NC H104

Requires insurers to verify with lienholders whether they hold a perfected security interest in a motor vehicle before making claim payments on nonfleet private passenger motor vehicle policies.

Mandates that if a lienholder holds a perfected security interest, the lienholder must be named as co-payee and the claim payment must be mailed to the lienholder.

Permits lienholders to request specific insurance information in writing or electronically, including the insured's name, policy status, and lienholder listing on the policy.

Allows lienholders to receive information about claim denials based on fraud or false representations by the insured, to the extent permitted by federal law.

Requires the Department of Insurance to study and report by December 1, 2017, on ways to protect lienholders from losses due to claim denials based on unauthorized drivers or insured fraud, with recommendations for rule or legislative changes.