§ 50–532. Consumer protection for bicycle insurance.

(a) No insurer shall cancel a bicycle insurance policy except for refusal or failure of the insured to pay a premium due under the terms of the policy of bicycle insurance.

(b) No cancellation or refusal to renew by an insurer of a bicycle insurance policy shall be effective unless the insurer has delivered or mailed to the named insured, at the address shown in the policy or to the named insured's last known address, a written notice of intent to cancel or refusal to renew. The required notice shall be provided to the named insured at least 30 calendar days before the effective date of cancellation, or, in the case of nonrenewal, 30 calendar days before the end of the policy period. The notice shall contain a statement advising the named insured of his or her right to request, in writing, within 15 calendar days of receipt of the notice, that the Commissioner review the action of the insurer in cancelling or refusing to renew the policy of the insured.

(c) Proof of mailing of the notice of cancellation, or of intention not to renew, to the named insured by post office receipt secured or certified mail at the address shown in the policy or to the named insured's last known address shall be sufficient proof of notice.

(d) Despite failure of the named insured to make timely payment of the renewal premium, failure by the insurer to provide the notice required by this section shall result in the insurer being required:

(1) To provide coverage for any claim that would have been covered under the policy, if the claim arises within 45 calendar days after the date within which the named insured discovers or should have discovered that his or her policy has not been renewed; and

(2) To renew the policy upon tender of payment; provided, that tender is made within 15 calendar days after the date the named insured discovers, or should have discovered, that his or her policy has not been renewed.

(e) No insurer shall fail or refuse to issue a policy of bicycle insurance to an applicant, fail or refuse to renew a policy of bicycle insurance, or cancel a policy of bicycle insurance in violation of Unit A of Chapter 14 of Title 2.

(f) No applicant for a policy of bicycle insurance, as a condition precedent to obtaining a policy or renewing a policy, shall be required to disclose whether he, she, or any person reasonably expected to operate the applicant's bicycle has ever had an insurance policy cancelled or not renewed; provided, that at the time of application an applicant may be required to disclose his or her experience as a bicyclist for a past period of not more than 3 years.

(g) No insurer shall refuse to insure, refuse to continue to insure, limit coverage available to, or charge a disadvantageous rate to any person seeking to obtain bicycle insurance because that person had not been previously insured.

(h) The restrictions on cancellation contained in this chapter shall not be effective with respect to any policy that has been in force for 60 calendar days or less if the policy is not a renewal policy.