California § 676.6 - This section applies to commercial umbrella liability insurance policies, commerc

§ 676.6. This section applies to commercial umbrella liability insurance policies, commerc

(a) This section applies to commercial umbrella liability insurance policies, commercial excess liability insurance policies, and commercial excess property insurance policies. (b) As used in this section: (1) “Umbrella liability insurance policy” means an insurance policy providing liability coverage per person or per occurrence or per claim, when written over one or more underlying liability policies or over a specified amount of self-insured retention. (2) “Excess liability insurance policy” means an insurance policy providing liability covrage per person or per occurrence or per claim when written over one or more underlying liability policies. Excess liability policies shall include policies written over umbrella liability policies. (3) “Excess property insurance policy” means a policy providing property coverage per occurrence or per location when written over one or more underlying property insurance policies or a specified amount of self-insured retention. (c) After a policy defined in subdivision (b) of this section has been in effect for more than 60 days, or if the policy is a renewal, effective immediately, no notice of cancellation shall be effective unless it complies with Section 677. 2, is based on one or more of the grounds set forth in subdivision (b) of Section 676.2, or is based on one or more of the following: (1) A material change in limits, type or scope of coverage, or exclusions in one or more of the underlying policies. (2) Cancellation or nonrenewal of one or more of the underlying policies where such policies are not replaced without lapse. (3) A reduction in financial rating or grade of one or more insurers, insuring one or more underlying policies based on an evaluation obtained from a recognized financial rating organization. (d) A notice of nonrenewal shall not be required in any of the following situations: (1) The transfer of, or renewal of, a policy without a change in its terms or conditions or the rate on which the premium is based between insurers which are members of the same insurance group. (2) The policy has been extended for 90 days or less, if the notice required in subdivision (c) has been given prior to the extension. (3) The named insured has obtained replacement coverage or has agreed, in writing, within 60 days of the termination of the policy, to obtain that coverage. (4) The policy is for a period of no more than 60 days and the insured is notified at the time of issuance that it may not be renewed. (5) The named insured requests a change in the terms or conditions or risks covered by the policy within 60 days prior to the end of the policy period. (6) The insurer has made a written offer to the insured, within the time period specified in subdivision (c), to renew the policy under changed terms or conditions or at a changed premium rate. As used herein, “terms or conditions” includes, but is not limited to, a reduction in limits, elimination of coverages, or an increase in deductibles.