GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 2
HOUSE BILL 240
Committee Substitute Favorable 4/4/13
Short Title: Insurance Technical/Clarifying Changes.-AB |
(Public) |
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Sponsors: |
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Referred to: |
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March 7, 2013
A BILL TO BE ENTITLED
AN ACT to Expand the choices for health insurance in north carolina by exempting health insurance companies from outdated risk exposure requirements; TO REMOVE A PHOTO identification REQUIREMENT FOR NEW DOMESTIC COMPANIES; TO HELP MORTGAGE GUARANTY COMPANIES adjust their capital and surplus requirements; TO revise certain risk-based capital requirements in order to MAINTAIN NORTH CAROLINA'S NAIC ACCREDITATION; TO CLARIFY CONSUMER CHOICE IN HOMEOWNER'S COVERAGE FOR WIND AND HAIL; TO CLARIFY THE CERTIFICATION REQUIREMENTS FOR AN ACTUARY WHO PRESENTS A SCHEDULE OF PREMIUM RATES; TO SHORTEN certain time periods FOR AN EXTERNAL REVIEW by the commissioner of certain insurer determinations; TO EXPAND ACCESS OF COVERAGE TO BUSINESSES WHO NEED BLANKET ACCIDENT AND HEALTH COVERAGE; to make certain conforming changes related to the renaming of the office of managed care patient assistance program as health insurance smart NC; TO AMEND THE DEFINITION OF PRIVATE PASSENGER MOTOR VEHICLE; TO CLARIFY WHEN AN INSURER CAN COMMUNICATE WITH THE INSURED AFTER A PUBLIC ADJUSTER HAS BEEN RETAINED; AND TO CLARIFY WHEN AN AUTOMATIC STAY OF PROOF OF LOSS REQUIREMENTS, PREMIUM AND DEBT DEFERRALS, AND LOSS ADJUSTMENTS ARE TRIGGERED.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58-3-105 reads as rewritten:
"§ 58-3-105. Limitation of risk.
Except as otherwise provided in Articles 1 through 64 of this
Chapter, no insurer doing business in this State shall expose itself to any
loss on any one risk in an amount exceeding ten percent (10%) of its surplus to
policyholders. Any risk or portion of any risk which shall have been reinsured
shall be deducted in determining the limitation of risk prescribed in this
section. This section shall not apply to (i) life insurance insurance,
(ii) accident and health insurance, (iii) or to the insurance of
marine risks, or marine protection and indemnity risks, or (iv) workers'
compensation or employer's liability risks, or to and (v) certificates
of title ortitle, guaranties of title or policies of title
insurance. For the purpose of determining the limitation of risk under any
provision of Articles 1 through 64 of this Chapter, "surplus to
policyholders" shall
(1) Be deemed to include any voluntary reserves, or any part thereof, which are not required by or pursuant to law, and
(2) Be determined from the last sworn statement of such insurer on file with the Commissioner pursuant to law, or by the last report on examination filed by the Commissioner, whichever is more recent at the time of assumption of such risk.
In applying the limitation of risk under any provision of Articles 1 through 64 of this Chapter to alien insurers, such provision shall be deemed to refer to the exposure to risk and to the surplus to policyholders of the United States branch of such alien insurer."
SECTION 2. G.S. 58-7-37(a) reads as rewritten:
"§ 58-7-37. Background of incorporators and proposed management personnel.
(a) Before a
license is issued to a new domestic insurance company, each key person must
furnish the Commissioner a complete set of the applicant's fingerprints and
a recent passport size full-face photograph of the applicant.fingerprints.
The applicant's fingerprints shall be certified by an authorized law
enforcement officer. The fingerprints of every applicant shall be forwarded to
the State Bureau of Investigation for a search of the applicant's criminal
history record file, if any. If warranted, the State Bureau of Investigation
shall forward a set of the fingerprints to the Federal Bureau of Investigation
for a national criminal history record check. An applicant shall pay the cost
of the State and any national criminal history record check of the
applicant."
SECTION 3.(a) G.S. 58-10-125(l) reads as rewritten:
"§ 58-10-125. Policyholders position and capital and surplus requirements.
…
(l) Any
waiver shall be (i) for a specified period of time not to exceed two years and
(ii) subject to any terms and conditions that the Commissioner shall deem best
suited to restoring the mortgage guaranty insurer's minimum policyholders
position required by subsection (a) of this section. Notwithstanding any
other provision in this section, the Commissioner shall not grant a waiver that
would extend beyond July 1, 2015."
SECTION 3.(b) Section 2 of S.L. 2009-254, as rewritten by Section 2 of S.L. 2010-40, reads as rewritten:
"SECTION 2. This act becomes effective July
1, 2009, and expires July 1, 2015.2009."
