44-515. Automobile liability policy; notice of cancellation; requirements; exceptions.
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/ne/chapter-44/44-515A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)A notice of cancellation of a policy shall be effective only if it is based on one or more of the following reasons:
(a)Nonpayment of premium;
(b)Fraud or material misrepresentation affecting the policy or in the presentation of a claim thereunder, or violation of any of the terms or conditions of the policy; or
(c)The named insured or any operator, either resident in the same household or who customarily operates an automobile insured under the policy,
(i)has had his or her driver's license suspended or revoked pursuant to law,
(ii)has been convicted of larceny of an automobile, or theft of an automobile in violation of section 28-516 ,
(iii)has been convicted of an offense for which such suspension or revocation is mandatory, or
(iv)whose driver's license is subject to revocation or suspension pursuant to the provisions of sections 60-4,182 to 60-4,186 , by reason of his or her driving record as disclosed by the files of the Director of Motor Vehicles during the policy period or, if the policy is a renewal, during its policy period or the one hundred eighty days immediately preceding its effective date.
(2)This section shall not apply to any policy or coverage which has been in effect less than sixty days at the time notice of cancellation is mailed or delivered by the insurer unless it is a renewal policy.
(3)This section shall not apply to nonrenewal.
This section limits the grounds for cancellation of policies of the type defined in section 44-514. Glockel v. State Farm Mut. Auto. Ins. Co., 224 Neb. 598, 400 N.W.2d 250 (1987).
Unless a cancellation statute is manifestly all-inclusive, a statute specifying the instances under which a party to an insurance contract may cancel it does not make cancellation the exclusive remedy, and it is not in derogation of other remedial rights which are recognized and implemented by other provisions of law. Glockel v. State Farm Mut. Auto. Ins. Co., 224 Neb. 598, 400 N.W.2d 250 (1987).
An automobile liability policy may be cancelled for any of the reasons appearing in this section. Glockel v. State Farm Mut. Auto. Ins. Co., 219 Neb. 222, 361 N.W.2d 559 (1985).
Section 44-516 requires registered or certified mail for every cancellation notice regardless of the period the policy has been in force. Saunders v. Mittlieder, 195 Neb. 232, 237 N.W.2d 838 (1976).