558
PUBLIC LAW 90-448-AUG. 1, 1968
[82 STAT.
"(9) 'reinsured losses' means losses on reinsurance claims and all direct expenses incurred in connection therewith including, but not limited to, expenses for processing, verifying, and paying such losses; " (10) 'standard line of property insurance' includes— " (A) fire and extended coverage; " (B) vandalism and malicious mischief; " (C) other allied lines of fire insurance; " (D) burglary and theft; " (E) those portions of multiple peril policies covering perils similar to those provided for in subparagraphs (A), (B), (C),and (D); " (F) inland marine; " (G) glass; " (H) boiler and machinery; " (I) ocean marine; " (J) aircraft physical damage; and " (K) such other lines generally offered to the public which include protection against damage from riot or civil commotion as the Secretary by regulation may designate; " (11) 'State' means the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions, and the Trust Territory of the Pacific Islands; "(12) 'urban area' includes any municipality or other political subdivision of a State, subject to population or other limitations defined in rules and regulations of the Secretary and such additional areas as may be designated by the State insurance authority; and "(18) 'year' means a calendar year, fiscal year of a company, or such other period of twelve months as may be designated by the Secretary. "(b) The Secretary is authorized to define, by rules and regulations, any technical or trade term, insofar as such definition is not inconsistent with the provisions of this title. "PART A—STATEWIDE PLANS To ASSURE FAIR ACCESS TO INSURANCE REQUIREMENTS "FAIR PLANS
"SEC. 1211. (a) Each insurer reinsured under this title shall cooperate with the State insurance authority in each State in which it is to acquire such reinsurance in establishing and carrying out statewide plans to assure fair access to insurance requirements ( F A I R plans). " (b) Such plans must be approved by, and administered under the supervision of, the State insurance authority, or be authorized or required by State law, and shall be designed to make essential property insurance more readily available in, but not necessarily limited to, urban areas. Such plans may vary in detail from State to State because of local conditions, but all plans shall contain provisions that— "(1) no risk shall be written at surcharged rates or be denied insurance coverage for essential property insurance unless there has first been an inspection of the risk, without cost to the owner, by an inspection facility and a determination by the insurer, based on information in the inspection report and other sources, that the risk does not meet reasonable underwriting standards at the applicable premium rate; "(2) inspections under the plan may be requested by the property owner or his representative, the insurer, or the insurance
�
