GENERAL ASSEMBLY OF NORTH CAROLINA
1991 SESSION

CHAPTER 720
SENATE BILL 333

AN ACT TO MAKE TECHNICAL AMENDMENTS TO AND CORRECTIONS IN THE INSURANCE LAWS.

The General Assembly of North Carolina enacts:

Section 1.  Article 64 of Chapter 58 of the General Statutes is amended by adding the following section:
"§ 58-64-85.  Other licensing or regulation.
Nothing in this Article affects the authority of the Department of Human Resources or any successor agency otherwise provided by law to license or regulate any health service facility or domiciliary service facility."
Sec. 2.  Sections 3 and 5 of Chapter 758 and Section 45 of Chapter 1024 of the 1989 Session Laws are repealed.
Sec. 3.  G.S. 58-71-90 reads as rewritten:
"§ 58-71-90.  Appeal from denial, suspension, revocation or refusal to renew license.
Any applicant for issuance or renewal of a license as a bail bondsman or runner whose application has been denied or any bail bondsman or runner whose license has been suspended or revoked may appeal the denial, suspension, or revocation pursuant to the provisions of Article 4 of Chapter 150B of the General Statutes."
Sec. 4.  The following sections and their catch lines are amended by substituting "Commissioner" for "Commissioner of Insurance" and by substituting "Department" for "Department of Insurance" wherever those words appear:  G.S. 58-2-10, 58-2-35, 58-2-115, 58-2-125, 58-2-150, 58-2-185, 58-2-200, 58-3-85, 58-3-90, 58-3-140, 58-5-30, 58-5-60, 58-5-65, 58-5-70, 58-5-75, 58-5-80, 58-5-90, 58-5-95, 58-5-110, 58-6-1, 58-6-5, 58-6-10, 58-6-15, 58-6-20, 58-7-1, 58-7-10, 58-7-35, 58-7-95(q), (r), 58-7-105, 58-7-110, 58-7-115, 58-7-120, 58-7-135, 58-8-5(3), 58-8-45, 58-9-5(2), and (3), 58-9-10, 58-10-1, 58-10-5, 58-11-1, 58-11-5, 58-11-15, 58-11-20, 58-11-25, 58-11-30, 58-12-5, 58-12-10, 58-12-20, 58-14-15, 58-16-15, 58-16-20(b), 58-16-25, 58-16-30, 58-16-35(b)(1), and (2), 58-16-45, 58-18-5, 58-18-10, 58-18-15, 58-18-20, 58-24-45(b) through (e), 58-24-50(b) through (d), 58-24-60, 58-24-65(a), (b) and (e), 58-24-70, 58-24-90(f), 58-24-120(c), and (d), 58-24-125, 58-24-130, 58-24-135, 58-24-140, 58-24-145(a), (b), (c), (e), and (f), 58-24-150(a), 58-24-155, 58-24-170, 58-24-175, 58-24-185(e), 58-25-25, 58-25-30, 58-25-50, 58-26-5, 58-26-10, 58-27-1, 58-27-10, 58-27-15, 58-28-1, 58-28-10, 58-28-15, 58-28-40(b), 58-29-1(a), 58-29-20(a), 58-31-5, 58-31-15, 58-31-20, 58-31-25, 58-31-45, 58-32-1, 58-33-85(a), 58-35-30(b), 58-36-5(a), (b), and (d), 58-37-35(d), and (g)(6), 58-37-40(b), 58-45-5(7), 58-45-50, 58-45-60, 58-45-75, 58-46-20(a), 58-50-10, 58-50-55(b), and (c), 58-50-65(b), 58-50-70, 58-51-1, 58-51-35(b), 58-51-95(a), 58-52-20, 58-58-125, 58-59-5, 58-59-10, 58-59-15, 58-59-20, 58-59-25, and 58-59-30.
Sec. 5.  The following sections and their catch lines are amended by substituting "Commissioner" for "Insurance Commissioner" and by substituting "Department" for "Insurance Department" wherever those words appear:  G.S. 58-2-1, 58-2-35, 58-3-65, 58-3-150(a), 58-18-5, 58-29-20(b), and 58-35-95.
Sec. 6.  G.S. 58-37-1(2), 58-37-70, 58-38-15(2), 58-38-35(b), 58-40-5(2), 58-45-5(3), 58-47-5(2), 58-48-20(3), 58-57-5(1), and 58-63-5(1) are repealed.
Sec. 7.  G.S. 58-3-145 is amended by substituting "section" for "Article".
Sec. 8.  G.S. 58-64-35(e), as contained in Section 6 of Chapter 196 of the 1991 Session Laws, is amended by substituting "subdivision (a)(2) of this section "for "G.S. 58-64-35(a)(2)(i)".
