NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 601

HOUSE BILL 1112

 

 

AN ACT TO AMEND ARTICLE 18A OF CHAPTER 58 OF THE NORTH CAROLINA GENERAL STATUTES TO PROVIDE THAT ESSENTIAL PROPERTY INSURANCE SHALL INCLUDE VANDALISM AND MALICIOUS MISCHIEF INSURANCE.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 58-173.1 is rewritten to read as follows:

"§ 58-173.1.  Declarations and purpose of Article. — It is hereby declared by the General Assembly of North Carolina that an adequate market for essential property insurance is necessary to the economic welfare of the beach area of the State of North Carolina and that without such insurance the orderly growth and development of the beach area of the State of North Carolina would be severely impeded; that furthermore, adequate insurance upon property in the beach area is necessary to enable homeowners and commercial owners to obtain financing for the purchase and improvement of their property; and that while the need for such insurance is increasing, the market for such insurance is not adequate and is likely to become less adequate in the future; and that the present plans to provide adequate insurance on property in the beach area, while deserving praise, have not been sufficient to meet the needs of this area. It is further declared that the State has an obligation to provide an equitable method whereby every licensed insurer writing essential property insurance in North Carolina is required to meet its public responsiblity instead of shifting the burden to a few willing and public-spirited insurers. It is the purpose of this Article to accept this obligation and to provide a mandatory program to assure an adequate market for essential property insurance in the beach area of North Carolina."

Sec. 2.  G.S. 58-173.2(4) is rewritten to read as follows:

"(4)      'Essential property insurance' means insurance against direct loss to property as defined in the standard statutory fire policy and extended coverage, vandalism and malicious mischief endorsements thereon, as approved by the commissioner;".

Sec. 3.  G.S. 58-173.2(6) is amended by striking the words "fire and extended coverage insurance" and substituting therein the words "essential property insurance";.

Sec. 4.  G.S. 58-173.10 is amended by striking the words "fire or extended coverage" and substituting therein the words "essential property insurance";.

Sec. 5.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 21st day of May, 1979.