(8) Upon expiration of the policy term, an insurer may transfer commercial lines policy to another authorized insurer that is a member of the same group or owned by the same holding company as the transferring insurer.
The transfer constitutes a renewal of the policy and may not be treated as a cancellation or a nonrenewal of the policy. The insurer must provide notice of its intent to transfer the policy at least 45 days before the effective date of the transfer along with the financial rating of the authorized insurer to which the policy is being transferred. Such notice may be provided in the notice of renewal premium. This subsection does not apply to a policy providing residential property insurance coverage, except for farmowners insurance and commercial general liability policies providing farm coverage or commercial property policies providing farm coverage.
Above new legislation effective January 1, 2013: Basically, now insurance company’s who are planning on non-renewal, now have to give 45 day notice and have a renewal transfer in-line with same holding company or other such company disclosing their financial rating.
