House committee substitute to the 2nd edition makes the following changes.

Section 5

Amends proposed GS 58-2-255(f) by now allowing a health benefit plan sponsor, on behalf of an enrolled individual, to provide consent for all communications related to the plan to be delivered electronically, unless prohibited by any application provision of ERISA (was, allowed to the extent permitted by ERIFSA and its amendments).

Adds the following new content and makes conforming changes to the act’s long title.

Section 6

Repeals GS 58-33-26(p) which prohibited a person from simultaneously holding an insurance producer license with casualty, personal lines, or property lines of authority and an adjuster's license in this State.

Amends GS 58-33-40 by requiring that notice of the cancellation of an appointment where an insurer authorized to transact business in this State has appointed as its agent any individual with a valid insurance producer license issued by the Commissioner of Insurance, to be submitted to the Commissioner of Insurance by either the appointing insurer or appointed insurance producer.

Section 7

Amends GS 20-279.21 by amending the definition of an uninsured motor vehicle, which includes an underinsured highway vehicle, which is a highway vehicle with respect to the ownership, maintenance, or use of which, the sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable at the time of the accident is less than the applicable limits of underinsured motorist coverage (was, appliable limits of underinsured motorist coverage for the vehicle involved in the accident and insured against the owner’s policy). Makes conforming changes.

Section 8

Amends GS 20-279.21 to require a motor vehicle liability policy to provide underinsured motorist coverage, no longer requiring that the coverage be used only with a policy that is written at limits exceeding those specified because of bodily injury or death). Makes conforming changes. Specifies that the following provision now applies only to insurance on nonfleet private passenger motor vehicles: if a claimant is an insured under the underinsured motorist coverage on separate or additional policies, the total amount of coverage that is applicable is the sum of the limits of the claimant’s underinsured motorist coverages as determined by combining the highest limit available under each policy, and must not be reduced by a setoff against any coverage, including liability insurance, except for workers’ compensation coverage to the extent provided for in the statute.

Amends GS 58-37-35 to require that the North Carolina Motor Vehicle Reinsurance Facility (Facility) reinsure for underinsured motorist coverage at the rate of $50,00 for each person and $100,00 each accident for bodily injury.

Changes the effective date of Section 12 of SL 2023-133, concerning minimum liability limits for insurance required by the state and changes to the calculation of the total applicable amount of underinsurance coverage, from January 1, 2025, to July 1, 2025.

Section 9

Amends GS 58-36-65 to require that for insureds receiving a driver’s license for the first time before July 1, 2025 (was, for the first time on or before January 1, 2025), the subclassification plan may provide for premium surcharges for insureds having less than three years’ driving experience as licensed drivers. Also allows for insureds receiving a driver’s license for the first time on or after July 1, 2025 (was, January 1, 2025), the subclassification plan to provide for premium surcharges for those having less than eight years’ driving experience as licensed drivers.

Amends Section 16 of SL 2023-133 by delaying the effective date of amendments to insurance rate-making laws from January 1, 2025, to July 1, 2025. Makes additional clarifying changes.

Section 10.1

Enacts new Article 86A to GS Chapter 58, titled the “Firefighters’ Cancer Insurance Program (Program).” Specifies that the Article’s purpose is to provide health benefits as authorized by the Article to eligible firefighters with a new diagnosis of cancer on or after January 1, 2022, and that the health benefits provided under the Article are supplemental to any other health benefits authorized by law for firefighters. Requires the Office of State Fire Marshal (Office) to administer the Program by contracting with a third-party administrator.

Defines terms cancer, eligible firefighter, fire department, and firefighter. Sets forth the following eligibility requirements for the Program: (1) service in an NC fire department or in a fire department on a military base in NC for a minimum of 5 years, or have been included on the certified roster submitted to the NC Firefighters’ Association for a period of no more than 10 years as retired/nonactive after the firefighter no longer meets the definition of firefighter and (2) a new diagnosis of cancer on or after January 1, 2022, except if they are receiving benefits related to cancer under the NC Worker’s Compensation Act.

