PLPennsylvaniamedium
A PA homeowner buys a new HO-3 policy on March 1. On April 10, the insurer discovers underwriting concerns and wants to cancel. Which Act 205 rule applies?
AInsurer must wait for renewal; mid-term cancellation is barred
BInsurer must obtain PID approval before cancelling any new homeowners policy during the first 60 days of coverage
CInsurer may cancel only for non-payment during the first 60 days
Insurer may cancel for any reason during the first 60 days with proper notice
Why this is the answer
Act 205 grants insurers a 60-day 'any reason' window on new homeowners policies to complete underwriting. After day 60, cancellation must be for a specifically permitted reason.
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