The coastland times. [volume] (Mnateo [i.e. Manteo], N.C.) 1947-1959, 1957-12-20
FORMATION ON
LIABILITY PLAN
AUTO INSURANCE

Insurance Commissioner. Charles
F. Gold announced this week the
approval of an amended Plan which
had been adopted to provide for
the assignment of motor vehicle
owners to insurance companies
when the owners are not able to
purchase automobile liability insur-
ance on a voluntary basis. The
Commissioner stated that the Plan
was necessary because of the We
hicle Financial Responsibility Act
of 1857, which becomes effective
in January 1, 1858 and requires
every motor vehicle owner to show
proof of financial responsibility at
the time of registration.
In announcing the reasons be-
hind the Plan, the Commissioner
stated that the new Financial Re-
sponsibility Act does not require
motor vehicle owners to purchase
insurance. Proof of financial re-
sponsibility may be shown by the
purchase of a financial security
bond or by posting cash deposit.
However, it was noted that the
majority of motor vehicle owners
would probably use automobile liza
bility insurance to show proof of
financial responsibility. For this
reason, it was necessary to make
the Plan applicable to- all motor
vehicle owners in the State who
could not purchase liability insur-
ance from an insurance company
in the normal course of trade.
The Commissioner stated that
the new assignment plan was made
effective as early as possible so
that individuals who are unable to
obtain automobile liability insur-
ance from a company agent or rep
resentative could make application
for assignment Immediately. It
was thought that it would be help
full in avoiding a last minute rush
for the purchase of liability insur-
ance and license plates if the Plan
could be put into effect as early
as possible. The deadline for pur-
chasing 1868 automobile license
plates is February 18th.
In answer to question regard
ing the cost of insurance obtained
through the Plan, the Commission
er stated that insurance would be
sold at the manual rate. No sur
charge is applied to the rate I'M
less a regular driver of the motor
vehicle has an unsafe driving rec
ord.
In order to obtain insurance
through the Plan, an applicant is
required to submit an application
form to the North Carolina Auto
mobile Assigned Risk Plan office
in Raleigh. All agents and repre-
sentatives of liability insurance
companies have been supplied with
copies of these application forms.
The application form has been
modified and simplified so that it
is no longer necessary for the sig
nature of the applicant to be no.
tarized.
When the application for insur-
ance on a private passenger We
hicle is submitted under the Plan,
it must be accompanied by min
imum deposit of $4,000 or the
amount of the annual premium.
The applicant will then be assigned
to company licensed to write liza
bility insurance in the State, and
he will be allowed thirty days addi-
tional time in which to pay the
balance of the premium if the to-
tai cost is in excess of the deposit
The Commissioner expressed the
belief that most motor vehicle
owners who desired to purchase
liability insurance in order to show
proof of financial responsibility
would be able to obtain their in
surance from a local insurance
company agent or representative
In the event motor vehicle own
er finds it necessary to use the
assignment plan, he will be able
to obtain a liability policy within
/ a few days after submitting the
application and deposit.