Senate committee substitute to the 2nd edition removes the content of the previous edition and replaces it with the following. Makes conforming changes to the act’s titles.

Part I.

Amends GS 58-33-132, related to licensing of insurance producers, limited representatives, adjusters, and motor vehicle damage appraisers, by removing reference to prelicensing education. Also specifies that no person may provide, present, or instruct any continuing education course (was, course) without being qualified by and possessing a license from the Commissioner of Insurance or administrator. Makes additional conforming and clarifying changes.

Part II.

Amends GS 58-3-137 by adding that the Office of Commissioner of Banks may investigate the affairs of any person licensed as a mortgage business or a mortgage loan originator under GS 50-244.040 to whom the statute applies to determine if they have violated the statute; if a violation is committed knowingly, subjects the person to the procedures and penalties in GS 53-244.116. Amends GS 53-244.111 to make it illegal for any person in the course of any residential mortgage loan transaction to fail to comply with GS 58-3-117(a), which prohibits requiring an insurance company or their designated agent to provide the replacement cost estimator or other underwriting or related proprietary business information of an insurer underwriting an insurance policy covering real property, as a condition precedent or condition subsequent to the lending of money or extension of credit to be secured by real property. Effective October 1, 2026.

Part III.

Amends Section 8(d) of SL 2025-45 by extending the effective date of changes that concern inexperienced driver insurance coverage, from July 1, 2026, to January 1, 2027.

Part IV.

Amends GS 20-309.2 to amend when an insurer must notify the Division of Motor Vehicles (DMV) to when a person with a North Carolina driver’s license (was, any person) who is subject to an inexperienced operator premium surcharge is added to or removed from the policy’s coverage, or if a policy to which that person was added has been canceled. Makes conforming changes to the DMV’s record keeping requirements on insurance coverage status. Effective January 1, 2027.

Part V.

Amends GS 58-3-149 by adding the requirement that, with respect to any requirement to maintain insurance coverage: (1) the State, or any department, agency, or political subdivision, (2) any unit of local government, or 3) any occupational licensing board or State agency licensing board must accept a certificate of insurance issued under the statute as sufficient evidence of the required coverage.

Enacts new GS 93B-17 requiring an occupational license board or a State agency licensing board to accept a certificate of insurance from an individual or firm applying for or maintaining a license it issued.

Effective October 1, 2026,

Part VI.

Amends Article 10B, Peer-to-Peer Vehicle Sharing of GS Chapter 20 as follows.

Amends GS 20-280.15, which includes the Article’s definitions, as follows. Amends the definition of peer-to-peer vehicle sharing by requiring the authorized use of the shared vehicle be for financial consideration. Amends the definition of shared vehicle owners to now be the registered owner of a shared vehicle, or a person or entity designated by the registered owner, who has not made an election under GS 105-187.5 (Alternate tax for a limited possession commitment). Removes the term vehicle sharing provider. Adds and defines the terms shared vehicle delivery period; shared vehicle driver; vehicle sharing agreement; vehicle sharing period; vehicle sharing start time; and vehicle sharing termination time.

Enacts new GS 20-208.19 requiring a peer-to-peer vehicle sharing program to assume the liability of a shared vehicle owner during the vehicle sharing period for (1) bodily injury or property damage to third parties; (2) uninsured and underinsured motorist losses; and (3) personal injury protection losses. Sets out parameters on the amount of the liability. The assumption of liability does not apply when (1) a shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the program before the vehicle sharing period; or (2) a shared vehicle driver, acting in concerning with the vehicle owner, fails to return the shared vehicle under the terms of the vehicle sharing agreement.

Enacts new GS 20-280.21 requiring a peer-to-peer vehicle sharing program to ensure that during each sharing period, the owner and vehicle driver are each insured in the specified amounts. Sets out additional requirements for the insurance policy and requires that the policy be maintained by the shared vehicle owner, shared vehicle driver, or the peer-to-peer vehicle sharing program. Sets out provisions governing when the entity maintaining the motor vehicle liability insurance policy must assume primary liability for a claim, and governing when the insurance policy has lapsed or does not provide the required coverage. Prohibits coverage under a motor vehicle liability insurance policy maintained by a peer-to-peer vehicle sharing program from being dependent on another insurer first denying a claim and prohibits another policy from being required to first deny a claim.

Enacts new GS 20-280.25 requiring, when a vehicle owner registers on a peer-to-peer vehicle sharing program and before making a shared vehicle available for sharing, that the program notify the shared vehicle owner that if there is a lien on the vehicle, the use of the shared vehicle in the program may violate the terms of the contract with the lienholder.

Enacts new GS 20-280.27 to allow a motor vehicle insurer writing motor vehicle liability insurance policies in the state to exclude coverage and the duty to defend or indemnify for any claim arising out of peer-to-peer vehicle sharing that is covered under a shared vehicle owner’s motor vehicle policy for: (1) liability coverage for bodily injury and property damage; (2) personal injury protection coverage; (3) uninsured and underinsured motorist coverage; (4 ) medical payments coverage; (5) comprehensive physical damage coverage; or (6) collision physical damage coverage.

Enacts new GS 20-280.29 setting out record keeping requirements for peer-to-peer vehicle sharing programs.

Enacts new GS 20-280.31 exempting a peer-to-peer vehicle sharing program and a shared vehicle owner from vicarious liability.

Enacts new GS 20-280.33 by setting out conditions under which a motor vehicle insurer that defends or indemnifies a claim involving a shared vehicle that is excluded under the policy to have the right to seek contribution against the insurer of the peer-to-peer vehicle sharing program.

Enacts new GS 20-380.35 requiring a peer-to-peer vehicle sharing program to have an insurance interest in a shared vehicle during the vehicle sharing period. Allows a program to own and maintain as the named insured one or more polices of motor vehicle liability insurance that provides coverage for (1) liabilities assumed by the program under a vehicle sharing agreement; (2) any liability of the shared vehicle owner; (3) damage or loss to the shared vehicle; or (4) any liability of the shared vehicle driver.

Enacts new GS 20-280.37 requiring vehicle sharing agreements to disclose to the vehicle owner and the driver at least the seven specified items, including: (1) any right of the program to seek indemnification from the vehicle owner or driver for economic loss sustained by the program resulting from a breach of term and conditions of the vehicle sharing agreement; (2) that a motor vehicle liability insurance policy issued to the vehicle owner for the shared vehicle or to the driver does not provide a defense or indemnification from any claim asserted by the program; and (3) the shared vehicle owner’s insurance may not provide coverage for a shared vehicle.  

Enacts new GS 20-280.39 prohibiting a peer-to-peer vehicle sharing program from entering into a vehicle sharing program agreement with a shared vehicle driver unless the driver: (1) has a valid drivers license that authorizes the driver to operate a motor vehicle of the class of the shared vehicle, (2) is a nonresident of this State who meets all of the following requirements: a. has a valid drivers license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive a motor vehicle of the class of the shared vehicle, and b. is at least the same age as that required of a resident of this State to operate a motor vehicle of the class of the shared vehicle, or (3) is otherwise specifically authorized to operate a motor vehicle of the class of the shared vehicle. Sets out required record keeping.

Enacts new GS 20-280.41 making a peer-to-peer vehicle sharing program solely responsible for any equipment put in or on the vehicle to monitor or facilitate the sharing transaction.

Enacts new GS 20-280.43 making the sharing program responsible, before making shared vehicles available on the program, to verify that the vehicle does not have any safety recalls on the vehicle for which repairs have not been made, and to notify the owner of the requirements of this statute. Sets out actions the vehicle owner must take upon receiving actual notice of a safety recall on the shared vehicle, including removing the vehicle from the program until the repair has been made.

Applies to all peer-to-peer vehicle sharing agreements entered into on or after October 1, 2026.

Part VII.

Enacts Article 15C, the NC Motor Vehicle Glass Act, to GS Chapter 20. Defines eleven terms. Prevents, in GS 20-355.2, an insured under a property and casualty insurance policy from, either prior to or after a claimed or covered loss for damaged motor vehicle glass, assigning or otherwise transferring any part of their duties, rights, or benefits under the policy. Requires a motor vehicle glass shop under GS 20-355.3 to provide an insured with the described notices pertaining to repairs for damaged glass and repairs requiring calibration or recalibration of the vehicles advanced driver assistance is performed, if the vehicle has an advanced driver assistance system. Prevents, in GS 20-355.4, motor vehicle glass shops from contracting for glass repairs paid for under a first-party insurance policy until the described conditions are met, including a claim is made under the person’s insurance policy. Requires a motor vehicle glass repair shop to comply with the five listed requirements, including good faith estimates, charging reasonable and customary fees, and providing legible invoices and notices. Provides for a customer receipt and notice.

Prevents a motor vehicle glass repair shop, or any other person who is compensated for the solicitation of insurance claims, from offering a rebate, gift, gift card, cash, coupon, fee, prize, bonus, payment, incentive, inducement, or any other thing of value to any insured, insurance producer, or other person in exchange for directing or making a claim under a motor vehicle insurance policy for repair or replacement of damaged motor vehicle glass in GS 20-355.5. Enumerates seven other prohibited acts. Clarifies in GS 20-355.6 that an insured cannot be required to use a particular motor vehicle glass repair shop to receive payments under a motor vehicle insurance policy. Specifies that the statute should not be constructed to: (1) prevent the listed parties from recommending a shop or providing an explanation to an insured of the coverage available, and any applicable liability limit, under any insurance policy; (2) prohibit an insurer from maintaining a network of motor vehicle repair shops; and (3) create a private cause of action.

Authorizes the Insurance Commissioner (Commissioner) to assess a civil penalty for a violation of the Article ranging from $750 for the first violation to $2,500 for a third violation. Directs all penalties be remitted to the Civil Penalty and Forfeiture Fund. Tasks the Department of Insurance with adopting rules to implement the Article, including compliance. Applies to insurance policies issued or renewed on or after October 1, 2027.

Part VIII.

Changes the definition of audited financial statement in GS 58-89A-5 so that it is audited financial GAAP financial statement. Removes tangible net worth. Makes conforming changes to GS 58-89A-60 and GS 58-89A-70 to reflect new term. Changes the financial requirements for an audited GAAP financial statement so that it has to demonstrate that the applicant or licensee’s current assets exceed current liabilities (currently, need tangible net worth of not less than $50,000 and positive working capital). Requires the audited GAAP financial statement to be audited by an independent CPA (was, just prepared by independent CPA). Makes technical, organizational, and conforming changes to reflect new financial requirements. Removes the Commissioner’s authority to deny an application on the grounds that the applicant has not provided evidence satisfactory to the Commissioner of financial responsibility.

Part IX.

Exempts convenience fees of 99 cents or less when paid in cash from the requirements of GS 58-33-85(b) (prohibiting certain processing fees).

Part X.

Specifies that no electronic system can act in the capacity of a bondsman or runner in GS 58-71-40(a1), but clarifies that it does not apply to electronic monitoring devices. Provides for personal appearance by the described bondsmen, sureties, or runners, to personally sign the bond in front of the court official.

Amends GS 58-71-71 as follows. Moves the annual continuing education in subjects pertaining to the responsibilities of a runner or bail bondsman deadline from June 30 to May 15. Prevents the Department of Insurance, the Bail Bond Regulatory Division, and any employee, contractor, or agent thereof from acting to provide, sponsor, administer, directly conduct, or otherwise serve as an approved provider of prelicensing education or continuing education courses required for professional bondsmen, surety bondsmen, accommodation bondsmen, or runners. Instead, requires continuing education to be provided by independent third-party providers. Authorizes the Department of Insurance to issue bulletins, advisory notices, legal updates, disciplinary guidance, administrative memoranda, or regulatory materials relating to the bail bond profession or to participate as a guest speaker or informational presenter during educational programs conducted by an approved independent provider. Amends GS 58-71-72 to direct the Commissioner to ensure that all required prelicensing education and continuing education programs are conducted solely through independent third-party providers.

Effective June 30, 2026.

Part XI.

Removes provisions of GS 58-45-41 (coverage limits for beach area property) that allows the contents of habitational property to be insured for up to 40% of the building value, as described. Instead, specifies that matter is covered by GS 58-45-45(a). Applies to contracts issued, amended, and renewed on or after January 1, 2027.