This is it. The last in the series looking at ISO endorsement PP 01 79 04 09, Amendment of Policy Provisions -- New York, starting with the nonrenewal provisions.
- If the insurer decides not to renew the policy, it must mail a notice to the named insured. The insurer's right to non-renew the policy is subject to the requirements of New York Insurance Law Sect. 3425.
- If the insurer has the right to nonrenew, it may instead condition a renewal upon a change of limits or elimination of any coverage not required by New York law (such as liability or no-fault.) The insurer must mail the conditional renewal notice to the named insured.
- Both nonrenewal and conditional renewal notices must be sent at least 45 but no more than 60 days before the end of the policy period, and they must state the reason for the insurer's action.
- The notice requirements do not apply if the named insured, another insurer, or the named insured's representative notifies the insurer that the policy has been replaced or is no longer wanted.
The endorsement adds three more termination provisions:
- A U.S. Postal Service mailing certificate is sufficient proof that the insurer mailed a notice.
- If the policy is cancelled, the named insured may be entitled to a premium refund which the insurer will send. The insurer will compute the refun according to its manuals, but making or offering to make the refund is not a condition of cancellation.
- The effective date shown in the notice becomes the effective end of the policy period.
Three other wrinkles to the New York endorsment:
- The unendorsed policy states that, if the policy and any other auto insurance policy issued to the named insured by the insurer apply to the same accident, the most the carrier is responsible for is the highest applicable limit of liability under any one of the policies. The New York endorsement states that this provision does not apply to Liability Coverage. Therefore, the insured could stack the limits of the policies together.
- Notice to an authorized agent of the insurer is equivalent to notice to the insurer. Any written notice given by or on behalf of a claimant to the insurer's authorized agent is also equivalent to notice to the insurer.
- Finally, if the policy includes the Limited Mexico Coverage Endorsement, the definition in that endorsement of "newly acquired auto" is changed to include a pickup or van predominantly used for nonbusiness purposes. The endorsement has a much narrower inclusion of pickups and vans -- they must have gross vehicle weights of 10,000 pounds or less and not be used for delivery or transportation of goods and materials unless that use is incidental to the named insured's business of installing, maintaining or repairing furnishings or equipment or of farming or ranching.
That's a wrap, folks! Would you like to see more series like this in the future, reviewing the New York endorsements for other types of policies? Please drop a line in the comments.