2009 California Insurance Code - Section 675-679.7 :: :: Chapter 11. Cancellation And Failure To Renew Certain Property Insurance (2024)

INSURANCE CODE
SECTION 675-679.7

675. (a) Except as provided in Sections 676.8 and 679.6, thischapter shall apply to policies of insurance, other than automobileinsurance and workers' compensation insurance, on risks located orresident in this state which are issued and take effect or which arerenewed after the effective date of this chapter and insuring any ofthe following contingencies: (1) Loss of or damage to real property which is used predominantlyfor residential purposes and which consists of not more than fourdwelling units. (2) Loss of or damage to personal property in which naturalpersons resident in specifically described real property of the kinddescribed in paragraph (1) have an insurable interest, exceptpersonal property used in the conduct of a commercial or industrialenterprise. (3) Legal liability of a natural person or persons for loss of,damage to, or injury to, persons or property, but not includingpolicies primarily insuring risks arising from the conduct of acommercial or industrial enterprise. (b) This chapter shall not be construed so as to modify or negateany of the provisions of Chapter 3 (commencing with Section 330) ofPart 1 of Division 1, nor to destroy any rights or remedies thereinprovided. (c) On and after January 1, 2000, an insurer may not refuse torenew a policy of insurance specified in subdivision (a) solely onthe grounds that a claim is pending under the policy. Thissubdivision is not applicable to claims made under coverage for lossor damage caused by the peril of earthquake as provided in Chapter8.5 (commencing with Section 10081) or Chapter 8.6 (commencing withSection 10089.5), of Part 1 of Division 2.675.1. In the case of a total loss to the primary insured structureunder a residential policy subject to Section 675, the followingprovisions apply: (a) If reconstruction of the primary insured structure has notbeen completed by the time of policy renewal, the insurer, prior toor at the time of renewal, and after consultation by the insurer orits representative with the insured as to what limits and coveragesmight or might not be needed, shall adjust the limits and coverages,write an additional policy, or attach an endorsem*nt to the policythat reflects the change, if any, in the insured's exposure to loss.The insurer shall adjust the premium charged to reflect any change incoverage. (b) The insurer shall not cancel coverage while the primaryinsured structure is being rebuilt, except for the reasons specifiedin subdivisions (a) to (e), inclusive, of Section 676. The insurershall not use the fact that the primary insured structure is indamaged condition as a result of the total loss as the sole basis fora decision to cancel the policy pursuant to subdivision (e) of thatsection. (c) Except for the reasons specified in subdivisions (a) to (e),inclusive, of Section 676, the insurer shall offer to, at least once,renew the policy in accordance with the provisions of subdivision(a) if the total loss to the primary insured structure was caused bya disaster, as defined in subdivision (b) of Section 1689.14 of theCivil Code, and the loss was not also due to the negligence of theinsured. (d) With respect to policies of residential earthquake insurance,the California Earthquake Authority, or any insurer, including aparticipating insurer, as defined in subdivision (i) of Section10089.5, may defer its initial implementation of this section untilno later than October 1, 2005. (e) With respect to a residential earthquake insurance policyissued by the California Earthquake Authority, the followingprovisions apply: (1) The participating insurer that issued the underlying policy ofresidential property insurance on the primary insured structureshall consult with the insured as to what limits and coverages mightor might not be needed as required by subdivision (a). (2) The California Earthquake Authority, in lieu of meeting therequirements of subdivision (a), shall establish procedures andpractices that allow it to reasonably accommodate the needs andinterests of consumers in maintaining appropriate earthquakeinsurance coverage, within the statutory and regulatory limitationson the types of insurance coverages and the coverage limits of thepolicies that the authority may issue.675.5. (a) In addition to any policy of insurance specified inSection 675, this chapter shall apply to policies of commercialinsurance issued or issued for delivery in this state which areissued and take effect or are renewed on or after January 1, 1987. (b) As used in this section, commercial insurance means commercialmultiperil, commercial property, commercial liability, commercialspecial multiperil, commercial comprehensive multiperil, errors andomissions liability, and professional liability insurance, and anyother insurance not included in subdivision (d) which covers any ofthe following contingencies: (1) Loss of or damage to real property used or owned by acommercial or industrial enterprise. (2) Loss of or damage to personal property, except personallyowned motor vehicles, used in the conduct of a commercial orindustrial enterprise. (3) Legal liability of any person for loss of, damage to, orinjury to persons or property, arising from the conduct of acommercial or industrial enterprise. (c) As used in this section, the term commercial or industrialenterprise includes a business operated for profit, a professionalpractice, a nonprofit