SERVICE AGREEMENTS/ALLOW RESERVE ACCOUNT.

View NCGA Bill Details2011-2012 Session
Senate Bill 651 (Public) Filed Tuesday, April 19, 2011
TO PROVIDE THAT IN LIEU OF CONTRACTUAL LIABILITY INSURANCE, SERVICE CONTRACT PROVIDERS MAY MAINTAIN A FUNDED RESERVE ACCOUNT FOR ITS OBLIGATIONS UNDER SERVICE CONTRACTS ISSUED AND OUTSTANDING IN THIS STATE.
Intro. by Vaughan.

Status: Ref to Commerce. If fav, re-ref to Finance (Senate Action) (Apr 20 2011)

Bill History:

S 651

Bill Summaries:

  • Summary date: Apr 19 2011 - More information

    Identical to H 575, filed 3/31/11.

    Rewrites GS 66-373 (insurance policy requirements for service agreements) to provide that in lieu of complying with current provisions of the section, the company or person may maintain a funded reserve account of not less than 40% of gross consideration received, less claims paid, on the sale of the service contract for all in-force contracts. The account is subject to examination and review by the Commissioner of Insurance on request. Effective July 1, 2011.


Printer-friendly: Click to view