A BILL TO BE ENTITLED AN ACT TO EXPAND THE CHOICES FOR HEALTH INSURANCE IN NORTH CAROLINA BY EXEMPTING HEALTH INSURANCE COMPANIES FROM OUTDATED RISK EXPOSURE REQUIREMENTS; TO REMOVE A PHOTO IDENTIFICATION REQUIREMENT FOR NEW DOMESTIC COMPANIES; TO HELP MORTGAGE GUARANTY COMPANIES ADJUST THEIR CAPITAL AND SURPLUS REQUIREMENTS; TO REVISE CERTAIN RISK-BASED CAPITAL REQUIREMENTS IN ORDER TO MAINTAIN NORTH CAROLINA'S NAIC ACCREDITATION; TO CLARIFY CONSUMER CHOICE IN HOMEOWNER'S COVERAGE FOR WIND AND HAIL; TO CLARIFY THE CERTIFICATION REQUIREMENTS FOR AN ACTUARY WHO PRESENTS A SCHEDULE OF PREMIUM RATES; TO SHORTEN CERTAIN TIME PERIODS FOR AN EXTERNAL REVIEW BY THE COMMISSIONER OF CERTAIN INSURER DETERMINATIONS; TO EXPAND ACCESS OF COVERAGE TO BUSINESSES WHO NEED BLANKET ACCIDENT AND HEALTH COVERAGE; TO MAKE CERTAIN CONFORMING CHANGES RELATED TO THE RENAMING OF THE OFFICE OF MANAGED CARE PATIENT ASSISTANCE PROGRAM AS HEALTH INSURANCE SMART NC; TO AMEND THE DEFINITION OF PRIVATE PASSENGER MOTOR VEHICLE; TO CLARIFY WHEN AN INSURER CAN COMMUNICATE WITH THE INSURED AFTER A PUBLIC ADJUSTER HAS BEEN RETAINED; AND TO CLARIFY WHEN AN AUTOMATIC STAY OF PROOF OF LOSS REQUIREMENTS, PREMIUM AND DEBT DEFERRALS, AND LOSS ADJUSTMENTS ARE TRIGGERED; TO PROVIDE NOTICE AND AN OPPORTUNITY FOR A HEARING WHEN A SUPERIOR COURT JUDGE IS CALLED UPON TO SELECT AN UMPIRE IN CERTAIN PROPERTY INSURANCE DISPUTES; AND TO ALLOW THE DEPARTMENT OF INSURANCE TO ENFORCE CERTAIN PROVISIONS OF THE PUBLIC HEALTH SERVICE ACT BY REQUIRING INSURANCE COMPANIES TO COMPLY WITH THOSE PROVISIONS WITHIN THIS STATE.
House committee substitute makes the following changes to the 1st edition.
Changes long title.
Amends GS 58-36-42, providing that consumers can also choose residential property insurance coverage in the beach areas defined in GS 58-45-5(2), (previously, only referred to the coastal areas). Deletes provision limiting those coverages to when requested by the insured.
Deletes Section 19 from the 1st edition, concerning expedited external review.
Adds new Section 20, amending GS 58-40-10 (Definitions), providing that a private passenger motor vehicle, for the purposes of Articles 36, 37 and 40, can be a motor vehicle that is a pickup truck or van that is owned by private citizens who are residents of the same household if it has a gross vehicle weight as specified by the manufacturer of less than 14,000 pounds (was, 10,000).
Adds new Section 21, amending GS 58-33A-65(f)(3), deleting the requirement that once a public adjuster has been retained, the company adjuster or other insurance representative may not communicate directly with the insured without the permission or consent of the public adjuster or the insured's legal counsel.
Adds new Section 22, amending GS 58-2-46, changing the title to State of disaster automatic stay of proof of loss requirements; premium and debt referrals; loss adjustments for separate windstorm policies (was, State of emergency automatic stay of proof of loss requirements; premium and debt referrals; loss adjustments for separate windstorm policies). Makes conforming changes by substituting "state of disaster" for "state of emergency." Requires the Commissioner of Insurance (Commissioner) to issue an order declaring GS 58-2-46(1-4) effective in order for the provisions of this section to take effect. Provides that the application of any provision in an insurance policy insuring real property can be stayed for the time period not exceeding the earlier of the expiration of the disaster proclamation or declaration and all renewal proclamations or the expiration of the Commissioner's order declaring subdivisions (1) through (4) effective for the specific disaster. Also provides that certain companies must give their customers who reside in the geographic area designated in the disaster proclamation or declaration the option of deferring premium or debt payments during the time period prior to the expiration of the Commissioner's order declaring subdivisions (1) through (4) effective.
Adds new Section 22(b), amending GS 58-2-47 (Incident affecting operations of the Department; stay of deadlines and deemer provisions), adding "disaster" and a reference to GS 166A-19.21 (Gubernatorial disaster declaration) to the section in regards to incidents beyond the Department of Insurance's (Department's) reasonable control.
Adds new Section 22(c), amending GS 58-33-70(e), adding "disaster" and a reference to GS 166A-19.21, in regards to when an experienced adjuster licensed in another state can act as an adjuster in North Carolina.
Adds new Section 22(d), amending GS 58-44-70, replacing references to a state of "emergency" with a state of "disaster." Replaces a reference to GS 166A-19.20 with GS 166A-19.21.
Adds new Section 22(e), amending GS 58-44-75 (Definitions), deleting the term and definition for disaster.
Provides new effective dates. Section 10 of this act becomes effective January 1, 2016. Section 22 of this act is effective when it becomes law. The remainder of this act becomes effective July 1, 2013.
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