AN ACT TO AMEND AND TO MAKE CLARIFYING CHANGES TO VARIOUS INSURANCE LAWS, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE, TO AMEND LAWS RELATED TO BROKER AND INSURANCE PRODUCER LICENSES, TO ALLOW SELF-INSURANCE TO SERVE AS PROOF OF FINANCIAL RESPONSIBILITY, TO PROHIBIT DISCLOSURE OF REPLACEMENT COST ESTIMATORS, TO REQUIRE CERTAIN APPOINTMENTS TO THE NORTH CAROLINA REINSURANCE FACILITY'S BOARD OF GOVERNORS, TO AMEND A REPORTING DATE FOR MEMBERS OF THE NORTH CAROLINA INSURANCE UNDERWRITING ASSOCIATION, TO EXEMPT CERTAIN EMPLOYMENT CONTRACTS ENTERED INTO BY THE DEPARTMENT OF INSURANCE, TO AMEND INNOVATION WAIVER EXEMPTIONS, TO REVISE INSURANCE REQUIREMENTS FOR TRANSPORTATION NETWORK COMPANIES, TO AUTHORIZE FUNDING BY THE NORTH CAROLINA GLOBAL TRANSPARK AUTHORITY, TO AMEND THE DUE DATE FOR HOME INSPECTION REPORTS, TO SHORTEN THE TIME FRAME TO RETAKE THE HOME INSPECTOR EXAMINATION, AND TO AMEND MINIMUM INSULATION REQUIREMENTS. SL 2022-46. Enacted July 7, 2022. Effective July 7, 2022, except as otherwise provided.
Bill Summaries: S 496 DOI OMNIBUS BILL. (NEW)
Summary date: Jul 26 2022 - View SummaryBusiness and Commerce, Insurance, Courts/Judiciary, Motor Vehicle, Development, Land Use and Housing, Building and Construction, Land Use, Planning and Zoning, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Government, Public Safety and Emergency Management, State Agencies, UNC System, Department of Insurance, Department of Transportation, Local Government, Health and Human Services, Health, Health Insurance
Summary date: Jun 28 2022 - View Summary
Conference report adds the following content to the 3rd edition.
Makes the following changes to Article 33, GS Chapter 58. Changes terminology throughout the Article to refer to an "insurance producer," replacing the "agent" terminology currently used. Additionally, replaces "kinds of insurance" language to instead refer to "lines of authority." Revises the Article's defined terms as follows. Defines broker to require licensure as an insurance producer, rather than a licensed agent; makes conforming changes throughout to reference insurance producers rather than brokers in the context of licensees. No longer explicitly includes limited representatives in the definition of insurance producer. Includes cancellation of the relationship between a limited representative and the insurance or termination of a limited representative's authority within the meaning of the term termination.
Amends GS 58-33-15 to eliminate the annual renewal of restricted licenses under GS 58-33-25(n).
Amends GS 58-33-17 concerning limited licenses for rental car companies, and GS 58-33-18 concerning limited licenses for self-service storage companies, to refer to the named applicant's competency as an agent rather than insurance agent.
Amends GS 58-33-20, concerning representation of an insurer. Specifies that insurance producers or limited representatives who act on behalf of the insurer and solicit or negotiate an application for insurance of any kind represent the insurer, and insurance producers who acts as brokers and solicit an application for insurance of any kind represent the insured or their beneficiary (previously, did not specify that the actions must be on behalf of either the insurer or the insured or their beneficiary).
Eliminates outdated licensing requirements set out in GS 58-33-26(c); makes conforming changes throughout the Article to reference the applicable language of subsection (c1) rather than the now eliminated subsection (c). Eliminates reference to licensed brokers; makes conforming changes throughout the Article to eliminate reference and provisions related to broker licenses. Expands the exemptions under subsection (n) to provide that licensure as a limited representative is not required of an officer, director, or employee of a limited representative so long as the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, locating, or to be performed in the State, except for indirect receipts of commissions in the form of salary, benefits, or distributions, and the individual's duties meet one of three qualifying criteria. Makes technical and clarifying changes to the prohibitions of subsection (p).
