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2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-5 - Purposes, contents, and operation of risk sharing plans.

§ 58-42-5. Purposes, contents, and operation of risk sharing plans.
(a) Each plan promulgated or prepared pursuant to G.S. 58-42-1 shall:
(1) Give consideration to:
a. The need for adequate and readily accessible coverage;
b. Optional methods of improving the market affected;
c. The inherent limitations of the insurance mechanism;
d. The need for reasonable underwriting standards; and
e. The requirement of reasonable loss prevention measures;
(2) Establish procedures that will create minimum interference with the voluntary market;
(3) Distribute the obligations imposed by the plan, and any profits or losses experienced by the plan, equitably and efficiently among the participating insurers; and
(4) Establish procedures for applicants and participants to have their grievances reviewed by an impartial body. The filing and processing of a grievance pursuant to this subdivision does not stay the requirement for participation in a plan mandated by G.S. 58-42-10.
(b) Each plan may, on behalf of its participants:
(1) Issue policies of insurance to eligible applicants;
(2) Underwrite, adjust, and pay losses on insurance issued by the plan;
(3) Appoint a service company or companies to perform the functions enumerated in this subsection; and
(4) Obtain reinsurance for any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-10 - Persons required to participate.

§ 58-42-10. Persons required to participate.
(a) Each plan shall require participation:
(1) By all insurers licensed in this State to write the kinds of insurance covered by the specific plan;
(2) By all insurance producers licensed and appointed to represent those insurers for that kind of insurance; and
(3) By every statistical organization that makes rates for that kind of insurance.
(b) The Commissioner shall exclude from each plan any person if participation would impair the solvency of that person. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2005-210, s. 21; 2022-46, s. 14(ddd).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-15 - Voluntary participation.

§ 58-42-15. Voluntary participation.
Each plan may provide for participation by:
(1) Insurers that are not required to participate by G.S. 58-42-10;
(2) Eligible surplus lines insurers as defined in G.S. 58-21-10(3); or
(3) Reinsurers approved by the Commissioner. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-20 - Classification and rates.

§ 58-42-20. Classification and rates.
Each plan shall provide for:
(1) The method of classifying risks;
(2) The making and filing of rates that are not excessive, inadequate, or unfairly discriminatory and that are calculated on an actuarially sound basis and policy forms applicable to the various risks insured by the plan;
(3) The adjusting and processing of claims;
(4) The commission rates to be paid to insurance producers for coverages written by the plan; and
(5) Any other insurance or investment functions that are necessary for the purpose of providing adequate and readily accessible coverage. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2022-46, s. 14(eee).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-25 - Basis for participation.

§ 58-42-25. Basis for participation.
Each plan shall specify the basis for participation by insurers, agents, statistical organizations, and other participants and shall specify the conditions under which risks shall be accepted and underwritten by the plan. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2005-210, s. 22.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-30 - Duty to provide information.

§ 58-42-30. Duty to provide information.
Every participating insurer and insurance producer shall provide to any person seeking the insurance available in each plan, information about the services prescribed in the plan, including full information on the requirements and procedures for obtaining insurance under the plan, whenever the insurance is not readily available in the voluntary market. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2022-46, s. 14(fff).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-35 - Provision of marketing facilities.

§ 58-42-35. Provision of marketing facilities.
If the Commissioner finds that the lack of participating insurers or insurance producers in a geographic area makes the functioning of a plan difficult, he may order that the plan appoint insurance producers on such terms as he designates or that the plan take other appropriate steps to guarantee that service is available. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2022-46, s. 14(ggg).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-40 - Voluntary risk sharing plans.

§ 58-42-40. Voluntary risk sharing plans.
Insurers doing business within this State or reinsurers approved by the Commissioner may prepare voluntary plans that will provide any specific amount or kind of insurance or component thereof for all or any part of this State in which that insurance is not readily available in the voluntary market and in which the public interest requires the availability of the coverage. These plans shall be submitted to the Commissioner and, if approved by him, may be put into operation. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-45 - Article subject to Administrative Procedure Act; legislative oversight of plans.

