Contracts: Specifications; cancellation; renewal.
1. A contract of insurance for home protection must specify:
(a) The structures, components, systems and appliances covered by the provisions of the contract.
(b) Any exclusions from and limitations on coverage.
(c) The period during which the contract will be in effect, and the renewal terms, if any.
(d) The services to be performed by the insurer and the terms and conditions of his performance.
(e) The copayment, service fee or deductible charge, if any, to be charged to the insured.
(f) All limitations regarding the performance of services, including any restrictions as to the time during or geographical area within which services may be requested or will be performed.
(g) That the insurer will commence an investigation of a claim upon a request from the insured by telephone, without any requirement that claim forms or applications be filed before the commencement of the investigation.
(h) That, except in an emergency, including, without limitation, the loss of heating, cooling, plumbing or electrical service by the insured, services will be initiated by or under the direction of the insurer within 48 hours after the conclusion of an investigation for a claim. Work must commence on an emergency not later than 24 hours after the report of the claim. The Commissioner may adopt regulations to define “emergency” for the purposes of this paragraph.
(i) Other conditions and provisions pertaining to the coverage as required by the insurance laws of this State or regulations adopted by the Commissioner.
2. Insurance for home protection may not be cancelled during the term for which it is issued, except:
(a) For nonpayment of the fee for the contract.
(b) For fraud or misrepresentation of facts material to the issuance or renewal of the contract.
(c) Insurance which provides coverage before the home is sold if the sale is not made. The cancellation must be made in accordance with the contract provisions.
3. Insurance for home protection is not renewable unless its terms provide otherwise.
Last modified: February 27, 2006