Amends GS 58-33-30 to allow insurance producers applicants to satisfy the education requirements by completing a producer training course approved by the Commissioner of Insurance that is offered by or under a property, casualty, life or accident and health or sickness insurance company (was, a property or liability or life or health insurance company) admitted to do business in the State.
Eliminates outdated language in GS 58-33-40.
Expands GS 58-33-48 to require criminal history checks of applicants for a limited representative license in the same manner as those required for applicants for an insurance producer license.
Expands the required notifications to the Commissioner set out in GS 58-33-56 to require notifications of terminations relating to an insurer's relationship with a limited representative. Makes all provisions applicable to termination of producers applicable to termination of limited representatives, including the right to submit written comments following notice and the granting of limited civil immunity for statements or information provided. Extends the confidentiality provisions to include materials or information furnished by a limited representative. Extends authority to suspend or revoke licenses and fine licensees for failure to make the required reports or make reports with actual malice to include limited representatives within the scope of authority.
Makes clarifying changes to GS 58-33-70.
Regarding commissions under GS 58-33-82, adds that limited representatives cannot pay a commission, service fee, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in the State if that person is required to be licensed under the Article and is not so licensed. Adds new subsection (d1) to allow insurance producers to indirectly accept any commission, fee, or other valuable consideration for business brokered through an insurance producer that is appropriately appointed; makes conforming changes to subsection (d). Allows for commissions, fees, or other valuable consideration for the sale, solicitation, or negotiation of insurance to be assigned or directed to be paid to a limited representative in connection with renewals of insurance business originally sold by or through the licensed person or for other deferred commissions.
Amends GS 58-33-125 to increase the fee from $10 to $11 for the appointment of an individual insurance producer. Repeals subsection (e) that allowed for resident licensees to obtain duplicate photo bearing licenses and included related authorities for the Commissioner.
Amends GS 58-33-135 to provide for appointment of an advisory committee for property and casualty insurance licensees (was, fire and casualty insurance licensees) and an advisory committee for life and accident and health or sickness insurance licensees (was, life and health insurance licensees). Requires inclusion of a licensed accident and health or sickness insurance producer rather than a licensed health insurance agent on the life and accident and health or sickness advisory committee.
Makes conforming changes to various statutes of GS Chapter 58 to reflect the amendments to Article 33, GS Chapter 58.
Makes the definition of insurance producer in GS 58-2-128 conform to that of Article 33, as amended, to no longer explicitly include limited representatives.
Amends GS 58-2-185 to include agents of companies and insurance producers in the statute's recordkeeping requirements.
Amends GS 58-3-155 to define broker by statutory cross-reference to GS 58-33-10, as amended.
Amends GS 58-35-10 to refer to insurance producers with property and casualty lines of authority rather than a fire and casualty insurance producer. Makes conforming changes to GS 58-36-1; and GS 58-37-35.
Amends GS 58-42-10 to direct that all risk sharing plans require participation by all insurance producers licensed and appointed to represent the insurances for that kind of insurance (previously, did not require appointment qualification).
Amends GS 58-45-35 to provide that licensed insurance producers appointed as an agent of a company that is a member of the Association is not deemed an agent of the NC Insurance Underwriting Association (previously, did include appointment qualification).
Amends GS 58-56-2, as amended, to exclude insurance producers licensed who sell life or accident and health or sickness insurance (was, life or health insurance) whose activities are limited exclusively to the sale of insurance from the definition of a third party administrator.
Amends GS 58-65-115 to refer to life and accident and health or sickness (was, life and health) insurance producers.
Amends GS 20-279.33 to deem a certificate of self-insurance issued by the Commissioner of Motor Vehicles as evidence of insurance to satisfy the financial responsibility requirements for the issuance or restoration of a driver’s license or the allowance of limited driving privileges under GS 20-7, GS 20-13.2, GS 20-16.1, GS 20-19, and GS 20-179.3.
Amends GS 20-279.33A, which qualifies certain religious organizations as self-insurers if seven specified conditions are met, to no longer require that the organization's members operate five or more registered vehicles owned or leased by them, but rather generally require that the members operate registered vehicles owned or leased by them.
