What governs the notice of cancellation or nonrenewal for a policy of insurance?

The terms and conditions of the policy serve as the governing document for the notice of cancellation or nonrenewal for a policy of insurance. Within a standard insurance policy, specific provisions detail the circumstances under which an insurer can cancel or choose not to renew a policy. These terms are legally binding and outline the obligations of both the insurer and insured regarding cancellation and renewal processes, including the notice periods required and the reasons that necessitate either action.

While the law governing insurance practices does set minimum standards for the cancellation process and may influence the structure of the terms in a policy, it is ultimately the specific language within the policy document itself that dictates the procedure, duration, and requirements for cancellation or nonrenewal. Endorsements can modify or add to those terms, but they are not the primary governing document. The insurer's discretion is also limited by the conditions laid out in the policy. Thus, the specific terms and conditions of the policy provide the foundational guidelines applicable to notice of cancellation or nonrenewal.