GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1115

Short Title:  Church Insurance Coverage.	(Public)

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Sponsors: Representatives Boyd-McIntyre, Grady (Cosponsors); Adams, Aldridge, Alexander, Baddour, Black, Blue, Bonner, Bowie, Braswell, Cansler, Carpenter, Clary, Crawford, Culp, Culpepper, Cunningham, Davis, Dedmon, Dickson, Earle, Easterling, Esposito, Fitch, Fox, Gamble, Gardner, Hackney, Hall, Hardaway, Hensley, Hightower, Hill, Howard, H. Hunter, Hurley, Insko, Jarrell, Jeffus, Kinney, Luebke, McAllister, McCrary, Mercer, Michaux, Miller, Miner, Mitchell, Moore, Morris, Mosley, Nichols, Oldham, Owens, Preston, Reynolds, Russell, Saunders, Sexton, Sherrill, Smith, Starnes, Sutton, Tolson, Wainwright, Warner, Warwick, Watson, Wilkins, Womble, Wright, and Yongue.

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Referred to:  Insurance.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO PROHIBIT THE CANCELLATION OF INSURANCE POLICIES THAT PROVIDE COVERAGE FOR CHURCHES FOR LOSSES RESULTING FROM A FIRE.
The General Assembly of North Carolina enacts:
Section 1.  Article 43 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-43-40.  Cancellation of fire insurance for buildings owned by religious organizations prohibited in certain circumstances.
(a)	An insurer shall not cancel or decline to renew an insurance policy providing coverage for losses resulting from fire for a building owned by a religious organization solely because of:
(1)	A previous occurrence of arson, unless the occurrence of arson was the act of an official of the religious organization that owns the building; or
(2)	An oral or written statement directed to the religious organization or an official of the religious organization and threatening an act of arson against the religious organization.
(b)	As used in this section, ‘religious organization' means any church, ecclesiastical, or denominational organization, or any established physical place for worship in this State at which nonprofit religious services and activities are regularly conducted.
(c)	The Commissioner may revoke, suspend, or refuse to renew the license of any insurer that violates this section pursuant to G.S. 58-3-100."
Section 2.  This act becomes effective October 1, 1997, and applies to insurance policies issued or renewed on or after January 1, 1998.