SECTION 4. G.S. 58-12-11(b)(3) reads as rewritten:
"§ 58-12-11. Company action level event.
…
(b) In the event of a company action level event, the insurer shall prepare and submit to the Commissioner a comprehensive financial plan that:
…
(3) Provides
forecasts of the insurer's financial results in the current year and at least
the four succeeding years (except for health organizations, which must
provide forecasts in the current year and at least the two succeeding years),
both in the absence of proposed corrective actions and giving effect to the
proposed corrective actions, including forecasts of statutory balance
sheets, operating income, net income, capital, or surpluscapital
and surplus, and risk-based capital levels (the forecasts for both new and
renewal business should include separate forecasts for each major line of
business and separately identify each significant income, expense, and benefit
component). For a health organization, the forecasted financial results
shall be for the current year and at least two succeeding years and shall
include statutory balance sheets, operating income, net income, capital and
surplus, and risk-based capital levels."
SECTION 5. G.S. 58-12-35(a) reads as rewritten:
"§ 58-12-35. Confidentiality and prohibition on announcements.
(a) All risk-based
capital reports, to the extent the information therein is not required to be
set forth in a publicly available annual statement schedule, and the risk-based
capital plans, including the results or report of any examination or analysis
of an insurer performed pursuant hereto and any corrective order issued by the
Commissioner pursuant to examination or analysis, with respect to any domestic
insurer or foreign insurer that are filed with the Commissioner constitute
information that shall be kept confidential by the Commissioner. This
information shall not be made public or beand shall not be
subject to subpoena, discovery, or admissible in evidence in any private
civil action, other than by the Commissioner, and then only for the purpose
of enforcement actions taken by the Commissioner under this Article or any
other provision of this Chapter. In order to assist in the performance of
the Commissioner's duties, the Commissioner may share and receive confidential
and privileged risk-based capital information in a manner consistent with that
information shared and received pursuant to G.S. 58-2-132(g) and (h).
Neither the Commissioner nor any person who received documents, materials, or
other information while acting under the authority of the Commissioner shall be
permitted or required to testify in any private civil action concerning any
confidential documents, materials, or information subject to this subsection."
SECTION 6. G.S. 58-30-60(b) reads as rewritten:
"§ 58-30-60. Commissioner's summary orders and supervision proceedings.
…
(b) The Commissioner may consider any or all of the following standards to determine whether the continued operation of any licensed insurer is hazardous to its policyholders, creditors, or the general public:
(1) Adverse findings
reported in financial condition and market conduct examination reports;reports,
audit reports, and actuarial opinions, reports, or summaries;
(2) The NAIC
Insurance Regulatory Information System and its related other
financial analysis solvency tools and reports;
(3) The
ratios of commission expense, general insurance expense, policy benefits, and
reserve increases as to annual premium and net investment income that could
lead to an impairment of capital and surplus;
(4) Whether an
insurer's asset portfolio, when viewed in light of current economic conditions,
is not of sufficient value, liquidity, or diversity to assure the insurer's
ability to meet its outstanding obligations as they mature;Whether the
insurer has made adequate provision, according to presently accepted actuarial
standards of practice, for the anticipated cash flows required by the
contractual obligations and related expenses of the insurer, when considered in
light of the assets held by the insurer with respect to such reserves and
related actuarial items, including, but not limited to, the investment earnings
on such assets, and the considerations anticipated to be received and retained
under such policies and contracts;
(5) The ability of
an assuming reinsurer to perform and whether the ceding insurer's
reinsurance program provides sufficient protection for the insurer's remaining
surplus, after taking into account the insurer's cash flow and the classes of
business written as well as the financial condition of the assuming reinsurer;
(6) Whether an
insurer's operating loss in the last 12-month period or any shorter period
of time, including including, but not limited to, net capital
gain or loss, changes in nonadmitted assets, and cash dividends paid to
shareholders, is greater than fifty percent (50%) of the insurer's remaining
policyholders' surplus in excess of the minimum required;
(6a) Whether the insurer's operating loss in the last 12-month period or any shorter period of time, excluding net capital gains, is greater than twenty percent (20%) of the insurer's remaining policyholders' surplus in excess of the minimum required;
(7) Whether a
reinsurer, obligor, or any affiliate, subsidiary, or reinsurerentity
within the insurer's insurance holding company system is insolvent,
threatened with insolvency, or delinquent in payment of its monetary or any
other obligation;obligation and which in the opinion of the
Commissioner may affect the solvency of the insurer;
(8) Contingent liabilities, pledges, or guaranties that either individually or collectively involve a total amount that in the Commissioner's opinion may affect an insurer's solvency;
(9) Whether any controlling person of an insurer is delinquent in the transmitting to or payment of net premiums to the insurer;
(10) The age and collectibility of receivables;
(11) Whether the management of
an insurer, including officers, directors, or any other person who directly or
indirectly controls the operation of the insurer, fails to possess or and
