Cancellation and Nonrenewal, Binders, Automobile Law, and Residual Markets (Outline VII.E, F, G)

This chapter covers blocks E Cancellation and Nonrenewal, F Applications and Binders, and G Automobile (financial responsibility, uninsured/underinsured motorist). The Automobile Insurance Plan, workers' compensation assigned risk plan and flood and earthquake exclusion notice come from the same regulations and are covered here too.

Reading the cites. Full text was read for 83-5-28, 83-11-5, 83-11-7, 83-11-17, 83-11-19 and the regulations; other Code sections are excerpts (Appendix G). Where an excerpt stopped short, the text says so.

12.1 Property Policies - Cancellation and Nonrenewal of Homeowners and Commercial Lines (Miss. Code Ann. 83-5-28)

The core rule

Section 83-5-28 governs cancellation, reduction and nonrenewal of liability, fire and single premium multiperil insurance (the package policy; the text read does not define the term). That is why the outline lists it under both "Personal Lines: Homeowners" and "Commercial Lines."

For coverage issued or renewed on or after July 1, 2026 (the rule in force on October 13, 2026):

(Miss. Code Ann. 83-5-28(1), (2), (6), as amended by HB 1611, 2025)

The change from 30 to 45 days

Before 2025 the period was thirty (30) days (coverage issued or renewed after June 30, 1989). HB 1611 (2025) kept 30 days for coverage issued or renewed July 1, 2025 through June 30, 2026; from July 1, 2026 it is 45, and "renewal" was added as an event requiring notice ("reduction in coverage" was already there). (HB 1611, Sec. 1; R. 34.04(P) already states 45 days for nonrenewal)

### In Mississippi The text of 83-5-28 read contains no list of permitted grounds: it regulates notice and timing, not reasons. The auto statute (12.2) limits cancellation to listed reasons; do not carry that rule over to homeowners.

Replacement policy forms and affiliate transfers

The notice rules do not apply when the same insurer issues a replacement policy form, or moves the insured to a licensed affiliate, with the same or substantially similar coverage, if the insurer mails or delivers, at least 45 days before the renewal effective date, notice of any less favorable term or condition. (83-5-28(1))

• "Substantially similar" means the same basic coverages, which may add, alter or eliminate incidental coverages and use different language. (83-5-28(7)(b))
• An "affiliate transfer" (at renewal or expiration, to a licensed insurer in the same group or holding company) counts as a renewal, not a cancellation or nonrenewal. The Commissioner must have determined the affiliate has the same or better financial strength, and selection must be nondiscriminatory. (83-5-28(7)(a))
• A transferring insurer must tell the Department at least 45 days before notifying the policyholder, and give the policyholder written notice at least 45 days before expiration with the receiving insurer's financial rating. (83-5-28(4)-(5))

Workers' compensation uses the same 45-day idea

HB 1611 also amended the workers' compensation statute: written notice goes to the commission and the insured (personally or by registered or certified mail), and for policies issued or renewed on or after July 1, 2026, cancellation or nonrenewal is not effective until forty-five (45) days after service on the insured and notice to the commission, unless the employer has obtained other coverage (then cancelled as of that coverage's effective date). (Miss. Code Ann. 71-3-77(1))

Insured-initiated cancellation

A workers' compensation insured may cancel on the day it returns the policy to the agent or signs a "lost policy release"; a policy not yet effective, by written notice. (71-3-77(1)) Homeowners may cancel and receive unearned premium. (R. 34.04(J))

12.2 Personal Lines Automobile - Cancellation and Nonrenewal (Miss. Code Ann. 83-11-1 through 83-11-21)

Which policies are covered (83-11-1)

The article applies to an automobile liability, physical damage or collision policy (or combination) delivered in Mississippi insuring a single individual, or husband and wife resident of the same household, where the insured vehicles are only (i) a private passenger or station wagon type vehicle not used as a public or livery conveyance or rented to others, or (ii) any other four-wheel vehicle with a load capacity of 1,500 pounds or less not used in the insured's occupation, profession or business.

