Codified Laws

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     58-33-61.   Grounds for cancellation. After sixty days from the effective date of policy issuance a notice of cancellation may not be issued unless it is based upon at least one of the following reasons:
             (1)      Nonpayment of premium;
             (2)      Discovery of fraud or material misrepresentation made by or with the knowledge of the named insured in obtaining the policy, continuing the policy, or in presenting a claim under the policy;
             (3)      Discovery of acts or omissions on the part of the named insured which increase any hazard insured against;
             (4)      The occurrence of a change in the risk which substantially increases any hazard insured against after insurance coverage has been issued;
             (5)      A violation of any local fire, health, safety, building, or construction regulation or ordinance with respect to any insured property or the occupancy thereof which substantially increases any hazard insured against;
             (6)      A determination by the director of the Division of Insurance that the continuation of the policy would jeopardize a company's solvency or would place the insurer in violation of the insurance laws of this state;
             (7)      Violation or breach by the insured of any policy terms or conditions; or
             (8)      Such other reasons as are approved by the director of the Division of Insurance.

Source: SL 1985, ch 392, § 3; SL 1986, ch 421, § 1.

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