The Georgia Office of Commissioner of Insurance and Safety Fire issued a Bulletin addressed to all property & casualty insurers writing residential real property in the state. The Bulletin clarifies the underwriting rules relating to cancellations and nonrenewals of residential property insurance contracts. The Office has received complaints from consumers, so this Bulletin was issued to remind insurers of standard procedures. The Bulletin provides definitions of nonrenewals, renewals, and reductions in coverage. Nonrenewals are refusals to continue coverage on a risk; renewals are continuing coverage on a risk; and reductions of coverage are just that, the lessening of certain coverages or the addition of an exclusion. The definition of nonrenewal makes it clear that failure to pay a premium does not constitute a nonrenewal. 

If an insurer decides to nonrenew a policy, the insured must be notified via a written notice. The notice of nonrenewal must state the reason for nonrenewal and the notice must be mailed or personally delivered to the insured. It should state when the nonrenewal would be effective, which must be at least 30 days from the notice's mailing or delivery date. An insurer is not allowed to refuse to renew a residential property policy for any of the following reasons:

• Lack of or failure to agree to a writing of supporting insurance business
• A change in the insurer's eligibility or underwriting rules, unless the change is presented to and approved by the Commissioner on the grounds that renewal would violate the Insurance Code or would be hazardous to its policyholders or the public
• Two or fewer claims against the policy within the preceding 36 month period if such claims are not attributable to the negligent or intentional acts of the insured or of persons resident at the insured premises.

After a policy has been in effect for at least 60 days, an insurer can only issue a cancellation for the following reasons:

• Nonpayment of premium
• Discovery of fraud
• A change in the risk which substantially increases any hazard the policy insures against
• The insured violates any of the material terms or conditions of the policy

Any insurance company planning to reduce coverage on a residential property policy must first provide a notice of reduction in coverage to the policyholder. The notice is required to be in a separate document and must contain the words "NOTICE OF REDUCTION COVERAGE" written in all caps in at least 12-point font size. 

The Bulletin can be found here.