It does not apply to a policy (1) issued under an automobile assigned risk plan; (2) insuring more than four automobiles; or (3) covering garage, automobile sales agency, repair shop, service station or public parking place operations. (83-11-1(a), per SB 2311, 2018; later amendments not checked)

Definitions: a period of less than six months is treated as six months; a term longer than one year, or with no fixed expiration, is treated as successive one-year terms and may be terminated at an annual period end on 30 days' notice before the anniversary date, outside the rest of the article; "nonpayment of premium" includes installments and amounts payable through a premium finance plan; "renewal" includes a replacement policy with the same or substantially similar coverage from the same insurer or a licensed affiliate. (83-11-1(e)-(f))

Grounds for cancellation (83-11-3)

A notice of cancellation is effective only if based on a listed reason. The excerpt shows (a) nonpayment of premium and (b) suspension or revocation of the driver's license or registration of the named insured, or of any other operator who resides in the household or customarily operates an insured automobile, during the policy period or (for a renewal) during the policy period or the 180 days before its effective date, unless within 7 days the insured gives the insurer written notice and directs it to exclude the suspended person from coverage. (83-11-3(1)(a)-(b)) The listed-reason limit does not apply to a policy in effect less than 60 days when the notice is mailed (the rest of that exception was cut off). (83-11-3(2)) The middle of the list was not visible; confirm the full list with the Department.

Notice of cancellation (83-11-5, as amended 2025)

For coverage issued or renewed on or after July 1, 2026, no notice of cancellation of a policy to which 83-11-3 applies is effective unless mailed or delivered to the named insured and any named creditor loss payee at least forty-five (45) days before the effective date. For nonpayment, at least ten (10) days' notice with the reason. Unless the reason accompanies the notice, the notice must say that on written request mailed or delivered not less than 15 days before cancellation, the insurer will specify the reason. If the insurer fails to give proper notice, the insured may continue the policy for the remainder of the notice period plus 45 days at the existing premium, in 45-day increments. (83-11-5, per HB 1611, 2025) For coverage issued or renewed on or before June 30, 2026 the period was 30 days; the 10-day nonpayment rule is the same before and after.

Nonrenewal (83-11-7, as amended 2025)

For coverage issued or renewed on or after July 1, 2026, no insurer shall fail to renew or issue a reduction in coverage unless it mails or delivers to the named insured, at the address in the policy, and to the named creditor loss payee, at least 45 days' advance notice. (83-11-7)

With no named creditor loss payee, the notice duty does not apply if (1) the insurer offered renewal on conditions the insured has not met; (2) the insured manifested unwillingness to renew; (3) the cause is nonpayment; or (4) the insured lost membership in good standing in an association on which issue or renewal depended. Even then, the policy terminates on the effective date of any other policy covering the same automobile.

A replacement form or affiliate transfer follows 12.1 (notice of less favorable terms 45 days before renewal). Renewal does not waive grounds for cancellation that existed before it, while a cancellation authorized before renewal ends any right of renewal.

Assigned risk notice (83-11-11)

When an auto liability policy is cancelled other than for nonpayment, or the insurer fails to renew a policy covered by 83-11-7, the insurer must tell the named insured of possible eligibility for the automobile liability assigned risk plan, in or with the notice. (83-11-11) The plan is covered in 12.7.

The insured's appeal to the Commissioner (83-11-17 to 83-11-21)

A named insured contesting the reasons for cancellation of a policy in effect 60 days or more, or an insurer's failure to give proper nonrenewal notice, must mail or deliver a written request for hearing to the Commissioner stating the basis. The statute's wording is "not less than seven (7) working days from the date of receipt of notice"; read it as a seven-working-day window and confirm the measuring point with the Department. HB 819 (2024) removed the $15 filing fee. The cancellation or nonrenewal is effective unless the Commissioner determines otherwise. (83-11-17)

After a timely request:

• Within two (2) working days the Commissioner calls a hearing on at least seven (7) days' notice.
• Written findings at the end of the hearing or within two days.
• If the insured prevails, the insurer must rescind the notice or, if the date has passed, reinstate or renew the policy. The order operates retroactively no more than twenty (20) days from the date cancellation would have been effective, and prospectively from the order. No policy is reinstated or renewed while the insured is in arrears.
• Reinstatement does not extend the expiration or anniversary date; a renewal ordered is for one year from the prior expiration date on the same terms.

