1. (a) An insurer may not cancel a policy of insurance that the insurer has written that has been in effect more than ninety (90) days unless:

   1. (1) the insured under the policy has failed to pay the premium;
   2. (2) there is a substantial change in the scale of risk covered by the policy;
   3. (3) the insured has perpetrated a fraud or material misrepresentation upon the insurer;
   4. (4) the insured has failed to comply with reasonable safety recommendations; or
   5. (5) reinsurance of the risk associated with the policy has been cancelled.

2. (b) An insurer shall mail a written notice of cancellation to a person insured under a policy issued by the insurer at least:

   1. (1) forty-five (45) days before cancelling the policy for any reason set forth in subsection (a)(2), (a)(4), or (a)(5);
   2. (2) twenty (20) days before cancelling the policy for the reason set forth in subsection (a)(3); or
   3. (3) ten (10) days before cancelling the policy for the reason set forth in subsection (a)(1).

As added by P.L.271-1987, SEC.4. Amended by P.L.162-1988, SEC.3; P.L.196-2021, SEC.26.