State Codes and Statutes
Statutes > North-carolina > Chapter_58 > GS_58-41-5§58‑41‑5. Legislative findings and intent.
(a) Due to conditionsin national and international property and liability insurance markets,insureds in the United States have experienced unprecedented in‑termcancellations of existing policies for entire books of business, have beenafforded little or no notice that existing policies would not be renewed attheir expiration dates, or would be renewed only at substantially higher ratesor on less favorable terms. The General Assembly finds that such conditionspose an imminent peril to the public welfare for the following reasons:
(1) In‑termcancellations of insurance coverages erode insureds' confidence and breachinsureds' trust; unfairly and prematurely terminate the promised coverage;force persons to go without needed insurance protection or force theprocurement of substitute insurance at greater cost; and create marketplaceconfusion resulting in product unavailability.
(2) Failures to providetimely notices of nonrenewals or of renewals with altered terms deprive personsof adequate opportunities to secure affordable replacement coverages or requirepersons to go without needed insurance protection.
(b) The GeneralAssembly finds that there is no uniform requirement for the notice ofcancellation, renewal, or nonrenewal for commercial property and liabilityinsurance and that it should adopt reasonable requirements for such notices andshould regulate in‑term cancellations of entire books of business bycompanies. (1985 (Reg. Sess., 1986), c. 1027, s. 14.)