demonstrate the competence, fitness, or reputation considered by the
Commissioner to be necessary to serve the insurer in that position;
(12) Whether the management of an insurer has failed to respond to the Commissioner's inquiries about the condition of the insurer or has furnished false and misleading information in response to an inquiry by the Commissioner;
(12a) Whether the insurer has failed to meet financial and holding company filing requirements in the absence of a reason satisfactory to the Commissioner;
(13) Whether the management of an insurer has filed any false or misleading sworn financial statement, has released a false or misleading financial statement to a lending institution or to the general public, or has made a false or misleading entry or omitted an entry of material amount in the insurer's books;
(14) Whether the insurer has
grown so rapidly and to such an extent that it lacks adequate financial and
administrative capacity to meet its obligations in a timely manner;or
(15) Whether the insurer has
experienced or will experience in the foreseeable future cash flow or liquidity
problems.problems;
(16) Whether management has established reserves that do not comply with minimum standards established by State insurance laws, regulations, statutory accounting standards, sound actuarial principles, and standards of practice;
(17) Whether management persistently engages in material under reserving that results in adverse development;
(18) Whether transactions among affiliates, subsidiaries, or controlling persons for which the insurer receives assets or capital gains, or both, do not provide sufficient value, liquidity, or diversity to assure the insurer's ability to meet its outstanding obligations as they mature; or
(19) Any other finding determined by the Commissioner to be hazardous to the insurer's policyholders, creditors, or general public.
To determine an insurer's financial condition under this Article, the Commissioner may: disregard any credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired, or otherwise subject to a delinquency proceeding; make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates of an insurer; refuse to recognize the stated value of accounts receivable if the insurer's ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor; or increase the insurer's liability in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next 12-month period.
If upon examination or at any other time the Commissioner has reasonable cause to believe that any domestic insurer is in such condition as to render the continuance of its business hazardous to the public or to holders of its policies or certificates of insurance, or if the domestic insurer gives its consent, then the Commissioner shall upon the Commissioner's determination:
(1) Notify Issue
an order notifying the insurer of that determination; and
(2) Furnish to the
insurer a written list of the Commissioner's requirements to abate that determination.determination
that may include any of the following:
The written list may include requirements that the insurer:
reduce
a. A
reduction in the total amount of present and potential liability for policy
benefits by reinsurance; reinsurance.
b. reduce,
suspend, or limitA reduction, suspension, or limitation of the
volume of insurance being accepted or renewed;renewed.
c. reduce
A reduction in general insurance and commission expenses by
specified methods;methods.
d. An
increase its in the insurer's capital and surplus;surplus.
e. suspend
or limit its A suspension or limitation in the insurer's declaration
and payment of dividends to its stockholders or policyholders;policyholders.
f.
file reports The filing of reports in a form acceptable to the
Commissioner concerning the market value of its assets;assets.
g. limit
or withdrawA limitation or withdrawal from certain investments or discontinue
the discontinuance of certain investment practices to the extent the
Commissioner considers to be necessary;necessary.
h. document
Documentation of the adequacy of premium rates in relation to the
risks insured;insured.
i.
or file,The filing, in addition to regular annual financial
statements, of interim financial reports on the form adopted by the NAIC
or on such format prescribed by the Commissioner.Commissioner.
j. The correction of corporate governance practice deficiencies.
k. The adoption and utilization of governance practices acceptable to the Commissioner.
l. The provision of a business plan to the Commissioner in order to continue to transact business in the State.
Notwithstanding any other provision of law limiting the
frequency or amount of premium rate adjustments, the Commissioner may adjust
rates for any non-life insurance product include in the list of
requirements any rate adjustments for any kinds of insurance written by the
insurer that the Commissioner considers necessary to improve the financial
condition of the insurer."
SECTION 7. G.S. 58-31-45 reads as rewritten:
"§ 58-31-45. Report required of Commissioner.
The Commissioner must submit to the Governor a full report of
his official action under this Article, with such recommendations as commend
themselves to him, and it shall be embodied in or attached to his biennial
report to the General Assembly.the Commissioner."
SECTION 8. G.S. 58-36-42 reads as rewritten:
"§ 58-36-42. Development of policy form or endorsement for residential property insurance that does not include coverage for perils of windstorm or hail.
With respect to residential property insurance under its jurisdiction, the Bureau shall develop an optional policy form or endorsement to be filed with the Commissioner for approval that provides residential property insurance coverage in the coastal and beach areas defined in G.S. 58-45-5(2) and (2b) without coverage for the perils of windstorm or hail. Insurers that sell such policies shall comply with the provisions of G.S. 58-44-60 and through such compliance shall be deemed to have given notice to all insured and persons claiming benefits under such policies that such policies do not include coverage for the perils of windstorm or hail."
