The Idaho state legislature has recently passed House Bill No. 562 (“H 562”), regarding the cancellation and nonrenewal of commercial insurance and fire insurance policies. The key highlights are as follows:
- Commercial insurance includes commercial property insurance policies; commercial liability insurance policies other than aviation and employer’s liability insurance policies; and commercial multiperil insurance policies.
- For commercial insurance policies, notice of cancellation must be mailed or delivered sixty (60) days prior to the effective date of cancellation, up from the previous thirty (30) day requirement for cancellations.
- For commercial insurance policies, notice of nonrenewal must be mailed or delivered sixty (60) days before the expiration date of the policy, up from the previous forty-five (45) days requirement for nonrenewal.
- Every fire insurance policy must provide for sixty (60) day written notice to the insured prior to cancellation or nonrenewal of the policy, accompanied by the reason for the cancellation or nonrenewal.
Please note that this bill becomes effective on January 1, 2027.
For any questions related to the above referenced bill in Idaho, please contact Westmont Associates!