organization, or a governmental entity. (d) As used in this section, the term commercial insurance doesnot include any of the following: (1) Worker's compensation insurance. (2) Insurance provided pursuant to the California FAIR plan or theCalifornia automobile assigned risk plan. (3) Disability insurance. (4) Automobile insurance covered by Section 660 and propertyinsurance covered by Section 675. (5) Ocean marine insurance. (6) Fidelity and surety insurance. (7) Surplus line insurance. (8) Reinsurance. (9) Any insurance, other than professional liability insurance formalpractice, errors, or omissions, for which premiums are determinedon a retrospective rating basis. (10) Nuclear liability insurance. (11) Nuclear property insurance.676. After a policy specified in Section 675 has been in effect for60 days, or, if the policy is a renewal, effective immediately, nonotice of cancellation shall be effective unless it is based on theoccurrence, after the effective date of the policy, of one or more ofthe following: (a) Nonpayment of premium, including nonpayment of any additionalpremiums, calculated in accordance with the current rating manual ofthe insurer, justified by a physical change in the insured propertyor a change in its occupancy or use. (b) Conviction of the named insured of a crime having as one ofits necessary elements an act increasing any hazard insured against. (c) Discovery of fraud or material misrepresentation by either ofthe following: (1) The insured or his or her representative in obtaining theinsurance. (2) The named insured or his or her representative in pursuing aclaim under the policy. (d) Discovery of grossly negligent acts or omissions by theinsured or his or her representative substantially increasing any ofthe hazards insured against. (e) Physical changes in the insured property which result in theproperty becoming uninsurable.676.1. (a) The arbitrary cancellation of a policy of homeowners'insurance solely on the basis that the policyholder has a license tooperate a family day care home at the insured location shall subjectthe insurer to administrative sanctions authorized by this codeunless, there has been a material misrepresentation of fact, the riskhas changed substantially since the policy was issued, there hasbeen a nonpayment of premium, or the insurer no longer writeshomeowners policies. (b) The arbitrary refusal to renew a policy of homeowners'insurance solely on the basis that the policyholder has a license tooperate a family day care home at the insured location shall subjectthe insurer to administrative sanctions authorized by this codeunless, there has been a material misrepresentation of fact, the riskhas changed substantially since the policy was issued, there hasbeen a nonpayment of premium, or the insurer no longer writeshomeowners' policies. For purposes of this subdivision, an insured'spurchase of a policy of homeowner's insurance to cover a new, primaryresidence from the same insurer which insured his or her previousprimary residence, provided that the insurer then underwriteshomeowners' insurance in the geographic area containing the newresidence, shall be deemed a renewal of the policy on the previous,primary residence. (c) It shall be against public policy for a residential propertyinsurance policy to provide coverage for liability for losses arisingout of, or in connection with, the operation of a family day carehome. This coverage shall only be provided by a separate endorsem*ntor insurance policy for which premiums have been assessed andcollected.676.2. (a) This section applies only to policies of commercialinsurance that are subject to Section 675.5. (b) After a policy has been in effect for more than 60 days, or ifthe policy is a renewal, effective immediately, no notice ofcancellation shall be effective unless it complies with Section 677.2and it is based on the occurrence, after the effective date of thepolicy, of one or more of the following: (1) Nonpayment of premium, including payment due on a prior policyissued by the insurer and due during the current policy termcovering the same risks. (2) A judgment by a court or an administrative tribunal that thenamed insured has violated any law of this state or of the UnitedStates having as one of its necessary elements an act that materiallyincreases any of the risks insured against. (3) Discovery of fraud or material misrepresentation by either ofthe following: (A) The insured or his or her representative in obtaining theinsurance. (B) The named insured or his or her representative in pursuing aclaim under the policy. (4) Discovery of willful or grossly negligent acts or omissions,or of any violations of state laws or regulations establishing safetystandards, by the named insured or his or her representative, whichmaterially increase any of the risks insured against. (5) Failure by the named insured or his or her representative toimplement reasonable loss control requirements that were agreed to bythe insured as a condition of policy issuance or that wereconditions precedent to the use by the insurer of a particular rateor rating plan, if the failure materially increases any of the risksinsured against. (6) A determination by the commissioner that the loss of, orchanges in, an insurer's reinsurance covering all or part of the riskwould threaten the financial integrity or solvency of the insurer. Acertification made under penalty of perjury to the commissioner byan officer of the insurer of the loss of, or change in, reinsuranceand that the loss or change will threaten the financial