GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 341
HOUSE BILL 1121

AN ACT TO AUTHORIZE THE COMMISSIONER OF INSURANCE TO ADOPT RULES GOVERNING MORTGAGE INSURANCE CONSOLIDATIONS.

The General Assembly of North Carolina enacts:

Section 1.  Article 2 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-30.7.  Rules for mortgage insurance consolidations.
The Commissioner is authorized to adopt rules governing mortgage insurance consolidations and related rules concerning unfair rate discrimination.  In the event the Commissioner adopts such rules, while such rules are in effect the unfair rate discrimination provisions of G.S. 58-198 and G.S. 58-54.4(7) will not apply to mortgage insurance consolidations to the extent those provisions are inconsistent with such rules.  For purposes of this section, 'mortgage insurance consolidation' means any transaction in which a mortgage loan servicer makes its premium collection services available to mortgage debtors in connection with an insurer's offer of mortgage insurance, which offer is made to debtors who, immediately prior to the offer, had mortgage insurance with another insurer and were paying premiums for that insurance with their monthly mortgage payments."
Sec. 2.  This act is effective upon ratification.
In the General Assembly read three times and ratified this the 15th day of June, 1989.