D.C. Mun. Regs. tit. 26, r. 26-A1312

Current through Register 71, No. 45, November 7, 2024

Rule 26-A1312 - PROCEDURE AFTER INSPECTION

1312.1

In order to achieve maximum uniformity in the definition and application of reasonable underwriting standards, the Board of Directors shall specify criteria that are contained in the Rules of the Plan of Operation, which shall be used by the Facility in determining insurability.

1312.2

A risk shall not be declined for reason of neighborhood or area location or Environmental Hazard beyond the control of the Property Owner.

1312.3

The Facility shall advise the licensed insurance producer or applicant that:

(a) The risk is acceptable and the policy will be issued upon receipt of the full required amount of the premium;

(b) The risk is not acceptable, but will be acceptable if improvements, noted on the Report of Declination, are made by the applicant and confirmed by reinspection or other means; or

(c) The risk is not acceptable for the reason stated in the Report of Declination.

1312.4

If the inspection of the property reveals that there are one or more substandard conditions, condition charges may be imposed in conformity with the substandard rating plan approved by the Commissioner. Whenever improvements are specified, they shall be set forth in such a way that the applicant will know what must be done to achieve insurability at standard rates:

(a) with an approved condition charge, or

(b) without any condition charge. If an approved condition charge is applicable, coverage shall be provided immediately at the approved - higher rate during the period in which any improvements are being made. If improvements are completed and are verified by the Facility through inspection or other means, the premium shall be pro-rated and adjusted to the proper level. Coverage bound and approved and cancelled prior to policy issuance shall be pro-rated, with applicable condition charges, for purposes of earned premium calculations.

1312.5

In the event a risk is declined because it fails to meet reasonable underwriting standards, or if the applicant is notified that coverage will be written if stated improvements are made, the Facility shall send copies of the Inspection Report and the Report of Declination to the Property Owner along with an explanation of the Facility's action and the procedures for appealing that action.

1312.6

Forms listing all condition charges applied by the Facility will be furnished with the Approval Notice.

D.C. Mun. Regs. tit. 26, r. 26-A1312

Final Rulemaking published at 51 DCR 11573 (December 24, 2004)