Texas General Lines — Property and CasualtyTexas Laws and RegulationsMedium
An insurance company licensed in Texas wishes to cancel a commercial property policy that has been in effect for 90 days. For cancellation due to non-payment of premium, what is the minimum number of days' notice the insurer must provide to the policyholder?
- A30 days
- B10 days
- C120 days
- D60 days
Show answer & explanationAnswer & explanation
Correct answer: B. 10 days
Under Texas regulations, an insurer must provide at least 10 days' notice for cancellation of a commercial property policy due to non-payment of premium. Other reasons for cancellation typically require longer notice periods.
Why the other options are wrong
- A. 30 days is often the minimum notice for cancellation for reasons other than non-payment, but not for non-payment.
- C. 120 days is not a standard cancellation notice period for commercial property policies in Texas.
- D. 60 days is typically associated with non-renewal notices or specific types of policies, not non-payment cancellation.
Commercial Property Cancellation Notice (Non-Payment)
The minimum number of days an insurer must notify a policyholder before canceling a commercial property insurance policy for non-payment of premium in Texas.
- Applies specifically to commercial property policies.
- Distinguished from cancellation for other reasons, which may require longer notice.
- Ensures policyholders have time to address the non-payment.
Memory trick: For commercial property, 10 days to pay or goodbye, 30 days for other reasons to fly.