§ 26.1-39-11 — Definitions

1. "Declination" means the refusal of an insurer to issue a property insurance policy upon
receipt of a written nonbinding application or written request for coverage from its
insurance producer or an applicant. For the purposes of sections 26.1-39-10 through
26.1-39-21, the offering of insurance coverage with a company within an insurance
group which is different from the company requested on the nonbinding application or
written request for coverage or the offering of insurance upon different terms than
requested in the nonbinding application or written request for coverage is considered a
declination.
2. "Nonpayment of premium" means the failure of the named insured to discharge any
obligation in connection with the payment of premiums on property insurance policies
subject to sections 26.1-39-10 through 26.1-39-21, whether the payments are directly
payable to the insurer or its insurance producer or indirectly payable under a premium
finance plan or extension of credit. "Nonpayment of premium" includes the failure to
pay dues or fees when payment of dues or fees is a prerequisite to obtaining or
continuing property insurance coverage.
3. "Renewal" or "to renew" means 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 the issuance and delivery of a certificate or notice extending the term
of an existing policy beyond its policy period or term. The term includes a change or
alteration in the amount of a deductible, coverage, or exclusion which results in

substantially equivalent coverage if the altered terms are provided to the insured in the
notice of renewal.
4. "Termination" means cancellation or nonrenewal of property insurance coverage in
whole or in part. Cancellation occurs during the policy term. Nonrenewal occurs at the
end of the policy term as set forth in subsection 3. For purposes of sections 26.1-39-10
through 26.1-39-21, the transfer of a policy between companies within the same
insurance holding company system is not a termination. A renewal with altered terms
as provided in subsection 3 is not a termination.