9.8 Cancellation

• Jurisdiction: Arizona

Cancellation of homeowners' policies are governed by A.R.S. Sec. 20-1652 et seq. Under A.R.S. Sec. 20-1652, after a homeowner's policy has been in effect for 60 days or if the policy is a renewal, no notice of cancellation may be effective unless it is based upon the occurrence, after the effective date of the policy, of one or more of the following events:

1. Nonpayment of premium.

2. Conviction of the named insured of a crime arising out of acts increasing the hazard insured against.

3. Acts or omissions by the insured or the insured's representative constituting fraud or material misrepresent-tation in obtaining the policy, continuing the policy or presenting a claim under the policy.

4. Discovery of grossly negligent acts or omissions by the insured substantially increasing any of the hazards insured against.

5. Substantial change in the risk assumed by the insurer, since the policy was issued, except to the extent that the insurer should reasonably have foreseen the change or contemplated the risk in writing the contract.

6. A determination by the director of insurance that the continuation of the policy would place the insurer in violation of the insurance laws of Arizona.

7. Failure...