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2007 SUMMARY OF NEW STATE LAWS - NORTH CAROLINA

North Carolina State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 22

452

Tort claims limit

Increases the maximum amount that the State may pay cumulatively to all claimants on account of injury and damage to any one person arising out of any one occurrence, less any commercial liability insurance purchased by the State. Effective: August 27, 3007.

HB 61

6

Motor vehicle insurance - traffic safety

Amends the Child Restraint Law to ensure compliance with Federal regulations; excludes the exemption for tending to a child's personal needs. Effective: June 1, 2007.

HB 183

261

Motor vehicle insurance - traffic safety

Makes it unlawful to use additional technology or a mobile telephone to engage in a call while operating a public or private school bus, a school activity bus, or providing contracted transportation services for a public or private school in any vehicle. Effective: December 1, 2007.

HB 244

210

Civil procedure

Provides that when there are two or more plaintiffs in a civil action, the presiding judge, if it appears that there are antagonistic interests between the plaintiffs, may, in the judge's discretion, apportion among the plaintiffs the challenges now allowed by law, or the judge may increase the number of challenges to not exceeding six for each plaintiff or class of plaintiffs representing the same interest. Effective: October 1, 2007.

HB 316

514

Civil procedure

Amends existing law relative to civil procedure; establishes that a party or attorney responsible for the issuance and service of a subpoena shall, within five business days after the receipt of material produced in compliance with the subpoena, serve all other parties with notice of receipt of the material produced in compliance with the subpoena and, upon request, shall provide all other parties a reasonable opportunity to copy and inspect such material at the expense of the inspecting party. Effective: October 1, 2007.

HB 454

534

Identity theft

Protects the identity of individuals by authorizing the photographing of a person who is cited for a motor vehicle moving violation who does not produce a valid drivers license upon the request of a law enforcement officer when the law enforcement officer has a reasonable suspicion regarding the true identity of the person; provides a cause of action for a person whose identifying information is published over objection. Effective:

HB 563

360

Motor vehicle insurance --miscellaneous

Makes changes in motor vehicle law; defines public service vehicle as a vehicle that is being used to assist motorists or law enforcement officers with wrecked or disabled vehicles, and is operating an amber-colored flashing light; changes the word stoplight to traffic signal; changes the time allowed for removal of a vehicle from a public highway or rest area; authorizes local governments to adopt ordinances regulating demonstrations on state roads and highways. Effective: Varies.

HB 588

305

State regulation

Updates and improves laws covering unauthorized insurers. Effective: July 28, 2007.

HB 679

503

Motor vehicle insurance - miscellaneous provision

Establishes that the registration of a vehicle shall not be renewed unless it has a current safety or emissions inspection; establishes that registration plates that are not renewed shall be surrendered within 120 days of expiration; relates to electronic inspection authorization. Effective: October 1, 2008.

HB 729

443

Motor vehicle insurance -- miscellaneous

Addresses nonfleet private passenger motor vehicle insurance rate evasion fraud; authorizes the Joint Legislative Transportation Oversight Committee to study the issues related to automobile insurance rate evasion. Effective: January 1, 2008.

HB 730

300

Catastrophe-related legislation

Makes technical and substantive changes in the laws governing mediation of property insurance claims arising out of disasters. Effective: October 1, 2007.

HB 737

127

Financial regulation

Makes changes in the laws relating to the monitoring of solvency of insurance companies and other risk-bearing entities regulated by the Commissioner of Insurance; relates to credit insurance and mortgage guaranty insurance; relates to the advancement of funds to directors, officers, or controlling stockholders; relates to workers' compensation self-insurance, professional employer services, property and casualty actuarial opinions, and life insurance and annuity reserves. Effective: Varies.

HB 769

492

Motor vehicle insurance -- commercial auto

Establishes that a commercial drivers license holder who refuses to participate in a drug or alcohol test shall be disqualified from operating a commercial motor vehicle; authorizes the commissioner of the Department of Transportation to enter into the Unified Carrier Registration Agreement, and into agreements with jurisdictions participating in the UCRA; relates to for-hire motor carrier registration, insurance verification, and temporary trip permit authority. Effective: August 30, 2007.

HB 1228

341

Motor vehicle insurance - red light cameras

Provides for an increase in the penalty set for a red light violation detected by a camera; requires that the clear proceeds of each penalty collected be transferred to the local school board; defines what amounts may be deducted from each penalty by a municipality to arrive at the amount of clear proceeds from each civil penalty; permits a collection assistance fee to be collected from the responsible party under certain circumstances. Effective: September 1, 2007.

HB 1277

537

Motor vehicle insurance - traffic offenses

Provides for the revocation of the drivers license of any person convicted of giving alcoholic beverages to, or aiding and abetting the purchase or possession of alcoholic beverages by, an underage person and allows for a limited driving privilege. Effective: December 1, 2007.