§ 58-42-45. Article subject to Administrative Procedure Act; legislative oversight of plans.
(a) The provisions of Chapter 150B of the General Statutes shall apply to this Article.
(b) At the same time the Commissioner issues a notice of hearing under G.S. 150B-38, the Commissioner shall provide copies of the notice to the Joint Regulatory Reform Committee, the Joint Legislative Commission on Governmental Operations, and the Joint Legislative Oversight Committee on General Government. The Commissioner shall provide the Committees and Commission with copies of any plan promulgated by or approved by the Commissioner under G.S. 58-42-1(1) or (2). (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1; 2000-140, s. 15; 2011-291, s. 2.5; 2021-180, s. 37.7(b).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 42 - Mandatory or Voluntary Risk Sharing Plans. › § 58-42-50 - Immunity of Commissioner and plan participants.

§ 58-42-50. Immunity of Commissioner and plan participants.
There shall be no liability on the part of, and no cause of action shall arise against the Commissioner, his representatives, or any plan, its participants, or its employee for any good faith action taken by them in the performance of their powers and duties in creating any plan pursuant to this Article. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-1 - Performance of contracts as to devices not prohibited.

§ 58-43-1. Performance of contracts as to devices not prohibited.
Nothing contained in Articles 1 through 64 of this Chapter shall be construed as prohibiting the performance of any contract hereafter made for the introduction or installation of automatic sprinklers or other betterments or improvements for reducing the risk by fire or water on any property located in this State, and containing provisions for obtaining insurance against loss or damage by fire or water, for a specified time at a fixed rate; provided, every policy issued under such contract shall be as provided by law. (1929, c. 145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-5 - Limitation as to amount and term; indemnity contracts for difference in actual value and cost of replacement; functional replacement.

§ 58-43-5. Limitation as to amount and term; indemnity contracts for difference in actual value and cost of replacement; functional replacement.
No insurance company or insurance producer shall knowingly issue any fire insurance policy upon property within this State for an amount which, together with any existing insurance thereon, exceeds the fair value of the property, nor for a longer term than seven years: Provided, any fire insurance company authorized to transact business in this State may, by appropriate riders or endorsements or otherwise, provide insurance indemnifying the insured for the difference between the actual value of the insured property at the time any loss or damage occurs, and the amount actually expended to repair, rebuild or replace on the premises described in the policy, or some other location within the State of North Carolina with new materials of like size, kind and quality, property that has been damaged or destroyed by fire or other perils insured against: Provided further, that the Commissioner may approve forms that permit functional replacement by the insurance company, at the insured's option. Functional replacement means to replace the property with property that performs the same function when replacement with materials of like size, kind, and quality is not possible, necessary, or less costly than obsolete, antique, or custom construction materials and methods. Forms and rating plans may also provide for credits when functional replacement cost coverage is provided. Policies issued in violation of this section are binding upon the company issuing them, but the company is liable for the forfeitures by law prescribed for such violation. (1899, c. 54, ss. 39, 99; 1903, c. 438, s. 10; Rev., s. 4755; C.S., s. 6418; 1949, c. 295, s. 1; 1991, c. 644, s. 5; 2022-46, s. 14(hhh).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-10 - Limit of liability on total loss.

§ 58-43-10. Limit of liability on total loss.
Subject to the provisions of G.S. 58-43-5, when buildings insured against loss by fire and situated within the State are totally destroyed by fire, the company is not liable beyond the actual cash value of the insured property at the time of the loss or damage; and if it appears that the insured has paid a premium on a sum in excess of the actual value, he shall be reimbursed the proportionate excess of premium paid on the difference between the amount named in the policy and the ascertained values, with interest at six per centum (6%) per annum from the date of issue. (1899, c. 54, s. 40; Rev., s. 4756; C.S., s. 6419; 1949, c. 295, s. 2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-15 - Policies for the benefit of mortgagees.

§ 58-43-15. Policies for the benefit of mortgagees.
Where by an agreement with the insured, or by the terms of a fire insurance policy taken out by a mortgagor, the whole or any part of the loss thereon is payable to a mortgagee of the property for his benefit, the company shall, upon satisfactory proof of the rights and title of the parties, in accordance with such terms or agreement, pay all mortgagees protected by such policy in the order of their priority of claim, as their claims appear, not beyond the amount for which the company is liable, and such payments are, to the extent thereof, payment and satisfaction of the liabilities of the company under the policy. Any payment due by the insuring company to mortgagees or loss payees under the terms of the policy shall be made within 90 days of the loss or within 60 days of the filing of proof of loss, whichever is the longer period; provided, the payment of or settlement of the claim of the mortgagee or loss payee under the policy shall in no way constitute an admission of liability as to the insured and the fact of such payment or settlement shall be inadmissible in any action at law. (1899, c. 54, s. 41; Rev., s. 4757; C.S., s. 6420; 1969, c. 1077, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-25 - Limitation of fire insurance risks.

