Fact Sheet on Insurance Terminations, Denials, and Cancellations

Renewal on Altered Terms—Sometimes an insurer will renew a policy but will raise the rates or make the terms less favorable to the insured.

An insurer may not alter terms of coverage until 60 days (45 days for personal lines property and casualty policies) after a notice is mailed to you. To be effective, the notice must be mailed or delivered before the renewal date.

If the notice is given less than 60 days before the renewal date, the new terms or premium increase will not become effective until 60 days (45 days for personal lines property and casualty policies) have elapsed from the date the notice is given. These conditions do not apply if the only change is a rate increase of less than 25%. [s. 631.36 (5), Wis. Stat.  ​]​

Nonrenewal of a policy refers to the termination of a policy at the expiration date. If an insurer decides it does not want to renew your policy, it must mail or deliver to you a nonrenewal notice at least 60 days before the policy's expiration date. The nonrenewal notice must provide the reason for the nonrenewal.

For a homeowner or auto policy, the insurer is required to provide information in the notice on how to apply for coverage through either the Wisconsin Insurance Plan (property) or Wisconsin Automobile Insurance Plan (auto).

Under certain conditions, these plans offer home and auto insurance to people who are unable to obtain coverage in the voluntary market. [s. 631.36 (4) ​,​ (6) ​, and (7) ​, Wis. Stat.]

If an insurer fails to provide notice at least 60 days before the expiration date, it must continue your coverage under the terms and premium of your prior policy for the term of the policy or one year, whichever is less. [s. 631.36 (4)(a), Wis. Stat. ​]

If you are nonrenewed solely because of the termination of your agent's contract with your insurer, the insurer must continue your coverage if you request the insurer to do so in writing before the expiration date and you meet the insurer's eligibility requirements. [s. 631.36 (4) and (am), Wis. Stat. ​ ]

A midterm cancelation is a cancelation that occurs during the policy term and before the policy's expiration or renewal date. Insurers typically are not allowed to cancel a policy midterm except in special circumstances.

With few exceptions, an insurance company may cancel coverage during this period only if the premium is not paid. The insurer must either mail or deliver to you a written cancelation notice. No cancelation is effective until at least 10 days after mailing or delivery of the notice. [s. 631.36 (2) (b), Wis. Stat. ​​]

If you experience what you consider to be a questionable midterm cancelation, you are encouraged to contact the Office of the Commissioner of Insurance..​

Although an insurer may cancel your policy for nonpayment of premiums, you may be entitled to a grace period for the payment of any premium due. During a grace period, your coverage continues.