HB 1354

178

Motor vehicle insurance -- miscellaneous

Creates a Motor Vehicle Chop Shop Law regarding the receiving, possession, and distribution of stolen or altered motor vehicles and motor vehicle parts; provides for civil and criminal penalties. Effective: December 1, 2007.

HB 1374

351

Civil procedure

Overturns the Shepard case and amends the limitation regarding actions to recover for usury; overturns the Skinner case and amends the long-arm statute to allow North Carolina courts to exercise personal jurisdiction over certain nonresident defendants; requires that a notice of foreclosure contain certain information; provides for mortgage debt collection and servicing. Effective: Varies.

HB 1473

323

State regulation

Makes expansion and base budget appropriations for current operations of state departments, institutions, and agencies; includes the insurance regulatory charge. Effective: July 1, 2007.

SB 211

119

E-commerce

Revises the law governing electronic signatures by clarifying that public agencies may use, as well as accept, electronic signatures. Effective: June 27, 2007.

SB 238

250

Tax issue

Adjusts the additional tax rate on property coverage contracts to be revenue neutral based on an expansion of the tax base enacted in S.L. 2006-196; increases the distribution of the tax proceeds to the volunteer fire department fund; amends the volunteer fire department grant program to allow more departments to qualify for grants; modifies the distribution of tax proceeds to the local firemen's relief funds. Effective: January 1, 2008.

SB 301

509

Motor vehicle insurance - traffic offenses

Relates to civil drivers license revocation for DWI; provides that records of a civil revocation of drivers licenses shall be expunged from an individual's driving record if the underlying criminal charge is expunged pursuant to article 5 of chapter 15a of the general statutes. Effective: Varies.

SB 490

529

Building codes

Specifies that no portion of the building code shall extend to or be construed as being applicable to the regulation of industrial machinery; clarifies, however, that if during a building code inspection, an electrical inspector has any concerns about the electrical safety of such machinery, the inspector may refer that concern to the Occupational Safety and Health Division of the Department of Labor but not withhold the certificate of occupancy nor mandate testing of the machinery based on this concern. Effective: August 31, 2007.

SB 509

364

Motor vehicle insurance -- miscellaneous

Increases the period of time allowed for reinspection after failing a motor vehicle inspection; waives the civil penalty for failure to meet the emissions inspection requirement while on active military duty outside the state; amends penalty provisions; provides for fees. Effective: Varies.

SB 527

288

Contracts

Requires businesses that sell products or services to consumers pursuant to contracts that automatically renew unless the consumers cancel the contracts to disclose the renewal clauses. Effective: October 1, 2007.

SB 556

414

Building Codes

Authorizes municipalities to adopt ordinances establishing a nonresidential building or structure code; relates to the inspection of nonresidential buildings or structures and the repair, closing or demolition of said structures by order of the local public officer appointed for that purpose; relates to buildings and structures deemed to be historically significant; relates to liens and civil penalties. Effective: August 21, 2007.

SB 581

381

Building codes

Allows counties and cities to provide building permit fee reductions or partial rebates to encourage construction of buildings using sustainable design principles to achieve energy efficiency. Effective: August 19, 2007.

SB 611

95

Service contracts

Recodifies the laws covering service agreements; relates to extended warranties for motor vehicles and appliances, and home warranties; relates to provisions that require service agreement companies to maintain a certain level of liability insurance and a specified reserve balance; relates to mechanical breakdown service agreements. Effective: October 1, 2007.

SB 758

293

Motor vehicle insurance - traffic offenses

Allows persons who are convicted of certain driving while license revoked offenses to obtain a limited driving privilege. Effective: December 1, 2007.

SB 812

191

Motor vehicle insurance - traffic safety

Directs the Child Fatality Task Force to study issues relating to requiring the installation and use of passenger safety restraint systems on school buses. Effective: July 8, 2007.

SB 830

164

Motor vehicle insurance - miscellaneous

Develops performance standards for the Department of Transportation for the maintenance and operation of the State highway system; relates to speed limit signs; modifies motor vehicle registration requirements; removes Social Security numbers from registration documents; add drivers license or identification card numbers; allows the Division of Motor Vehicles to refuse registration or issuance of a certificate of title or any transfer of registration for interlock system requirements and nonpayment of fees. Effective: July 1, 2007.

SB 880

105

Bail bonds

Provides that a bond forfeiture shall be set aside if the defendant failed to appear because the defendant was incarcerated anywhere in the United States. Effective: October 1, 2007.

SB 881

228

Bail bonds

Defines the residency requirements for licensure under the laws pertaining to bail bondsmen and runners; makes other stylistic changes. Effective: October 1, 2007.

SB 882

358

Workers' compensation - miscellaneous provisions

Authorizes the Industrial Commission to employ sworn law enforcement officers duly appointed and certified through the Criminal Justice Education and Training Standards Commission to conduct investigations regarding all cases of suspected fraud and all violations related to workers' compensation claims, by or against insurers or self-funded employers, and refer possible criminal violations to the appropriate prosecutorial authorities. Effective: September 1, 2007.