Amends GS 20-7 to prohibit the Division of Motor Vehicles from restricting a person from operating a nonfleet motor vehicle solely because the person furnished proof of liability in the form of a certificate of self-insurance issued under GS 20-279.33 or GS 20-279.33A.
Enacts new GS 58-3-137 prohibiting requiring an insurance company or its 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. Defines proprietary business information of an insurer to mean information, regardless of form or characteristics, which is owned or controlled by an insurer, or a person or an affiliated person who seeks acquisition of controlling stock in a domestic stock insurer or controlling company, and which: (1) is intended to be and is treated by the insurer or the person as private in that the disclosure of the information would cause harm to the insurer, the person, or the company's business operations and that the information has not been disclosed unless disclosed pursuant to a statutory requirement, an order of a court or administrative body, or a private agreement that provides that the information will not be released to the public and (2) is not otherwise readily ascertainable or publicly available by proper means by other persons from another source in the same configuration as requested by the office. Exempts sales of insurance regulated under Articles 35 (Insurance Premium Financing), 57 (Regulation of Credit Insurance), and 58 (Life Insurance and Viatical Settlements) of GS Chapter 58 or under 12 USC Sections 4901-4910. Allows the Department of Insurance to investigate the affairs of any person to whom this statute applies to determine whether the person has committed a violation; if a violation is knowingly committed, the violator is subject to the same procedures and penalties as provided in Articles 3 (General Regulations for Insurance) and 63 (Unfair Trade Practices) of GS Chapter 58. Effective August 1, 2022.
Amends GS 58-37-35 to require that the Commissioner of Insurance appoint one member of the Board of Governors of the North Carolina Motor Vehicle Reinsurance Facility who must be selected from two nominees submitted by the Alliance of Insurance Agents of North Carolina. Makes a conforming decrease by one in the number of members the Commissioner must appoint to the Board who are required to be fire and casualty insurance agents licensed in the state and actively engaged in writing motor vehicle insurance in the state.
Amends GS 58-45-71 by changing the date by which member companies of the North Carolina Insurance Underwriting Association must annually report to the Commissioner of Insurance on the amount of the homeowners’ coverage written in the preceding calendar year by that member company in the beach and coastal areas from February 1 to April 1.
Amends GS 58-2-25 by providing that if the Commissioner of Insurance considers it to be necessary for the Department of Commerce to properly execute its work to contract with persons for financial, legal, examination, and other services, the contracts are not subject to: (1) GS 114-2.3 (requiring every agency, institution, department, bureau, board, or commission of the State, authorized by law to retain private counsel, to obtain written permission from the Attorney General prior to employing private counsel); (2) GS 147-17 (setting out when counsel can be employed with the Governor’s permission in cases wherein the State is interested); and (3) Articles 3 (Purchases and Contracts), 3C (Contracts to Obtain Consultant Services), and 8 (Public Contracts) of GS Chapter 143 and any rules and procedures adopted under those Articles concerning procurement, contracting, and contract review.
Amends the definition of the term member insurer under GS 58-62-16, as it applies to Article 62, Life and Health Insurance Guaranty Association, to include in the term any full-service corporation (was, any hospital or medical service corporation) governed by Article 65 of GS Chapter 58 and that is licensed or holds a license to transact in this state any kind of insurance or health maintenance organization business for which coverage is sought under GS 58-62-21 (coverage and limitations).
Amends GS 169-8, by adding that nothing in GS Chapter 169 is to be construed as allowing the North Carolina Innovation Council or an applicable State agency to grant an innovation waiver that alters or amends: (1) Article 36 of GS Chapter 58 (North Carolina Rate Bureau), (2) Article 37 of GS Chapter 58 (North Carolina Motor Vehicle Reinsurance Facility), or (3) all financial and solvency requirements that apply to nonadmitted domestic surplus lines insurers.
