50.18—Notice required by reinstatement provision.
(a)
Nullification of terrorism
exclusion. Any terrorism exclusion in a
contract for property and casualty insurance that
was in force on November 26, 2002, is void to the
extent it excludes losses that would otherwise be
insured losses.
(b)
Reinstatement of terrorism
exclusion. Notwithstanding paragraph (a) of
this section, an insurer may reinstate a
preexisting provision in a contract for property
and casualty insurance that was in force on
November 26, 2002, and that excludes coverage for
an act of terrorism only if:
(1)
The insurer has received a written
statement from the insured that affirmatively
authorizes such reinstatement; or
(2)
The insurer provided notice at least 30
days before any such reinstatement of the
increased premium for such terrorism coverage and
the rights of the insured with respect to such
coverage, including the date upon which the
exclusion would be reinstated if no payment is
received, and the insured fails to pay any
increased premium charged by the insurer for
providing such terrorism coverage.