Section 11664 Of Article 2. Policy Provisions From California Insurance Code >> Division 2. >> Part 3. >> Chapter 2. >> Article 2.
11664
. (a) This section applies only to policies of workers'
compensation insurance.
(b) A notice of nonrenewal shall be in writing and shall be
delivered or mailed to the producer of record and to the named
insured at the mailing address shown on the policy. Subdivision (a)
of Section 1013 of the Code of Civil Procedure shall be applicable if
the notice is mailed.
(c) An insurer, at least 30 days, but not more than 120 days, in
advance of the end of the policy period, shall give notice of
nonrenewal, and the reasons for the nonrenewal, if the insurer
intends not to renew the policy.
(d) If an insurer fails to give timely notice required by
subdivision (c), the policy of insurance shall be continued, with no
change in its premium rate, for a period of 60 days after the insurer
gives the notice.
(e) A notice of nonrenewal shall not be required in any of the
following situations.
(1) The transfer of, or renewal of, a policy without a change in
its terms or conditions or the rate on which the premium is based
between insurers that are members of the same insurance group.
(2) The policy has been extended for 90 days or less, if the
notice required in subdivision (c) has been given prior to the
extension.
(3) The named insured has obtained replacement coverage or has
agreed, in writing, within 60 days of the termination of the policy,
to obtain that coverage.
(4) The policy is for a period of no more than 60 days and the
insured is notified at the time of issuance that it may not be
renewed.
(5) The named insured requests a change in the terms or conditions
or risks covered by the policy within 60 days prior to the end of
the policy period.
(6) The insurer has made a written offer to the insured to renew
the policy at a premium rate increase of less than 25 percent.
(A) If the premium rate in the governing classification for the
insured is to be increased 25 percent or greater and the insurer
intends to renew the policy, the insurer shall provide a written
notice of a renewal offer not less than 30 days prior to the policy
renewal date. The governing classification shall be determined by the
rules and regulations established in accordance with subdivision (c)
of Section 11750.3.
(B) For purposes of this section, "premium rate" means the cost of
insurance per unit of exposure prior to the application of
individual risk variations based on loss or expense considerations
such as scheduled rating and experience rating.