GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 835

Short Title:  Mutual Insurer Disclosure.	(Public)
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Sponsors: Representative Brawley.
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Referred to:  Commerce.
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April 16, 1991

A BILL TO BE ENTITLED
AN ACT TO STRENGTHEN THE DISCLOSURE PROVISION FOR CONTINGENT LIABILITY UNDER MUTUAL INSURANCE POLICIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-8-35 reads as rewritten:
"§ 58-8-35. Contingent liability printed on policy.
Every insurance company licensed to do business in this State shall print upon the filing face of its policies in clear and explicit language the full contingent liability of its members.  The language shall include the following statements printed in bold red type for each unlimited assessment policy: 'CAUTION: THIS IS AN ASSESSMENT POLICY.  YOU MAY BE LIABLE FOR THE PAYMENT OF  LOSSES, RESERVES, AND/OR EXPENSES INCURRED WHILE YOU ARE A MEMBER OF OUR ASSOCIATION.'"
Sec. 2.  This act becomes effective October 1, 1991, and applies to policies issued or renewed on or after that date.