1. (a) As used in this chapter, "material change" means:

   1. (1) an increase of more than ten percent (10%) over the expiring premium for; or

   2. (2) another adverse or unfavorable change in the terms of coverage or amount of;

      insurance in connection with a personal automobile or homeowner's policy.

2. (b) The term does not include the following:

   1. (1) An increase in the insurer's filed rate plan and automatic inflationary increases.

   2. (2) An additional premium due to a change initiated by the insured, such as:

      1. (A) adding or removing vehicles or drivers;
      2. (B) adding an endorsement;
      3. (C) adding additional coverages;
      4. (D) adding covered premises; or
      5. (E) increasing coverage limits or deductibles.
   3. (3) An additional premium due to a change in risk exposure as a result of the insured's participation in a usage based or telematics insurance program.
   4. (4) Changes resulting from a property inspection.

As added by P.L.226-2023, SEC.20.