§ 58-43-25. Limitation of fire insurance risks.
No insurer authorized to do in this State the business of fire insurance shall expose itself to any loss on any one fire risk, whether located in this State or elsewhere, in an amount exceeding ten percent (10%) of its surplus to policyholders, except that in the case of risks adequately protected by automatic sprinklers or risks principally of noncombustible construction and occupancy such insurer may expose itself to any loss on any one risk in an amount not exceeding twenty-five percent (25%) of the sum of (i) its unearned premium reserve and (ii) its surplus to policyholders. Any risk or portion of any risk which shall have been reinsured shall be deducted in determining the limitation of risk prescribed in this section. (1945, c. 378.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-30 - Agreements restricting insurance producer's commission; penalty.

§ 58-43-30. Agreements restricting insurance producer's commission; penalty.
It is unlawful for any insurance company doing the business of insurance as defined in subdivisions (3) to (22), inclusive, of G.S. 58-7-15 and employing an insurance producer representing another such company, either directly or through any organization or association, to enter into, make or maintain any stipulation or agreement in anywise limiting the compensation such insurance producer may receive from any such other company or forbidding or prohibiting reinsurance of the risks of any such domestic company in whole or in part by any other company holding membership in or cooperating with such organization or association. The penalty for any violation of this section shall be a fine of not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), and the forfeiture of license to do business in this State for a period of 12 months following conviction. (1905, c. 424; Rev., ss. 3491, 4768; 1915, c. 166, ss. 2, 3; C.S., s. 6432; 1945, c. 458; 1985, c. 666, s. 26; 2022-46, s. 14(iii).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 43 - General Regulations of Business Fire Insurance. › § 58-43-35 - Punishment for issuing fire policies contrary to law.

§ 58-43-35. Punishment for issuing fire policies contrary to law.
Any insurance company or insurance producer who makes, issues, or delivers a policy of fire insurance in willful violation of the provisions of Articles 1 through 64 of this Chapter that prohibit a domestic insurance company from issuing policies before obtaining a license from the Commissioner; or that prohibit the issuing of a fire insurance policy for more than the fair value of the property or for a longer term than seven years; or that prohibit stipulations in insurance contracts restricting the jurisdiction of courts, or limiting the time within which an action may be brought to less than one year after the cause of action accrues or to less than six months after a nonsuit by the plaintiff, shall be guilty of a Class 3 misdemeanor and shall, upon conviction, be punished only by a fine of not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000); but the policy shall be binding upon the company issuing it. (1899, c. 54, s. 99; 1903, c. 438, s. 10; Rev., s. 4832; C.S., s. 6433; 1985, c. 666, s. 27; 1993, c. 539, s. 466; 1994, Ex. Sess., c. 24, s. 14(c); 1999-132, s. 9.2; 2022-46, s. 14(jjj).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-1 - Terms and conditions must be set out in policy.

§ 58-44-1. Terms and conditions must be set out in policy.
In all insurance against loss by fire the conditions of insurance must be stated in full, and the rules and bylaws of the company are not a warranty or a part of the contract, except as incorporated in full into the policy. (1899, c. 54, s. 42; Rev., s. 4758; C.S., s. 6434; 2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-5 - Items to be expressed in policies.

§ 58-44-5. Items to be expressed in policies.
Upon request there shall be printed, stamped, or written on each fire policy issued in this State the basis rate, deficiency charge, the credit for improvements, and the rate at which written, and whenever a rate is made or changed on any property situated in this State upon request a full statement thereof showing in detail the basis rate, deficiency charges and credits, as well as rate proposed to be made, shall be delivered to the owner or his representative having the insurance on the property in charge, by the company, association, their agent or representative. (1915, c. 109, s. 3; C.S., s. 6435; 1925, c. 70, s. 3; 1945, c. 378.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-25 - Optional provisions as to loss or damage from nuclear reaction, nuclear radiation or radioactive contamination.

§ 58-44-25. Optional provisions as to loss or damage from nuclear reaction, nuclear radiation or radioactive contamination.
Insurers issuing the standard fire insurance policy pursuant to G.S. 58-44-16, or any permissible variation of that policy, and policies issued pursuant to G.S. 58-44-20 and Article 36 of this Chapter, are authorized to affix to the policy or include in the policy a written statement that the policy does not cover loss or damage caused by nuclear reaction, nuclear radiation, or radioactive contamination, all whether directly or indirectly resulting from an insured peril under the policy; provided, however, that nothing in this section shall be construed to prohibit the attachment to any such policy of an endorsement or endorsements specifically assuming coverage for loss or damage caused by nuclear reaction, nuclear radiation, or radioactive contamination. (1963, c. 1148; 1987, c. 864, s. 7; 2009-171, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-30 - Notice by insured or agent as to increase of hazard, unoccupancy and other insurance.

