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This entry was published on 2017-01-13
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SECTION 2346
Reduction in rates of fire insurance, homeowners insurance or property/casualty premiums for residential property
Insurance (ISC) CHAPTER 28, ARTICLE 23
§ 2346. Reduction in rates of fire insurance, homeowners insurance or
property/casualty premiums for residential property. 1. The
superintendent may provide for a reduction in the rates of fire
insurance premiums or the fire insurance component of homeowners
insurance premiums applicable to residential real property equipped with
smoke detecting alarm devices, approved sprinkler systems or fire
extinguishers, should a statistically valid study of insurer experience
indicate an actuarially significant decrease in losses in the
aforementioned circumstances. The reductions provided for shall be
proportionally related to the actuarially calculable decrease in losses
in the aforementioned circumstances.

2. The superintendent may provide for a reduction in the rates of
homeowners insurance premiums applicable to residential real property
equipped with dead-bolt locks, should a statistically valid study of
insurer experience indicate an actuarially significant decrease in
losses attributable to the use of such a device. The superintendent
shall by regulation establish standards for dead-bolt locks for which a
reduction may be approved. The reductions provided for shall be
proportionally related to the actuarially calculable decrease in losses
attributable to the use of such a device.

3. The superintendent shall provide for an actuarially appropriate
reduction in the rates of homeowner's insurance premiums applicable to
residential real property fitted or retrofitted with hurricane/storm
shutters. The superintendent shall by regulation establish standards for
hurricane/storm shutters, including the safe and secure installation
thereof.

4. The superintendent shall provide for an actuarially appropriate
reduction in the rates of homeowner's insurance premiums applicable to
residential real property fitted or retrofitted with hurricane resistant
laminated glass windows or doors. The superintendent shall by regulation
establish standards for hurricane resistant laminated glass windows and
doors, including the safe and secure installation thereof.

5. (a) Definitions. For the purposes of this subsection, the following
terms shall have the following meanings:

(1) "Completion certificate" means a document which cannot be altered
and which is provided to a person who successfully completes a homeowner
natural disaster preparedness, home safety and loss prevention course.

(2) "Natural disaster" means the occurrence or imminent threat of
widespread catastrophic or severe damage, injury, or loss of life or
property resulting from any natural cause including, but not limited to,
fire, flood, earthquake, hurricane, tornado, high water, landslide,
mudslide, wind, storm, wave action, ice storm, epidemic, air
contamination, blight, drought, infestation, explosion, water
contamination, bridge failure, or bridge collapse.

(3) "Homeowner natural disaster preparedness, home safety and loss
prevention course" means a natural disaster preparedness, home safety
and loss prevention course that has been submitted to the superintendent
for their information and review by an applicant. Such course may
provide useful information to participants on items including, but not
limited to: courses of action that can be taken before, during and after
the occurrence of a natural disaster, strategies to reduce risk exposure
to insured residential property owners and renters, and information
about the installation of equipment, devices or other capital
improvements to real property which can help to eliminate or mitigate
damage to real or personal property, personal injury or the loss of life
caused by a natural disaster or other insurable event or occurrence of a
fire, theft, burglary, personal injury or property damage.

(4) "Applicant" means an insurer, or any other person, agency or
organization which submits a proposed homeowner natural disaster
preparedness, home safety and loss prevention course to the
superintendent for their information and review, and who or which is
prepared and able to offer such course to insureds upon the approval
thereof.

(b) The superintendent may provide for an actuarially appropriate
reduction for a period of three years in rates of homeowner's insurance
and property/casualty insurance premiums applicable to residential real
property for each triennial completion of a homeowner natural disaster
preparedness, home safety and loss prevention course by the insured
occupant of such residential real property. In addition, the
superintendent may also provide for actuarially appropriate reductions
in such rates for the installation of equipment, devices or other
capital improvements to real property which can help to eliminate or
mitigate natural disaster damage, improve home safety or prevent other
losses.

(c) An insurer, upon approval of the superintendent, may upon
submission of a completion certificate by an insured, provide an
actuarially appropriate reduction, for a period of three years, of the
premium for such insured's homeowner's insurance or property/casualty
insurance on the residential real property which is the insured's place
of residence.

(d) The superintendent may establish, by rule or otherwise, standards
or guidelines to be used by the superintendent when reviewing the
proposed homeowner natural disaster preparedness, home safety and loss
prevention courses.