NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 156

HOUSE BILL 219

 

 

AN ACT TO AMEND G.S. 20-279.21 (b) (3) SO AS TO PARTIALLY DEFINE THE TERM "UNINSURED MOTOR VEHICLE" SO AS TO PROVIDE COVERAGE UNDER AN UNINSURED MOTORIST POLICY UPON THE INSOLVENCY OF OTHER INSURERS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 20-279.21 (b) (3) is hereby amended by adding a new unnumbered paragraph at the end of the Section to read as follows:

"Provided under this Section the term 'uninsured motor vehicle' shall include, but not be limited to, an insured motor vehicle where the liability insurer thereof is unable to make payments with respect to the legal liability within the limits specified therein because of insolvency."

Sec. 2.  G.S. 20-279.21 (b) (3) is further amended by adding a new unnumbered paragraph at the end thereof to read as follows:

"An insurer's insolvency protection shall be applicable only to accidents occurring during a policy period in which its insured's uninsured motorist coverage is in effect where the liability insurer of the tort-feasor becomes insolvent within three years after such an accident. Nothing herein shall be construed to prevent any insurer from affording insolvency protection under terms and conditions more favorable to the insured than is provided herein."

Sec. 3.  G.S. 20-279.21 (b) (3) is further amended by adding a new unnumbered paragraph to read as follows:

"In the event of payment to any person under the coverage required by this Section and subject to the terms and conditions of such coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of any settlement for judgment resulting from the exercise of any limits of recovery of such person against any person or organization legally responsible for the bodily injury for which such payment is made, including the proceeds recoverable from the assets of the insolvent insurer."

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 2nd day of April, 1965.