Amends GS 20-280.4, which sets out requirements for the primary automobile insurance that TNC drivers or transportation network companies must maintain, as follows. Amends the automobile insurance requirements that apply while a TNC driver is logged on to the transportation network company’s online enabled application or platform but is not providing TNC services, to require combined uninsured and underinsured motorist coverage that complies with the specified requirements (removing the limits for combined uninsured and underinsured motorist bodily injury coverage that at least equals the bodily injury liability limits of the policy). Also amends the automobile insurance requirements that apply while a TNC driver is engaged in TNC Service, to require (1) primary automobile liability insurance in the amount of at least $1 million (was, at least $1.5 million) because of death of one or more persons, bodily injury to persons, injury to or destruction of property of others, or any combination thereof, in any one accident and (2) combined uninsured and underinsured motorist coverage that complies with the specified requirements (removes the limits for combined uninsured and underinsured motorist bodily injury coverage of at least $1 million). Effective October 1, 2022.
Authorizes the North Carolina Global TransPark Authority (Authority) to receive and administer grant funding from the National Telecommunications and Information Administration for the expansion of broadband infrastructure and access in Lenoir County. Allows the Department of Information Technology to assist in administering the grant funds if requested. Expires June 30, 2027.
Provides that if Senate Bill 372 becomes law, then GS 143-151.58(a) is further amended by requiring that an inspector performing a home inspection to give the person the report within three business days after the inspection was performed if the parties to the inspection did not agree on a report due date in a written agreement (removes the alternative of providing the person the report within ten business days after the inspection was performed if the report describes a deficiency as a violation of the State Residential Building Code). Effective October 1, 2022.
Amends GS 143-151.57 to allow an individual applying for a license as a home inspector to take the required exam only once every 90 days (was, every 180 days).
Amends Sections 20.20 (concerning the required changes to the Residential Spaces Insulation Rule) and 20.10A (concerning the required changes to the Commercial Spaces Insulation Rule) of SL 2022-6 to require that supply and return air ducts located in ventilated or non-ventilated unconditioned attic spaces be insulated to a minimum R-6.0. Makes conforming changes. Applies retroactively to March 17, 2022.
Provides that if Senate Bill 372 becomes law, then GS 160D-706 is amended to correct the statutory cross-references to GS 160A-174(b).
Changes the act's titles.Business and Commerce, Insurance, Courts/Judiciary, Motor Vehicle, Development, Land Use and Housing, Building and Construction, Land Use, Planning and Zoning, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Government, Public Safety and Emergency Management, State Agencies, UNC System, Department of Insurance, Department of Transportation, Local Government, Health and Human Services, Health, Health Insurance
Summary date: Oct 20 2021 - View Summary
House committee substitute to the 2nd edition makes the following changes.
Revises and adds to the proposed changes to GS 58-2-46, which provides for parameters that are effective when disaster declarations are proclaimed for the state or an area of the state or a Presidential major disaster declaration has been issued for the state or an area of the state, and the Commissioner of Insurance has issued an order declaring the parameters to be in effect for the specific disaster. Makes organizational changes to proposed new provisions. Regarding the deferral of premiums during the time period covered by the proclamation or declaration, specifies that the accompanying deferral of any time limits imposed on an insurer, insured, claimant, or customer to perform any act during the time period required by any statute, rule, or other policy or contract provision does not require a request to defer. Eliminates duplicative exiting law and proposed changes related to the deferral of time limits during the deferral period. Changes the time that must lapse between the expiration of the deferral period and the cancellation of insurance policies or contracts, or premium finance agreements, for unpaid premiums due from the 21st day following the expiration of the deferral period to the 15th day, applicable to both property and casualty insurance companies and described policies, as well as premium finance companies and premium finance agreements that have financed such described property and casualty insurance policies.
Organizes previous new subsection (b) as new subsection (c), now providing for provisions that apply when the proclamation or declaration is the result of a public health emergency as determined by the Secretary of the US Department of Health and Human Services under specified federal law, or other situations where the Governor has, by executive order, ordered all individuals in the state to stay at home or at their place of residence (previously, more generally stated that the provisions apply during a public health emergency or other situations that require citizens to shelter in place). Now allows for cancellation of insurance policies or premium finance agreements by property and casualty insurance companies or premium finance agreements fifteen days (was, 21 days) following the expiration of the deferral period and proper notice as previously described upon nonpayment of premiums due. Provides that subsection (c) does not prohibit property and casualty insurance companies from not renewing or cancelling a policy during a public health emergency or situation that may require all individuals in the state to stay at home (replacing the previous provision that provided that the subsection does not prohibit property and casualty policy nonrenewals or cancellations during a public health emergency or situation that may require citizens to shelter in place). Conditions the directive for collection agencies to discontinue attempts to collect debt against their customers who reside within the designated area in the proclamation or declaration during the deferral period upon the customer notifying the collection agency that he or she is experiencing significant financial hardship related to the public health emergency or stay at home order. Eliminates applicability to health benefit plans.
