(1) In any case involving property or casualty insurance that is subject to this part, if the insured has prepaid the premium for the insurance policy for a specified period, the insurer may not unilaterally increase the rate charged or decrease the coverage provided for the period for which the premium has been paid unless:
- (a) there is a change in risk during that period because of the addition or removal of persons or property that was included in the rate at last renewal;
- (b) the risk was misrepresented by the insured; or
- (c) the insured requests a policy change that increases the rate because of that specific request.
- (2) This section does not prohibit the cancellation of a policy for any other reason permitted by the policy or by law during an initial policy period not to exceed 60 days.
History: En. Sec. 2, Ch. 501, L. 2003.