Provides for the following benefits under the Program; (1) a lump sum benefit of $37,000 for each diagnosis of cancer, capped at $74,000, upon submission of proof of diagnosis to the insurance carrier, the Department, Office, or other applicable payor; (3) payment of specified amounts of disability benefits upon submission of proof to the insurance carrier, the Department, Office, or other applicable payor of total disability resulting from the diagnosis of cancer or that the cancer precludes the firefighter from serving as a firefighter.

Sets forth the following limitation on disability benefits: (1) disability benefits can continue for no more than 36 consecutive months; (2) any firefighter receiving disability benefits may be required to have his or her condition reevaluated to determine if that firefighter has regained the ability to perform the duties of a firefighter. If that reevaluation indicates that the firefighter has regained the ability to perform the duties of a firefighter, then the monthly disability benefits will cease on the last day of the month the reevaluation was conducted; (3) if there is no reevaluation performed, but the firefighter's treating physician determines that the firefighter is again able to perform the duties of a firefighter, then the disability benefits will cease on the last day of the month that the physician made the determination; (4) if a firefighter returns to work as a firefighter before exhaustion of the 36 months of disability benefit an eligible firefighter may receive, and if there is a subsequent recurrence of disability caused by cancer that again precludes the firefighter from performing the duties of a firefighter, then the firefighter will be entitled to any remaining monthly disability benefits, not to exceed 36 months in total; (5) the monthly disability benefit will be subordinate to any other benefit paid from any source to the firefighter solely for a disability related to the cancer diagnosis, so long as that source is not private insurance purchased solely by the firefighter. Disability benefits under this section will be limited to the difference between the benefit amount paid by the other source and the amounts specified under the Article.

Sets forth reporting requirements by the Office to the General Assembly and the Governor due on January 1 of each year. 

Effective July 1, 2025.

Section 10.2

Amends GS 105-228.5(d)(3) to change the distribution of certain amounts of net proceeds from the additional .74% tax on gross premiums from property coverage contracts as follows. Requires up to 10% (was up to 20%) of the net proceeds to be credited to the Workers’ Compensation Fund, but prohibits the Fund reserve from exceeding $45 million. In addition to other allocations, now allocates 10% of the net proceeds to the Office of State Fire Marshal for the Firefighter Cancer Insurance Program, with a cap of $10 million on the amount credited to the Office. Requires the net proceeds that exceed these limits for the Workers’ Compensation Fund and the Office to be credited to the General Fund.

Effective July 1, 2025.

Section 10.3

Amends GS 58-87-10 (Workers’ Compensation Fund) by making conforming changes. Effective July 1, 2025.

Section 10.4

Makes conforming changes to GS 58-78A-1 by adding the Firefighters’ Cancer Insurance Program to the Office of State Fire Marshal’s responsibilities. Effective July 1, 2025.

Section 11.1-11.3

Amends GS 58-86-35 and GS 58-86-40, increasing monthly member payments to the NC Firefighters' and Rescue Squad Workers' Pension Fund (Pension Fund) from $10 to $15 as it applies to new and current members.

Amends GS 58-86-55, increasing the monthly pension to eligible members, including disabled members, beneficiaries, and retired firefighters, from $170 to $175 monthly. Makes conforming changes, including changes regarding increased monthly member contributions.

Effective July 1, 2024.

Section12.1-12.4

Amends GS 153A-233 (counties), GS 153A-234(b) (fire marshal), and GS 160A-292(b) (fire chiefs) to specify that these entities only have to obtain a background check of any person over age 18 (previously, no minimum age requirement) who either applies for a paid or volunteer position with their respective departments (fire marshal and fire chiefs) or, in the case of GS 153A-233, is in a paid or volunteer position with a county, city, or other unit of local government, or incorporated fire department (currently, volunteer fire department) with whom the county contracts for fire-fighting or prevention services. Permits the criminal history check to be conducted through the county clerk of court or a third-party vendor if the applicant has been a resident of the State for over five years and reports no charges or convictions on the application. Also amends GS 153A-234 and GS 160A-234 to allow the fire marshal or fire chief, respectively, to designate a person to obtain the required criminal history record check. Applies to applications submitted on or after the act becomes law. Makes organizational changes.