CHAPTER 114

S.P. 167 - L.D. 541

An Act To Amend the Laws Related to Cancellation and

Nonrenewal of Insurance

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §2912, sub-§2, as amended by PL 1977, c. 403, §1, is further amended to read:

2. Renewal or renew. "Renewal" or "to renew" means the issuance and delivery by an insurer of a policy replacing at the end of the previous policy term a policy previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the coverage of the policy beyond its original term. Any renewal policy, other than a replacement policy for an unfinished term, with a term of one year or less shall be is considered written, for the purposes of this subchapter, for a term of one year. For purposes of this subchapter, the transfer of a policy from an insurer to an affiliate is considered a policy renewal.

Any policy written for a term longer than one year or with no fixed expiration date shall be is considered written for successive policy terms of one year.

Sec. 2. 24-A MRSA §2915, as amended by PL 1989, c. 172, §4, is further amended to read:

§2915. Delivery of notice

No A notice of cancellation of a policy shall be is not effective unless received by the named insured at least 20 days prior to the effective date of cancellation, or, when the