directly to the insurer or its agent or
   indirectly payable under a premium finance plan or extension of
   credit;
   
   3. "Cancellation" means termination of a policy at a date other than
   its expiration date;
   
   4. "Expiration date" means the date upon which coverage under a policy
   ends. It also means, for a policy written for a term longer than one
   (1) year or with no fixed expiration date, each annual anniversary
   date of such policy; and
   
   5. "Nonrenewal" or "refusal to renew" means termination of a policy at
   its expiration date.
   
   C. After coverage has been in effect for more than forty-five (45)
   business days or after the effective date of the renewal of a
   commercial property, commercial casualty or commercial fire insurance
   policy, a notice of cancellation shall not be issued by any licensed
   insurer or surplus or excess lines insurer unless it is based on at
   least one of the following reasons:
   
   1. Nonpayment of premium;
   
   2. Discovery of fraud or material misrepresentation in the procurement
   of the insurance or with respect to any claims submitted thereunder;
   
   3. Discovery of willful or reckless acts or omissions on the part of
   the named insured which increase any hazard insured against; 4. The
   occurrence of a change in the risk which substantially increases any
   hazard insured against after insurance coverage has been issued or
   renewed;
   
   5. A violation of any local fire, health, safety, building, or
   construction regulation or ordinance with respect to any insured
   property or the occupancy thereof which substantially increases any
   hazard insured against;
   
   6. A determination by the Commissioner that the continuation of the
   policy would place the insurer in violation of the insurance laws of
   this state;
   
   7. Conviction of the named insured of a crime having as one of its
   necessary elements an act increasing any hazard insured against; or
   
   8. Loss of or substantial changes in applicable reinsurance.
   
   D. An insurer may refuse to renew a policy if the insurer gives to the
   first-named insured at the address shown on the policy written notice
   that the insurer will not renew the policy. Such notice shall be given
   at least forty-five (45) days before the expiration date. If notice is
   given by mail, said notice shall be deemed to have been given on the
   day said notice is mailed. If the notice is mailed less than
   forty-five (45) days before expiration, coverage shall remain in
   effect until forty-five (45) days after notice is mailed. Earned
   premium for any period of coverage that extends beyond the expiration
   date shall be considered pro rata based upon the previous year's rate.
   For purposes of this section, the transfer of a policyholder between
   companies within the same insurance group is not a refusal to renew.
   In addition, changing deductibles, changes in premium, changes in the
   amount of insurance, or reductions in policy limits or coverage are
   not refusals to renew.
   
   Notice of nonrenewal shall not be required if the insurer or a company
   within the same insurance group has offered to issue a renewal policy
   or, if the named insured has obtained replacement coverage or has
   agreed in writing to obtain replacement coverage.
   
   If an insurer provides the notice required by this subsection and
   thereafter the insurer extends the policy for ninety (90) days or
   less, an additional notice of nonrenewal is not required with respect
   to the extension.
   
   E. An insurer shall give to the named insured at the mailing address
   shown on the policy, written notice of premium increase, change in
   deductible, reduction in limits or coverage at least forty-five (45)
   days prior to the expiration date of the policy. If the insurer fails
   to provide such notice, the premium, deductible, limits and coverage
   provided to the named insured prior to the change shall remain in
   effect until notice is given or until the effective date of
   replacement coverage obtained by the named insured, whichever first
   occurs. If notice is given by mail, said notice shall be deemed to
   have been given on the day said notice is mailed. If the insured
   elects not to renew, any earned premium for the period of extension of
   the terminated policy shall be calculated pro rata at the lower of the
   current or previous year's rate. If the insured accepts the renewal,
   the premium increase, if any, and other changes shall be effective the
   day following the prior policy's expiration or anniversary date.
   
   This subsection shall not apply to:
   
   1. Changes in a rate or plan filed with or approved by the State Board
   for Property and Casualty Rates and applicable to an entire class of
   business; or
   
   2. Changes based upon the altered nature of extent of the risk
   insured; or
   
   3. Changes in policy forms filed with or approved by the Insurance
   Commissioner and applicable to an entire class of business.
   
   F. Proof of mailing of notice of cancellation, or of nonrenewal or of
   premium or coverage changes, to the named insured at the address shown
   in the policy, shall be sufficient proof of notice.