26.1-28-02. Sale of insurance through vending machines under certain conditions
Insurance producers licensed by the commissioner under this title to solicit applications for
and to sell policies of personal travel accident insurance providing benefits for accidental bodily
injury or accidental death may also solicit applications for and issue or sell such insurance by
means of vending machines supervised by them and placed in locations for the convenience of
the traveling public, upon the following conditions:
1. That each policy is reasonably suited for sale and issuance through a vending
machine, and that use of a vending machine in a proposed location would be of
material convenience to the traveling public.
2. That the type of vending machine proposed to be used is reasonably suitable and
practical for the purpose.
3. That reasonable means, as determined by the commissioner, are provided for
informing the prospective purchaser of the benefits, limitations, and exclusions of the
policy, the premium rates, the name and address of the insurance producer, and the
name and home office address of the insurer.
4. That the vending machine is constructed and operated to retain, or is provided with a
suitable place for deposit and safekeeping of, a copy of the application, which shows
the date of the application, name and address of the applicant and the beneficiary, and
the amount of insurance.
5. That no policy of insurance sold through a vending machine may be for a period of
time longer than the duration of a specified one-way or round trip not exceeding one
hundred eighty days.
6. That the vending machine has provided on it or immediately adjacent thereto, in a
prominent location, adequate envelopes for use of purchasers in mailing policies
vended through the machine, or that the policy itself, if designed to permit the
procedure, may be mailed without an envelope; provided, however, that the
commissioner may modify or waive this requirement, by a writing delivered to the
insurance producer.
7. That each vending machine is supervised, inspected, and tested by the insurance
producer with such frequency as may reasonably be required by the commissioner,
and if any machine is not in good working condition the insurance producer shall
promptly cause a notice to be displayed on the machine that the machine is out of
order, and cause the machine to be promptly removed from service until it is in proper
working order.
8. That prompt refund by the insurance producer is provided to each applicant or
prospective applicant of money deposited in any defective vending machine and for
which no insurance, or a less amount than paid for, is actually received.
The commissioner may adopt by rule additional conditions for types and locations of vending
machines, their maintenance and operation, and the methods to be used by the insurance
producer in the solicitation and sale of insurance by means of vending machines as are
reasonable and necessary.
