515.129 Cancellation or nonrenewal of commercial umbrella or excess policies or contracts. 1. As used in this section, 'umbrella or excess insurance policy' means a commercial line policy or contract of insurance providing liability or property coverage over one or moreunderlying policies or over a specified amount of self-insured retention. Umbrella or excessinsurance policy includes policies or contracts written over an umbrella or excess insurancepolicy or policies. 2. An umbrella or excess insurance policy which has not previously been renewed may be canceled by the insurer if it has been in effect for less than sixty days at the time notice ofcancellation is mailed or delivered. 3. An umbrella or excess insurance policy which has been renewed or which has been in effect for sixty or more days shall not be canceled by the insurer, except as provided in section515.127, subsections 2 and 3, unless notice has been mailed or delivered to the insured asrequired by this section or unless at least one of the following conditions occurs: a. A material change in the limits, scope of coverage, or exclusions in one or more of the underlying policies. b. srequired by this section or unless at least one of the following conditions occurs: a. A material change in the limits, scope of coverage, or exclusions in one or more of the underlying policies. b. Cancellation or nonrenewal of one or more of the underlying policies where the policies are not replaced without lapse. c. A reduction in the financial rating or grade of one or more of the insurers insuring one or more of the underlying policies based on an evaluation by a recognized financial ratingorganization. 4. A notice of cancellation is not effective unless mailed by certified mail or delivered to the named insured and any loss payee at least ten days prior to the effective date of cancellation.A notice of cancellation shall include the reason for cancellation of the umbrella or excessinsurance policy. A post office department certificate of mailing to the named insured at theaddress shown in the umbrella or excess policy is proof of receipt of the mailing; however,such a certificate of mailing is not required if cancellation is for nonpayment of premium. 5. An insurer shall not fail to renew an umbrella or excess insurance policy except by notice to the insured as provided in te of mailing is not required if cancellation is for nonpayment of premium. 5. An insurer shall not fail to renew an umbrella or excess insurance policy except by notice to the insured as provided in this section; however, an insurer may condition renewalof an umbrella or excess insurance policy upon requirements relating to the underlying policyor policies. If the requirements are not satisfied as of the expiration date of the umbrella orexcess insurance policy, or thirty days after mailing or delivery of the notice, whichever islater, the conditional renewal notice shall be deemed to be an effective notice of nonrenewal.This subsection does not apply if the insurer has offered to renew or if the insured fails to paya premium due or any advance premium required by the insurer for renewal. 6. A notice of nonrenewal is not effective unless mailed by certified mail or delivered to the named insured and any loss payee at least forty-five days prior to the expiration date ofthe umbrella or excess insurance policy. If the insurer fails to meet the notice requirementsof this subsection the insured has the option of continuing the policy for the remainder of thenotice period plus an la or excess insurance policy. If the insurer fails to meet the notice requirementsof this subsection the insured has the option of continuing the policy for the remainder of thenotice period plus an additional thirty days at the premium rate of the existing umbrella orexcess policy. 7. Sections 515.127 and 515.128 are not applicable to umbrella or excess insurance policies except as provided in subsection 3. 90 Acts, ch 1234, §40C91, §515.81C2007 Acts, ch 152, §13, 60CS2007, §515.1292008 Acts, ch 1074, §10Referred to in §515.125, 515.126 Sat Dec 23 00:47:40 2023 Iowa Code 2024, Section 515.129 (23, 0)
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