NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 1135

SENATE BILL 440

 

 

AN ACT TO AMEND G.S. 20-310, RELATING TO THE TERMINATION OF MOTOR VEHICLE INSURANCE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 20-310, as the same appears in the 1963 Cumulative Supplement to Recompiled Volume 1C of the General Statutes, is hereby amended by adding at the end thereof a new paragraph to read as follows:

"(c)       No contract of insurance which has been in effect for sixty days shall be terminated by failure to renew by the insurer unless:

"(1)      The insurer gives the named insured notice in writing, accompanying the written notice of failure to renew provided for in subsection (a) of G.S. 20-310, at least fifteen days prior to the proposed date of termination or failure to renew:

"(A)      That it proposes to terminate or fail to renew the insurance contract upon such date; and

"(B)      That, upon receipt of a written request from the named insured, it will forthwith mail to the named insured a written explanation of its actual reason or reasons for terminating or failing to renew; and

"(C)      That the named insured, within five days after receipt of such notice, may at his option, request the insurer to furnish such written explanation; and

"(2)      That, if the named insured exercises his option, the insurer shall forthwith, but, in any event, prior to the proposed termination or failure to renew, mail to the named insured a written explanation, giving the actual reason or reasons for its failure to renew the contract.

      Such explanation shall be privileged, and shall not constitute grounds for any cause of action against the insurer or its representatives or any firm, person or corporation who in good faith furnishes to the insurer the information upon which the reasons are based. The provisions of this subsection shall not apply to policies of liability insurance issued under the Assigned Risk Plan."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect from and after July 1, 1965.

In the General Assembly read three times and ratified, this the 17th day of June, 1965.