50.15—Cap disclosure.
(a) General.
Under section
103(e)(2) of the Act, if the aggregate insured
losses exceed $100,000,000,000 during any Program
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, in the case of any policy that
is issued after December 26, 2007, 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) Demonstration of compliance.
For policies issued after December 26, 2007, if an
insurer does not provide a cap disclosure by the
time of the first offer, purchase or renewal of
the policy after December 26, 2007, then the
insurer must be able to demonstrate to Treasury's
satisfaction that it has provided the disclosure
as soon as possible following December 26,
2007.
(d) Other applicable rules.
The
rules in § 50.12(a), (c), (d), (e)(1), and (f)
(relating to clear and conspicuous disclosure) and
in § 50.13 (relating to offer, purchase, and
renewal) apply to the cap disclosure.