Insurer’s Non-Renewal Notification: Too Little, Too Late

Originally published by Christina Phillips.

All too often following a loss, insureds are a faced with another shock when they open their mail and find a notification that the insurance company is not renewing their policy at the end of their existing policy term. Recently my colleague Edward Eshoo and I represented a policyholder facing this very situation. The insured was already fighting the insurance company for benefits under the policy and now in the midst of a loss was being told that at the end of the current policy period the insurance company would not be renewing the policy. While insurance companies have the right to non-renew or cancel coverage, there are strict requirements governing when how and when they may do so.
Under section 143.17a(a) of the Illinois Insurance Code, an insurance company must give 60 days’ notice prior to the end of the policy period of their intention not to renew the policy at the end of an existing term. Under the Code, failure to provide the requisite notice results in the policy…

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