GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1020

Short Title:  Insurance Settlements.	(Public)

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Sponsors: Representative Hardy.

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Referred to:  Insurance.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO CHANGE THE PROCEDURES FOR SETTLEMENT OF PERSONAL AUTOMOBILE AND COMMERCIAL LIABILITY INSURANCE CLAIMS.
The General Assembly of North Carolina enacts:
Section 1.  Article 36 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-36-66.  Motor vehicle liability claim settlements.
Every policy of motor vehicle liability insurance subject to this Article shall provide that there shall be no facility recoupment surcharge under G.S. 58-37-40(f)	or Safe Driver Incentive Plan surcharges under G.S. 58-36-65 if:
(1)	A motor vehicle liability insurer settles a motor vehicle accident claim against its insured;
(2)	The insured denies that the insured was at fault in the accident; and
(3)	The insured is not convicted of a moving traffic violation in connection with the accident."
Section 2.  Article 41 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-41-60. Liability insurance claim settlements.
Every policy of liability insurance subject to this Article shall provide that there shall be no settlement by an insurer of a claim against its insured for more than twice the amount of the policy deductible or retention amount for which the insured is obligated to pay without the insurer first obtaining the written consent of the insured."
Section 3.  This act becomes effective October 1, 1997, and applies to policies issued or renewed on and after that date.