NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 675

SENATE BILL 823

 

 

AN ACT TO AUTHORIZE THE ISSUANCE OF UNDERINSURED MOTORIST COVERAGES BY INSURERS AT THE WRITTEN REQUESTS OF INSUREDS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 20-279.21(b) is amended by adding a new subdivision (4) to read:

"(4)      In addition to the coverages set forth in subdivisions (1) through (3) of this subsection, at the written request of the insured, shall provide for underinsured motorist insurance coverage to be used with policies affording uninsured motorist at limits in excess of the limits prescribed by the applicable financial responsibility law pursuant to this section, as required or permitted by the applicable uninsured motorist insurance law, but not exceeding the policy limits for automobile bodily injury liability as specified in the owner's policy. An 'uninsured motor vehicle', as described in subdivision (3) of this subsection, shall include an 'underinsured highway vehicle' which means a highway vehicle with respect to the ownership, maintenance, or use of which, the sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable at the time of the accident is less than the applicable limits of liability under this insurance coverage. For the purposes of this subdivision, the term 'highway vehicle' means a land motor vehicle or trailer other than (i) a farm type tractor or other vehicle designed for use principally off public roads and while not upon public roads, (ii) a vehicle operated on rails or crawler treads, or (iii) a vehicle while located for use as a residence or premises. The insurer shall not be obligated to make any payment because of bodily injury to which this insurance applies and which arises out of the ownership, maintenance, or use of an underinsured highway vehicle until after the limits of liability under all bodily injury liability bonds or insurance policies applicable at the time of the accident have been exhausted by payment of judgments or settlements."

Sec. 2.  This act shall become effective on October 1, 1979.

In the General Assembly read three times and ratified, this the 29th day of May, 1979.