§ 26.1-40-01 — Definitions - Limitations

As used in sections 26.1-40-02 through 26.1-40-12:
1. "Declination" means the refusal of an insurer to issue a policy upon receipt of a written
nonbinding application or written request for coverage from its insurance producer or
an applicant. 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 policy coverage or rates substantially
less favorable than requested in the nonbinding application or written request for
coverage, is a declination.
2. "Nonpayment of premium" means failure of the insured to discharge when due any of
the insured's obligations in connection with the payment of premium on a policy, or any
installment of the premium, whether the premium is payable directly to the insurer or
its insurance producer or indirectly under any premium finance plan or extension of
credit.
3. "Policy" means any automobile policy which includes automobile liability coverage,
uninsured motorist coverage, underinsured motorist coverage, automobile medical
payments coverage, basic or optional excess no-fault benefits, or automobile physical
damage coverage, delivered or issued for delivery in this state, insuring as the named
insured an individual residing in this state, and under which the insured vehicles
designated in the policy are of the following types only:
a. A motor vehicle of the private passenger type that is not used as a public or livery
conveyance, nor rented to others.
b. Any four-wheel motor vehicle with a load capacity of one thousand five hundred
pounds [680.39 kilograms] or less which is not used in the occupation,
profession, or business of the insured, nor used as a public or livery conveyance,
nor rented to others.
c. Any motorcycle as that term is defined in section 39-01-01 that is not used as a
public or livery conveyance, nor rented to others.
d. An unconventional vehicle as that term is defined in subsection 2 of section
39-29.2-01 that is not used as a public or livery conveyance, nor rented to others.
"Policy" does not include any policy that has been in effect less than sixty days at the
time notice of cancellation is mailed or delivered by the insurer unless it is a renewal
policy; any policy issued under the North Dakota assigned risk plan; any policy
insuring more than six motor vehicles; any policy covering the operation of a garage,
automobile sales agency, repair shop, service station, or public parking place; any
policy providing insurance only on an excess basis; or any other contract providing
insurance to a named insured even though the contract may incidentally provide
insurance with respect to such motor vehicles.
4. "Renewal" or "to renew" means the issuance and delivery by an insurer of a policy
replacing, at the end of the previous policy period, a policy previously issued and
delivered by the same insurer; the issuance and delivery of a certificate or notice
extending the term of a policy beyond its policy period or term; or the extension of the
term of a policy beyond its policy period or term pursuant to a provision for extending
the policy by payment of a continuation premium. 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. Any policy with a policy period or term of less than six months must
be considered as if written for a policy period or term of six months except in case of
termination under any of the circumstances specified in subsection 2 of section