LD 1192
pg. 2
Page 1 of 2 An Act To Extend Insurance Notification and Protection to Small Businesses and ... LD 1192 Title Page
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LR 1928
Item 1

 
SUMMARY

 
This bill does the following.

 
1. It brings commercial property insurance contracts under
the property insurance cancellation control laws so that business
owners may appeal nonrenewal decisions to the Department of
Professional and Financial Regulation, Bureau of Insurance.
Current law extends the right of appeal to a business owner only
when an insurer cancels a property insurance policy in the middle
of its term.

 
2. It requires an insurer to provide advance notice of needed
property repairs to a policyholder and to allow for a minimum of
4 months for the policyholder to complete the repairs before
issuing a nonrenewal notice based on lack of necessary repairs
for a property insurance policy subject to the property insurance
cancellation control laws.

 
3. It requires insurers who include a coinsurance clause in
property insurance contracts to make written disclosures to
policyholders that include numeric examples explaining how the
coinsurance clause applies to the amount of coverage provided for
equipment or property insured under the contract in the event of
a claim.


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