Except for a policy which that has been in effect for less than 60 days at the time notice of cancellation is received by the named insured, the reason for cancellation shall must accompany the notice, together with a notice of the right to apply for a hearing before the Superintendent of Insurance within 30 days, as provided in section 2920.

Notwithstanding sections 2914 and 2916-A, a notice of nonrenewal is not required if a policyholder is notified by the insurer that the policy is being transferred to an affiliate of that insurer for future coverage.

Sec. 4. 24-A MRSA §3007, sub-§1, ķE, as enacted by PL 1985, c. 671, §2, is amended to read:

E. "Renewal" or "to renew" means the issuance of, or the offer to issue by an insurer or an affiliate of an insurer, a policy succeeding a policy previously issued and delivered by the same insurer or an affiliated insurer or the issuance of a certificate or notice extending the terms of an existing policy for a specified period beyond its expiration date.

Sec. 5. 24-A MRSA §3050, as amended by PL 1989, c. 172, §7, is further amended to read:

§3050. Delivery of notice

No A notice of cancellation of a policy shall be is not effective unless received by the named insured at least 20 days prior to the effective date of cancellation, or, when the cancellation is for nonpayment of premium, at least 10 days prior to the effective date of cancellation. A postal service certificate of mailing to the named insured at the insured's last known address shall be is conclusive proof of receipt on the 5th calendar day after mailing.

Except for a policy which that has been in effect for less than 60 days at the time notice of cancellation is received by