integrity orsolvency of the insurer if the cancellation of the policy is notpermitted shall constitute this determination unless disapproved bythe commissioner within 30 days of the filing. There shall be noextensions to this 30-day period. (7) A determination by the commissioner that a continuation of thepolicy coverage would place the insurer in violation of the laws ofthis state or the state of its domicile or that the continuation ofcoverage would threaten the solvency of the insurer. (8) A change by the named insured or his or her representative inthe activities or property of the commercial or industrial enterprisethat results in a material added risk, a materially increased risk,or a materially changed risk, unless the added, increased, or changedrisk is included in the policy. (c) (1) After a policy has been in effect for more than 60 days,or if the policy is a renewal, effective immediately upon renewal, noincrease in the rate upon which the premium is based, reduction inlimits, or change in the conditions of coverage shall be effectiveduring the policy period unless a written notice is mailed ordelivered to the named insured and the producer of record at themailing address shown on the policy, at least 30 days prior to theeffective date of the increase, reduction, or change. Subdivision (a)of Section 1013 of the Code of Civil Procedure is applicable if thenotice is mailed. The notice shall state the effective date of, andthe reasons for, the increase, reduction, or change. (2) The increase, reduction, or change shall not be effectiveunless it is based upon one of the following reasons: (A) Discovery of willful or grossly negligent acts or omissions,or of any violations of state laws or regulations establishing safetystandards by the named insured that materially increase any of therisks or hazards insured against. (B) Failure by the named insured to implement reasonable losscontrol requirements that were agreed to by the insured as acondition of policy issuance or that were conditions precedent to theuse by the insurer of a particular rate or rating plan, if thefailure materially increases any of the risks insured against. (C) A determination by the commissioner that loss of or changes inan insurer's reinsurance covering all or part of the risk covered bythe policy would threaten the financial integrity or solvency of theinsurer unless the change in the terms or conditions or rate uponwhich the premium is based is permitted. (D) A change by the named insured in the activities or property ofthe commercial or industrial enterprise that results in a materiallyadded risk, a materially increased risk, or a materially changedrisk, unless the added, increased, or changed risk is included in thepolicy. (E) With respect to a change in the rate of a policy ofprofessional liability insurance for a health care provider, theinsurer's offer of renewal notifies the policyholder that the insurerhas an application filed pursuant to Section 1861.05 pending withthe commissioner for approval of a change in the rate upon which thepremium is based, and the commissioner subsequently approves the ratechange, or some different amount for the policy period. The changeshall not be retroactive. (d) The Administrative Procedure Act (Chapter 3.5 (commencing withSection 11340), Chapter 4 (commencing with Section 11370), andChapter 5 (commencing with Section 11500) of Title 2 of Division 3 ofthe Government Code) shall not apply to a determination pursuant toparagraph (6) or (7) of subdivision (b) or subparagraph (C) ofparagraph (2) of subdivision (c). The commissioner shall charge aninsurer who requests a determination pursuant to paragraph (6) or (7)of subdivision (b) a fee sufficient to recover the costs of makingthe determination. If the commissioner does not act upon a request byan insurer to cancel or change a policy pursuant to those provisionswithin 30 days, the request shall be deemed to be approved. (e) This section shall not prohibit an insurer from increasing apremium during the policy period if the increase is calculated inaccordance with the current rating manual of the insurer and isjustified by a physical change in the insured property or by a changein the activities of the commercial or industrial enterprise thatmaterially increases any of the risks insured against. (f) This section shall not apply to a transfer of a policy withouta change in its terms or conditions or the rate upon which thepremium is based between insurers that are members of the sameinsurance group.676.3. Nothing in Section 676.2 shall preclude the imposition ofremedial underwriting action upon coverage insuring dentists orphysicians and surgeons against legal liability arising from therendering of professional services by an insured licensed pursuant toChapter 4 (commencing with Section 1600) or Chapter 5 (commencingwith Section 2000) of Division 2 of the Business and ProfessionsCode, respectively, if remedial underwriting action is imposedpursuant to the recommendation of an underwriting committee advisingthe insurer; provided that a majority of the members of thatcommittee are licensed pursuant to the chapter of Division 2 of theBusiness and Professions Code that is applicable to that particularinsured, and written notification of the proposed remedialunderwriting action is first given to the insured, and the insured isafforded not less than 30 days to present opposition or argument tothe underwriting committee as to why the remedial underwriting actionshould be modified or withheld, prior to any imposition