§ 58-44-30. Notice by insured or agent as to increase of hazard, unoccupancy and other insurance.
If notice in writing signed by the insured, or his agent, is given before loss or damage by any peril insured against under the standard fire insurance policy to the agent of the company of any fact or condition stated in G.S. 58-44-16, it is equivalent to an agreement in writing added to the policy and has the force of the agreement in writing referred to in the standard fire insurance policy with respect to the liability of the company and the waiver; but this notice does not affect the right of the company to cancel the policy as stipulated in the policy. (1899, c. 54, s. 43; Rev., s. 4761; 1907, c. 578, s. 1; 1915, c. 109, s. 11; C.S., s. 6438; 1929, c. 60, s. 1; 1945, c. 378; 2009-171, s. 2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-35 - Judge to select umpire.

§ 58-44-35. Judge to select umpire.
Any resident judge of the superior court of the district in which the property insured is located is designated as the judge of the court of record to select the umpire referred to in the standard form of policy as set forth in G.S. 58-44-16(f)(14). The judge may not select the umpire until all of the following conditions have been met:
(1) Proof of notice to all parties of record has been filed with the court, and at least 15 days have passed since the filing of the proof of notice.
(2) Upon the request of any party of record, the judge has conducted a hearing. The hearing by the judge shall be governed by the practice for hearings in other civil actions before a judge without a jury and shall be limited to the issue of umpire selection. (1945, c. 378; 2013-199, s. 23.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-40 - Effect of failure to give notice of encumbrance.

§ 58-44-40. Effect of failure to give notice of encumbrance.
No policy of insurance issued upon any property shall be held void because of the failure to give notice to the company of a mortgage or deed of trust existing thereon or thereafter placed thereon, except during the life of the mortgage or deed of trust. (1915, c. 109, s. 4; C.S., s. 6440.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-45 - Policy issued to husband or wife on joint property.

§ 58-44-45. Policy issued to husband or wife on joint property.
Any policy of fire insurance issued to husband or wife, on buildings and household furniture owned by the husband and wife, either by entirety, in common, or jointly, either name of one of the parties in interest named as the insured or beneficiary therein, shall be sufficient and the policy shall not be void for failure to disclose the interest of the other, unless it appears that in the procuring of the issuance of such policy, fraudulent means or methods were used by the insured or owner thereof. (1945, c. 378.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-50 - Bar to defense of failure to render timely proof of loss.

§ 58-44-50. Bar to defense of failure to render timely proof of loss.
In any action brought to enforce an insurance policy subject to the provisions of this Article, any party claiming benefit under the policy may reply to the pleading of any other party against whom liability is sought which asserts as a defense, the failure to render timely proof of loss as required by the terms of the policy that such failure was for good cause and that the failure to render timely proof of loss has not substantially harmed the party against whom liability is sought in his ability to defend. The issues raised by such reply shall be determined by the jury if jury trial has been demanded. (1973, c. 1391.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-55 - Farmowners' and other property policies; ice, snow, or sleet damage.

§ 58-44-55. Farmowners' and other property policies; ice, snow, or sleet damage.
Under any policy of farmowners' or other property insurance that insures against all direct loss by fire, lightning, or other perils that may be delivered or issued for delivery in this State with respect to any farm dwellings, appurtenant private structures, barns, or other farm buildings or farm structures located in this State, coverage shall be available for inclusion therein or supplemental thereto to include direct loss caused by weight of ice, snow, or sleet that results in physical damage to such buildings or structures, and shall be offered to all insureds requesting these policies. (1981, c. 550, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-60 - Notice to property insurance policyholder about flood, earthquake, mudslide, mudflow, landslide, and windstorm or hail insurance coverage.

