In calculating the number of days for mailing notice of cancellation or nonrenewal, an insurer must add “mailing days” to the minimum number of days required as advance notice before the effective date. The number of days that must be added varies by state, and state specific research is needed to determine the requirements. The general mailing rule is, first, an insurer should not count the day of mailing. This is often codified in a statute, administrative rule or found in the case law. Second, as a matter of prudence, since it is required in some states and is not clearly established in other states, do not count the last day unless there is a statute or regulation specifically stating you can count the date of receipt as a day of notice (even though it is not a full 24-hour day). Third, be aware that there are weekend and holiday rules that vary by state. While many states have no weekend or holiday rule applicable to insurance cancellation or nonrenewal notices, in some states you may not count as a day of notice any intermediate Saturday, Sunday or holiday. In other states you cannot have the notice period end on a Saturday, Sunday or holiday (similar to the civil procedure rules applicable to deadlines in litigation that push the notice day to the next business day).
This blog is not intended as legal advice. Insurance companies should seek advice from an insurance compliance professional to research this question on a state-by-state basis. The Nash Group LLC may be engaged for this type of research.
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