§ 3416 — Parametric insurance

§ 3416. Parametric insurance. (a) Except as provided in subsection (b)\nof this section, an insurer that issues a parametric insurance policy\nshall disclose the following information in the application for the\ninsurance policy and in a prominent writing upon policy issuance and\nrenewal:\n (1) the policy is not a substitute for property insurance or flood\ninsurance, as relevant, which generally provide more comprehensive\ncoverage in the event of a loss; and\n (2) a mortgagee or loss payee may not accept a parametric insurance\npolicy.\n (b) An excess line broker who procures a parametric insurance policy\npursuant to section two thousand one hundred five of this chapter shall\nprovide the disclosures required by subsection (a) of this section on\nbehalf of the insurer.\n