Effective 28 Aug 1974

379.114. Reasons for cancellation. — 1. Except as provided in sections 379.110 to 379.120, no insurer shall exercise its right to cancel a policy except for the following reasons:

(1) Nonpayment of premium; or

(2) The driver's license of the named insured has been under suspension or revocation at any time during the policy period. Provided, however, in the event more than one person is named as insured and only one of the persons named has his driver's license suspended or revoked then such policy may not be cancelled, but the insurer may issue an exclusion providing, by name, that coverage will not be provided under the terms of the policy while such person is operating the insured vehicle during any period of suspension or revocation.

2. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal and which were unknown to the insurer at the time of such renewal.

3. No insurer shall cancel or refuse to write or refuse to renew a policy of automobile insurance on any person with at least two years' driving experience solely because of the age, residence, race, sex, color, creed, national origin, ancestry or lawful occupation, including the military service, of anyone who is or seeks to become insured or solely because another insurer has refused to write a policy, or has cancelled or has refused to renew an existing policy in which that person was the named insured, nor shall any insurance company or its agent or representative require any applicant, policyholder or operator to divulge in a written application or otherwise whether any insurer has cancelled or refused to renew or issue to the applicant, policyholder or operator a policy of automobile insurance; provided, however, nothing herein contained shall be construed so as to require any insurer which under its plan of operation insures a particular class of persons or customarily operates in a specific geographical territory to insure any person outside of the class or operate outside the geographical territory.

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(L. 1973 H.B. 354 § 3, A.L. 1974 S.B. 572)

(1977) This section does not prohibit a cancellation whose effective date would occur more than sixty-one days past the issuance of the policy so long as the cancellation was initiated during the initial sixty-day period. Hudson v. State Security Insurance Co. (A.), 555 S.W.2d 859.