Sec. 2. (a) As used in this chapter, “cancellation” refers to a termination of property insurance coverage that occurs during the policy term.

     (b) As used in this chapter, “nonpayment of premium” means the failure of the named insured to discharge any obligation in connection with the payment of premiums on policies of insurance subject to this chapter, regardless of whether the payments are directly payable to the insurer or its agent or indirectly payable under a premium finance plan or extension of credit. The term includes the failure to pay dues or fees where payment of the dues or fees is a prerequisite to obtaining or continuing property insurance coverage.

     (c) As used in this chapter, “nonrenewal” or “nonrenewed” refers to a termination of property insurance coverage that occurs at the end of the policy term.

     (d) As used in this chapter, “renewal” or “to renew” refers to:

(1) the issuance and delivery by an insurer at the end of a policy period of a policy superseding a policy previously issued and delivered by the same insurer; or

(2) the issuance and delivery of a certificate or notice extending the term of an existing policy beyond its policy period or term.

     (e) As used in this chapter, “termination” means a cancellation or nonrenewal. The term does not include:

(1) the requirement of a reasonable deductible;

(2) reasonable changes in the amount of insurance; or

(3) reasonable reductions in policy limits or coverage;

if the requirements or changes are directly related to the hazard involved and are made on the renewal date for the policy. The term does not include a transfer of a policy to another insurer.

As added by P.L.203-2001, SEC.10.