NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 666

HOUSE BILL 28

 

 

AN ACT TO ABOLISH AGE DISCRIMINATION IN AUTOMOBILE INSURANCE CLASSIFICATIONS AND TO IMPLEMENT CLASSIFICATIONS WHICH ESTABLISH OBJECTIVE STANDARDS FOR RATES.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Article 3 of Chapter 58 of the General Statutes of North Carolina is hereby amended by adding the following new sections thereto to be designated "G.S. 58-30.3" and "G.S. 58-30.4" respectively, and reading as follows:

"§ 58-30.3.  Discriminatory practices prohibited. — No insurer shall after September 1, 1975, base any standard or rating plan for private passenger automobiles or motorcycles, in whole or in part, directly or indirectly, upon the age or sex of the persons insured.

"§ 58-30.4.  Revised classifications and rates. — The North Carolina Automobile Rate Administrative Office shall file with the Commissioner of Insurance for his approval or other action as provided in G.S. 58-248.1 a revised basic classification plan and a revised sub-classification plan for coverages on private passenger (non-fleet) automobiles in this State affected by the provisions of G.S. 58-30.3. Said revised basic classification plan will provide for the following four basic classifications, to wit: (1) Pleasure use only; (2) Pleasure use except for driving to and from work; (3) Business use; and (4) Farm use. The North Carolina Automobile Rate Administrative Office shall file with the Commissioner of Insurance for his approval or other action as provided in G.S. 58-248.1 a revised sub-classification plan with premium surcharges for insureds having less than two years' driving experience as licensed drivers, or having a driving record consisting of a record of a chargeable accident or accidents, or having a driving record consisting of a conviction or convictions for a moving traffic violation or violations, or any combination thereof. Said sub-classification plan shall be designed to provide not less than one fourth of the total premium income of insurers in writing and servicing the aforesaid coverages in this State.

The revised basic classification and sub-classification plans specified in this section shall supersede the existing basic classification and sub-classification plans on the hereinabove specified coverages.

The commissioner is authorized and directed to implement the plans provided for in this section on September 2, 1975."

Sec. 2.  G.S. 58-248.9 is repealed.

Sec. 3.  The Commissioner of Insurance and the North Carolina Automobile Rate Administrative Office shall prepare a comprehensive report assessing the impact and evaluating the success of this act in removing discrimination from automobile insurance classifications. The report shall be delivered to the Chairmen of the House and Senate Committees on Insurance by February 15, 1977.

Sec. 4.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 18th day of June, 1975.