NORTH CAROLINA GENERAL ASSEMBLY

1977 SESSION

 

 

CHAPTER 868

HOUSE BILL 1276

 

AN ACT TO AMEND G.S. 58-40.2 TO INCLUDE INSURERS AND LICENSED AGENTS WITHIN COVERAGE OF INSURANCE BROKERS BOND.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Subsection (a) of G.S. 58-40.2 is hereby amended by rewriting this subsection to read as follows:

"(a)       Every applicant for a resident broker's license or for the renewal thereof shall file with the application and shall thereafter maintain in force while so licensed a bond in favor of the State of North Carolina for the use of aggrieved parties, executed by an authorized corporate surety approved by the Commissioner, in the amount of five thousand dollars ($5,000). The bond may be continuous in form, and total aggregate liability on the bond may be limited to the payment of ten thousand dollars ($10,000). The bond shall be conditioned on the accounting by the broker (1) to any person requesting the broker to obtain insurance for moneys or premiums collected in connection therewith, (2) to any licensed insurer or agent who provides coverage for such person with respect to any such moneys or premiums, and (3) to any association of insurers under any plan or plans for the placement of insurance under the laws of North Carolina which afforded coverage for such person with respect to any such moneys or premiums."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 1st day of July, 1977.