thereof.Remedial underwriting action includes all actions described insubdivision (c) of Section 676.2. Remedial underwriting actionimposed pursuant to this section shall not be subject to Article 7(commencing with Section 1858) of Chapter 9 of Part 2, but nothing inthis section shall deny the right of the commissioner toinvestigate, pursue enforcement action, and seek other remedies asauthorized by Article 1 (commencing with Section 12919) of Chapter 2of Division 3. It is the intent of the Legislature to encourage peer review byinsurers providing coverage to persons engaged in the provision ofhealth services and the adoption of conditions of coverage which areintended to protect the public.676.4. Nothing in Section 676.2 shall preclude, while the policiesare in force, changes in the rate upon which the premium is based orthe conditions of coverage, or both, of policies insuring health carefacilities licensed pursuant to Chapter 2 (commencing with Section1250) of Division 2 of the Health and Safety Code, if the change isimposed pursuant to the recommendation of a health care facilityprofessional liability advisory committee advising the insurer;provided that a majority of the members of the committee are dulyauthorized representatives of health care facilities licensedpursuant to that Chapter 2 (commencing with Section 1250) of Division2 of the Health and Safety Code, and written notification of thechange is given to all affected insureds at least 30 days prior toany such change.676.5. (a) This section applies only to policies of commercialinsurance which are subject to Section 675.5. (b) Except as provided in subdivision (c), for purposes of thischapter only, a policy with no fixed expiration, or with a term ofless than one year, shall be considered to be a policy for a term ofone year, and a policy written for a term of more than one year shallbe considered as if written for successive terms of one year. (c) For purposes of this chapter, a policy shall be considered tobe for a term of less than one year if the policy is issued for aspecific risk which does not continue beyond the period of thepolicy, or if the insured requests a policy for a term of less thanone year.676.6. (a) This section applies to commercial umbrella liabilityinsurance policies, commercial excess liability insurance policies,and commercial excess property insurance policies. (b) As used in this section: (1) "Umbrella liability insurance policy" means an insurancepolicy providing liability coverage per person or per occurrence orper claim, when written over one or more underlying liabilitypolicies or over a specified amount of self-insured retention. (2) "Excess liability insurance policy" means an insurance policyproviding liability covrage per person or per occurrence or per claimwhen written over one or more underlying liability policies. Excessliability policies shall include policies written over umbrellaliability policies. (3) "Excess property insurance policy" means a policy providingproperty coverage per occurrence or per location when written overone or more underlying property insurance policies or a specifiedamount of self-insured retention. (c) After a policy defined in subdivision (b) of this section hasbeen in effect for more than 60 days, or if the policy is a renewal,effective immediately, no notice of cancellation shall be effectiveunless it complies with Section 677. 2, is based on one or more ofthe grounds set forth in subdivision (b) of Section 676.2, or isbased on one or more of the following: (1) A material change in limits, type or scope of coverage, orexclusions in one or more of the underlying policies. (2) Cancellation or nonrenewal of one or more of the underlyingpolicies where such policies are not replaced without lapse. (3) A reduction in financial rating or grade of one or moreinsurers, insuring one or more underlying policies based on anevaluation obtained from a recognized financial rating organization. (d) A notice of nonrenewal shall not be required in any of thefollowing situations: (1) The transfer of, or renewal of, a policy without a change inits terms or conditions or the rate on which the premium is basedbetween insurers which are members of the same insurance group. (2) The policy has been extended for 90 days or less, if thenotice required in subdivision (c) has been given prior to theextension. (3) The named insured has obtained replacement coverage or hasagreed, 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 theinsured is notified at the time of issuance that it may not berenewed. (5) The named insured requests a change in the terms or conditionsor risks covered by the policy within 60 days prior to the end ofthe policy period. (6) The insurer has made a written offer to the insured, withinthe time period specified in subdivision (c), to renew the policyunder changed terms or conditions or at a changed premium rate. Asused herein, "terms or conditions" includes, but is not limited to, areduction in limits, elimination of coverages, or an increase indeductibles.676.7. (a) No admitted insurer, licensed to issue and issuinghomeowner's or tenant's policies, as described in Section 122, shall(1) fail or refuse to accept an application for that insurance or toissue that insurance to an applicant or (2) cancel that insurance,solely on the basis that the applicant or policyholder is engaged infoster home activities in a licensed foster family home or licensedsmall family home, as defined in Section 1502 of the Health andSafety Code. (b) Coverage under policies