Marvin Mandel, Governor                         287

(2) Renew the policy upon tender of payment, [or comply with
Section 240C,] provided the tender is made within 30 days after the
policyholder discovers or should have discovered that his policy has
not been renewed.

(c) The duty imposed by [paragraph} subsection (a) of this
[subsection] section will be deemed discharged if the insurer
shows that its established procedures would have resulted in the plac-
ing in the United States mail of the notice of renewal premium due,
provided there is no showing that in fact the notice was not placed
in the mail.

240C. Statement of reason for cancellation or refusal to renew.

(a)    Definitions.—"Applicant" as used in this section is defined
to mean the person seeking to purchase an insurance policy other
than a policy of life [or], health or motor vehicle liability insurance
whether such policy be a renewal policy, or as a reinstatement of
a cancelled policy.

"Reason" REASON as used in this section is defined to include
"reasons."

(b)    All applicants ALL APPLICANTS—If an insurer cancels or
refuses to renew a policy, such insurer must furnish to the applicant
a statement of the actual reason therefor, or that the actual reason
will be provided upon request, if:

(1)    The duly authorized premium has been tendered or paid.

(2)    A written request for the actual reason has been made within
thirty days after receipt of the statement of intention to cancel or not
renew, whether or not the applicant subsequently is accepted under
any of the plans set forth in subsection (f) [(e)] of this section.

(c)    Existing policyholders EXISTING POLICYHOLDERS.—In
the case of cancellation or refusal to renew, subsection (b) of this
section is applicable if the actual policy has been issued or if a
binder has been in effect for at least fifteen days.

(d)    Requirements as to statements REQUIREMENTS AS TO
STATEMENTS.—If a statement of actual reason, or a statement
refusing an application, is furnished substantially pursuant to sub-
sections (b), (c), or (d) of this section, it shall be subject to the
following:

(1)    It shall be privileged and shall not constitute grounds for
any action against the insurer or its representatives or any person
who in good faith furnishes to the insurer the information upon
which the statement is based;

(2)    A copy of the statement shall be furnished to the Commis-
sioner;

(3)    The statement must be made by the insurer or its duly author-
ized agent within ten days after receipt by the insurer of a request
therefor;

(4)    If not made pursuant to request, the statement must con-
tain notice to the applicant that he has a right to request the actual
reason therefor, provided he makes the request within thirty days
after receipt of the statement of refusal to issue or intention to
cancel or not renew and that any such statement will be retained
as a public record in the division;