Insurance Journal has released a complete guide to the “underwriting period” for all 50 states and D.C. The “underwriting period” is the state-specific right of the insurer to cancel a new policy (not renewals) during the first days of the policy period. Each state’s rules differ as to the length of time for the underwriting period as well as the allowable justifications for the cancellation. An underwriting period allows the insurance carrier time to inspect the property and its operations to assure that what was presented in the applications is, in fact, representative of the risk they are insuring. Also, underwriting data not available prior to the coverage effective date may become available during this period. In Louisiana, the underwriting period for new policies is 60 days and can be cancelled for any valid underwriting reason. The notification requirement is 30 days.
Read the article and download the complete guide to underwriting periods (free, but registration required) here.