Renewal Notice Amendments

Not well publicized after the end of the legislative session, California Gov. Gray Davis signed into law AB 2297 amending Sections 11664 and 11750 of the Insurance Code, which is intended to end employers' confusion over workers' compensation renewal notices. Previously insurers were not required to notify a policyholder of nonrenewal if the premium increase was below 25%. The Department of Insurance interpreted this to mean that an insurer MUST issue a nonrenewal notice if the premium increase is more than 25%. Consequently, an insurer had to send out a nonrenewal notice even if it wanted ...