Adds descriptive captions to subdivisions and makes further technical and conforming changes throughout.
Eliminates the proposed standard notice statement added to GS 58-44B-15 that must be included in travel protection plans. Instead, adds to the requirements of fulfillment materials covered by a travel protection plan, now requiring the fulfillment materials to: comply with specified state law regarding the provisions of information on a plan's pre-existing condition exclusions; advise the policyholder to read the policy, certificate of insurance, and other documents to be informed of the plan's terms, conditions, and coverage and assistance details; and provide contact information for the company.
Makes technical changes to the act's effective date provision.Business and Commerce, Insurance, Courts/Judiciary, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Government, Public Safety and Emergency Management, State Agencies, UNC System, Department of Insurance, Local Government, Health and Human Services, Health, Health Insurance
Summary date: May 6 2021 - View Summary
Senate committee substitute deletes the content of the following previous Parts of the act:
- Part VI., which amended GS 20-279.21(d1)(2) to require the party who rejects an umpire's motor vehicle damage appraisal report to pay the costs of the umpire.
- Part XI., which revised GS 58-49-12, which excludes certain health care sharing organizations from the authority of the Commissioner, to make the exception applicable to "faith-based health care sharing organizations" meeting the specified criteria.
- Part XIII., which amended GS 58-33-70 to require a licensed insurance adjuster employer to certify that a licensed insurance adjuster of another state who is to perform emergency insurance adjustment work for the employer has completed an approved catastrophe education course approved by the Commissioner of Insurance prior to beginning the work.
Makes conforming organizational changes.Business and Commerce, Insurance, Courts/Judiciary, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Government, Public Safety and Emergency Management, State Agencies, UNC System, Department of Insurance, Local Government, Health and Human Services, Health, Health Insurance
Summary date: Apr 5 2021 - View Summary
Revises GS 58-17-75, regarding required filing of insurance holding company forms, to require copies of statements and all exhibits, papers, and documents filed as part of the statement to be filed with the Commissioner of Insurance (Commissioner) by mail (previously alternatively allowed for personal delivery).
Amends GS 58-7-170(d), which sets forth obligation limitations for permitted insurer investments under specified state law classified as medium to lower quality obligations which do not require the Commissioner's prior written approval. No longer excludes from the scope of the limitations obligations of subsidiaries or affiliated corporations.
Amends GS 58-19-10(b)(1) regarding insurer investments in common stock, preferred stock, debt obligations, and other securities of affiliates or subsidiaries to consistently refer to both affiliates and subsidiaries. Makes conforming changes to subsection (c) to subject such investments to the medium and lower quality obligation limitations of GS 58-7-170(d), as amended.
Revises GS 58-89A-110 to no longer require professional employer organization licensees to notify the Commissioner within 30 days of initiation or termination of the licensee's relationship with any client company; maintains the required notification of its workers' compensation carrier and the NC Industrial Commission.
Adds to the statutes specified in GS 58-67-171 that apply to health maintenance organizations (HMOs) to include GS 58-7-21 (concerning credit allowed to a domestic ceding insurer), GS 58-7-26 (concerning asset or reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of GS 58-7-21), GS 58-7-30 (concerning insolvent ceding insurers), and GS 58-7-31 (concerning life and health reinsurance agreements).
Regarding the continuation of health care services under GS 58-93-75 for insolvent prepaid health plans (PHPs), requires PHP insolvency plans to allow for health care services to be provided to enrollees until the PHP's capitated contract is terminated by the Department of Health and Human Services (DHHS) and all enrollees required under GS 108D-40 to enroll in a PHP are transitioned to another PHP (was until all of the PHP's enrollees whose enrollment in a PHP is not voluntary are enrolled in another PHP). Makes conforming changes to the Commissioner's authority to impose certain requirements on a PHP's insolvency plan.
