NORTH CAROLINA GENERAL ASSEMBLY

1981 SESSION

 

 

CHAPTER 569

SENATE BILL 423

 

 

AN ACT TO PROVIDE A LIMIT ON LIABILITY UNDER THE NORTH CAROLINA LIFE AND ACCIDENT AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT.

 

The General Assembly of North Carolina enacts:

 

Section 1. G.S. 58-155.72(10) is amended by changing the period to a comma and by adding:

"but the aggregate liability of the Association shall not exceed three hundred thousand dollars ($300,000) for all benefits, including cash values, with respect to any one individual. The liability of the Association with respect to coverage under any health or disability insurance policy shall not extend beyond the next policy anniversary date after the date on which the insurer becomes an impaired insurer; provided, however, in no event shall the Association be liable for a period of less than 6 months after the date that the insurer becomes an impaired insurer. This 6-month time limitation shall not affect the Association's liability to repay unearned premiums or the Association's liability under the policy provisions with respect to any valid claim occurring prior to the expiration of such time limitation."

Sec. 2. This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 12th day of June, 1981.