Bill Summaries: H575 SERVICE AGREEMENTS/ALLOW RESERVE ACCOUNT.

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  • Summary date: Jun 30 2011 - View Summary

    AN ACT TO PROVIDE THAT IN LIEU OF CONTRACTUAL LIABILITY INSURANCE, A SERVICE CONTRACT PROVIDER MAY MAINTAIN A FUNDED RESERVE ACCOUNT FOR ITS OBLIGATIONS UNDER SERVICE CONTRACTS ISSUED AND OUTSTANDING IN THIS STATE. Summarized in Daily Bulletin 3/31/11 and 5/18/11. Enacted June 23, 2011. Effective July 1, 2011.


  • Summary date: May 18 2011 - View Summary

    House committee substitute makes the following change to 1st edition. Deletes provision in GS 66-373(a) stating that reserve accounts are subject to examination and review by the Commissioner of Insurance.


  • Summary date: Mar 31 2011 - View Summary

    Rewrites GS 66-373 (insurance policy requirements for service agreements) to provide that in lieu of complying with current provisions of the section, the company or person may maintain a funded reserve account of not less than 40% of gross consideration received, less claims paid, on the sale of the service contract for all in-force contracts. The account is subject to examination and review by the Commissioner of Insurance on request. Effective July 1, 2011.