SECTION 9. G.S. 58-50-131(a) reads as rewritten:
"§ 58-50-131. Premium rates for health benefit plans; approval authority; hearing.
(a) No schedule of
premium rates for coverage for a health benefit plan subject to this act, or
any amendment to the schedule, shall be used in conjunction with any such
health benefit plan until a copy of the schedule of premium rates or premium
rate amendment has been filed with and approved by the Commissioner. Any
schedule of premium rates or premium rate amendment filed under this section
shall be established in accordance with G.S. 58-50-130(b). The schedule of
premium rates shall not be excessive, unjustified, inadequate, or unfairly
discriminatory and shall exhibit a reasonable relationship to the benefits
provided by the contract of insurance. Each filing shall include a
certification by an individual who is a member in good standing with the
Society of Actuaries.an actuary who is a member of the American Academy
of Actuaries and qualified to provide such certifications as described in the
U.S. Qualifications Standards promulgated by the American Academy of Actuaries
pursuant to its Code of Professional Conduct."
SECTION 10. G.S. 58-50-82 reads as rewritten:
"§ 58-50-82. Expedited external review.
…
(b) Within three
business two days of after receiving a request for an
expedited external review, the Commissioner shall complete all of the
following:
…
(c) As soon as
possible, but within the same business day of after receiving
notice under subdivision (b)(2) of this section that the request has been
assigned to a review organization, the insurer or its designee utilization
review organization shall provide or transmit all documents and information
considered in making the noncertification appeal decision or the second-level
grievance review decision to the assigned review organization electronically or
by telephone or facsimile or any other available expeditious method. A copy of
the same information shall be sent by the same means or other expeditious means
to the covered person or the covered person's representative who made the
request for expedited external review.
…
(e) As
expeditiously as the covered person's medical condition or circumstances
require, but not more than four businessthree days after the date
of receipt of the request for an expedited external review, the assigned
organization shall make a decision to uphold or reverse the noncertification,
noncertification appeal decision, or second-level grievance review decision and
notify the covered person, the covered person's provider who performed or
requested the service, the insurer, and the Commissioner of the decision. In
reaching a decision, the assigned organization is not bound by any decisions or
conclusions reached during the insurer's utilization review process or internal
grievance process under G.S. 58-50-61 and G.S. 58-50-62.
…."
SECTION 11. G.S. 143-730 reads as rewritten:
"§ 143-730.
Managed Care Patient Assistance Program.Health Insurance Smart NC.
(a) The Office of
Managed Care Patient Assistance Program is established in the Department of
Insurance.shall hereafter be known as the Health Insurance Smart NC.
(b) The Managed
Care Patient Assistance ProgramHealth Insurance Smart NC shall
provide information and assistance to individuals enrolled in managed health
care plans. The Managed Care Patient Assistance Program shall have
expertise and experience in both health care and advocacy and will assume the
specific duties and responsibilities set forth in subsection (c) of this
section.
(c) The duties
and responsibilities of the Managed Care Patient Assistance Program are as
follows:Health Insurance Smart NC shall have the responsibility and duty
to:
(1) Develop and
distribute educational and informational materials for consumers, explaining
their rights and responsibilities as managed health care plan
enrollees.
(2) Answer inquiries
posed by consumers and refer inquiries of a regulatory nature to staff
within the Department of Insurance.consumers.
(3) Advise managed
health care plan enrollees about the utilization review process.
(4) Assist enrollees with the grievance, appeal, and external review procedures established by Article 50 of Chapter 58 of the General Statutes.
(5) Publicize the Office
of the Managed Care Patient Assistance Program.Health Insurance Smart
NC.
(6) Compile data on the activities of the Office and evaluate such data to make recommendations as to the needed activities of the Office.
(d) The
Director of the Managed Care Patient Assistance Program shall annually report
the activities of the Managed Care Patient Assistance Program, including the
types of appeals, grievances, and complaints received and the outcome of these
cases. The report shall be submitted to the General Assembly, upon its
convening or reconvening, and shall make recommendations as to efforts that
could be implemented to assist managed care consumers.
(e) All health
information in the possession of the Managed Care Patient Assistance ProgramHealth
Insurance Smart NC is confidential and is not a public record pursuant to
G.S. 132-1 or any other applicable statute.
For purposes of this section, "health information" means any of the following:
(1) Information relating to the past, present, or future physical or mental health or condition of an individual.
(2) Information relating to the provision of health care to an individual.
(3) Information relating to the past, present, or future payment for the provision of health care to an individual.