described in subdivision (a) withrespect to a foster child shall be the same as that provided for anatural child. However, unless specifically provided in the policy,there shall be no coverage expressly provided in the policy for anybodily injury arising out of the operation or use of any motorvehicle, aircraft, or watercraft owned or operated by, or rented orloaned to, any foster parent. (c) It is against public policy for a policy of homeowner's ortenant's insurance subject to this section to provide liabilitycoverage for any of the following losses: (1) Claims of a foster child, or a parent, guardian, or guardianad litem thereof, of a type payable by the Foster Family Home andSmall Family Home Insurance Fund established by Section 1527.1 of theHealth and Safety Code, regardless of whether the claim is withinthe limits of coverage specified in Section 1527.4 of the Health andSafety Code. (2) An insurer shall not be liable, under a policy of insurancesubject to this section, to any governmental agency for damagearising from occurrences peculiar to the foster-care relationship andthe provision of foster-care services. (3) Alienation of affection of a foster child. (4) Any loss arising out of licentious, immoral, or sexualbehavior on the part of a foster parent intended to lead to, orculminating in, any sexual act. (5) Any loss arising out of a dishonest, fraudulent, criminal, orintentional act. (d) There shall be no penalty for violations of this section priorto January 1, 1987. (e) Insurers may provide a special endorsem*nt to a homeowners' ortenants' policy covering claims related to foster care that are notexcluded by subdivision (c). (f) Insurers may provide by a separate policy for some or all ofthe claims related to foster care that are excluded by subdivision(c).676.8. (a) This section applies only to policies of workers'compensation insurance. (b) After a policy is in effect, no notice of cancellation shallbe effective unless it complies with the notice requirements of thissection and is based upon the occurrence, after the effective date ofthe policy, of one or more of the following: (1) The policyholder's failure to make any workers' compensationinsurance premium payment when due. (2) The policyholder's failure to report payroll, to permit theinsurer to audit payroll as required by the terms of the policy or ofa previous policy issued by the insurer, or to pay any additionalpremium as a result of a audit of payroll as required by the terms ofthe policy or of a previous policy. (3) The policyholder's material failure to comply with federal orstate safety orders or written recommendations of the insurer'sdesignated loss control representative. (4) A material change in ownership or any change in thepolicyholder's business or operations that materially increases thehazard for frequency or severity of loss, requires additional ordifferent classifications for premium calculations, or contemplatesan activity excluded by the insurer's reinsurance treaties. (5) Material misrepresentation by the policyholder or its agent. (6) Failure to cooperate with the insurer in the insurer'sinvestigation of a claim. (c) A policy shall not be canceled for the conditions specified inparagraph (1), (2), (5), or (6) of subdivision (b) except upon 10days' written notice to the policyholder by the insurer. A policyshall not be canceled for the conditions specified in paragraph (3)or (4) of subdivision (b) except upon 30 days' written notice to thepolicyholder by the insurer, provided that no notice is required ifan insured and insurer consent to the cancellation and reissuance ofa policy effective upon a material change in ownership or operationsof the insured. If the policyholder remedies the condition to theinsurer's satisfaction within the specified time period, the policyshall not be canceled by the insurer. (d) Nothing in this section shall preclude, while policies are inforce, changes in the premium rate required or authorized by law,regulation, or order of the commissioner, or otherwise agreed tobetween the policyholder and insurer. (e) Any policy written for a term longer than one year, or anypolicy with no fixed expiration date, shall be considered as ifwritten for successive policy periods of one year.676.9. (a) This section applies to policies covered by Sections 675and 675.5. (b) No insurer issuing policies subject to this section shall denyor refuse to accept an application, refuse to insure, refuse torenew, cancel, restrict, or otherwise terminate, or charge adifferent rate for the same coverage, on the basis that the applicantor insured person is, has been, or may be, a victim of domesticviolence. (c) Nothing in this section shall prevent an insurer subject tothis section from taking any of the actions set forth in subdivision(b) on the basis of criteria not otherwise made invalid by thissection or any other act, regulation, or rule of law. Ifdiscrimination by an insurer is not in violation of this section butis based on any other criteria that are allowable by law, the factthat the applicant or insured is, has been, or may be the subject ofdomestic violence shall be irrelevant. (d) For purposes of this section, information that indicates thata person is, has been, or may be a victim of domestic violence ispersonal information within the meaning of Article 6.6 (commencingwith Section 791) of Chapter 1 of Part 2. (e) No insurer that issues policies subject to this section, andno person employed by or under contract with an insurer that issuespolicies subject to this section, shall