§ 50.15. Cap disclosure.
242 words·~1 min read·
/us/cfr/t31/s§ 50.15·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)General. Under section 103(e)(2) of the Act, if the aggregate insured losses exceed \$100,000,000,000 during any calendar year, the Secretary shall not make any payment for any portion of the amount of such losses that exceeds \$100,000,000,000, and no insurer that has met its insurer deductible shall be liable for the payment of any portion of the amount of such losses that exceeds \$100,000,000,000.
(b)Other requirements. As a condition for Federal payments under section 103(b) of the Act, an insurer must provide clear and conspicuous disclosure to the policyholder of the existence of the \$100,000,000,000 cap under section 103(e)(2). The cap disclosure must be made at the time of offer, purchase, and renewal of the policy.
(c)Offer, purchase, and renewal. An insurer is deemed to be in compliance with the requirement of providing disclosure "at the time of offer, purchase, and renewal of the policy" under § 50.15(b) if the insurer:
(1)Makes the disclosure no later than the time the insurer first formally offers to provide insurance coverage or renew a policy for a current policyholder; and
(2)If terrorism risk coverage is purchased, the insurer makes clear and conspicuous reference back to that disclosure, as well as the final terms of terrorism insurance coverage, at the time the transaction is completed.
(d)Other applicable rules. The cap disclosure is covered by the rules in § 50.12(a), (c), (d), (e), and
(f)(relating to clear and conspicuous disclosure).