Prerequisites for Effective Notice of Cancellation

1. Law
2. Tennessee Code
3. Insurance
4. Policies and Policyholders
5. Cancellation of Commercial Risk Insurance Act
6. Prerequisites for Effective Notice of Cancellation

After a commercial risk insurance policy has been in effect for sixty (60) days, or, if the policy is a renewal, effective immediately, no notice of cancellation shall be effective unless it is based on the occurrence, after the effective date of the policy, of one (1) or more of the following:

1. Nonpayment of premium, including nonpayment of any additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use;
2. Conviction of the named insured of a crime having as one (1) of its necessary elements an act increasing any hazard insured against;
3. Discovery of fraud or material misrepresentation on the part of either of the following:
   1. The insured or the insured's representative in obtaining the insurance; or
   2. The named insured in pursuing a claim under the policy;
4. Failure to comply with written loss control recommendations;
5. Material change in the risk that increases the risk of loss after insurance coverage has been issued or renewed;
6. Determination by the commissioner that the continuation of the policy would jeopardize a company's solvency or would place the insurer in violation of the insurance laws of this state or any other state;
7. Violation or breach by the insured of any policy terms or conditions; or
8. Other reasons that are approved by the commissioner.

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