* § 3416. Parametric insurance. (a) Except as provided in subsection
(b) of this section, an insurer that issues a parametric insurance
policy shall disclose the following information in the application for
the insurance policy and in a prominent writing upon policy issuance and
renewal:

(1) the policy is not a substitute for property insurance or flood
insurance, as relevant, which generally provide more comprehensive
coverage in the event of a loss; and

(2) a mortgagee or loss payee may not accept a parametric insurance
policy.

(b) An excess line broker who procures a parametric insurance policy
pursuant to section two thousand one hundred five of this chapter shall
provide the disclosures required by subsection (a) of this section on
behalf of the insurer.

* NB Effective January 12, 2025