MacKey

I.

Introduction

Under Insurance Code section 662, when an insurer cancels an automobile liability policy for nonpayment of premium, it must give the insured at least 10 days’ notice prior to the effective date of cancellation. Appellant Curtis D. Mackey (Mackey), on behalf of himself and the class he seeks to represent, filed this action against his insurance carrier, Coast National Insurance Company, Inc. (Coast), and his insurance broker, Bristol West Insurance Services of California, Inc. (Bristol West), claiming Coast improperly denied coverage by its failure to give proper notice of cancellation for nonpayment of premium.

Coast sent Mackey a cancellation notice 13 days before the premium he failed to pay was due, thereby setting the effective date of cancellation on the day following the premium due date. The principal question we must address is whether insurers, such as Coast, may mail a notice of cancellation in advance of the premium due date; or whether it is necessary to wait until a default has actually occurred before mailing the statutory 10-day notice of cancellation.

We conclude that the cancellation notice Coast issued to Mackey for nonpayment of…