Amends GS 58-36-10 regarding the factors to consider in making and using insurance rates to require due consideration to be given to investment income from capital and surplus.
Amends GS 58-36-43 to clarify that an insurance company cannot condition the acceptance or renewal of a policy, any underwriting criteria, or any rating criteria, upon the acceptance by the policyholder of any optional automobile or homeowners' enhancements authorized by the statute (previously phrased to combine underwriting rating criteria).
Repeals GS 58-36-43(b), which requires insurers to utilize statistical codes outlined by their statistical organization in reporting premiums and losses resulting from program enhancements filed with the Commissioner of Insurance (Commissioner) pursuant to the statute.
Amends GS 58-36-65 to set forth a new definition for conviction used in the statute regarding classifications of drivers and safe driving incentive plans, as the term was previously defined by statutory cross-reference that has since been repealed.
Effective October 1, 2022, and applicable to drivers convicted of moving violations on or after that date, amends GS 58-36-65 to require that for convictions for which four or more points under a Safe Driving Incentive Plan are assigned, other than convictions for speeding in excess of the posted speed limit, subclassification plan charges must be applied to a policy for a period of five policy years.
Amends subsection (k) of GS 58-36-65 to allow the subclassification plan to provide for premium surcharges for insureds having less than eight years' driving experience as licensed drivers for insureds receiving a drivers license for the first time on or after October 1, 2021. Makes conforming changes to restrict the same authority for insureds having less than three years' driving experience as licensed drivers for insureds receiving a driver's license for the first time on or before September 30, 2021.
Enacts subsection (k1) to GS 58-36-65 to provide for drivers subject to subsection (k) to be eligible for an inexperienced safe driver discount after three full years of driving experience. Details eligibility requirements, including having no at-fault accidents or convictions (including prayers for judgment continued) on the driver's driving record, which precludes the driver from discount eligibility. Eligibility terminates after eight years of licensure or upon an at-fault accident or conviction. Requires any discount to be filed by the Rate Bureau with the Commissioner. Effective October 1, 2021.
Amends GS 58-36-75(f) to expand the time period required for a clean driving record for a subclassification plan to assess no premium surcharge or points for specified traffic violations and convictions, from three to five years immediately preceding, as stated. Effective October 1, 2021.
Directs the Department of Insurance to conduct public outreach regarding the impact to policyholders and both experienced and inexperienced drivers, including publication on the Department's website. Permits coordination with the insurance industry and the Rate Bureau.
Bill S 271 (2021-2022)Summary date: Mar 11 2021 - View summary