(4) Information, in any form, that identifies or may be used to identify an individual, that is created by, provided by, or received from any of the following:
a. An individual or an individual's spouse, parent, legal guardian, or designated representative.
b. A health care provider, health plan, employer, health care clearinghouse, or an entity doing business with these entities."
SECTION 12. G.S. 58-6-25(d)(4) reads as rewritten:
"§ 58-6-25. Insurance regulatory charge.
…
(4) Money
appropriated for the office of Managed Care Patient Assistance ProgramHealth
Insurance Smart NC established under G.S. 143-730 to pay the
actual costs of administering the program."
SECTION 13. G.S. 58-50-61(h) reads as rewritten:
"§ 58-50-61. Utilization review.
…
(h) Notice of
Noncertification. - A written notification of a noncertification shall include
all reasons for the noncertification, including the clinical rationale, the
instructions for initiating a voluntary appeal or reconsideration of the
noncertification, and the instructions for requesting a written statement of
the clinical review criteria used to make the noncertification. An insurer
shall provide the clinical review criteria used to make the noncertification to
any person who received the notification of the noncertification and who
follows the procedures for a request. An insurer shall also inform the covered
person in writing about the availability of assistance from the Managed Care
Patient Assistance Program,Health Insurance Smart NC, including the
telephone number and address of the Program."
SECTION 14. G.S. 58-50-61(k)(6) reads as rewritten:
"§ 58-50-61. Utilization review.
…
(6) Notice of the
availability of assistance from the Managed Care Patient Assistance Program,Health
Insurance Smart NC, including the telephone number and address of the
Program."
SECTION 15. G.S. 58-50-61(m) reads as rewritten:
"§ 58-50-61. Utilization review.
…
(m) Disclosure
Requirements. - In the certificate of coverage and member handbook provided to
covered persons, an insurer shall include a clear and comprehensive description
of its utilization review procedures, including the procedures for appealing
noncertifications and a statement of the rights and responsibilities of covered
persons, including the voluntary nature of the appeal process, with respect to
those procedures. An insurer shall also include in the certificate of coverage
and the member handbook information about the availability of assistance from the
Managed Care Patient Assistance Program,Health Insurance Smart NC,
including the telephone number and address of the Program. An insurer shall
include a summary of its utilization review procedures in materials intended
for prospective covered persons. An insurer shall print on its membership cards
a toll-free telephone number to call for utilization review purposes."
SECTION 16. G.S. 58-50-62 reads as rewritten:
"§ 58-50-62. Insurer grievance procedures.
…
(c) Grievance
Procedures. - Every insurer shall have written procedures for receiving and
resolving grievances from covered persons. A description of the grievance
procedures shall be set forth in or attached to the certificate of coverage and
member handbook provided to covered persons. The description shall include a
statement informing the covered person that the grievance procedures are
voluntary and shall also inform the covered person about the availability of
the Commissioner's office for assistance, including the telephone number and
address of the office. The description shall also inform the covered person
about the availability of assistance from the Managed Care Patient Assistance
Program, including the telephone number and address of the Program.
…
(e) First-Level Grievance Review. - A covered person or a covered person's provider acting on the covered person's behalf may submit a grievance.
…
(2) An insurer shall issue a written decision, in clear terms, to the covered person and, if applicable, to the covered person's provider, within 30 days after receiving a grievance. The person or persons reviewing the grievance shall not be the same person or persons who initially handled the matter that is the subject of the grievance and, if the issue is a clinical one, at least one of whom shall be a medical doctor with appropriate expertise to evaluate the matter. Except as provided in subdivision (3) of this subsection, if the decision is not in favor of the covered person, the written decision issued in a first-level grievance review shall contain:
…
f.
Notice of the availability of assistance from the Managed Care Patient
Assistance Program,Health Insurance Smart NC, including the
telephone number and address of the Program.
…
(f) Second-Level Grievance Review. - An insurer shall establish a second-level grievance review process for covered persons who are dissatisfied with the first-level grievance review decision or a utilization review appeal decision. A covered person or the covered person's provider acting on the covered person's behalf may submit a second-level grievance.
(1) An insurer shall, within 10 business days after receiving a request for a second-level grievance review, make known to the covered person:
…
c. The
availability of assistance from the Managed Care Patient Assistance Program,Health
Insurance Smart NC, including the telephone number and address of the
Program.
…."
SECTION 17. G.S. 58-50-62(h)(9) reads as rewritten:
"§ 58-50-62. Insurer grievance procedures.
…
(9) Notice of the
availability of assistance from the Managed Care Patient Assistance Program,Health
Insurance Smart NC, including the telephone number and address of the
Program."
SECTION 18. G.S. 58-50-80(b)(3) reads as rewritten:
"§ 58-50-80. Standard external review.
