After a commercial risk insurance policy has been in effect for sixty (60) days, or, if the policy is a renewal, effective immediately, no notice of cancellation shall be effective unless it is based on the occurrence, after the effective date of the policy, of one (1) or more of the following:

(1) Nonpayment of premium, including nonpayment of any additional premiums, calculated in accordance with the current rating manual of the insurer, justified by a physical change in the insured property or a change in its occupancy or use;
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Terms Used In Tennessee Code 56-7-1803

  • Commercial risk insurance: means insurance within the scope of this part that is not "personal risk insurance" as defined in §. See Tennessee Code 56-7-1802
  • Commissioner: means the commissioner of commerce and insurance. See Tennessee Code 56-1-102
  • Conviction: A judgement of guilt against a criminal defendant.
  • Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
  • Fraud: Intentional deception resulting in injury to another.
  • Nonpayment of premium: means failure of the named insured to discharge when due any of its obligations in connection with the payment of premiums on a policy of commercial risk insurance or any installment of the premium, whether the premium is payable directly to the insurer or its agents or indirectly under any premium finance plan or extension of credit. See Tennessee Code 56-7-1802
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(2) Conviction of the named insured of a crime having as one (1) of its necessary elements an act increasing any hazard insured against;
(3) Discovery of fraud or material misrepresentation on the part of either of the following:

(A) The insured or the insured’s representative in obtaining the insurance; or
(B) The named insured in pursuing a claim under the policy;
(4) Failure to comply with written loss control recommendations;
(5) Material change in the risk that increases the risk of loss after insurance coverage has been issued or renewed;
(6) Determination by the commissioner that the continuation of the policy would jeopardize a company’s solvency or would place the insurer in violation of the insurance laws of this state or any other state;
(7) Violation or breach by the insured of any policy terms or conditions; or
(8) Other reasons that are approved by the commissioner.
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