AN ACT TO ENHANCE AND IMPROVE CONSUMER PROTECTIONS AND TRANSPARENCY RELATED TO MOTOR VEHICLE MAINTENANCE AND REPAIRS, LONG‑TERM CARE INSURANCE, AND CONSENT TO RATE; TO STUDY VOLUNTEER FIREFIGHTER RECRUITMENT AND RETENTION EFFORTS; TO INCREASE THE CRIMINAL PENALTY FOR LARGE‑SCALE FRAUD COMMITTED BY AN INSURANCE FIDUCIARY AND STRENGTHEN COMMERCIAL AUTO RATE EVASION REFORM; TO MAKE VARIOUS TECHNICAL AND POLICY CHANGES TO NORTH CAROLINA'S CAPTIVE INSURANCE LAW PROVISIONS; TO ENABLE THE ESTABLISHMENT OF A STATE‑BASED PRIVATE FLOOD INSURANCE MARKET; TO ENABLE INSURERS TO RECEIVE RESTITUTION FROM CONVICTED DEFENDANTS; TO EXEMPT CERTAIN ACCOUNTABLE CARE ORGANIZATIONS FROM DEPARTMENT REGULATION; AND TO MAKE OTHER AMENDMENTS TO INSURANCE LAWS, AS RECOMMENDED BY THE DEPARTMENT.
Senate amendment makes the following changes to the 5th edition.
Amends proposed subsection (f1) of GS 58-51-95, concerning approval by the Commissioner of Insurance (Commissioner) of forms, classification, and rates, by increasing the maximum rate increase that may be implemented in any calendar year for any policyholder for long-term care policy forms to 25% (was, 15%) of the current policy premium rate in effect prior to the increase.
Amends GS 58-87-5(a), which creates the Volunteer Rescue/EMS Fund, to add EMS units that are volunteer fire departments that are a part of a county's EMS system plan to the units and services that may receive grants from the Fund.
Amends proposed subsection (b1) of GS 58-2-164, concerning rate evasion fraud, to make it a Class H felony for any applicant, as the term is defined in subsection (a) as amended by the act (previously, any person) who, with the intent to deceive the insurer, knowingly violates GS 58-2-164(b) for the purpose of obtaining auto insurance covering one or more vehicles, the operation of which requires a Commercial Driver's License pursuant to GS 20-4.01(3c).
Changes the proposed revision to GS 58-56A-10, concerning civil penalties for violations of Article 56A of GS Chapter 58 (Pharmacy Benefits Management) and administrative procedure that is effective July 1, 2016, to allow, upon petition of the Commissioner, a court to order the pharmacy benefits manager who committed a violation specified in subsection (b) of the statute to make restitution for expenses (previously, for administrative expenses, including expenses) under subsection (f) of the statute, incurred in the investigation, hearing, and any appeals associated with the violation in the amount that would reimburse the agency for the expenses.
Amends the following effective date provisions.
Clarifies that Section 1.3(a) becomes effective October 1, 2017, and applies to policies issued, renewed, or amended on or after that date, and that Sections 1.3(b) and 1.3(c) become effective October 1, 2017, and apply to filings submitted on or after that date (previously, Section 1.3 becomes effective October 1, 2017, and applies to policies issued, renewed, or amended on or after that date and applies to filings submitted on or after that date).
Deletes the provision making Part III of the act effective December 1, 2016, and instead provides that Sections 3.1, 3.2, and 6.4 become effective December 1, 2016.
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