Automobile insurance: notice of cancellation.

Under existing law, a notice of cancellation of an automobile insurance policy shall not be effective unless mailed or delivered by the insurer to the named insured, lienholder, or additional interest at least 20 days prior to the effective date of cancellation, and at least 10 days' notice of cancellation when the reason for cancellation is for nonpayment of premium. For purposes of this provision, nonpayment of premium means failure of the named insured to discharge when due any of their obligations in connection with the payment of premiums on a policy, or any installment of the premium, as specified. Existing case law requires the 10-day notice period for nonpayment to commence after default. This bill would require that the 10-day notice period for nonpayment commence after nonpayment of premium due by the specified due date and make a cancellation for nonpayment effective, as specified, if the insured has not cured the nonpayment of premium due identified in the notice by the end of the 10-day period.