request any information theinsurer or person knows or reasonably should know relates to acts ofdomestic violence or an applicant's or insured's status as a victimof domestic violence, or make use of this information howeverobtained, except for the limited purpose of complying with legalobligations, verifying a person's claim to be a subject of domesticviolence, or cooperating with a victim of domestic violence inseeking protection from domestic violence or facilitating thetreatment of a domestic violence-related medical condition. Thissubdivision does not prohibit an insurer from asking an applicant orinsured about a property and casualty claim, even if the claim isrelated to domestic violence, or from using information therebyobtained in evaluating and carrying out its rights and duties underthe policy, to the extent otherwise permitted by this section andother applicable law. (f) As used in this section, "domestic violence" means domesticviolence as defined in Section 6211 of the Family Code.676.10. (a) This section applies to policies covered by Section675, 675.5, or 676.5 if the insured is a religious organizationdescribed in clause (i) of subparagraph (A) of paragraph (1) ofsubsection (b) of Section 170 of Title 26 of the United States Code,an educational organization described in clause (ii) of subparagraph(A) of paragraph (1) of subsection (b) of Section 170 of Title 26 ofthe United States Code, or other nonprofit organization described inclause (vi) of subparagraph (A) of paragraph (1) of subsection (b) ofSection 170 of Title 26 of the United States Code that is organizedand operated for religious, charitable, or educational purposes, or areproductive health services facility, as defined in subdivision (h)of Section 423.1 of the Penal Code, or its administrative offices. (b) No insurer issuing policies subject to this section shallcancel or refuse to renew the policy, nor shall any premium beexcessive or unfairly discriminatory solely on the basis that one ormore claims has been made against the policy during the preceding 60months for a loss that is the result of a hate crime committedagainst the person or property of the insured, or ananti-reproductive-rights crime. (c) As it relates to this section, if determined by a lawenforcement agency, a "hate crime" may include any of the following: (1) By force or threat of force, willfully injure, intimidate,interfere with, oppress, or threaten any other person in the freeexercise or enjoyment of any right or privilege secured to him or herby the Constitution or laws of this state or by the Constitution orlaws of the United States because of the other person's race, color,religion, ancestry, national origin, disability, gender, or sexualorientation, or because he or she perceives that the other person hasone or more of those characteristics. However, the foregoing offensedoes not include speech alone, except upon a showing that the speechitself threatened violence against a specific person or group ofpersons and that the defendant had the apparent ability to carry outthe threat. (2) Knowingly deface, damage, or destroy the real or personalproperty of any other person for the purpose of intimidating orinterfering with the free exercise or enjoyment of any right orprivilege secured to the other person by the Constitution or laws ofthis state or by the Constitution or laws of the United States,because of the other person's race, color, religion, ancestry,national origin, disability, gender, or sexual orientation, orbecause he or she perceives that the other person has one or more ofthose characteristics. (d) As it relates to this section, if determined by a lawenforcement agency, "anti-reproductive-rights crime" shall have themeaning set forth in subdivision (a) of Section 13776 of the PenalCode, and shall also include a violation of subdivision (e) ofSection 423.2 of the Penal Code, if the crime results in a coveredloss under a policy subject to this section. (e) Upon cancellation of or refusal to renew a policy subject tothis section after an insured has submitted a claim to the insurerthat is the result of a hate crime committed against the person orproperty of the insured, or an anti-reproductive-rights crime, theinsurer shall report the cancellation or nonrenewal to thecommissioner. (f) A violation of this section shall be an unfair practicesubject to Article 6.5 (commencing with Section 790) of Chapter 1 ofDivision 2. (g) Nothing in this section shall prevent an insurer subject tothis section from taking any of the actions set forth in subdivision(b) on the basis of criteria not otherwise made invalid by thissection or any other act, regulation, or law.677. (a) All notices of cancellation shall be in writing, mailed tothe named insured at the address shown in the policy, or to his orher last known address, and shall state, with respect to policies ineffect after the time limits specified in Section 676, (1) which ofthe grounds set forth in Section 676 is relied upon, and, inaccordance with the requirements of subdivisions (a) and (e) ofSection 791.10, and (2) the specific information supporting thecancellation, the specific items of personal and privilegedinformation that support those reasons, if applicable, andcorresponding summary of rights. (b) For purposes of this section, a lienholder's copy of thosenotices shall be deemed mailed if, with the lienholder's consent, itis delivered by electronic transmittal, facsimile, or personaldelivery.677.2. (a) This section applies only to policies covered by Section675.5. (b) A