Statutory conditions – termination of contract by virtue of statutory condition 5 of section 127
127.1(1)An insurer shall not terminate a contract by virtue of statutory condition 5 of section 127 except for one or more of the following reasons:
(a)
non-payment of, or of any part of, the premium due under the contract or of any charge due under any agreement ancillary to the contract; or
(b)
change material to the risk within the meaning of statutory condition 4 of section 127.
127.1(2)Subsection (1) applies only to a contract that has been in effect for more than sixty days and that insures a natural person against
(a)
loss of or damage to real property used for residential purposes, or
(b)
loss of or damage to personal property usual or incidental to the occupancy of real property for residential purposes, or used for personal adornment or wear,
but does not apply to a contract insuring such a person in respect of property any part of which is used in a business, trade or profession.
127.1(3)Subsection (1) does not apply to an insurer running off its business where the insurer has the specific approval of the Superintendent to cancel a contract.