What happens if an insurer cancels a policy for non-payment?

When an insurer cancels a policy for non-payment, it is required by Indiana law to provide a written notice of cancellation to the policyholder. This written notice ensures that the policyholder is adequately informed about the cancellation and can take appropriate action, such as seeking alternative coverage or addressing the outstanding payment.

Providing notice serves to protect the policyholder's rights by ensuring they have a clear understanding of the status of their insurance, rather than experiencing sudden cancellation without warning. This requirement promotes transparency and accountability within the insurance industry.

The other options do not align with the legal requirements or standard practices regarding cancellation of insurance policies. For example, no notice being necessary would undermine the policyholder's ability to respond to the cancellation, and automatic renewal in the case of cancellation for non-payment wouldn't be feasible. Immediate cancellation without any notice does not align with the protective measures intended in insurance regulations.