SERVICE AGREEMENTS/ALLOW RESERVE ACCOUNT.

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View NCGA Bill Details2011-2012 Session
House Bill 575 (Public) Filed Thursday, March 31, 2011
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.
Intro. by Dockham.
Status: Ch. SL 2011-222 (House Action) (Jun 23 2011)

Bill History:

H 575/S.L. 2011-222

Bill Summaries:

  • Bill H 575/SL 2011-222 (2011-2012)
    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.

    Business and Commerce
  • Bill H 575 (2011-2012)
    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.

    Business and Commerce
  • Bill H 575 (2011-2012)
    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.

    Business and Commerce
    GS 66
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