50.24—Applicability of State law requirements.
(a) General.
After satisfying the
requirement to make available coverage for insured
losses that does not differ materially from the
terms, amounts, and other coverage limitations
applicable to losses arising from events other
than acts of terrorism, if coverage is rejected an
insurer may then offer coverage that is on
different terms, amounts, or coverage limitations,
as long as such an offer does not violate any
applicable State law requirements.
(b) Examples.
(1)
If an insurer
subject to State regulation first makes available
coverage in accordance with § 50.20 and the State
has a requirement that an insurer offer full
coverage without any exclusion, then the
requirement would continue to apply and the
insurer may not subsequently offer less than full
coverage or coverage with exclusions.
(2)
If an insurer subject to State regulation
first makes available coverage in accordance with
§ 50.20 and the State permits certain exclusions
or allows for other limitations, or an insurance
policy is not governed by State law requirements,
then the insurer may subsequently offer limited
coverage or coverage with exclusions.