(a) A low-cost automobile insurance policy issued pursuant to the program shall be canceled only for the following reasons:
(1) Nonpayment of premium.
(2) Fraud or material misrepresentation affecting the policy or the insured.
(3) The purchase of additional automobile liability insurance coverage in violation of subdivision (a) of Section 11629.78.
(4) The purchase or maintenance of automobile liability insurance coverage other than a low-cost policy for any additional vehicles in the insured’s household, in violation of subdivision (b) of Section 11629.78.
(b) A policy shall be nonrenewed only for the following reasons:
(1) A substantial increase in the hazard insured against.
(2) The insured no longer meets the applicable eligibility requirements. In this regard, the eligibility of an insured shall be recertified by the California Automobile Assigned Risk Plan after the first year of eligibility, and every three years thereafter by the insurer that issued the policy.
(Amended by Stats. 2019, Ch. 274, Sec. 6. (SB 570) Effective January 1, 2020. Repealed as of January 1, 2025, pursuant to Section 11629.89.)
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