What action must be taken by an insurer regarding notices of cancellation or non-renewal?

An insurer is required to provide a copy of any notice of cancellation or non-renewal to the producer within five working days. This action is important for ensuring that both the insured and the producer are kept informed about the status of the policy, facilitating effective communication and enabling the producer to assist the insured in finding alternative coverage if necessary. The inclusion of the producer in this notification process helps maintain transparency and supports consumer protection by ensuring that there is adequate time for the insured to seek other insurance options before the cancellation or non-renewal takes effect.

While it might seem sufficient to simply inform the insured, including the producer is a critical step in the communication process. It upholds the duty of the insurer to keep all parties involved apprised of significant policy changes, thus fostering a more collaborative relationship between the insurer, the producer, and the insured. This requirement is consistent with regulatory guidelines aimed at promoting fairness in insurance transactions.