SB 925

380

Motor vehicle insurance - traffic offenses

Establishes that no drivers license points or insurance surcharge shall be assessed upon a driver for two or fewer violations of having a dysfunctional speedometer as a lesser offense for speeding within a specified period; establishes that points shall be assessed for each offense that occurs when the driver has two or more prior convictions, including any prayer for judgment continued, or the driver was traveling a certain number of miles per hour in excess of the speed limit. Effective: December 1, 2007.

SB 999

493

Motor vehicle insurance - traffic offenses

Makes technical corrections to the motor vehicle laws pertaining to impaired driving offenses; provides that the court may order secure custody of a juvenile when the juvenile is charged with a violation of either driving while impaired or underage drinking; authorizes the Legislative Research Commission to study the dispositional alternatives for juveniles who are adjudicated delinquent for a driving while impaired or an underage drinking violation. Effective: Varies.

SB 1026

56

Motor vehicle insurance - enforcement issues

Restores the licensee's birthday as the expiration date of a driver's license for a person 18 years old or older; corrects the description of the documents required to be presented by legal nonimmigrant applicants for a driver's license to establish that they are legally present in the United States and how long they are authorized to stay; authorizes the Division of Motor Vehicles to cancel a driver's license issued to a legal nonimmigrant under certain circumstances. Effective: May 23, 2007.

SB 1147

481

Motor vehicle insurance -- miscellaneous

Requires that a copy of the registration card issued for a dealer plate be in the vehicle; authorizes a new motor vehicle dealer to examine the safety and emissions control devices on a motor vehicle and perform necessary services to ensure the motor vehicle conforms to the specifications established by the manufacturer and contained in its predelivery check list; clarifies motor vehicle registration requirements; relates to a registrants identity and drivers license and to fraudulent vehicle registration. Effective: Varies.

SB 1211

370

Motor vehicle insurance -- miscellaneous

Requires fingerprinting of any person arrested for any offenses involving impaired driving or for driving while their license is revoked. Effective: October 1, 2007.

SB 1290

165

Motor vehicle insurance - traffic offenses

Provides for the use of continuous alcohol monitoring systems to be used to monitor individuals who have been sentenced for DWI convictions or as necessary by the courts to ensure compliance with conditions of release, probation or parole; provides for completion of a substance abuse assessment. Effective: December 1, 2007.

SB 1327

399

Bail Bonds

Adds an exception to the circumstances under which a surety on a bail bond is not required to return the premium on the bond under the laws regulating bail bondsmen and runners. Effective: August 21, 2007.

SB 1350

209

Motor vehicle insurance -- miscellaneous

Clarifies motor vehicle registration requirements; specifies information which must be requested on an application for a certificate of title, a registration plate, and a registration card for a motor vehicle provided by the Division of Motor Vehicles including information relative to the applicant's military status, drivers license, and school enrollment status. Effective: July 11, 2007.

SB 1359

260

Motor vehicle insurance - traffic safety

Allows the operator of a motorcycle to proceed through an intersection controlled by a traffic signal only if the traffic signal uses an inductive loop vehicle sensor that activates the traffic signal and the inductive loop fails to detect the motorcycle and activate the traffic signal. Effective: December 1, 2007.

SB 1364

505

Motor vehicle insurance -- miscellaneous

Requires secondary purchasers of certain motor vehicles for scrap metal or salvage parts to maintain certain records related to the purchase, including , but not limited to, a description of the motor vehicle, including the make and model to the extent practicable, the vehicles identification number (VIN), the name and address of the person from whom the motor vehicle is being purchased, and a photocopy or electronic scan of the drivers license or identification card of the seller, or the seller's agent. Effective: Varies.

SB 1456

77

Motor vehicle insurance - commercial auto

Allows motor vehicle combinations of one semi-trailer of not more than 48 feet in length and a truck tractor (power unit) to exceed the 60-foot maximum length to operate on highways within the state. Effective: June 14, 2007.

SB 1495

404

Motor vehicle insurance - towing issues

Requires that a vehicle used to tow or transport another vehicle be marked so that the owner may be identified; adds an exemption from the seat belt law for drivers or passengers of a residential garbage or recycling truck while the truck is operating during collection rounds and while traveling to and from garbage and recycling material loading and unloading locations. Effective: December 1, 2007.

SB 1527

507

Producer licensure - miscellaneous provisions

Makes various changes in the laws relating to licensing of insurance producers and bail bondsmen; makes changes in the fee structures for agents and adjusters; authorizes the outsourcing of certain functions relating to the administration of continuing education and administrative programs; requires the Department of Insurance to study issues related to life insurance beneficiary notification; exempt insurers from automatic renewal disclosure clause requirements; relates to building code appeals. Effective: Varies.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.