…
(3) Notify in
writing the covered person and the covered person's provider who performed or
requested the service whether the request is complete and whether the request
has been accepted for external review. If the request is complete and accepted for
external review, the notice shall include a copy of the information that the
insurer provided to the Commissioner pursuant to subdivision (b)(1) of this
section, and inform the covered person that the covered person may submit to
the assigned independent review organization in writing, within seven days
after the receipt of the notice, additional information and supporting
documentation relevant to the initial denial for the organization to consider
when conducting the external review. If the covered person chooses to send
additional information to the assigned independent review organization, then
the covered person shall at the same time and by the same means, send a copy of
that information to the insurer. The Commissioner shall also notify the covered
person in writing of the availability of assistance from the Managed Care
Patient Assistance Program,Health Insurance Smart NC, including the
telephone number and address of the Program.Health Insurance Smart
NC."
SECTION 19. G.S. 58-51-75 reads as rewritten:
"§ 58-51-75. Blanket accident and health insurance defined.
(a) Any policy or contract of insurance against death or injury resulting from accident or from accidental means which insures a group of persons conforming to the requirements of one of the following subdivisions (1) to (7), inclusive, shall be deemed a blanket accident policy. Any policy or contract which insures a group of persons conforming to the requirements of one of the following subdivisions (3), (5), (6) or (7) against total or partial disability, excluding such disability from accident or from accidental means, shall be deemed a blanket health insurance policy. Any policy or contract of insurance which combines the coverage of blanket accident insurance and of blanket health insurance on such a group of persons shall be deemed a blanket accident and health insurance policy:
(1) Under
a policy or contract issued to any railroad, steamship, motorbus or airplane
carrier of passengers, which shall be deemed the policyholder, a group defined
as all persons who may become such passengers may be insured against death or
bodily injury either while, or as a result of, being such passengers.
(1) Under a policy or contract issued to any common carrier or to any operator, owner, or lessee of a means of transportation, who or which shall be deemed the policyholder, covering a group defined as all persons or all persons of a class who may become passengers on the common carrier or the means of transportation.
(2) Under a policy or contract issued to an employer, or the trustee of a fund established by the employer, who shall be deemed the policyholder, covering any group of employees defined by reference to exceptional hazards incident to such employment, insuring such employee against death or bodily injury resulting while, or from, being exposed to such exceptional hazard.
(3) Under a policy or contract issued to a college, school or other institution of learning or to the head or principal thereof, who or which shall be deemed the policyholder.
(4) Under a policy
or contract issued in the name of any volunteer fire department, emergency
medical service, rescue first aid, civil defense, or any other such volunteer
organization, which shall be deemed the policyholder, covering all of
theany group of members or other participants defined by
reference to specified hazards incident to any activities or operations
sponsored or supervised by such policyholder.of such department.
(5) Under a policy or contract issued to and in the name of an incorporated or unincorporated association of persons having a common interest or calling, which association shall be deemed the policyholder, having not less than 25 members, and formed for purposes other than obtaining insurance, covering all of the members of such association.
(6) Under a policy
or contract issued to the head of a family,household, who shall
be deemed the policyholder, whereunder the benefits thereof shall provide for
the payment by the insurer of amounts for expenses incurred by the policyholder
on account of hospitalization or medical or surgical aid for himself,the
policyholder, his or her spouse, his or her child or
children, or other persons chiefly dependent on him or her for support
and maintenance.
(7) Under a policy
or contract issued to or in the name of any municipal or county
recreation commission or department department, sports team, league,
tournament, or sponsor thereof, which shall be deemed the policyholder.policyholder,
covering participants, members, coaches, counselors, employees, officials, or
supervisors defined by reference to specified hazards incident to activities or
operations sponsored or supervised by such policyholder or on the premises of
such policyholder.
(8) Under a policy or contract issued to any incorporated or unincorporated religious, charitable, recreational, educational, athletic, or civic organization or branch thereof, which shall be deemed the policyholder, covering any group of members, participants, or volunteers defined by reference to specified hazards incident to activities or operations sponsored or supervised by such policyholder or on the premises of such policyholder.
(9) Under a policy or contract issued to any overnight, day, religious, equestrian, adventure, wilderness, athletic, or other camp, or the sponsor thereof, which shall be deemed the policyholder, covering any group of campers, participants, counselors, employees, volunteers, or supervisors defined by reference to specified hazards incident to activities or operations sponsored or supervised by such policyholder or on the premises of such policyholder.
(10) Under a policy or contract issued to any bank, credit union, or other financial institution, which shall be deemed the policyholder, to insure any group of account holders or members of the policyholder and as defined by reference in the policy or contract, in which premiums for such insurance are paid by the policyholder, as authorized by the account holder or member from account holder or member funds on deposit with the policyholder, collected from the account holders or members by way of account billing or member billing, or by the policyholder and account holders jointly.
