NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 842

SENATE BILL 340

 

 

AN ACT TO AMEND G.S. 20-310 TO LIMIT CANCELLATION OF AUTOMOBILE LIABILITY INSURANCE POLICIES BY INSURANCE COMPANIES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 20-310 as the same appears in the 1961 Cumulative Supplement is hereby amended by adding a new paragraph at the end thereof to read as follows:

"In addition, no contract of insurance which has been in effect for sixty (60) days may be terminated by cancellation by the insurer unless:

(1)        The named insured fails to discharge when due any of his obligations in connection with the payment of premium for the policy or any installment thereof;

(2)        The insured violates any of the terms and conditions of the policy not in conflict with the provisions of this Act;

(3)        The named insured or any other operator who customarily operates an automobile insured under the policy:

a.         Has had his driver's license suspended or revoked during the policy period, for more than thirty (30) days, or

b.         Is convicted of or forfeits bail, during the policy period, for

1.         Any felony;

2.         Theft of a motor vehicle;

3.         A third violation, for any one operator, within a period of eighteen (18) months, of any moving traffic offense."

Sec. 2.  After the aforesaid sixty-day period, a notice of cancellation from the insurer to the insured shall give the statutory reason for which such cancellation is made. Compliance with this Section shall be privileged and shall not constitute grounds for any cause of action against the insurer or its representatives.

Sec. 3.  The provisions of this Act shall not apply to policies of insurance issued under the assigned risk plan, and shall apply only to policies of insurance issued on vehicles rated as private passenger automobiles.

Sec. 4.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 5.  This Act shall become effective September 1, 1963, and shall apply only to policies written or renewed after said effective date.

In the General Assembly read three times and ratified, this the 12th day of June, 1963.