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Insurance Notice Amendment of 2012

Insurance Notice Amendment of 2012

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Published by Scott Roberts
Insurance Notice Amendment of 2012
Insurance Notice Amendment of 2012

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Published by: Scott Roberts on Sep 20, 2012
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10/11/2013

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1_______________________________1Councilmember Kenyan R. McDuffie2A BILL3__________4IN THE COUNCIL OF THE DISTRICT OF COLUMBIA5____________________6Councilmember McDuffie introduced the following bill, which was referred to the Committee on7_____.8To amend the District of Columbia Fire and Casualty Act to require homeowners insurance9companies to clearly state that
homeowner’s insurance does not cover all risks and to list
10the additional optional coverage available to the homeowner; to require the homeowners11
insurance company to notify applicants that homeowner’s insurance does not cover losses
12from flood and to explain how flood insurance may be obtained.13BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this14
act may be cited as the “
District of Columbia Fire and Casualty Amendment Act of 2012
”.
 15Sec. 2. The Fire and Casualty Act, approved October 9, 1940 (54 Stat. 1063; D.C. Code16§ 31-2502.01
et seq
.), is amended as follow:17(a) A new section § 31-2502.46 is added to read as follows:18
Ҥ 31
-2502.46. Statement of optional coverage available.19
“(a) An insurer that sells or negotiates homeowner's insurance in the District of Columbia
20shall provide an applicant, at the time of application for homeowner's insurance, with a written21statement that lists all additional optional coverage available from the insurer to the applicant.22
“(b) If an application for homeowner’s insurance pursuant to subsection (a) of this
23section is made by telephone, the insurer is deemed to be in compliance with this section if,24
 
2within 7 calendar days after the date of application, the insurer sends by certificate of mailing the1statement to the applicant or insured.2
“(c) If an application is
submitted online, the insurer is deemed to be in compliance with3this section if the insurer provides the statement to the applicant prior to submission of the4application.5
“(d) The statement shall:
 6
“(1) Be on a separate form;
 7
“(2) Be titled, in at least 12 point ty
pe,
Additional Optional Coverage Not8Included in the Standard Homeowner's Insurance Policy
;9
“(3) Contain the following disclosure in at least 10 point type:
 10
Your standard homeowner's insurance policy does not cover all risks. You may11need to obtain additional insurance to cover loss or damage to your home, property, and the12contents of your home or to cover risks related to business or personal activities on your13property. This statement provides a list of the types of additional insurance coverage that are14available. Contact your insurance company, insurance producer, or insurance agent to discuss15these additional coverages.
”;
and16
“(4) Contain a list of additional optional coverage.
 17
“(e) A statement required to be sent by certificate of mailing under 
this section may be18sent with the notice required under § 31-2502.45 of this subtitle.19
“(f) A statement provided under this section does not create a private right of action”.”
 20(b) A new section § 31-2502.47 is added to read as follows:21
Ҥ 31
-2502.45. Flo
od insurance notice requirements for the provision of homeowner’s
22insurance.23
“(a) Any company authorized to sell or negotiate homeowner's insurance in the District
24of Columbia shall provide:25
 
3
“(1) An applicant, at the time a policy of homeowner’s insurance
is initially1
 purchased, with a written notice that states that a standard homeowner’s insurance policy does
2not cover losses from flood.3
“(2) If an application is made by telephone, the insurer is deemed to be in
4compliance with this section if, within 7 calendar days after the date of application, the insurer5sends by certificate of mailing the notice to the applicant or insured.6
“(3) If an application is made using the internet, the insurer is deemed to be in
7compliance with this section if the insurer provides the notice to the applicant prior to the8submission of the application.9
“(4) The notice
shall contain, at a minimum, the following information:10
“(A) Advise the applicant that flood insurance may be available for 
an11additional premium and that a claim under a flood insurance policy may be adjusted and paid on12a different basis
than a claim under a homeowner’
s insurance policy;13
“(B) Advise the applicant that a separate application must be completed to
14purchase flood insurance;15
“(C) State that flood
insurance may be available through the National16Flood Insurance Program or other sources;17
“(D) Provide the applicant with the contact information for the National
18Flood Insurance Program; and19
“(E) Advise the applicant to
consult with the National Flood Insurance20Program, the District Department of the Environment, or the applicant's mortgage lender about21the risks of flooding and the potential costs and benefits of flood insurance.22
“(5) A notice provided under this section does not create a private right of 
23
action”.”
 24Sec. 3. The Council adopts the fiscal impact statement in the committee report as the25fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule26Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).27

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