NC S116

Creates new requirement under G.S. § 58-41-32 that insurers verify lienholder security interests before paying nonfleet private passenger motor vehicle insurance claims and must name lienholders as co-payees, mailing payment to them.

Amends G.S. 58-39-75 to allow lienholders with perfected security interests to request specific information from insurers in writing or electronically, including insured name, policy status, lienholder listing, and claim denial facts involving fraud or false representations.

Requires lienholders requesting information to agree not to disclose it unless permitted or required by state or federal law.

Directs the Department of Insurance to study and report by December 1, 2017, on rule or legislative changes needed to protect lienholders from losses due to claim denials involving uncovered drivers or insured fraud.

Allows the Department of Insurance to adopt temporary rules for implementation, with the lienholder co-payee requirement effective October 1, 2017, for claims filed on or after that date.