A BILL TO BE ENTITLED
AN ACT to require insurance companies to notify the north carolina motor vehicle reinsurance facility of certain information regarding the insured and the insurance coverage within five days of the binding or policy effective date in order to transfer business to the facility.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 58‑37‑40(e)(2) reads as rewritten:
"(2)	In order to obtain a transfer of business to the Facility effective when the binder or policy or renewal thereof first becomes effective, the company must within five business days of the binding or policy effective date notify the Facility of the identification of the insured, the coverage and limits afforded, classification data, and premium. The Facility shall accept risks at other times on receipt of necessary information, but acceptance shall not be retroactive. The Facility shall accept renewal business after the member on underwriting review elects to again cede the business."
SECTION 2.  This act becomes effective October 1, 2007.