| Taken from the CDI FAQ, there may be something similar to your state. Cancellation/Nonrenewal Provisions. Prop.103 established new criteria which determine an insurer’s ability to cancel or non-renew your policy. There are only three reasons an automobile policy can be canceled/non-renewed once it is issued:
- Fraud/material misrepresentation;
- Non-payment of premium; or
- Substantial increase in the hazard insured against.
Note: In relation to a cancellation for nonpayment of premium, your insurer must provide you with 10-day written notice after the payment due
date before the insurer can effectively cancel the policy. This gives you an opportunity to pay the past due premium and keep the policy in force or to secure other insurance. Determination of Rates. Prop.103 established uniform guidelines upon which your auto rates would be determined. The primary factors areas follows:
- The operator’s driving safety record;
- The number of miles driven annually;
- The number of years of driving experience.
There are 16 secondary rating factors which may be used in any combination to determine your specific rates and calculate your individual premium based on an insurance
company’s filing with the California Department of Insurance (CDI). The secondary factors must not be weighted as heavily as the primary factors in the rate
premium calculation. These secondary rating factors may include marital status, frequency and severity of claims in the geographic area where your car is garaged, gender, vehicle type, etc.
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