Non-Renewal

Overview

When a policy will not be renewed — whether due to underwriting, claims history, a carrier directive, or producer request — you must formally close out the policy and send the insured a non-renewal notice within the state-mandated timeframe.

Non-Renewal Reasons

When processing a non-renewal, select the reason that best describes the situation:

Reason	When to use
Underwriting decision	Risk no longer meets guidelines
Claims history	Adverse loss history
Producer relationship	Producer inactivated or relationship ended
Carrier directive	Carrier has withdrawn from this market or state
Insured request	Insured is cancelling their own policy
Other	Any other reason — add a note

Processing a Non-Renewal

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Non-renewal screen showing reason dropdown, narrative text field, close-out letter selector, and Submit button

Non-renewal screen showing reason dropdown, narrative text field, close-out letter selector, and Submit button

1. Open the policy in Renewals > Renewal Tracking or from Policy Search.
2. Click Non-Renew.
3. Select the non-renewal reason from the dropdown.
4. Enter a brief explanation in the narrative field.
5. Select the appropriate close-out letter for the state and situation.
6. Review the letter preview.
7. Click Submit — the policy moves to Non-Renewal status and the close-out letter is generated.
8. Send the close-out letter to the insured and producer.

Caution

Non-renewal notices must be sent within the timeframe required by the policy state. These deadlines vary — check your carrier guidelines before processing a non-renewal on short notice.

Extend to Non-Renewal

In some cases, you may need to extend coverage for a short period before the non-renewal takes effect (for example, to accommodate a state-required notice period):

1. Click Extend to Non-Renewal instead of Non-Renew.
2. Enter the extension end date.
3. The system calculates the additional premium for the extension period.
4. Process payment for the extension if additional premium is due.
5. When the extension ends, the policy moves to Non-Renewal status.

Close-Out Letters

LAMS includes standard close-out letter templates for each state and situation. The system selects the appropriate form based on the state and non-renewal reason. State-specific versions are available for New York and other states with specific notice requirements.

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Close-out letter preview showing the generated letter with insured name, policy number, expiration date, and reason for non-renewal

Close-out letter preview showing the generated letter with insured name, policy number, expiration date, and reason for non-renewal