§ 58-44-60. Notice to property insurance policyholder about flood, earthquake, mudslide, mudflow, landslide, and windstorm or hail insurance coverage.
(a) Every insurer that sells residential or commercial property insurance policies that do not provide coverage for the perils of flood, earthquake, mudslide, mudflow, landslide, or windstorm or hail shall, upon the issuance and renewal of each policy, identify to the policyholder which of these perils are not covered under the policy. The insurer shall print the following warning, citing which peril is not covered, in Times New Roman 16-point font or other equivalent font and include it in the policy on a separate page immediately before the declarations page:
"WARNING: THIS PROPERTY INSURANCE POLICY DOES NOT PROTECT YOU AGAINST LOSSES FROM [FLOODS], [EARTHQUAKES], [MUDSLIDES], [MUDFLOWS], [LANDSLIDES], [WINDSTORM OR HAIL]. YOU SHOULD CONTACT YOUR INSURANCE COMPANY OR AGENT TO DISCUSS YOUR OPTIONS FOR OBTAINING COVERAGE FOR THESE LOSSES. THIS IS NOT A COMPLETE LISTING OF ALL OF THE CAUSES OF LOSSES NOT COVERED UNDER YOUR POLICY. YOU SHOULD READ YOUR ENTIRE POLICY TO UNDERSTAND WHAT IS COVERED AND WHAT IS NOT COVERED."
(b) As used in this section, "insurer" includes an entity that sells property insurance under Articles 21, 45, or 46 of this Chapter. (2006-145, s. 2; 2007-300, s. 5; 2012-162, s. 5.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-70 - Purpose and scope.

§ 58-44-70. Purpose and scope.
(a) This Part provides for a nonadversarial alternative dispute resolution procedure for a facilitated claim resolution conference prompted by the critical need for effective, fair, and timely handling of insurance claims arising out of damages to residential property as the result of an event for which there is a state of disaster declared within 60 days of the event. This Part applies only (i) if a state of disaster has been proclaimed for the State or for an area within the State by the Governor or by a resolution of the General Assembly under G.S. 166A-19.21 or (ii) if the President of the United States has issued a major disaster declaration for the State or for an area within the State under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. § 5121, et seq., as amended; and (iii) if the Commissioner issues an order establishing the mediation procedure authorized by this Part.
(b) The procedure authorized by this Part is available to all first-party claimants who have insurance claims resulting from damage to residential property occurring in this State. This Part does not apply to commercial insurance, motor vehicle insurance, or to liability coverage contained in property insurance policies.
(c) The Commissioner may designate a person, either within the Department or outside of the Department, as the Administrator or other functionary to carry out any of the Commissioner's duties under this Part. (2006-145, s. 1; 2007-300, s. 1; 2012-12, s. 2(m); 2013-199, s. 22(d).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-75 - Definitions.

§ 58-44-75. Definitions.
As used in this Part:
(1) Administrator. – The Commissioner or the Commissioner's designee; and the term is used interchangeably with regard to the Commissioner's duties under this Part.
(2) Repealed by Session Laws 2013-199, s. 22(e), effective June 26, 2013.
(3) Disputed claim. – Any matter on which there is a dispute as to the cause of loss or amount of loss, for which the insurer has denied payment, in part or whole, with respect to claims arising from a disaster. Unless the parties agree to mediate a disputed claim involving a lesser amount, a "disputed claim" involves the insured requesting one thousand five hundred dollars ($1,500) or more to settle the dispute, or the difference between the positions of the parties is one thousand five hundred dollars ($1,500) or more. "Disputed claim" does not include a dispute with respect to which the insurer has reported allegations of fraud, based on a referral to the insurer's special investigative unit, to the Commissioner. A disputed claim does not include one in which there has been a denial of coverage for the loss because of exclusions in the policy, terms in the policy, conditions in the policy, or nonexistence of the policy at the time of the loss.
(4) Mediation. – As defined in G.S. 7A-38.1(b)(2).
(5) Mediator. – A neutral person who acts to encourage and facilitate a resolution of a claim.
(6) Party or parties. – The insured and his or her insurer, including a surplus lines insurer and the underwriting associations in Articles 45 and 46 of this Chapter, when applicable. (2006-145, s. 1; 2012-12, s. 2(n); 2013-199, s. 22(e).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-80 - Notification of right to mediate.