(11) Any other risk or class of risks which, in the discretion of the Commissioner, may be properly eligible for blanket accident, health, or accident and health insurance. The discretion of the Commissioner may be exercised on an individual risk basis or class of risks, or both after the Commissioner has made the following findings:
a. The issuance of the blanket policy is not contrary to the best interest of the public.
b. The issuance of the blanket policy would result in economies of acquisition or administration.
c. The benefits are reasonable in relation to the premiums charged.
(b) All benefits
under any blanket accident, blanket health or blanket accident and health
insurance policy shall be payable to the person insured, or to his designated
beneficiary or beneficiaries, or to his estate, or to a person or persons
chiefly dependent upon the person insured for support and maintenance, except
that if the person insured be a minor, such benefits may be made payable to his
parent, guardian, or other person actually supporting him, or to a person or
persons chiefly dependent upon him for support and maintenance.the
minor.
…."
SECTION 20. G.S. 58-40-10(1)b. reads as rewritten:
"§ 58-40-10. Other definitions.
As used in this Article and in Articles 36 and 37 of this Chapter:
(1) "Private passenger motor vehicle" means:
a. A motor vehicle of the private passenger or station wagon type that is owned or hired under a long-term contract by the policy named insured and that is neither used as a public or livery conveyance for passengers nor rented to others without a driver; or
b. A motor vehicle that is a pickup truck or van that is owned by an individual or by husband and wife or individuals who are residents of the same household if it:
1. Has a gross
vehicle weight as specified by the manufacturer of less than 10,00014,000
pounds; and
2. Is not used for the delivery or transportation of goods or materials unless such use is (i) incidental to the insured's business of installing, maintaining, or repairing furnishings or equipment, or (ii) for farming or ranching.
Such vehicles owned by a family farm copartnership or a family farm corporation shall be considered owned by an individual for the purposes of this section; or
c. A motorcycle, motorized scooter or other similar motorized vehicle not used for commercial purposes.
…."
SECTION 21. G.S. 58-33A-65(f)(3) reads as rewritten:
"§ 58-33A-65. Contract between public adjuster and insured.
…
(f) Before the signing of the contract, the public adjuster shall provide the insured with a separate disclosure document regarding the claim process that states:
…
(3) The insured has
the right to initiate direct communications with the insured's attorney, the
insurer, the insurer's adjuster, and the insurer's attorney, or any other
person regarding the settlement of the insured's claim.Once a public
adjuster has been retained, the company adjuster or other insurance
representative may not communicate directly with the insured without the
permission or consent of the public adjuster or the insured's legal counsel.
…."
SECTION 22.(a) G.S. 58-2-46 reads as rewritten:
"§ 58-2-46.
State of emergencydisaster automatic stay of proof of loss requirements;
premium and debt deferrals; loss adjustments for separate windstorm policies.
Whenever (i) a state of emergencydisaster
is proclaimed for the State or for an area within the State under G.S. 166A-19.21
G.S. 166A-19.20 or whenever the President of the United States
has issued a major disaster declaration for the State or for an area within the
State under the Stafford Act, 42 U.S.C. § 5121, et seq., as amended:amended
and (ii) if the Commissioner has issued an order declaring subdivisions (1) through
(4) herein effective for the specific disaster:
(1) The application
of any provision in an insurance policy insuring real property and its contents
that are located within the geographic area designated in the proclamation or
declaration, which provision requires an insured to file a proof of loss within
a certain period of time after the occurrence of the loss, shall be stayed for
the time period not exceeding the earlier of (i) the expiration of the
disaster proclamation or declaration and all renewals of the proclamation or
45 days, whichever is later.proclamation or (ii) the expiration of the
Commissioner's order declaring subdivisions (1) through (4) herein effective
for the specific disaster, as determined by the Commissioner.
(2) As used in this
subdivision, "insurance company" includes a service corporation, HMO,
MEWA, surplus lines insurer, and the underwriting associations under Articles
45 and 46 of this Chapter. All insurance companies, premium finance companies,
collection agencies, and other persons subject to this Chapter shall give their
customers who reside within the geographic area designated in the proclamation
or declaration the option of deferring premium or debt payments that are due
during the earlier of (i) the time period covered by the proclamation
or declaration.the time period prior to the expiration of the
Commissioner's order declaring subdivisions (1) through (4) herein effective
for the specific disaster, as determined by the Commissioner. This deferral
period shall be 30 days from the last day the premium or debt payment may be
made under the terms of the policy or contract. This deferral period shall also
apply to any statute, rule, or other policy or contract provision that imposes
a time limit on an insurer, insured, claimant, or customer to perform any act
during the time period covered by the proclamation or declaration, including
the transmittal of information, with respect to insurance policies or
contracts, premium finance agreements, or debt instruments when the insurer,
insured, claimant, or customer resides or is located in the geographic area
designated in the proclamation or declaration. Likewise, the deferral period
shall apply to any time limitations imposed on insurers under the terms of a policy
or contract or provisions of law related to individuals who reside within the
geographic area designated in the proclamation or declaration. Likewise, the
deferral period shall apply to any time limitations imposed on insurers under
the terms of a policy or contract or provisions of law related to individuals
who reside within the geographic area designated in the proclamation or
declaration. The Commissioner may extend any deferral period in this
subdivision, depending on the nature and severity of the proclaimed or declared
disaster. No additional rate or contract filing shall be necessary to effect
any deferral period.