notice of cancellation shall be in writing and shall bedelivered or mailed to the producer of record, provided that theproducer of record is not an employee of the insurer, and to thenamed insured at the mailing address shown on the policy. Subdivision(a) of Section 1013 of the Code of Civil Procedure is applicable ifthe notice is mailed. The notice of cancellation shall include the effective date of thecancellation and the reasons for the cancellation. (c) The notice of cancellation shall be given at least 30 daysprior to the effective date of the cancellation, except that in thecase of cancellation for nonpayment of premiums or for fraud thenotice shall be given no less than 10 days prior to the effectivedate of the cancellation. Notice of a proposed cancellation pursuantto subdivision (d) of Section 676.2 given prior to a finding of thecommissioner shall satisfy the requirements of this section if it isgiven no less than 30 days prior to the effective date of thecancellation and if it states that cancellation will be effectiveonly upon the approval of the commissioner. (d) This section applies only to cancellations pursuant to Section676.2.677.4. A notice of cancellation with respect to a policy coveredunder Section 675 shall be delivered at least 20 calendar days priorto the effective date of the cancellation, except that in the case ofa cancellation for nonpayment of premiums, or for fraud, the noticeshall be given at least 10 calendar days prior to the effective dateof the cancellation. Subdivision (a) of Section 1013 of the Code ofCivil Procedure is applicable if the notice is mailed.678. (a) At least 45 days prior to policy expiration, an insurershall deliver to the named insured or mail to the named insured atthe address shown in the policy, either of the following: (1) An offer of renewal of the policy contingent upon payment ofpremium as stated in the offer, stating each of the following: (A) Any reduction of limits or elimination of coverage. (B) The telephone number of the insurer's representatives whohandle consumer inquiries or complaints. The telephone number shallbe displayed prominently in a font size consistent with the othertext of the renewal offer. (2) A notice of nonrenewal of the policy. That notice shallcontain each of the following: (A) The reason or reasons for the nonrenewal. (B) The telephone number of the insurer's representatives whohandle consumer inquiries or complaints. The telephone number shallbe displayed prominently in a font size consistent with the othertext of the notice of nonrenewal. (C) A brief statement indicating that if the consumer hascontacted the insurer to discuss the nonrenewal and remainsunsatisfied, he or she may have the matter reviewed by thedepartment. The statement shall include the telephone number of theunit within the department that responds to consumer inquiries andcomplaints. (b) In the event an insurer fails to give the named insured eitheran offer of renewal or notice of nonrenewal as required by thissection, the existing policy, with no change in its terms andconditions, shall remain in effect for 45 days from the date thateither the offer to renew or the notice of nonrenewal is delivered ormailed to the named insured. A notice to this effect shall beprovided by the insurer to the named insured with the policy or thenotice of renewal or nonrenewal. (c) Any policy written for a term of less than one year shall beconsidered as if written for a term of one year. Any policy writtenfor a term longer than one year, or any policy with no fixedexpiration date, shall be considered as if written for successivepolicy periods or terms of one year. (d) This section applies only to policies of insurance specifiedin Section 675.678.1. (a) This section applies only to policies of insurance ofcommercial insurance that are subject to Sections 675.5 and 676.6. (b) A notice of nonrenewal shall be in writing and shall bedelivered or mailed to the producer of record and to the namedinsured at the mailing address shown on the policy. Subdivision (a)of Section 1013 of the Code of Civil Procedure shall be applicable ifthe notice is mailed. (c) An insurer, at least 60 days, but not more than 120 days, inadvance of the end of the policy period, shall give notice ofnonrenewal, and the reasons for the nonrenewal, if the insurerintends not to renew the policy, or to condition renewal uponreduction of limits, elimination of coverages, increase indeductibles, or increase of more than 25 percent in the rate uponwhich the premium is based. (d) If an insurer fails to give timely notice required bysubdivision (c), the policy of insurance shall be continued, with nochange in its terms or conditions, for a period of 60 days after theinsurer gives the notice. (e) With respect to policies defined in subdivision (b) of Section676.6, in addition to the bases for conditional renewal set forth insubdivision (c), an insurer may also condition renewal uponrequirements relating to the underlying policy or policies. If therequirements are not satisfied as of (1) the expiration date of thepolicy, or (2) 30 days after mailing or delivery of such notice,whichever is later, the conditional renewal notice shall be treatedas an effective notice of nonrenewal, provided the insurer has sentwritten confirmation to the first named insured and the producer ofrecord that the conditions were not met and that coverage ceased atthe expiration date shown in the expiring policy. (f) A notice of nonrenewal shall not be required in any of thefollowing situations. (1) The transfer