NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 421

SENATE BILL 56

 

 

AN ACT TO PROVIDE FOR ACCEPTANCE OF SERVICE OF PROCESS BY INSURANCE COMMISSIONER AS PROCESS AGENT.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 58-153 as the same appears in the 1965 Replacement Volume 2B is hereby amended by rewriting the same to read as follows:

"§ 58-153.  Service of legal process upon Commissioner of Insurance. — As an alternative to service of legal process under the provisions of Rule 4 of the Rules of Civil Procedure, the service of such process upon any company licensed or admitted and authorized to do business in this State under the provisions of this Chapter may be made by the sheriff delivering and leaving a copy of such process in the office of the Commissioner of Insurance with a deputy duly appointed by the Commissioner for such purpose or acceptance of service of such process may be made by the Commissioner of Insurance or such duly appointed deputy. As a condition precedent to a valid service of process and of the action of the Commissioner in the premises, the party obtaining such service shall pay to the Commissioner of Insurance at the time of service or acceptance of service the sum of one dollar, which such party shall recover as part of the taxable costs if he prevails in his action."

Sec. 2.  G.S. 58-154 as the same appears in the 1965 Replacement Volume 2B is hereby amended by rewriting the same to read as follows:

"§ 58-154.  Commissioner to notify company of service or acceptance of service of process. — When service of legal process is made in the manner provided in G.S. 58-153, the Commissioner of Insurance or his duly appointed deputy shall within two business days thereafter notify the company served of such service or acceptance of service by registered or certified mail directed to its secretary, or its resident manager in the case of a foreign company having no secretary in the United States. Such notification shall be accompanied by a copy of the process served or accepted and any pleading or order accompanying the process. The Commissioner shall keep a record which shall show the day and hour of such service or acceptance of service of process and whether any pleading or order accompanied the process. When service is made under the provisions of G.S. 58-153, the time within which to file a responsive pleading, as provided by Chapter 1A of the General Statutes, shall be deemed extended by ten days."

Sec. 3.  All laws and clauses of laws in conflict with this act are hereby repealed.

Sec. 4.  This act shall be in full force and effect on and after October 1, 1971.

In the General Assembly read three times and ratified, this the 21st day of May, 1971.