NC S270

Insurers and agents must verify applicant residency and eligible risk status within 25 days of coverage binding using reliable proof such as utility bills, property tax receipts, or other documentation, with option to accept electronic versions of these documents.

Certificates of insurance may now include electronically submitted or created documents and must be prepared exclusively by insurance companies or licensed producers.

Certificates of insurance do not amend, extend, or alter policy coverage and do not confer additional rights beyond what the referenced policy expressly provides.

Any person not regulated under Chapter 58 who knowingly prepares, issues, requests, or requires a fraudulent certificate of insurance containing false information or purporting to alter coverage is subject to a civil penalty of up to $5,000, with proceeds going to the Civil Penalty and Forfeiture Fund.

Act becomes effective January 1, 2022.