(83-11-19, per HB 819, 2024)

Appeals from the Commissioner go to the chancery court of the county of the insured's residence, perfected within sixty (60) days of the decision. (83-11-21, excerpt) No one incurs liability for statements in the notice or at hearings. (83-11-15, excerpt)

12.3 Proof of Notice (Miss. Code Ann. 83-11-9, 83-11-13)

Proof of mailing. A certificate of mailing to the named insured at the policy address, of a cancellation, nonrenewal or reasons notice, is sufficient proof; the insurer need not prove receipt. (83-11-9)

Written statement of reasons. Where the reason is not in the notice, the insurer must, on the named insured's written request mailed or delivered not less than fifteen (15) days before the effective date, specify the reason in writing, mailed or delivered within five (5) days after receipt. (83-11-13)

12.4 Applications and Binders - Binding Coverage

The general rule

An application is the applicant's offer and the source of the representations the underwriter relies on. A binder is temporary evidence of coverage until the policy is issued, on the terms of the policy to be issued; oral or written. Exam contrast: a binder is coverage; a certificate of insurance is only information about coverage.

The Mississippi binder, certificate and indemnity regulation

The outline cites "(2009-1) MAC 19-5:4.01-.06." That does not match the Code. Regulation 2009-1 is 19 Miss. Admin. Code Part 5, Chapter 5, Rules 5.01 through 5.08, "General Property and Casualty Binders, Certificates of Insurance or Indemnity Agreements." (Part 5, Chapter 4 is the workers' compensation assigned risk plan.)

Scope. All insurers and producers of property and casualty commercial lines in Mississippi. (R. 5.03)

Requirements (R. 5.04).

1. No binder, certificate of insurance, indemnity agreement or similar instrument may affirmatively or negatively amend, extend or alter the coverage of the approved issued forms and endorsements.
2. A party not using the standard ACORD or ISO certificate form, as filed and approved, must file its own form for approval before use.
3. Each binder or certificate, upon filing, must contain this statement or a similar one: "This certificate of insurance neither affirmatively nor negatively amends, extends, or alters the coverage afforded by policy number ____ issued by ____."
4. A binder, certificate or indemnity agreement may not refer to construction or service contracts or insurance requirements for the purpose of defining or amending coverage.
5. No "Agent's Opinion Letter" or similar correspondence saying a policy provides coverage it does not.

Duly issued endorsements are unaffected. Compliance date October 1, 2009. (R. 5.04, 5.05)

Penalties. A producer's material noncompliance violates 83-17-71(1)(b); an insurer's violates 83-5-17 and the unfair practices sections (suspension or revocation and a fine). (R. 5.06)

### In Mississippi A certificate of insurance is information, not coverage. If a landlord, contractor or lender demands a certificate reading "additional insured" or "waiver of subrogation," the producer may not write that in unless an endorsement on the policy does it. The regulation targets commercial lines; for personal lines the Bill of Rights checklist "does not operate to expand coverage beyond the coverage provided in the policy." (R. 34.05(B))

Other binder facts in the sources

• The assigned risk plan must write "a policy or binder" at a minimum for the Financial Responsibility limits. (19 Miss. Admin. Code Pt. 4, Ch. 3, R. 3.09)
• Roof age. An insurer that issued a policy or binder on a residential structure may not cancel it, cancel the binder, or deny coverage solely because of the roof's age (homeowners policies issued or renewed on or after July 1, 2024). (Miss. Code Ann. 83-5-26; SB 2130, 2024)
• Binder duration and oral binders: no Mississippi source read; confirm with the Department.

Application-stage duties a producer must not miss

Disclose credit-history or insurance-score use (R. 31.07(A)); use the approved UM rejection form (83-11-101(4)) and signed non-stacking disclosure (83-11-102(2)); take checks payable to the company (R. 11.01).