NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 908

SENATE BILL 511

 

 

AN ACT TO PROVIDE FOR PROMPT CERTIFICATION OF INSURANCE COVERAGE BY INSURANCE COMPANIES.

 

WHEREAS, the laws of North Carolina require owners and operators of motor vehicles titled or registered in North Carolina to maintain proof of financial responsibility; and

WHEREAS, when requested by the North Carolina Department of Motor Vehicles to establish proof of financial responsibility an owner who fails to do so within a limited period of time may have his license tag revoked; and

WHEREAS, certification by an insurance carrier that said motor vehicle was covered by a policy of liability insurance which was in full force and effect on the day in question is proof accepted by the Department of Motor Vehicles; and

WHEREAS, the prompt certification by insurance carriers to the North Carolina Department of Motor Vehicles upon proper request by the insured can avoid embarrassment, inconvenience and minimize financial loss to insureds who have coverage in force: Now, therefore,

 

The General Assembly of North Carolina do enact:

 

Section 1.  Upon the receipt by an insurance company at its Home Office of a registered letter from an insured requesting that it certify to the North Carolina Department of Motor Vehicles whether or not a previously issued policy of automobile liability insurance was in full force and effect on a designated day, it shall be the duty of such insurance company to forward such certification within seven days.

Sec. 2.  If any insurance company shall without good cause fail to forward said certification within seven days after its receipt of such registered letter, the North Carolina Commissioner of Insurance shall be authorized in his discretion to impose a civil penalty upon said company in the amount of two hundred dollars ($200.00) for such violation.

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  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective July 1, 1967.

In the General Assembly read three times and ratified, this the 23rd day of June, 1967.