Section 29.2168b. Cancellation or nonrenew by provider of financial assurance.

b. Section 280.109 is amended to read as follows:

Section 280.109. (a) A provider of financial assurance may cancel or fail to renew an assurance mechanism by sending a notice of termination, by certified mail, to the owner or operator. Termination of a local government guarantee, a guarantee, a surety bond, or a letter of credit may not occur until 120 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.  Termination  of insurance  or  risk  retention  coverage,  except   for nonpayment or misrepresentation by the insured, or state-funded assurance may not occur until 60 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt. Termination  for   nonpayment  of premium or misrepresentation by the insured may not occur until a minimum of 10 days after the date on which the owner or operator receives the notice of termination, as evidenced by the return receipt.

(b)   If a provider of financial responsibility cancels or fails to renew for reasons other than incapacity of the provider as specified in section 280.114, then the owner or operator shall obtain alternate coverage as specified in this section within 60 days after receipt of the notice of termination. If the owner or operator fails to obtain alternate coverage within 60 days after receipt of the notice of termination, then the owner or operator shall notify the director of the implementing agency of the failure and submit all of the following information:

(1)   The name and address of the provider of financial assurance.

(2)   The effective date of termination.

(3)     Evidence of the financial assistance mechanism subject to the termination maintained in accordance with section 280.107(b).

History: 1998-2000 AACS.