§ 58-44-80. Notification of right to mediate.
(a) Insurers shall notify their insureds in this State who have claimed damage to their residential properties as a result of a disaster of their right to mediate disputed claims. This requirement applies to all disputed claims, including instances where checks have been issued by the insurer to the insured.
(b) The insurer shall mail the notice described in subsection (a) of this section to an insured within five days after the time the insured or the Administrator notifies the insurer of a dispute regarding the insured's claim. The following apply:
(1) If the insurer has not been notified of a disputed claim before the time an insurer notifies the insured that a claim has been denied in whole or in part, the insurer shall mail a notice of the right to mediate to the insured in the same mailing as the notice of denial.
(2) The insurer is not required to send a notice of the right to mediate if a claim is denied because the amount of the claim is less than the insured's deductible.
(3) The mailing that contains the notice of the right to mediate shall include any consumer brochure on mediation developed by the Commissioner.
(4) Notification shall be in writing and shall be legible, conspicuous, and printed in at least 12-point type.
(5) The first paragraph of the notice shall contain the following statement: "The General Assembly of North Carolina has enacted a law to facilitate fair and timely handling of residential property insurance claims arising out of disasters. The law gives you the right to attend a mediation conference with your insurer in order to settle any dispute you have with your insurer about your claim. An independent mediator, who has no connection with your insurer, will be in charge of the mediation conference."
(c) The notice shall also:
(1) Include detailed instructions on how the insured is to request mediation, including name, address, and phone and fax numbers for requesting mediation through the Administrator.
(2) Include the insurer's address and phone number for requesting additional information.
(3) State that the Administrator will select the mediator. (2006-145, s. 1; 2007-300, s. 2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-85 - Request for mediation.

§ 58-44-85. Request for mediation.
(a) If an insured requests mediation before receipt of the notice of the right to mediate or if the date of the notice cannot be established, the insurer shall be notified by the Administrator of the existence of the dispute before the Administrator processes the insured's request for mediation. An insured must request mediation within 60 days after the denial of the claim; failure to request mediation within this time period shall only bar the right to demand mediation; it shall not prejudice any other legal right or remedy of the insured nor prohibit the insurer from voluntarily accepting the request for mediation.
(b) If an insurer receives a request for mediation, the insurer shall electronically transmit the request to the Administrator within three business days after receipt of the request. If the Department receives any requests, it shall electronically transmit those requests to the Administrator within three business days after receipt. The Administrator shall notify the insurer within 48 hours after receipt of a request that has been filed with the Department.
(c) In the insured's request for mediation, the insured shall provide the following information, if known:
(1) Name, address, and daytime telephone number of the insured and location of the property if different from the address given.
(2) The claim and policy number for the insured.
(3) A brief description of the nature of the dispute.
(4) The name of the insurer and the name, address, and phone number of the contact person for scheduling mediation.
(5) Information with respect to any other policies of insurance that may provide coverage of the insured property for named perils such as flood, earthquake, or windstorm. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-90 - Mediation fees.

§ 58-44-90. Mediation fees.
(a) The fees of the mediator and of the Administrator as established by the Commissioner shall be borne by the insurer. All other mediation costs, fees, or expenses shall be borne by the party incurring such costs, fees, or expenses unless otherwise provided in a settlement agreement.
(b) The Commissioner may establish fee schedules, through emergency rules, for fees to be paid to the Administrator, the mediator, and for timely and untimely mediation cancellations. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-95 - Scheduling of mediation; qualification of mediator.

§ 58-44-95. Scheduling of mediation; qualification of mediator.
(a) The Administrator shall select a mediator and schedule the mediation conference.
(b) In order to be approved, a mediator must be certified by the Dispute Resolution Commission under G.S. 7A-38.2. (2006-145, s. 1; 2007-300, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-105 - Post mediation.

§ 58-44-105. Post mediation.
(a) Within five days after the conclusion of the conference, the mediator shall file with the Administrator a mediator's status report, on a form prescribed by the Administrator, indicating whether or not the parties reached a settlement.
(b) Mediation is nonbinding unless all the parties specifically agree otherwise in writing.
(c) If the parties reach a settlement, the mediator shall include a copy of the settlement agreement with the status report. Within three business days after the conclusion of the conference, the insurer shall disburse the settlement funds in accordance with the terms of the settlement agreement. The insured has three business days after receipt of the settlement funds within which to notify the Commissioner and the insurer of the insured's decision to rescind the settlement agreement, as long as the insured has not received the settlement funds by electronic means or has not cashed or deposited any check or draft disbursed to the insured in payment of the settlement funds.
(d) If a settlement agreement is reached and is not rescinded, it shall act as a release of all specific claims that were presented in the conference. Any subsequent claim under the policy shall be presented as a separate claim. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-110 - Nonparticipation in mediation program.

