26.1-28 Insurance Vending Machines
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<![CDATA[CHAPTER 26.1-28INSURANCE VENDING MACHINES26.1-28-01. Sale of insurance from vending machines restricted. No insurance maybe offered for sale, issued, or sold by or from any vending machine or appliance or any other<br>medium, device, or object designed or used for vending purposes, in this chapter referred to as a<br>vending machine, except as provided in this chapter.26.1-28-02. Sale of insurance through vending machines under certain conditions.Insurance producers licensed by the commissioner under this title to solicit applications for and to<br>sell policies of personal travel accident insurance providing benefits for accidental bodily injury or<br>accidental death may also solicit applications for and issue or sell such insurance by means of<br>vending machines supervised by them and placed in locations for the convenience of the<br>traveling public, upon the following conditions:1.That each policy is reasonably suited for sale and issuance through a vending<br>machine, and that use of a vending machine in a proposed location would be of<br>material convenience to the traveling public.2.That the type of vending machine proposed to be used is reasonably suitable and<br>practical for the purpose.3.That reasonable means, as determined by the commissioner, are provided for<br>informing the prospective purchaser of the benefits, limitations, and exclusions of the<br>policy, the premium rates, the name and address of the insurance producer, and the<br>name and home office address of the insurer.4.That the vending machine is constructed and operated to retain, or is provided with a<br>suitable place for deposit and safekeeping of, a copy of the application, which shows<br>the date of the application, name and address of the applicant and the beneficiary,<br>and the amount of insurance.5.That no policy of insurance sold through a vending machine may be for a period of<br>time longer than the duration of a specified one-way or round trip not exceeding one<br>hundred eighty days.6.That the vending machine has provided on it or immediately adjacent thereto, in a<br>prominent location, adequate envelopes for use of purchasers in mailing policies<br>vended through the machine, or that the policy itself, if designed to permit the<br>procedure, may be mailed without an envelope; provided, however, that the<br>commissioner may modify or waive this requirement, by a writing delivered to the<br>insurance producer.7.That each vending machine is supervised, inspected, and tested by the insurance<br>producer with such frequency as may reasonably be required by the commissioner,<br>and if any machine is not in good working condition the insurance producer shall<br>promptly cause a notice to be displayed on the machine that the machine is out of<br>order, and cause the machine to be promptly removed from service until it is in<br>proper working order.8.That prompt refund by the insurance producer is provided to each applicant or<br>prospective applicant of money deposited in any defective vending machine and for<br>which no insurance, or a less amount than paid for, is actually received.The commissioner may adopt by rule additional conditions for types and locations of vending<br>machines, their maintenance and operation, and the methods to be used by the insurance<br>producer in the solicitation and sale of insurance by means of vending machines as are<br>reasonable and necessary.Page No. 126.1-28-03. Licensing of vending machine devices - Expiration date. The insuranceproducer shall apply for a license for each vending machine to be used. The commissioner shall<br>prescribe the form of the application. A fee of two dollars for each vending machine must be paid<br>at the time of making the application. Upon approval of the application, the commissioner shall<br>issue to the insurance producer a special vending machine license. The license applies to a<br>specific vending machine or to any machine of identical type which, after written notice by the<br>insurance producer to the commissioner, is substituted for it. The license must specify the name<br>and address of the insurance producer, the name and home office address of the insurer, the<br>name or other identifying information of the policy or policies to be sold, the serial number or<br>other identification of the vending machine, and the address, including the location on the<br>premises, where the machine is to be in operation. A vending machine for which a license has<br>been issued for operation at a specific address may be transferred to a different address during<br>the license year upon written notice to the commissioner at the time of the transfer. The license<br>for each vending machine expires April thirtieth of each year, but may be renewed from year to<br>year by the commissioner upon approval of the application of the insurance producer, the<br>furnishing of information requested by the commissioner, and the payment of two dollars for each<br>license year or part thereof for each machine. Proof of the existence of a subsisting license must<br>be displayed on or about each vending machine in use in the manner the commissioner may<br>reasonably require.26.1-28-04. Suspension, revocation, or refusal of license - Notice and opportunityto be heard. The license for each vending machine is subject to expiration, suspension, or<br>revocation coincidentally with that of the insurance producer or the insurer. The commissioner<br>also may suspend, revoke, or refuse to renew the license as to any vending machine concerning<br>which the commissioner finds any conditions upon which the machine was licensed or referred to<br>in section 26.1-28-02 have been violated, or no longer exist, or that the machine is being used or<br>operated by the insurance producer in violation of the laws of this state. Before suspending,<br>revoking, or refusing to renew a license for a vending machine, the commissioner shall conduct a<br>hearing and shall make a determination upon the basis of the standards, conditions, and<br>requirements of this section.26.1-28-05.Penalty.Any person who violates this chapter is guilty of a class Bmisdemeanor.Page No. 2Document Outlinechapter 26.1-28 insurance vending machines]]>