NAC686B.525. Notice of material change in premium based upon change in zip code of policyholders.

     1. If an insurer proposes to increase materially the premium rate of a policyholder solely because the zip code assigned to the address of the policyholder is changed by the United States Postal Service, the insurer shall notify the insured of the proposed change in the rate:

     (a) For a policy with a term of 31 days or less, at least 30 days before the increase in premium becomes effective; and

     (b) For any other policy, at least 30 days before the next date on which the policy could be renewed.

     2. An insurer who fails to provide notice required by this section shall renew the policy pursuant to the terms of the current, expiring policy.

     3. As used in this section, the term “increase materially” means an increase of 10 percent or more of the total premium of the policy.

     (Added to NAC by Comm’r of Insurance, eff. 12-15-94)