HB2540 H B&I AM 2-12

            The Committee on Banking and Insurance moves to amend the bill on page 3, section 1, after line 12, by striking the remainder of the bill and inserting in lieu thereof the following:

            “(b) Notwithstanding any of the provisions of this section to the contrary, no insurer may cancel a policy of automobile liability insurance without first giving the insured thirty days' notice of its intention to cancel: Provided, That if the reason for the cancellation is that the named insured fails to make premium payments for the policy or any installment of the premium when due pursuant to subdivision (1), subsection (a) of this section, then the insurer shall first give the insured fourteen days notice of its intent to cancel: Provided further, That the insurance policy is voidable from the effective date and time of the policy issued by the insurer if the insurer cancels the policy for failure of consideration to be paid by the insured upon initial issuance of the insurance policy and provides written notice to the insured of the cancellation within fifteen days of receipt of notice of the failure of consideration and consideration has not otherwise been provided within ten days of the notice of cancellation. Notice of cancellation for nonpayment of consideration shall be delivered to the named insured or sent by first class mail to the named insured at the address supplied on the application for insurance and shall state the effective date of the cancellation and shall be accompanied by a written explanation of the specific reason for the cancellation. If the insurer fails to provide such written notice to the insured, then the cancellation of the policy for failure of consideration is effective upon the expiration of ten days' notice of cancellation to the insured.”

Adopted

Rejected