| (a) Except as provided in this section, the minimum retained premium on an Association policy issued on an annual basis shall be: (1) equal to the greater of: (A) 90 days of the annual policy term or $100, for policies that become effective on and after November 27, 2011; or (B) 180 days of the annual policy term or $100, for policies that become effective before November 27, 2011; and (2) fully earned on the effective date of the policy. Unearned premium in excess of the minimum retained premium set forth in this subsection shall be refunded pro-rata. (b) An Association policy canceled due to the reasons specified in paragraphs (1) - (4) of this subsection is subject to the $100 minimum retained premium. The minimum retained premium shall be fully earned on the effective date of the policy. Unearned premium in excess of the minimum retained premium set forth in this subsection shall be refunded pro-rata. (1) A change in majority ownership of the insured property, including sale of the insured property to an unrelated party, or foreclosure of the insured property; (2) the replacement of the Association policy with other similar coverage in the voluntary market; (3) the removal of the item(s) insured under an Association policy due to a total loss of the item(s), including demolition of the item(s); or (4) the death of the policyholder. (c) The Association shall not issue a new or renewal policy to an applicant who owes premium on a prior Association policy. (d) The minimum retained premium shall not create or extend coverage beyond the policy's effective cancellation date. |
