Question

Which of the following is true of an Indiana insurer who does not want to renew a policy?

A. It may decide not to renew for any reason, but must give the policyholder 30 days' notice beforehand.
B. It may decide not to renew for any reason, and is not required to give notice to the policyholder.
C. It may only decide not to renew if the policyholder has paid less than 50% of his premiums in the last quarter, and must give the policyholder 10 days' notice beforehand.
D. Its reasons for nonrenewal must meet state requirements, and it must give the policyholder 20 days' notice beforehand.

Answer 1

In Indiana, an insurer that does not want to renew a policy must give reasons that meet state requirements and provide a 20-day notice beforehand. This aligns with wider industry practices where insurance regulation can cause companies to adjust their offerings or exit markets. The correct option is C.

Step-by-step explanation:

If an Indiana insurer does not want to renew a policy, the law dictates how this process should be handled.

According to option D, the insurer must provide reasons for the nonrenewal that meet state requirements, and they must give the policyholder a 20-day notice beforehand.

This process ensures policyholders have adequate notice and are treated fairly according to regulated procedures.

In the context of wider insurance regulations, insurance companies may adjust their practices or withdraw from markets based on legislative changes that impact profitability and risk management, such as the cases with New Jersey and Florida, regarding auto and property insurance respectively. The correct option is C.