Bill Summaries: S 270 INSURANCE TECHNICAL CHANGES.

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  • Summary date: Nov 10 2021 - View Summary

    AN ACT REVISING THE VERIFICATION OBLIGATIONS OF AN INSURER AND ITS AGENT WITH RESPECT TO RATE EVASION FRAUD; RECODIFYING CERTIFICATE OF INSURANCE PROVISIONS; AND ESTABLISHING A CIVIL PENALTY FOR THE FRAUDULENT PREPARATION, ISSUANCE, REQUESTING, OR REQUIREMENT OF A CERTIFICATE OF INSURANCE. SL 2021-177. Enacted Nov. 10, 2021. Effective Jan. 1, 2022. 


  • Summary date: Oct 20 2021 - View Summary

    House committee substitute to the 3rd edition changes the act's effective date from October 1, 2021, to January 1, 2022.


  • Summary date: Apr 28 2021 - View Summary

    Senate amendment amends the 2nd edition as follows. 

    Amends the proposed changes to GS 58-2-164 to specify that the insurer and its agent can satisfy the verification requirements for applicants under subdivision (c) by, within 25 days of coverage binding (was, within 10 business days of coverage binding), obtaining from the applicant reliable proof of NC residency and the applicant's status as an eligible risk.


  • Summary date: Apr 22 2021 - View Summary

    Senate committee substitute amends the 1st edition as follows. 

    Amends the proposed changes to GS 58-2-164 regarding rate evasion fraud in auto insurance. Specifies that the insurer and its agent can satisfy the verification requirements for applicants under subdivision (c) by, within 10 business days of coverage binding (was within 30 days of coverage binding), obtaining from the applicant reliable proof of NC residency and the applicant's status as an eligible risk. Revises and adds to the proposed changes to the list of proof of residency and eligible risk status, of which two items are deemed reliable proof, an electronic utility bill accessed by the applicant (eliminating the proposed requirement that access must be made in the presence of the insurer or its agent), and proof of personal or real property taxes paid accessed electronically by the applicant that shows the applicant's current address (previously not specifically included).

    Revises subsection (a) of GS 58-3-150, regarding certificates of insurance, recodified as subsection (a) of GS 58-3-149. Defines certificate of insurance as a document prepared or issued exclusively by an insurance company or licensed producer (was, prepared or issued by an insurance company or producer) used to verify or evidence the existence of property or casualty insurance coverage. Clarifies that the civil penalty set forth in new subsection (d) is limited to persons not otherwise subject to GS Chapter 58 regulation. Makes technical changes to restate existing law recodified by the act.


  • Summary date: Mar 11 2021 - View Summary

    Amends GS 58-2-164 regarding rate evasion fraud in auto insurance. Specifies that the insurer and its agent can satisfy the verification requirements for applicants under subdivision (c) by, within 30 days of coverage binding, obtaining from the applicant reliable proof of NC residency and the applicant's status as an eligible risk (currently permits the agent to satisfy the requirements by obtaining the proof with no timeline). Includes in the list of proof of residency and eligible risk status, of which two items are deemed reliable proof, an electronic utility bill accessed by the applicant in the presence of the insurer or its agent.

    Recodifies specified subsections of GS 58-3-150, regarding certificates of insurance, as subsections (a), (b), (c), and (e) of GS 58-3-149. Amends and adds to the statute as follows. Amends the definition given for certificate of insurance to include electronically submitted documents. Adds new subdivision (d) making it unlawful, punishable by a fine of up to $5,000, to prepare, issue, request, or require a certificate of insurance that either contains false or misleading information concerning the policy of insurance to which a certificate of insurance makes reference, or purports to alter, amend, or extend the coverage provided by the policy of insurance to which a certificate of insurance makes reference. Specifies that the penalty is in addition to any other penalty for criminal law violations. Provides for remittance of the proceeds to the Civil Penalty and Forfeiture Fund.

    Effective October 1, 2021.