What it does
Form K, the Uniform Notice of Cancellation of Motor Carrier Insurance Policies, is filed with the state commission to cancel the policy or policies supporting a carrier's state filing. The form lets the insurer check whether bodily injury and property damage, or cargo, coverage is being cancelled, and states that cancellation takes effect on the date shown "provided such date is not less than thirty (30) days after the actual receipt of this notice by the Commission." The form notes it was determined by the National Association of Regulatory Utility Commissioners.
Who uses it
Insurers whose Form E or Form H filings need to end. Washington's rules, for example, keep a Form E in effect "until canceled by a Notice of Cancellation (Form K)" filed at least 30 days before the cancellation date. Surety bonds are cancelled on the companion Form L.
Key rules
- The 30 days run from the commission's receipt of the notice, not from mailing.
- A new filing by a replacement insurer generally ends the prior insurer's liability as of the new filing's effective date, under state rules.
Selling notes
When a carrier changes insurers, coordinate the new Form E with the old insurer's Form K so the carrier's state authority never shows a lapse. The federal equivalent is BMC-35.