Sec. 9.  G.S. 58-7-130 is amended by substituting "G.S. 58-7-125"for "the preceding section".
Sec. 10.  G.S. 58-8-20 is amended by substituting "Chapter" for "Subchapter".
Sec. 11.  G.S. 58-9-5(4) is amended by substituting "55-13-1 to 55-13-3, 55-13-20 to 55-13-26, 55-13-28, 55-13-30, and 55-13-31"for "55-113(d), (e), (f), (g) and (h)".
Sec. 12.  G.S. 58-9-10 is amended by substituting "55-1-20, 55-1-23, and 55-1-25"for "55-4".
Sec. 13.  G.S. 58-11-15 is amended by substituting "G.S. 58-11-10"for "the foregoing section".
Sec. 14.  G.S. 58-12-1 is amended by substituting "Article 7 of this Chapter" for "the preceding Article".
Sec. 15.  G.S. 58-15-5(3) is amended by substituting "58-1-5(9)"for "58-1-5(7)".
Sec. 16.  G.S. 58-16-15 is amended by substituting "Article 5"for "Article 4".
Sec. 17.  G.S. 58-19-15(g) is amended before "amount" by substituting "an" for "a".
Sec. 18.  G.S. 58-19-30(b)(3) is amended before "insurer's" by substituting "the" for "the the".
Sec. 19.  G.S. 58-24-125(a), 58-58-50(c), and 58-58-55(e) are amended by substituting "NAIC" for "National Association of Insurance Commissioners".
Sec. 20.  G.S. 58-24-140(c) is amended by substituting "58-24-170"for "Section 35".
Sec. 21.  G.S. 58-24-175 is amended by substituting "G.S. 58-2-75"for "the APA".
Sec. 22.  G.S. 58-33-130(b) is amended by substituting "limited representatives" for "limited field representatives".
Sec. 23.  G.S. 58-30-175(9) is amended by substituting "67"for "64".
Sec. 24.  G.S. 58-46-10(a) is amended by substituting "105-278.1 through 105-278.8"for "105-296 and 105-297".
Sec. 25.  G.S. 58-45-35(d) is amended by substituting "33"for "45".
Sec. 26.  G.S. 58-46-40 is amended by substituting "this Chapter" for "Chapter 58".
Sec. 27.  G.S. 58-48-60(b) is amended by substituting "an NAIC" for "a National Association of Insurance Commissioners".
Sec. 28.  G.S. 58-50-1 is amended by substituting "Articles 50 through 55 of this Chapter" for "this Subchapter".
Sec. 29.  G.S. 58-50-5(c), 58-50-15, and 58-50-30 are amended by substituting "Articles 50 through 55"for "Articles 47 and 49 through 53".
Sec. 30.  G.S. 58-57-20 is amended by substituting "58-57-50"for "58-351".
Sec. 31.  G.S. 58-58-55(d) is amended before "least" by substituting "at" for "a".
Sec. 32.  G.S. 58-58-125 is amended by substituting "143B-472 through 143B-472.28"for "58-224 to 58-241".
Sec. 33.  G.S. 58-63-50 is amended by substituting "the Superior Court of" for "a court of competent jurisdiction in".
Sec. 34.  G.S. 58-51-85 is amended between "policy" and "group" by substituting "of" for "or".
Sec. 35.  G.S. 58-51-15(e) and (g) are amended by substituting "Articles 50 through 55 of this Chapter" for "this Subchapter".
Sec. 36.  G.S. 58-67-50(e) is amended by substituting "America" for "American".
Sec. 37.  G.S. 58-50-25 and G.S. 58-65-35 are amended by substituting "90-171.23"for "90-162".
Sec. 38.  G.S. 58-65-60(e)(4) and G.S. 58-67-85(e) are amended by substituting "corporation under Articles 1 through 67 of this Chapter" for "Chapter 58, Articles 1 through 67 corporation".
Sec. 39.  G.S. 58-64-1(6) is amended before "life care" by substituting "or" for "of".
Sec. 40.  G.S. 58-67-5(e) is amended before "hospitalization" by substituting "or" for "of".
Sec. 41.  G.S. 58-67-10(d)(1) and G.S. 58-71-50(6) are amended by substituting "this Article" for " this Chapter".
Sec. 42.  G.S. 58-38-35(a)(2), 58-50-65, and 58-50-70 are amended by substituting "Articles 50 through 55"for "Articles 47 and 50 through 54".
Sec. 43.  G.S. 58-21-100(a) is amended by substituting "58-16-30"for "58-16-35".
Sec. 44.  G.S. 58-55-25 is amended by substituting "d" for "(d)".
Sec. 45.  G.S. 58-24-185(a)(4) and G.S. 58-55-30(b)(2) are amended by substituting "; or" or the period.
Sec. 46.  G.S. 58-68-10(b)(11) is amended by substituting "than" for "that".
