GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 2000-176
The General Assembly of North Carolina enacts:
Section 1. G.S. 58-36-10(3) reads as rewritten:
"(3) In the case of fire
property insurance rates, as are subject to the ratemaking
authority of the Bureau, rates under this Article, consideration may
be given to the experience of such fire property insurance
business during the most recent five-year period for which that experience is
available. In the case of fire property insurance rates that
are subject to the ratemaking authority of the Bureau, under this
Article, consideration shall be given to the insurance public protection
classifications of rural fire districts based upon standards fire districts
established by the Commissioner. To the extent credits are provided for
proximity to fire hydrants, the Bureau may also provide appropriate credits in
public protection classifications for optional water sources, such as ponds,
lakes, or other bodies of water, in accordance with standards and procedures
filed with and approved by the Commissioner. The Commissioner
shall establish and modify from time to time insurance public protection
districts for all rural areas of the State and for cities with populations of
100,000 or fewer, according to the most recent annual population estimates
certified by the State Planning Officer. In establishing and modifying these
districts, the Commissioner shall use standards at least equivalent to those
used by the Insurance Services Office, Inc., or any successor
organization. The standards developed by the Commissioner are subject to
Article 2A of Chapter 150B of the General Statutes. The insurance public
protection classifications established by the Commissioner issued pursuant to
the provisions of this Article shall be subject to appeal as provided in G.S.
58-2-75, et seq. The exceptions stated in G.S. 58-2-75(a) do not apply."
Section 2. G.S. 58-40-25(4) reads as rewritten:
"(4) With respect to
fire insurance, to the extent credits are provided for proximity to fire
hydrants, insurers may also provide appropriate credits in public protection
classifications for optional water sources, such as ponds, lakes, or other
bodies of water, in accordance with standards and procedures filed with and
approved by the Commissioner. In the case of property insurance rates
under this Article, consideration shall be given to the insurance public
protection classifications of fire districts established by the Commissioner.
The Commissioner shall establish and modify from time to time insurance public
protection districts for all rural areas of the State and for cities with
populations of 100,000 or fewer, according to the most recent annual population
estimates certified by the State Planning Officer. In establishing and
modifying these districts, the Commissioner shall use standards at least
equivalent to those used by the Insurance Services Office, Inc., or any
successor organization. The standards developed by the Commissioner are subject
to Article 2A of Chapter 150B of the General Statutes. The insurance
public protection classifications established by the Commissioner issued
pursuant to the provisions of this Article shall be subject to appeal as
provided in G.S. 58-2-75, et seq. The exceptions stated in G.S.
58-2-75(a) do not apply."
Section 3. This act is effective when it becomes law. Any changes to classifications of insurance public protection districts issued by the Commissioner pursuant to this act shall become effective no sooner than 90 days after the standards for public protection district classifications are adopted by the Department and shall apply to insurance policies issued or renewed on or after that date.
In the General Assembly read three times and ratified this the 11th day of July, 2000.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 10:12 a.m. this 2nd day of August, 2000