KRS 304.20-320: Declinations -- Cancellations -- Nonrenewals -- Terminations -- Notice

of premium required.

(1) Declinations. An applicant may request in writing an explanation of a declination.

The insurer shall provide a prompt written response to such inquiries.

(2) Cancellations.

(a) A notice of cancellation of insurance subject to KRS 304.20 -300 to 304.20 -

350 by an insurer shall be in writing, shall be delivered to the named insured

or mailed to the named insured at the last known address of the named

insured, shall state the effective date of the cancellation, and shall be

accompanied by a written explanation of the specific reason or reasons for the

cancellation.

(b) The notice of cancellation referred to in paragraph (a) of this subsection shall

be mailed or delivered by the insurer to the named insured at least fourteen

(14) days prior to the effective date of the cancellation if the cancellation is for

nonpayment of premium or occurs within sixty (60) days of the date of

issuance of the policy. Such notice of cancellation shall be mailed or delivered

by the insurer to the named insured at least seventy -five (75) days prior to the

effective date of the cancellation if the policy has been in effect more than

sixty (60) days.

(c) Proof of mailing of notice of c ancellation or of reasons for cancellation to the

named insured at the address shown in the policy shall be sufficient proof of

notice.

(3) Nonrenewals.

(a) No insurer shall refuse to renew a property or casualty insurance policy

subject to KRS 304.20 -300 to 304.20 -350 unless at least seventy -five (75)

days before the end of the policy period as described in KRS 304.20 -310(1),

the insurer shall mail or deliver to the named insured, at the last known

address of the named insured, written notice of the insure r's intention not to

renew the policy upon expiration of the current policy period with a written

explanation of the specific reason or reasons for the nonrenewal.

(b) If notice is not provided pursuant to paragraphs (a) and (b) of this subsection,

coverage shall be deemed to be renewed for the ensuing policy period upon

payment of the appropriate premium under the same terms and conditions, and

subject to the provisions of KRS 304.20 -330, until the named insured has

accepted replacement coverage with anoth er insurer, or until the named

insured has agreed to the nonrenewal.

(c) If the insurer has manifested its willingness to renew by mailing or delivering

of a renewal notice, bill, certificate, or policy to the first named insured at his

last known address at least thirty (30) days before the end of the current policy

period with the amount of the renewal premium charge and its due date clearly

set forth therein, then the policy shall expire and terminate without further

notice to the insured on the due date unless the renewal premium is received

by the insurer or its authorized agent on or before that date. When any policy

terminates pursuant to this subsection because the renewal premium was not

received on or before the due date, the insurer shall, within fifteen (15) days,

deliver or mail to the first named insured at his last known address a notice

that the policy was not renewed and the date on which the coverage under it

ceased to exist.

(d) Proof of mailing of renewal premium to the insurer or its agen t, when

authorized, on or before the due date shall constitute a presumption of receipt

pursuant to paragraph (c) of this subsection.

(e) Proof of mailing of notice of intention not to renew or of reasons for

nonrenewal to the named insured at the address shown in the policy shall be

sufficient proof of notice.

(4) No insurer shall increase the premium for a property or casualty insurance policy

subject to KRS 304.20 -300 to 304.20 -350 more than twenty -five percent (25%) of

the premium for the preceding poli cy term for like coverage and like risks unless at

least seventy-five (75) days before the end of the policy period as described in KRS

304.20-310(1), the insurer shall mail or deliver to the named insured, at the last

known address of the named insured, a notice for the renewal premium amount and

the insurer shall mail or deliver to its agent, if any, a duplicate notice of the

premium amount. In order to comply with this requirement, the insurer may extend

the period of coverage of the current policy at the expiring premium.