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In addition, for a new policy, a company may cancel you in the first 60 days if it discovers you do not meet its underwriting guidelines. If you fail to make premium payments, a 15-day warning notice must be sent before the policy is canceled; for all other reasons, a 20-day warning notice must be sent.

You Have the Right to Appeal

If your coverage is canceled or non-renewed, you can file an appeal with the New Jersey Department of Banking and Insurance. Contact Consumer Protection Services, P.O. Box 329, Trenton, NJ 08625, or call (609) 292-5316 or 1-800-446-7467.

The Department cannot guarantee that your policy will be reinstated, so you should not delay shopping for alternate coverage. If a carrier denies you coverage and does not state a reason, or if you believe you have been treated unfairly, you can contact Consumer Protection Services.

You Have the Right to a Notice of Non-renewal

Insurers can decline to renew coverage for several reasons. Most often, this occurs when a driver’s record includes at-fault accidents or motor vehicle violations and they are no longer considered an eligible person in the voluntary market. Other reasons include:

·  The Department has, for regulatory reasons, permitted the company to non-renew policies.

·  The insurer is using the 2-for-1 or the 2 percent rule. The 2-for-1 rule allows the insurer to non-renew one vehicle for every two new ones it writes in each territory. The 2 percent rule allows the insurer to non-renew up to 2 percent of policies in a territory experiencing heavy growth. Accidents, moving violations or a poor payment history will make your policy vulnerable to these types of non-renewals. Insurers must state that they have invoked these rules on the non-renewal notice.

A written non-renewal notice must be sent at least 60 calendar days prior to the expiration date of the existing policy. If you are non-renewed under the Eligible Person rule, you have the right to file a Declination Appeal with the Department. A Declination Appeal form should be provided by the insurer.