GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 594

Short Title:  Miscellaneous Ins. Changes.	(Public)

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Sponsors: Senator Miller.

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Referred to:  Insurance.

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO CLARIFY THE LAWS ON TITLE INSURANCE RATE MAKING, COMMERCIAL GENERAL LIABILITY POLICY EXTENDED REPORTING, AND INSURANCE FRAUD; TO MAKE A TECHNICAL CORRECTION IN THE LITTERING LAW; AND TO PROVIDE FOR UNIFORM APPLICATION OF NEW LAWS TO HEALTH BENEFIT PLANS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-41-10(a) reads as rewritten:
"(a)	Except as otherwise provided, this Article applies to all kinds of insurance authorized by G.S. 58-7-15(4) through (14) and G.S. 58-7-15(18) through (22), and to all insurance companies licensed by the Commissioner to write those kinds of insurance. This Article does not apply to insurance written under Articles 21, 26, 36, 37, 45 or 46 of this Chapter; insurance written for residential risks in conjunction with insurance written under Article 36 of this Chapter; to marine insurance as defined in G.S. 58-40-15(3); to personal inland marine insurance; to aviation insurance; to policies issued in this State covering risks with multistate locations, except with respect to coverages applicable to locations within this State; to any town or county farmers mutual fire insurance association restricting its operations to not more than six adjacent counties in this State; nor to domestic insurance companies, associations, orders, or fraternal benefit societies doing business in this State on the assessment plan."
Section 2.  G.S. 58-40-140(a) reads as rewritten:
"(a)	Any policy for commercial general liability coverage or professional liability insurance wherein the insurer offers, and the insured elects to purchase, an extended reporting period for claims arising during the expiring policy period must provide:
(1)	That in the event of a cancellation permitted by G.S. 58-41-15 or nonrenewal effective under G.S. 58-41-20, there shall be a 30-day period after the effective date of the cancellation or nonrenewal during which the insured may elect to purchase coverage for the extended reporting period.
(2)	That the limit of liability in the policy aggregate for the extended reporting period shall be one hundred percent (100%) of the expiring policy aggregate that was in effect at the inception of the policy.
(3)	Within 45 days after the mailing or delivery of the written request of the insured, the insurer shall mail or deliver the following loss information covering a three-year period:
a.	Aggregate information on total closed claims, including date and description of occurrence, and any paid losses;
b.	Aggregate information on total open claims, including date and description of occurrence, and amounts of any payments;
c.	Information on notice of any occurrence, including date and description of occurrence."
Section 3.  G.S. 58-2-161(a) reads as rewritten:
"(a)	For the purposes of this section:
(1)	'Insurer' has the same meaning as in G.S. 58-1-5(3) and also includes:
a.	Any hull insurance and protection and indemnity club operating under Article 20 of this Chapter.
b.	Any surplus lines insurer operating under Article 21 of this Chapter.
c.	Any risk retention group or purchasing group operating under Article 22 of this Chapter.
d.	Any local government risk pool operating under Article 23 of this Chapter.
e.	Any risk sharing plan operating under Article 42 of this Chapter.
f.	The North Carolina Insurance Underwriting Association operating under Article 45 of this Chapter.
g.	The North Carolina Joint Insurance Underwriting Association operating under Article 46 of this Chapter.
h.	The North Carolina Insurance Guaranty Association operating under Article 48 of this Chapter.
i.	Any multiple employer welfare arrangement operating under Article 49 of this Chapter.
j.	The North Carolina Life and Health Insurance Guaranty Association operating under Article 62 of this Chapter.
k.	Any service corporation operating under Article 65 of this Chapter.
l.	Any health maintenance organization operating under Article 67 of this Chapter.
m.	The Teachers' and State Employees' Comprehensive Major Medical Plan operating under Chapter 135 of the General Statutes.
n.	Any reinsurer licensed or accredited under this Chapter.
(2)	'Statement' includes any application, notice, statement, proof of loss, bill of lading, receipt for payment, invoice, account, estimate of property damages, bill for services, diagnosis, prescription, hospital or doctor records, X rays, test result, or other evidence of loss, injury, or expense."
Section 4.  G.S. 14-399(f1) reads as rewritten:
"(f1)	If a violation of this section involves the operation of a motor vehicle, upon a finding of guilt, the court shall forward a record of the finding to the Department of Transportation, Division of Motor Vehicles, which shall record a penalty of one point on the violator's drivers license pursuant to the point system established by G.S. 20-16. There shall be no insurance premium surcharge or assessment of points under the classification plan adopted under G.S. 58-36-65 for a finding of guilt under this section."
Section 5.  Article 3 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-3-167.  Applicability of acts of the General Assembly to health benefit plans.
(a)	As used in this section:
(1)	'Health benefit plan' means an accident and health insurance policy or certificate; a nonprofit hospital or medical service corporation contract; a health maintenance organization subscriber contract; a plan provided by a multiple employer welfare arrangement; or a plan provided by another benefit arrangement, to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, or by any waiver of or other exception to that act provided under federal law or regulation. 'Health benefit plan' does not mean any plan implemented or administered by the North Carolina or United States Department of Health and Human Services, or any successor agency, or its representatives.  'Health benefit plan' does not mean any of the following kinds of insurance:
a.	Accident.
b.	Credit.
c.	Disability income.
d.	Long-term or nursing home care.
e.	Medicare supplement.
f.	Specified disease.
g.	Dental or vision.
h.	Coverage issued as a supplement to liability insurance.
i.	Workers' compensation.
j.	Medical payments under automobile or homeowners.
k.	Hospital income or indemnity.
l.	Insurance under which benefits are payable with or without regard to fault and that is statutorily required to be contained in any liability policy or equivalent self-insurance.
(2)	'Insurer' includes an insurance company subject to this Chapter, a service corporation organized under Article 65 of this Chapter, a health maintenance organization organized under Article 67 of this Chapter, and a multiple employer welfare arrangement subject to Article 49 of this Chapter.
(b)	Whenever a law is enacted by the General Assembly that applies to health benefit plans that are delivered, issued for delivery, or renewed on and after a certain date, the renewal of a health benefit plan is presumed to occur on each anniversary of the date on which coverage was first effective on the person or persons covered by the health benefit plan."
Section 6.  This act becomes effective October 1, 1999.