Session Law 2018-120 (HB 382) Summary

• Incorporates NAIC model language into North Carolina's Life and Health Insurance Guaranty Association Act, expanding definitions and coverage scope to include annuities, health maintenance organizations, and supplemental contracts with updated assessment and subrogation procedures.

• Amends the Surplus Lines Act to establish nonadmitted domestic surplus lines insurers (domestic insurers with $15 million capital and surplus) authorized to write surplus lines insurance in North Carolina while remaining exempt from certain insurance regulations.

• Revises consent to rate laws for automobile physical damage and homeowners residential property insurance to require clear written notice on policy declarations rather than signed consent forms, and mandates semi-annual data reporting to the Commissioner.

• Makes technical corrections to various insurance laws including adjustments to Federal Home Loan Bank collateral treatment, mortgage loan-to-value requirements, nonresident agent licensing, portable electronics insurance notices, and preferred provider definitions.

• Amends captive insurance and bail bond forfeiture provisions, including changes to organizational audit procedures and expanding grounds for setting aside bail bond forfeitures.