Non Renewal Insurance Letter Template for New Zealand

The Non Renewal Insurance Letter is a crucial document used in the New Zealand insurance industry when an insurer decides not to renew an existing insurance policy. This document serves as official notification to the policyholder and must comply with New Zealand's insurance regulations, particularly the Insurance Law Reform Act 1977 and Fair Trading Act 1986. It is typically issued when there are significant changes in risk assessment, claims history, or policy terms that make renewal unsuitable. The letter must provide adequate notice period as required by law, clearly state the non-renewal decision, include specific policy details, and explain the reasoning behind the non-renewal. This document is essential for maintaining transparent communication between insurers and policyholders while ensuring legal compliance in the New Zealand insurance market.

1. Recipient Details: Full name and address of the policyholder

2. Policy Information: Insurance policy number, type, and current expiration date

3. Non-renewal Statement: Clear statement that the policy will not be renewed upon expiration

4. Effective Date: Specific date when coverage will cease

5. Legal Notice Period Confirmation: Statement confirming that this notice meets the required legal notice period

6. Reason for Non-renewal: Brief explanation of the reason for non-renewal, if required

7. Closing Instructions: Information about obtaining alternative coverage and any final premium adjustments