| 12 | 13 | | A BILL TO BE ENTITLED 1 |
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| 13 | 14 | | AN ACT PROHIBITING THE INCLUSION OF CERTAIN AUTOMOBILE PHYSICAL 2 |
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| 14 | 15 | | DAMAGE INSURANCE COVERAGE IN A CREDIT PROPERTY INSURANCE 3 |
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| 15 | 16 | | POLICY, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE. 4 |
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| 16 | 17 | | The General Assembly of North Carolina enacts: 5 |
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| 17 | 18 | | SECTION 1. G.S. 58-57-100 reads as rewritten: 6 |
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| 18 | 19 | | "§ 58-57-100. Credit property insurance; automobile physical damage insurance. 7 |
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| 19 | 20 | | … 8 |
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| 20 | 21 | | (c) Automobile physical damage insurance as described in this section shall not include 9 |
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| 21 | 22 | | any of the following: 10 |
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| 22 | 23 | | (1) Coverage for the cost of repossession. 11 |
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| 23 | 24 | | (2) Skip, confiscation, and conversion coverage. For the purposes of this 12 |
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| 24 | 25 | | subdivision, "skip, confiscation, and conversion coverage" means insurance 13 |
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| 25 | 26 | | which provides coverage when a borrower has sold, traded, or disposed of the 14 |
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| 26 | 27 | | collateral, or the borrower and the collateral cannot be found. 15 |
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| 27 | 28 | | (3) Coverage that requires a borrower's insurance deductible to be less than two 16 |
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| 28 | 29 | | hundred fifty dollars ($250.00). 17 |
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| 29 | 30 | | (4) Coverage that is broader than the insurance coverages that meet the minimum 18 |
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| 30 | 31 | | insurance requirements in subsection (a) of this section. 19 |
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| 31 | 32 | | (d) Nothing in subsection (c) of this section prohibits the issuance of a separate policy or 20 |
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| 32 | 33 | | endorsement providing the coverages listed in subsection (c) of this section, so long as no charge 21 |
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| 33 | 34 | | is passed along to the borrower for those coverages." 22 |
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| 34 | 35 | | SECTION 2. This act is effective when it becomes law and applies to contracts 23 |
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| 35 | 36 | | issued, renewed, or amended on or after that date. 24 |
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