Skip to Main Content

California imposes new notice of lapse requirements on insurers

iStock_000018910138_Large (1)Insurers that write private passenger automobile and residential property insurance offering six months or longer of coverage are now subject to an expanded policyholder notice requirement. This requirement was enacted effective January 1, 2016 under California Assembly Bill 1804.

The new law permits applicants or policyholders to designate one additional person to receive notice from the insurer of lapse, termination, expiration, nonrenewal, or cancellation of a policy for nonpayment of premium. The additional person is not required to have an insurable interest in the policy. CV Exchange has created a new entity type to accommodate the new law and to enable Verisk Insurance Solutions customers to utilize their existing loss payee/mortgagee processes to send these notices.

For more information related to this bill, please visit

As a CV-Exchange customer, compliance with this new bill can be simple. Please contact CV-Exchange with any questions.

Lacy Muntean

Lacy Muntean is Supervisor over the CV-Exchange Support Team. She is responsible for on-boarding new customers and providing ongoing support to both customers and trading partners.

You will soon be redirected to the 3E website. If the page has not redirected, please visit the 3E site here. Please visit our newsroom to learn more about this agreement: Verisk Announces Sale of 3E Business to New Mountain Capital.