§ 58-44-110. Nonparticipation in mediation program.
If the insured decides not to participate in this program or if the parties are unsuccessful at resolving the claim, the insured may choose to proceed under the appraisal process set forth in the insurance policy, by litigation, or by any other dispute resolution procedure available under North Carolina law. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-115 - Commissioner's review.

§ 58-44-115. Commissioner's review.
If the insured rescinds a settlement agreement in accordance with G.S. 58-44-105(c), the Commissioner may review the settlement agreement to determine if the agreement was fair to the parties to the agreement. If the Commissioner, upon review and within 10 business days after receiving notice of the rescission, deems that it was fair to the parties, the insured, upon notice from the Commissioner, may withdraw the rescission within five business days after receipt of notice from the Commissioner and reinstate the settlement agreement as if no rescission had taken place. The Commissioner's review and findings shall not be offered or accepted as evidence in any subsequent proceedings. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44 - Property Insurance Policies. › § 58-44-120 - Relation to Administrative Procedure Act.

§ 58-44-120. Relation to Administrative Procedure Act.
The applicable provisions of Chapter 150B of the General Statutes shall govern issues relating to mediation that are not addressed in this Part. The provisions of this Part shall govern in the event of any conflict with Chapter 150B of the General Statutes. (2006-145, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-1 - Definitions.

§ 58-44A-1. Definitions.
As used in this Article, the following definitions apply:
(1) Customer. – A person who purchases portable electronics or services.
(2) Enrolled customer. – A customer who elects coverage under a portable electronics insurance policy issued to a vendor of portable electronics.
(3) Location. – Any physical location in the State of North Carolina or any Web site, call center site, or similar location directed to residents of the State of North Carolina.
(4) Portable electronics. – Electronic devices that are portable in nature, their accessories, and services related to the use of the device.
(5) Portable electronics insurance. – Insurance providing coverage for the repair or replacement of portable electronics which may provide coverage for portable electronics against any one or more of the following causes of loss: (i) loss, (ii) theft, and (iii) inoperability due to mechanical failure, malfunction, damage, or other similar causes of loss. The term does not include the following:
a. A service contract or extended warranty providing coverage limited to the repair, replacement, or maintenance of property for the operational or structural failure of the property due to a defect in materials, workmanship, accidental damage from handling, power surges, or normal wear and tear.
b. A policy of insurance covering a seller's or a manufacturer's obligations under a warranty.
c. A homeowner's, renter's, private passenger automobile, commercial multiperil, or similar policy.
(6) Portable electronics transaction. – Either of the following:
a. The sale or lease of portable electronics by a vendor to a customer.
b. The sale of a service related to the use of portable electronics by a vendor to a customer.
(7) Supervising entity. – A business entity that is a licensed insurer or insurance producer.
(8) Vendor. – A person in the business of engaging in portable electronics transactions directly or indirectly. (2011-225, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-5 - Licensure of vendors.

§ 58-44A-5. Licensure of vendors.
(a) A vendor is required to hold a limited lines license to sell or offer coverage under a policy of portable electronics insurance.
(b) A limited lines license issued under this section shall authorize any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance to a customer at each location at which the vendor engages in portable electronics transactions.
(c) Notwithstanding any other provision of law, a license issued pursuant to this section shall authorize the licensee and its employees or authorized representatives to engage in those activities that are permitted in this section. (2011-225, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-10 - Requirements for sale of portable electronics insurance.

§ 58-44A-10. Requirements for sale of portable electronics insurance.
(a) At every location where portable electronics insurance is offered to customers, brochures or other written materials shall be made available to a prospective customer. Those materials shall do the following:
(1) Disclose that portable electronics insurance may provide a duplication of coverage already provided by a customer's homeowner's insurance policy, renter's insurance policy, or other source of coverage.
(2) State that the enrollment by the customer in a portable electronics insurance program is not required in order to purchase or lease portable electronics or services.
(3) Summarize the material terms of the insurance coverage, including:
a. The identity of the insurer.
b. The identity of the supervising entity.
c. The amount of any applicable deductible and how it is to be paid.
d. Benefits of the coverage.
e. Key terms and conditions of coverage, such as whether portable electronics may be repaired or replaced with similar make and model reconditioned or nonoriginal manufacturer parts or equipment.
(4) Summarize the process for filing a claim, including a description of how to return portable electronics and the maximum fee applicable in the event the enrolled customer fails to comply with any equipment return requirements.
(5) State that the enrolled customer may cancel enrollment for coverage under a portable electronics insurance policy at any time and the person paying the premium shall receive a refund of any applicable unearned premium.
(b) Portable electronics insurance may be offered on a month-to-month or other periodic basis as a group or master commercial inland marine policy issued to a vendor of portable electronics for its enrolled customers.
(c) Eligibility and underwriting standards for customers electing to enroll in coverage shall be established for each portable electronics insurance program.
(d) The terms of the termination or modification of coverage under a policy of portable electronic insurance offered in compliance with this section shall be as set forth in the policy.
(e) Notices and correspondence may be sent either by mail or by electronic means as set forth in this subsection. The consumer may provide an electronic mail address to the insurer or vendor of portable electronics which shall be considered to be the consumer's consent to receive notices and correspondence by electronic means so long as a disclosure to that effect is provided to the consumer within 30 days following the purchase of the portable electronics insurance. (2011-225, s. 1; 2018-120, s. 4.5.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-15 - Authority of vendors of portable electronics.

