A BILL TO BE ENTITLED
AN ACT to prohibit insurance companies from using customer inquiries to terminate a policy, to refuse to issue or renew a policy, or to subject a policy to consent to rate.
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:
"§ 58‑36‑115. Prohibitions on using inquiries to terminate a policy, refuse to issue or renew a policy, or to subject a policy to consent to rate.
(a)	Insurers writing residential real property insurance subject to this Article shall not use an inquiry of a policyholder that does not result in a claim to terminate an existing policy or any coverage under an existing policy, to refuse to write a policy, to refuse to renew a policy, or to subject a policy to consent to rate as specified in G.S. 58‑36‑30(b). Any termination attempted or made that is not in compliance with this section is not effective.
(b)	For the purposes of this section, an inquiry by a policyholder about the provisions of a property insurance contract is not a claim, unless the policyholder or a third party files a claim or reports a loss, incident, or accident covered under the contract.
(c)	Nothing in this section shall preclude an insurer from acting in response to a substantial increase in the risk assumed by and unknown to the insurer since the policy was issued."
SECTION 2.  This act becomes effective October 1, 2004, and applies to policies issued or renewed on or after that date.