As Amended
SEC. 83-34-15. Application for coverage; issuance of insurance; appeal of denial of application.
(1) Any person having an insurable interest in insurable property is entitled to apply to the association for such coverage and for an inspection of the property on or after the effective date of the plan of operation. Applications shall be made on behalf of the owner of the insurable interest by a licensed resident broker or agent authorized by him. Applications shall be submitted on forms prescribed by the association.
The commissions paid to the submitting broker or agent shall not exceed fifteen percent (15%) of the premium.
The term "insurable interest" as used in this subsection shall be deemed to include any lawful and substantial economic interest in the safety or preservation of property from loss, destruction or pecuniary damage.
(2) If the association determines that the property is insurable and that there is no unpaid premium due from the applicant for prior insurance on the property, the association, upon receipt of the premium or such portion thereof as is prescribed in the plan of operation, shall cause to be issued, or issue, a policy of essential property insurance for a term of one (1) year. Any policy issued pursuant to the provisions of this section shall be renewed annually, upon application therefor, so long as the property meets the definition of "insurable property" set forth in Section 83-34-1. Such coverage limits shall be determined by the value of the insurable property at the time the policy is issued subject to maximum limits which shall be set forth under the plan of operation adopted by the board; provided that the commissioner may revise any limit which he determines to be inadequate. The coverage afforded by policies issued by or through the association shall not be subject to any deductible or coinsurance provision except as specifically approved by the commissioner.
(3) If the association for any reason denies an application and refuses to issue or cause to be issued an insurance policy on insurable property to any applicant, or takes no action on an application within the time prescribed in the plan of operation, such applicant may appeal to the commission. The commission or a designated member of its staff, after reviewing the facts, may direct the association to issue or cause to be issued an insurance policy to the applicant. In carrying out its duties pursuant to this section, the commission may request, and the association shall provide, any information the commission deems necessary to a determination concerning the reasons for the denial or delay of the application.
SOURCES: Laws, 1987, ch. 459, Sec. 9, eff from and after passage (approved April 14, 1987).