CA Ins Code Section 11629.77

(a)

A low-cost automobile insurance policy issued pursuant to the program shall be canceled only for the following reasons:

(1)

Nonpayment of premium.

(2)

Fraud or material misrepresentation affecting the policy or the insured.

(3)

The purchase of additional automobile liability insurance coverage in violation of subdivision (a) of Section 11629.78.

(4)

The purchase or maintenance of automobile liability insurance coverage other than a low-cost policy for any additional vehicles in the insured’s household, in violation of subdivision (b) of Section 11629.78.

(b)

A policy shall be nonrenewed only for the following reasons:

(1)

A substantial increase in the hazard insured against.

(2)

The insured no longer meets the applicable eligibility requirements. In this regard, the eligibility of an insured shall be recertified by the California Automobile Assigned Risk Plan after the first year of eligibility, and annually thereafter by the insurer that issued the policy.

(c)

By January 1, 2016, the CAARP Advisory Committee shall report to the commissioner on a proposal, subject to approval by the commissioner, to allow a consumer to reinstate, in lieu of canceling, all policies that have been canceled for nonpayment of premium, and on a proposal, subject to approval by the commissioner, to allow consumers to make installment payments by debit card or credit card. The CAARP Advisory Committee shall also report, by July 1, 2016, on a proposal, subject to approval by the commissioner, to allow access to the program for applicants 16 to 18 years of age who are economically independent and meet other eligibility guidelines, and also for families who have an adult driver covered under the program and a driver 16 to 18 years of age in the household.