NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 432

HOUSE BILL 69

 

 

AN ACT TO AMEND G.S. 58‑251.1 RELATING TO THE TIME LIMIT ON CERTAIN DEFENSES TO LIABILITY UNDER ACCIDENT AND HEALTH INSURANCE POLICIES.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 58‑251.1, as the same appears in the 1960 Replacement Volume of the General Statutes, is hereby amended by rewriting the first paragraph of Subdivision "a" of Subdivision (2) of Subsection (a) thereof, the same being lines 21‑26 of said Section, to read as follows:

"a.        After two years from the date of issue or reinstatement of this policy no misstatements except fraudulent misstatements made by the applicant in the application for such policy shall be used to void the policy or to deny a claim for loss incurred or disability (as defined in the policy) commencing after the expiration of such two‑year period.

      The foregoing policy provisions may be used in its entirety only in Major or Catastrophe Hospitalization policies and Major Medical policies each affording benefits of five thousand dollars ($5,000.00) or more for any one sickness or injury, Disability Income policies affording benefits of one hundred dollars ($100.00) or more per month for not less than 12 months and Franchise policies. Other policies to which this Section applies must delete the words 'except fraudulent misstatements'."

Sec. 2.  This Act shall become effective July 1, 1961.

In the General Assembly read three times and ratified, this the 16th day of May, 1961.