§ 127A.004.Notice Required for Certain Changes Related to Insurance Policy

The warning provision, and it is what keeps a disclosure from going quietly out of date.

A placement service shall provide a separate written notice of a cancellation or nonrenewal of the policy or a material reduction in coverage not later than the 30th day before the date it takes effect.

The notice is prospective, which is the whole point. Told 30 days in advance, a subcontractor can obtain their own cover, renegotiate, or decline the next assignment. Told afterwards, they would learn what they had been working without.

Three triggering events are named. Cancellation ends the policy early; nonrenewal lets it lapse at term; a material reduction in coverage leaves it in force but narrower.

The third is the one that would otherwise pass unnoticed. A policy that still exists looks like protection, and a reduction in limits or a new exclusion may be invisible to the person relying on it.

"Material" is not defined, which leaves the placement service to judge whether a change matters to the subcontractor’s position — a judgment the chapter makes it responsible for.

The notice must be separate and written, following the chapter’s pattern: information a person needs to act on does not arrive inside another document.

The duty runs only to a subcontractor who was given a disclosure of a provided policy, so it follows the earlier obligation rather than standing alone.

Nothing here requires the service to maintain the insurance. The chapter is a disclosure regime throughout: it governs what a subcontractor is told, not what cover must exist.