of, or renewal of, a policy without a change inits terms or conditions or the rate on which the premium is basedbetween insurers that are members of the same insurance group. (2) The policy has been extended for 90 days or less, if thenotice required in subdivision (c) has been given prior to theextension. (3) The named insured has obtained replacement coverage or hasagreed, 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 theinsured is notified at the time of issuance that it may not berenewed. (5) The named insured requests a change in the terms or conditionsor risks covered by the policy within 60 days prior to the end ofthe policy period. (6) The insurer has made a written offer to the insured, withinthe time period specified in subdivision (c), to renew the policyunder changed terms or conditions or at a changed premium rate. Asused herein, "terms or conditions" includes, but is not limited to, areduction in limits, elimination of coverages, or an increase indeductibles.678.2. The provisions of subdivisions (c) and (e) of Section 678.1which prohibit notice of nonrenewal earlier than 120 days in advanceof the end of the policy period shall not apply to professionalliability policies issued to health care providers.678.3. (a) There shall be no liability on the part of, and no causeof action of any nature shall arise against, any insurer that issuesprofessional liability insurance policies to health care providersor its authorized representatives, agents, or employees, or anylicensed insurance agent or broker, for any statement made, unlessshown to have been made in bad faith, by any of them in any of thefollowing: (1) A written notice of nonrenewal, or any other oral or writtencommunication specifying the reasons for nonrenewal of a policyissued to a health care provider. (2) Any communication providing information pertaining to thenonrenewal. (3) Evidence submitted at any court proceeding or informal inquiryin which the nonrenewal is an issue. (b) This section shall apply only to nonrenewals for which writtennotice is provided by the insurer on or after January 1, 2006. (c) This section shall remain in effect only until January 1,2013, and as of that date is repealed, unless a later enactedstatute, that is enacted before January 1, 2013, deletes or extendsthat date.678.5. No policy specified in Section 675 that is issued, amended,or renewed on or after January 1, 1990, may be canceled, and aninsurer may not refuse to renew such a policy solely on the groundsof corrosive soil conditions if the policy or renewal policy containsan existing exclusion for payment of loss for that peril.679. There shall be no liability on the part of, and no cause ofaction of any nature shall arise against, any insurer or itsauthorized representatives, agents, or employees, or any licensedinsurance agent or broker, for any statement made, unless shown tohave been made in bad faith with malice in fact, by any of them in(a) any written notice of cancellation or in any other oral orwritten communication specifying the reasons for cancellation, (b)any communication providing information pertaining to suchcancellation, or (c) evidence submitted at any court proceeding orinformal inquiry in which such cancellation is an issue.679.5. Proof of mailing of a notice of cancellation and the reasonstherefor or of intention not to renew to the named insured at theaddress shown in the policy shall be sufficient proof of the noticerequired by this chapter.679.6. The commissioner may, after hearing, exempt from theprovisions of this chapter insurance in respect to any risk or classof risk that is eligible under Section 1763 for placement withnonadmitted insurers by and through licensed surplus line brokersupon a finding by him that application of this chapter would diminishor tend to diminish the availability, or substantially increase thecost, of such insurance.679.7. (a) Upon receiving a written request from an insured or theagent or broker of record where authorized by the insured, an insurershall provide a premium and loss history report to the requestingparty for the account's tenure or the three-year period ending withthe inception of the current policy period, whichever is shorter,plus loss experience during the current policy period that is inforce if any of the following occur: (1) The policy is canceled or nonrenewed. (2) The policyholder requests the information within 60 days priorto the renewal date of an existing policy. (3) The policyholder's current insurer's rating is downrated by anationally recognized insurance rating service to a financial ratingbelow secure or good or to a rating that would negatively impact theability of the policyholder to conduct its business operations. (4) The policyholder's current insurer is conserved by thedepartment under Section 1011, or is ordered to cease writingbusiness under Sections 1065.1 and 1065.2. The premium and loss history report, and the loss experienceinformation for the current policy period, shall be provided within10 business days of receiving the request. (b) This section applies only to policies of commercial insurancethat are subject to Sections 675.5 and 676.6, except for professionalliability insurance. (c) This section shall not apply to a policyholder who, throughautomated or other means, is provided direct, ongoing access toclaims information by the insurer. (d) For purposes of this section, a loss history report includes,but is not limited to, a list of individual claims detailed by dateof claim and total incurred and paid losses.