Your Questions About ‘220 Letters’ Answered
We get frequent questions (that is, six or more in the last two weeks) about cancellation, non-renewal, and conditional renewal letters from insurers. A lot of members refer to these as “220 letters”, so called because the law that requires them for many types of commercial lines policies (Section 3426 of the New York Insurance Law) was enacted as Chapter 220 of the Laws of 1986.
Here in one place are links to some of our posts and answers to member questions about what insurers are and are not required to do. This list will likely grow with time, but here is some information to help you out for today:
- Insurers, Get Your Act Together on Commercial Lines Renewals
- What is the law regarding conditional renewal notice sent out on Homeowners policies that will be renewing with increases? Specifically, 25% or more?
- Can an insurer cancel a commercial lines policy mid-term because the insured did not follow loss control recommendations?
- Can an insurer delete Business Income coverage mid-term because the insured did not submit a worksheet?
- Can an insurer change a policy to auditable on renewal without sending a conditional renewal notice?
- Is an agent or broker obligated to send a conditional renewal notice to the insured if the insurer does not do it?
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