Sec. 47.  G.S. 58-78-1(a)(1) is amended by substituting "Firemen's" for "Fireman's".
Sec. 48.  G.S. 58-86-55 is amended by substituting "58-86-30"for "58-36-30".
Sec. 49.  G.S. 14-399(d) is amended by substituting "58-36-65"for "58-30.4".
Sec. 50.  G.S. 58-2-115 is amended before "Department" by deleting "State Insurance".
Sec. 51.  G.S. 58-3-150(a) is amended after "Commissioner" by deleting "of Insurance of North Carolina".
Sec. 52.  G.S. 58-5-100 is amended after "Commissioner" by deleting "of Insurance in this State".
Sec. 53.  G.S. 58-7-35 is amended after "Commissioner" by deleting "of Insurance of the State".
Sec. 54.  G.S. 58-14-15 is amended before "Commissioner" y deleting "North Carolina".
Sec. 55.  G.S. 58-24-185(3) is amended at the end by deleting "or".
Sec. 56.  G.S. 58-28-15 is amended after "G.S. 58-16-35"by deleting ", known as the 'Unauthorized Insurers Process Act',".
Sec. 57.  G.S. 58-29-20(a) is amended after "58-29-10"by deleting "hereof".
Sec. 58.  G.S. 58-45-25 is amended after "G.S. 58-45-10"by deleting "of this Article".
Sec. 59.  G.S. 58-45-30 is amended after "G.S. 58-45-1"by deleting "of this Article".
Sec. 60.  G.S. 58-52-25 is amended by deleting "North Carolina Insurance".
Sec. 61.  G.S. 58-58-65 is amended by deleting "of Insurance in this State".
Sec. 62.  G.S. 58-63-20 is amended by deleting "of this Article".
Sec. 63.  G.S. 58-63-50 is amended by deleting "pursuant to G.S. 58-2-70".
Sec. 64.  G.S. 58-51-50(d)(2) and (3), 58-65-75(d)(2) and (3), and 58-67-70(d)(2) and (3) are amended by deleting "[or]".
Sec. 65.  G.S. 20-310(g) reads as rewritten:
"(g)	Nothing in this section shall apply:
(1)	If the insurer has manifested its willingness to renew by issuing or offering to issue a renewal policy, certificate or other evidence of renewal, or has manifested such intention by any other means, including the mailing by first-class mail of a premium notice or expiration notice, and the insured has failed to pay the required premium prior to the premium due date;
(2)	If the named insured has notified in writing the insurer or its agent that he wishes the policy to be canceled or that he does not wish the policy to be renewed.
	."
Sec. 66.  G.S. 58-11-1 is amended by deleting "under this department".
Sec. 67.  G.S. 58-3-25(c) is amended in the second sentence immediately after "of G.S." by inserting "58-3-120, 58-33-80, 58-58-35, and".
Sec. 68.  G.S. 58-30-215(a) is amended before "the Court" by inserting "as".
Sec. 69.  G.S. 58-67-10(b)(1) is amended before "continue" by inserting "to".
Sec. 70.  G.S. 20-310(k) is amended by substituting "subsection (f)"for "subsection (e)".
Sec. 71.  G.S. 58-3-95 is repealed.
Sec. 72.  G.S. 58-52-5 is amended by deleting the last sentence.
Sec. 73.  G.S. 58-39-95(a) is amended by deleting "knowing" and by rewriting the remainder of the subsection after "may" to read:  "levy a civil penalty under G.S. 58-2-70."
Sec. 74.  Section 1 of Chapter 846 of the 1981 Session Laws is amended in G.S. 58-390(a) by substituting "from an individual" for "form an individual".
Sec. 75.  G.S. 58-33-25(dl) reads as rewritten:
"(dl)	A life, accident and health insurance license shall authorize an agent to sell variable contracts, provided that the licensee satisfies the Commissioner that he has met the NASD requirements of the Secretary of State of North Carolina."
Sec. 76.  G.S. 55A-3(a)(3) is amended by substituting "Article 65 of Chapter 58"for "Chapter 57".
Sec. 77.  The last paragraph of G.S. 153A-351(b) is amended by substituting "Article 9C"for "Article 9B".
Sec. 78.  G.S. 130A-148(g) is amended by substituting "Chapter 58 of the General Statutes" for "G.S. Chapter 58".
Sec. 79.  The first paragraph of G.S. 58-65-95 is amended by substituting "corporation subject to this Article" for "hospital service corporation".
Sec. 80.  G.S. 168-10 is amended in the penultimate and final sentences by deleting "Chapter 57 or "and "Chapter 57 and "respectively.
Sec. 81.  G.S. 58-51-55 reads as rewritten:
"§ 58-51-55.  No discrimination against the mentally ill and chemically dependent.
