Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Yes, they can, but there needs to be a solid reason to do so. For the most part, and this one is the most obvious, a policy can be cancelled for non payment of premium. Now by non payment, that includes one simply not paying the required premium within the grace period (if there is one) or bouncing a check for payment and then failing to pay the premium owed and any returned check service fees imposed.
Another reason for non renewal can be that the insured just does not meet the underwriting standards of the company as they have been filed with the State Insurance Department. This can be anything from too many minor moving violation tickets or accidents to more serious cases that result in the suspension of one's license.
Unless the reason for cancellation is non payment of premium on a policy that has NO grace period beyond the due date, the insurance company is required to notify in advance of their cancellation action. The number of days in advance can vary by state, but typically it is 30 days.
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Another reason for non renewal can be that the insured just does not meet the underwriting standards of the company as they have been filed with the State Insurance Department. This can be anything from too many minor moving violation tickets or accidents to more serious cases that result in the suspension of one's license.
Unless the reason for cancellation is non payment of premium on a policy that has NO grace period beyond the due date, the insurance company is required to notify in advance of their cancellation action. The number of days in advance can vary by state, but typically it is 30 days.