What it does
IL 02 75 modifies the Commercial General Liability, Commercial Liability Umbrella, Employment-Related Practices, Farm Liability, Liquor, Pollution and Products/Completed Operations coverage parts. When written in a commercial package policy, it also modifies the Capital Assets, Inland Marine, Commercial Property, Crime and Fidelity, Equipment Breakdown and Farm coverage parts. It replaces the insurer's cancellation rights in IL 00 17 and adds Texas nonrenewal rules.
Key provisions (11 13 edition)
- Notice of cancellation stating the reason must be mailed or delivered at least 10 days before cancellation. A 30-day notice applies, with notice to certificate-holding unit-owners, when the policy covers a condominium association with at least one residence or declarations that conform to the Texas Uniform Condominium Act.
- For policies other than those covering a governmental unit or one- and two-family dwellings: in the first 60 days the insurer may cancel for any reason, but not solely because the policyholder is an elected official. After 60 days, or on renewals, cancellation is limited to fraud in obtaining coverage, nonpayment, an increase in hazard within the insured's control that would raise the rate, loss of reinsurance, or a cancellation approved by a supervisor, conservator or receiver.
- Separate rules apply to governmental units and one- and two-family dwellings: any reason in the first 90 days, then only specified reasons.
- A nonrenewal condition is added. The insurer may not nonrenew solely because the policyholder is an elected official, and must give notice under the Texas requirements.
Quoting and selling notes
- Monoline Texas commercial property policies use the commercial property version, CP 02 02.
- The Texas Department of Insurance lists later ISO Texas cancellation and nonrenewal revisions, including filings in 2019, 2023 and 2025. Newer editions may be in use, so check the edition on the policy.
