Exceptions to Cancellation and Nonrenewal Notice Requirements for General Liability and Certain Automobile Insurance Policies

(a) Upon failure of the insured to discharge any obligations in the payment of premium for the policy or any installment thereof, whether payable directly to the company or its agent or indirectly under any premium finance plan or extension of credit, the company may cancel the policy by mailing written notice to the insured at least 10 days prior to the effective date of cancellation.

(b) Upon a substantial change in operations resulting in an increase in exposure within the control of the insured which would produce an increase in rate, the company may cancel the policy by mailing written notice to the insured at least 10 days prior to the effective date of cancellation.

(c) Upon a determination by the State Board of Insurance that the continuation of the policy would violate or place the company in violation of the Texas Insurance Code, the company may cancel the policy by mailing written notice to the insured at least 10 days prior to the effective date of cancellation.

(d) Where a company has been placed in supervision, conservatorship, or receivership, the company may cancel or decline to renew a policy by mailing written notice to the insured at least 10 days prior to the effective date of cancellation or to the expiration date of the policy (in the case of nonrenewal) upon approval or at the direction of the supervisor, conservator, or receiver.

(e) On a new policy, not a renewal in the same company, a company may cancel within 60 days of the initial effective date of the policy by mailing written notice to the insured at least 10 days prior to the effective date of cancellation.

Source Note: The provisions of this §5.7014 adopted to be effective October 3, 1986, 11 TexReg 3996.