§ 58-44A-15. Authority of vendors of portable electronics.
(a) The employees and authorized representatives of vendors may sell or offer portable electronics insurance to customers and shall not be subject to licensure as an insurance producer under this Chapter provided that the following are true:
(1) The vendor obtains a limited lines license to authorize its employees or authorized representatives to sell or offer portable electronics insurance pursuant to this section.
(2) The insurer issuing the portable electronics insurance either directly supervises or appoints a supervising entity to supervise the administration of the program, including development of a training program for employees and authorized representatives of the vendors. The training required by this subdivision shall comply with the following:
a. The training shall be delivered to employees and authorized representatives of a vendor who are directly engaged in the activity of selling or offering portable electronics insurance.
b. The training may be provided in electronic form. If conducted in an electronic form, the supervising entity shall implement a supplemental education program regarding portable electronics insurance that is conducted and overseen by licensed employees of the supervising entity.
c. Each employee and authorized representative shall receive basic instruction about the portable electronics insurance offered to customers and the disclosures required under G.S. 58-44A-10.
(3) No employee or authorized representative of a vendor of portable electronics shall advertise, represent, or otherwise hold himself or herself out as a non-limited lines licensed insurance producer.
(b) The charges for portable electronics insurance coverage may be billed and collected by the vendor of portable electronics. Any charge to the enrolled customer for coverage that is not included in the cost associated with the purchase or lease of portable electronics or related services shall be separately itemized on the enrolled customer's bill. If the portable electronics insurance coverage is included with the purchase or lease of portable electronics or related services, the vendor shall clearly and conspicuously disclose to the enrolled customer that the portable electronics insurance coverage is included with the portable electronics or related services. Vendors billing and collecting such charges shall not be required to maintain such funds in a segregated account, provided that the vendor is authorized by the insurer to hold such funds in an alternative manner and remits such amounts to the supervising entity within 60 days of receipt. All funds received by a vendor from an enrolled customer for the sale of portable electronics insurance shall be considered funds held in trust by the vendor in a fiduciary capacity for the benefit of the insurer. Vendors may receive compensation for billing and collection services in accordance with G.S. 58-33-85. (2011-225, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-20 - Suspension or revocation of license.

§ 58-44A-20. Suspension or revocation of license.
If a vendor of portable electronics or its employee or authorized representative violates any provision of this section, the Commissioner may do any of the following:
(1) Revoke or suspend a limited lines license issued under this Part [Article] in accordance with the provisions of G.S. 58-33-46.
(2) After notice and hearing, impose other penalties, including suspending the transaction of insurance at specific locations where violations of this Article have occurred, as the Commissioner deems necessary and reasonable to carry out the purpose of this Article. (2011-225, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 44A - Portable Electronics Insurance. › § 58-44A-25 - Application for license.

§ 58-44A-25. Application for license.
The prerequisites for issuance of a limited lines license under this Article are the filing with the Commissioner of the following:
(1) A license application, signed by an officer of the applicant, for the limited lines license in such form or forms, and supplements thereto, and containing such information, as the Commissioner may prescribe.
(2) A certificate by the insurer that is to be named in such limited lines license, stating that it has satisfied itself that the named applicant is trustworthy and competent to act as its insurance agent for this limited purpose and that the insurer will appoint such applicant to act as the agent in reference to the kinds of insurance as are permitted by this section, if the limited lines license applied for is issued by the Commissioner. Such certificate shall be subscribed to by an officer or managing agent of such insurer and affirmed as true under the penalties of perjury. (2011-225, s. 1.)