Except for a policy which that has been in effect for less than 60 days at the time notice of cancellation is received by the named insured, the reason for cancellation shall must accompany the notice, together with a notice of the right to apply for a hearing before the Superintendent of Insurance within 30 days, as provided in section 2920.

Prior to the date of renewal of a policy that has been transferred by an insurer to an affiliate, the insured must receive notice of any changes to the terms of the policy that are less favorable to the insured.

Sec. 3. 24-A MRSA §3007, sub-§1, ¶E, as enacted by PL 1985, c. 671, §2, is amended to read:

E. "Renewal" or "to renew" means the issuance of, or the offer to issue by an insurer or an affiliate of an insurer, a policy succeeding a policy previously issued and delivered by the same insurer or an affiliated insurer or the issuance of a certificate or notice extending the terms of an existing policy for a specified period beyond its expiration date. For purposes of this section, the transfer of a policy from an insurer to an affiliate is considered a policy renewal.

Sec. 4. 24-A MRSA §3007, sub-§5, ¶B, as enacted by PL 1985, c. 671, §2, is amended to read:

B. Nonrenewal subject to this section shall is not be effective prior to 30 days after receipt of notice written by the insured. Prior to the date of renewal of a policy that has been transferred by an insurer to an affiliate, the insured must receive notice of any changes to the terms of the policy that are less favorable to the insured.

Sec. 5. 24-A MRSA §3050, as amended by PL 1989, c. 172, §7, is further amended to read:

§3050. 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