(3) With respect to health benefit plans, after a deferral period has expired, all premiums in arrears shall be payable to the insurer. If premiums in arrears are not paid, coverage shall lapse as of the date premiums were paid up, and preexisting conditions shall apply as permitted under this Chapter; and the insured shall be responsible for all medical expenses incurred since the effective date of the lapse in coverage.
(4) In addition to the requirements of G.S. 58-45-35(e), for separate windstorm policies that are written by an insurer other than the Underwriting Association, losses shall be adjusted by the insurer that issued the property insurance and not by the insurer that issued the windstorm policy. The insurer that issued the windstorm policy shall reimburse the insurer that issued the property insurance for reasonable expenses incurred by that insurer in adjusting the windstorm losses."
SECTION 22.(b) G.S. 58-2-47 reads as rewritten:
"§ 58-2-47. Incident affecting operations of the Department; stay of deadlines and deemer provisions.
Regardless of whether a state of emergency or disaster has been proclaimed under G.S. 166A-19.20 or G.S. 166A-19.21 or declared under the Stafford Act, whenever an incident beyond the Department's reasonable control, including an act of God, insurrection, strike, fire, power outage, or systematic technological failure, substantially affects the daily business operations of the Department, the Commissioner may issue an order, effective immediately, to stay the application of any deadlines and deemer provisions imposed by law or rule upon the Commissioner or Department or upon persons subject to the Commissioner's jurisdiction, which deadlines and deemer provisions would otherwise operate during the time period for which the operations of the Department have been substantially affected. The order shall remain in effect for a period not exceeding 30 days. The order may be renewed by the Commissioner for successive periods not exceeding 30 days each for as long as the operations of the Department remain substantially affected, up to a period of one year from the effective date of the initial order."
SECTION 22.(c) G.S. 58-33-70(e) reads as rewritten:
"§ 58-33-70. Special provisions for adjusters and motor vehicle damage appraisers.
…
(e) The Commissioner may permit an experienced adjuster, who regularly adjusts in another state and who is licensed in the other state (if that state requires a license), to act as an adjuster in this State without a North Carolina license only for an insurance company authorized to do business in this State, for emergency insurance adjustment work, for a period to be determined by the Commissioner, done for an employer who is an adjuster licensed by this State or who is a regular employer of one or more adjusters licensed by this State; provided that the employer shall furnish to the Commissioner a notice in writing immediately upon the beginning of any such emergency insurance adjustment work. As used in this subsection, "emergency insurance adjustment work" includes, but is not limited to, (i) adjusting of a single loss or losses arising out of an event or catastrophe common to all of those losses or (ii) adjusting losses in any area declared to be a state of emergency or disaster by the Governor under G.S. 166A-19.20 or G.S. 166A-19.21 or by the President of the United States under applicable federal law."
SECTION 22.(d) G.S. 58-44-70(a) reads as rewritten:
"Part 2. Mediation of Emergency or Disaster-Related Property Insurance Claims.
"§ 58-44-70. Purpose and scope.
(a) This Part
provides for a nonadversarial alternative dispute resolution procedure for a
facilitated claim resolution conference prompted by the critical need for
effective, fair, and timely handling of insurance claims arising out of damages
to residential property as the result of an event for which there is a state of
emergencydisaster declared within 60 days of the event. This Part
applies only (i) if a state of emergencydisaster has been
proclaimed for the State or for an area within the State by the Governor or by
a resolution of the General Assembly under G.S. 166A-19.20;G.S. 166A-19.21
or (ii) if the President of the United States has issued a major disaster
declaration for the State or for an area within the State under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. § 5121, et
seq., as amended; and (iii) if the Commissioner issues an order establishing
the mediation procedure authorized by this Part."
SECTION 22.(e) G.S. 58-44-75(2) reads as rewritten:
"§ 58-44-75. Definitions.
As used in this Part:
…
(2) Disaster.
- As the term "emergency" is defined in G.S. 166A-19.3(6)."
SECTION 23. Section 10 of this act becomes effective January 1, 2016. Section 22 of this act is effective when it becomes law. The remainder of this act becomes effective July 1, 2013.