Amends GS 20-279.21(d1)(2) to require the party who rejects an umpire's motor vehicle damage appraisal report to pay the costs of the umpire.
Makes the following changes regarding public school insurance.
Revises GS 115C-523.1 to require local boards of education to annually provide the Commissioner with a list of all of its insurable buildings, the equipment and contents of the buildings, and their insurable values by October 1. Requires local boards to provide the Commissioner a copy of a policy of insurance issued from a licensed and authorized company for any insurable building, its equipment, or its contents, with subsequent notification for the policy's cancellation, termination, or other changes. Makes conforming changes to include violations of the new provisions within the Commissioner's authority to impose civil penalties.
Enacts substantively identical reporting provisions to GS 115C-523.2 regarding flood insurance for public school buildings, GS 115D-58.11 regarding fire and casualty insurance for community colleges, and GS 115D-58.11A for flood insurance for community colleges, with local boards and boards of trustees charged with the duty as appropriate. Makes identical changes regarding the imposition of civil penalties for violations of the new reporting requirements.
Revises and adds to the definitions set forth in GS 143-143.9, applicable to the NC Manufactured Housing Board and manufactured home warranties. Defines Code to mean the engineering standards entitled State of NC Regulations for Manufactured Homes adopted by the Commissioner (was engineering standards adopted by the Commissioner). Adds qualifier and defines the term to mean an individual taking the examination on behalf of a set-up contractor applicant, who is associated with the applicant and is actively engaged in the work of the applicant.
Amends GS 143-143.15 to more specifically require manufactured homes to be set up in accordance with the standards entitled State of NC Regulation for Manufactured Homes adopted by the Commissioner.
Repeals GS 143-143.21A(a)(5) to no longer require manufactured home purchase agreements to include the estimated terms of financing the purchase, if any.
Amends GS 143-151(a) to set the maximum civil penalty for violating Article 9A or rules adopted thereunder to limits sets by specified federal law (was $1,000) per violation. Makes an identical change to penalties for a related series of violations occurring within one year after the date of the first violation.
Makes a technical change to the phone number of the Senior's Health Insurance Information Program of the Department of Health Insurance set forth in GS 58-55-60.
Amends GS 58-28-5(a)(4), which excepts from the licensure requirements of insurers' transactions involving group life insurance, group annuities or group, blanket, or franchise accident and health insurance where the master policy for the insurance was lawfully issued and delivered in a state in which the company is authorized to transact business. Adds that the exception does not apply to companies that have had their license to conduct business in the state suspended or revoked.
Revises GS 58-49-12, which excludes certain health care sharing organizations from the authority of the Commissioner, to make the exception applicable to "faith-based health care sharing organizations" meeting the specified criteria. Revises the qualifications to include limiting participants to those of similar faith, disclosure of administrative fees and costs to participants, and providing that any card issued to a participant for presentation to a health care provider clearly indicates that the participant is part of a faith-based health care sharing organization that is not an insurance company. Adds to the required monthly statement publications to include the total payments by members for the previous month, the percentage of total payments applied to administrative expenses, and the percentage of the total payments applied to the payment of participants' qualified needs. Requires the disclaimer provided to be written at the beginning of all applications and guidance materials distributed by or on behalf of the organization (was, to be written on or accompanying the applications and guidance materials). Applies to any faith-based health care sharing organization conducting business on or after October 1, 2021, and any written statement provided to participants on or after that date.
Makes the following changes to GS 58-2-46, which provides for parameters that are effective when disaster declarations are proclaimed for the state or an area of the state or a Presidential major disaster declaration has been issued for the state or an area of the state, and the Commissioner has issued an order declaring the parameters to be in effect for the specific disaster. Makes changes throughout to refer to real property within the designated area rather than the geographic area designated in the proclamation or declaration. Adds that included in the deferral of time limits under the statute during a declared disaster is the transmittal of information and communications (was, the transmittal of information only) with respect to insurance policies or contracts, premium finance agreements, or debt instruments when the insurer, insured, claimant, or customer resides or is located in the designated areas in the proclamation or declaration. Further adds that the deferral of time limits applies to all insureds, claimants, or customers and does not require a request to defer. Adds the following conditions applicable to proclaimed or declared disasters.