(a)	As used in this section, the term:
(1)	'Mental illness' has the same meaning as defined in G.S. 122C-3(21); and
(2)	'Chemical dependency' has the same meaning as defined in G.S. 58-51-50
with a diagnosis found in the Diagnostic and Statistical Manual of Mental Disorders DSM-3-R or the International Classification of Diseases ICD/9/CM, or a later edition of those manuals.
(b)	No insurance company licensed in this State under the provisions of Articles 1 through 64 of this Chapter shall, solely because an individual to be insured has or had a mental illness or chemical dependency:
(1)	Refuse to issue or deliver to that individual any policy that affords benefits or coverages for any medical treatment or service for physical illness or injury;
(2)	Have a higher premium rate or charge for physical illness or injury coverages or benefits for that individual; or
(3)	Reduce physical illness or injury coverages or benefits for that individual.
(c)	Nothing in this section prevents any insurance company from excluding from coverage any physical illness or injury or mental illness or chemical dependency which has existed previous to coverage of the individual by the insurance company or from refusing to issue or deliver to that individual any policy because of the underwriting of any physical condition whether or not related to mental illness or chemical dependency.
(d)	This section applies only to group health insurance contracts covering 20 or more employees."
Sec. 82.  G.S. 58-65-90 is amended by adding a new subsection to read:
"(d)	This section applies only to group contracts covering 20 or more employees."
Sec. 83.  G.S. 58-67-75 is amended by adding a new subsection to read:
"(d)	This section applies only to group contracts covering 20 or more employees."
Sec. 84.  G.S. 58-55-15 reads as rewritten:
"§ 58-55-15.  Scope.
This Article applies to long-term care insurance policies in this State.  This Article does not supersede the obligations of any person subject to its provisions to comply with other applicable laws and rules if those laws and rules do not conflict with this Article.  The laws and rules established to govern Medicare supplement insurance policies shall not apply to long-term care insurance.  A policy that is not advertised, marketed, or offered as long-term care insurance or nursing home insurance is not subject to this Article."
Sec. 85.  Section 7 of Chapter 207 of the 1989 Session Laws reads as rewritten:
"Sec. 7.  This act applies to all long-term care insurance policies, as defined in 	58-55-20(4) and (5), that are delivered or issued for delivery in this State on and after the effective date of this act."
Sec. 86.  G.S. 58-55-30(d) and (d1) are each amended by substituting "Except as provided in G.S. 58-55-5,"for "Effective October 1, 1989,".
Sec. 87.  G.S. 58-11-20 is amended in the last sentence by substituting "six adjacent counties" for "three adjacent counties".
Sec. 88.  Chapter 775 of the 1989 Session Laws is amended by renumbering "Sec. 6."as "Sec. 7."and by adding a new Section 6 to read:
"Sec. 6.  This act does not apply to noncancelable disability insurance as defined in G.S. 58-7-15(3)b."
Sec. 89.  Section 7 of Chapter 196 of the 1991 Session Laws reads as rewritten:
"Sec. 7.  G.S. 58-64-20(a)(12), as amended by Section 3 of this act, and Section 5 of this act become effective March 1, 1992.  The remainder of this act is effective upon ratification."
Sec. 90.  G.S. 58-36-75(c) is amended in the table by rewriting the reference to "20-141(a)"as follows:
"20-141(a)	Only driving at least 11 miles per hour over the posted speed limit)"
Sec. 91.  G.S. 58-57-40(h) reads as rewritten:
"(h)	In addition to the premium rate authorized, a charge may also be made for a nonrefundable origination fee per credit life insurance transaction as set forth below:
Insured Indebtedness	Fee Permitted
less than $250.00	none
$250.00 or more but 	$1.00
less than $500.00
	$500.00 or more	$2.00
No third or subsequent origination fee may be charged in connection with a third or subsequent refinancing within any twelve-month period."
Sec. 92.  G.S. 58-3-165(k), as enacted by Senate Bill 342 of the 1991 General Assembly, is amended by inserting the following language between "this section," and "the receiver":  "and the insurer suffered any loss or damage therefrom,".
Sec. 93.  G.S. 58-62-21(d)(2), as enacted by Senate Bill 342 of the 1991 General Assembly, is amended by substituting "benefits," for "benefit,".
Sec. 94.  G.S. 58-62-36(e), as enacted by Senate Bill 342 of the 1991 General Assembly, is amended by inserting the following language immediately after "subdivision (b)(2) or (d)(4)":  "of this section".
Sec. 95.  Section 90 of this act becomes effective January 1, 1992, and applies to offenses occurring on or after that date.  The remainder of this act is effective upon ratification.
In the General Assembly read three times and ratified this the 16th day of July, 1991.

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James C. Gardner
President of the Senate

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Daniel Blue, Jr.
Speaker of the House of Representatives