Bill Summary for S 293 (2017-2018)

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Summary date: 

Mar 16 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 293 (Public) Filed Wednesday, March 15, 2017
AN ACT TO MAKE TECHNICAL AND OTHER CHANGES TO THE INSURANCE LAWS OF NORTH CAROLINA, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE.
Intro. by Meredith, Newton, Dunn.

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Bill summary

Amends GS 58-7-179 to raise the limit on mortgage loans on real property for dwellings intended for occupancy by up to four families from 95% to 97% of the value of the property, and raises the insurance level from 75% to 80% in that case. Effective January 1, 2018.

Amends GS 58-10-345(g) to apply GS 58-2-160 (concerning reporting and investigation insurance and reinsurance fraud and licensee financial conditions) to audits and processing only (currently also applies to investigations).

Amends GS 58-10-355 to allow only organizational audits (redefined as a general review of the applicant business entity's corporate records, currently defined as a general survey) to be performed before an applicant business entity is licensed (currently also allows organizational investigations).

Amends GS 58-10-385(a) to direct that the biographical affidavit of new executive officers and directors submitted by captive insurance companies are deemed approved unless they are disapproved within 30 days from the completion of the Commissioner's review of the biographical affidavit.

Amends GS 58-19-10(b) to further allow domestic insurers to invest in affiliates as described (currently allows only subsidiaries).

Amends GS 58-21-40 to designate the NC Surplus Lines Association to be the regulatory support organization of surplus lines licensees described in that statute, and directs it to operate the stamping office described. Makes conforming changes.

Amends GS 58-21-65 to prohibit licensed brokers from directly procuring contracts of surplus lines insurance with a nonadmitted insurer (currently does not include the word "directly"), and directs the Commissioner to issue surplus lines licenses to any qualified licensed property and casualty agent (currently to a licensed property broker or agent).

Amends GS 58-21-75 to require surplus lines licensees to keep records of contracts for five years (was, three years).

Amends GS 58-21-85(a) to clarify that the licensee has the responsibility to return a described tax to the policyholder (currently does not specify whose responsibility). 

Amends GS 58-57-90(a) to amend the definition of single interest credit property to include non-household property, not including an automobile.

Amends GS 58-57-110(a) to direct the Commissioner to prescribe a minimum incurred loss ratio standard requirement every third year, beginning September 1, 2018 (currently required every year), effective on January 1 of the year following the year the Commissioner prescribes it. Amends GS 143-143.10(a) to transfer the duty of nominating members to the Manufactured Housing Board from the North Carolina Manufactured Housing Institute to the North Carolina Manufactured and Modular Homebuilders Association.

Except as otherwise provided, the act is effective when it becomes law.