For property and casualty insurance companies and insurance policies that insure customers and policyholders who reside in the designated area and who have been displaced from their residencies, requires: (1) payment of all premiums in arrears under the policy or contract after the deferral period has expired, with cancellation authorized for failure to pay on or after the 21st day following expiration, subject to notice requirements; (2) cancellations for nonpayment scheduled to be effective after the deferral period has commenced to be deferred until the period expires, subject to notice requirements; allows for processing of cancellations for cause that have been properly noticed during the deferral period; and (3) properly noticed nonrenewals effective after the commencement of the deferral period to be deferred until its expiration, subject to notice requirements. Excludes property and casualty insurance policies and contracts entered into on or after the date the Commissioner has issued an order declaring the statute effective for the specific disaster. Also excludes premium finance companies.
Instead enacts the following, applicable to premium finance companies and premium finance agreements that have financed property and casualty insurance policies for customers or policy holders who reside in the designated area in the proclamation or declaration who may have been displaced from their residences. Requires: (1) payments in arrears to be due after the deferral period has expired, with cancellation authorized for failure to pay on or after the 21st day following expiration, subject to notice requirements and (2) cancellations for nonpayment with properly noticed cancellation effective on or prior to the date the Commissioner issued the order to be cancelled and valid. Excludes premium finance agreements entered into on or after the date the Commissioner has issued an order declaring the statute effective.
Adds a new condition during a disaster, requiring that all collection agencies must discontinue attempts to collect debt against their customers who reside within the designated area in the proclamation or declaration during the deferral period.
Enacts six similar conditions applicable during a public health emergency or other situations that require citizens to shelter in place, including (1) requiring notice giving customers the option to defer premium payments due during the time period covered by the Commissioner's order declaring the statute to be in effect, as specified, with payments due upon the expiration of the deferral period and cancellations for nonpayment authorized, and excluding policies and contracts entered into on or after the date of the Commissioner's order; (2) permitting property and casualty insurance policy nonrenewals or cancellations during the situation; (3) requiring that all collection agencies must discontinue attempts to collect debt against their customers who reside within the designated area in the proclamation or declaration during the deferral period; (4) not applying the deferral period to time limitations imposed by law, rule, or other policy or contract provision or the transmittal of information or communication related to policies, premium finance agreements, or debt instruments; (5) authorizing the Commissioner to extend the deferral period; and (6) payment of all health benefit plan premiums in arrears upon expiration of the deferral period, with lapse provided for premiums not paid, as specified. Excludes situations that involve enemy attack, invasion, insurrection, riot, rebellion, revolution, civil war or commotion, or military or usurped power.
Makes clarifying and technical changes.
Regarding licensed insurance adjusters of other states permitted by the Commissioner to perform emergency insurance adjustment work for an licensed adjuster employer under GS 58-33-70, requires the employer to certify prior to beginning work that the adjuster has completed an approved catastrophe education course required by the Commissioner (previously required written notice to the Commissioner upon beginning work).
Expands the authority to incorporate optional enhancements to insurance programs under GS 58-36-43 to also include dwelling or residential private flood insurance (previously limited to automobile or homeowners' insurance). Makes conforming changes regarding program enhancement amendments and the prohibition against conditioning the acceptance of any optional enhancements upon the acceptance, renewal, or any underwriting rating criteria of the company, making those provisions applicable to the expanded policies and enhancements.
Adds a standard notice statement to GS 58-44B-15 that must be included in travel protection plans, as specified.
Except as otherwise provided, the act is effective when it becomes law.Business and Commerce, Insurance, Courts/Judiciary, Motor Vehicle, Development, Land Use and Housing, Property and Housing, Education, Elementary and Secondary Education, Higher Education, Government, Public Safety and Emergency Management, State Agencies, UNC System, Department of Insurance, Local Government, Health and Human Services, Health, Health Insurance
Summary date: Apr 1 2021 - View Summary
To be summarized.