(a) Single interest ordual interest physical damage insurance may be written on nonfleet privatepassenger motor vehicles, as defined in G.S. 58‑40‑10, that areused as collateral for loans made under Article 15 of Chapter 53 of the GeneralStatutes. Automobile physical damage insurance as described in this section isa form of credit property insurance, as referred to in G.S. 53‑189. It issubject to the following conditions:
(1) Such insurance maybe written only on a motor vehicle that is in compliance with the inspectionrequirements of Part 2 of Article 3A of Chapter 20 of the General Statutes.
(2) If a motor vehicleis already insured and the lender is named loss payee and that insurancecontinues in force, then no other physical damage insurance may be written.
(3) Notification must begiven orally and in writing to the borrower that he has the option to providehis own insurance coverage at any point during the term of the loan.
(4) The creditor musthave either a first or second lien on the motor vehicle to be insured.
(5) The amount ofinsurance coverage may not exceed the lesser of (i) the principal amount of theloan plus allowable charges, excluding interest, plus two scheduled installmentpayments or (ii) the actual fair market value of the collateral at the time theinsurance is written.
(6) When a creditoraccepts other collateral in addition to a motor vehicle as herein defined, thecombined insurance on all collateral may not exceed the initial indebtedness ofthe loan.
(b) Policy forms,rates, rating plans, and classifications for single or dual interest nonfleetprivate passenger motor vehicle physical damage insurance shall be filed withthe Commissioner in accordance with Articles 40 and 41 of this Chapter. Everyinsurer writing such insurance shall, on or before April 1 of each year, file asupplemental financial statement in such form and detail that the Commissionerprescribes that will enable the Commissioner to review and analyze the filingsmade under this subsection. (1989, c. 485, s. 13; 1989 (Reg. Sess., 1990), c.1021, s. 2; 1993 (Reg. Sess., 1994), c. 720, s. 1; 2009‑382, s. 34.)
(a) Single interest ordual interest physical damage insurance may be written on nonfleet privatepassenger motor vehicles, as defined in G.S. 58‑40‑10, that areused as collateral for loans made under Article 15 of Chapter 53 of the GeneralStatutes. Automobile physical damage insurance as described in this section isa form of credit property insurance, as referred to in G.S. 53‑189. It issubject to the following conditions:
(1) Such insurance maybe written only on a motor vehicle that is in compliance with the inspectionrequirements of Part 2 of Article 3A of Chapter 20 of the General Statutes.
(2) If a motor vehicleis already insured and the lender is named loss payee and that insurancecontinues in force, then no other physical damage insurance may be written.
(3) Notification must begiven orally and in writing to the borrower that he has the option to providehis own insurance coverage at any point during the term of the loan.
(4) The creditor musthave either a first or second lien on the motor vehicle to be insured.
(5) The amount ofinsurance coverage may not exceed the lesser of (i) the principal amount of theloan plus allowable charges, excluding interest, plus two scheduled installmentpayments or (ii) the actual fair market value of the collateral at the time theinsurance is written.
(6) When a creditoraccepts other collateral in addition to a motor vehicle as herein defined, thecombined insurance on all collateral may not exceed the initial indebtedness ofthe loan.
(b) Policy forms,rates, rating plans, and classifications for single or dual interest nonfleetprivate passenger motor vehicle physical damage insurance shall be filed withthe Commissioner in accordance with Articles 40 and 41 of this Chapter. Everyinsurer writing such insurance shall, on or before April 1 of each year, file asupplemental financial statement in such form and detail that the Commissionerprescribes that will enable the Commissioner to review and analyze the filingsmade under this subsection. (1989, c. 485, s. 13; 1989 (Reg. Sess., 1990), c.1021, s. 2; 1993 (Reg. Sess., 1994), c. 720, s. 1; 2009‑382, s. 34.)
(a) Single interest ordual interest physical damage insurance may be written on nonfleet privatepassenger motor vehicles, as defined in G.S. 58‑40‑10, that areused as collateral for loans made under Article 15 of Chapter 53 of the GeneralStatutes. Automobile physical damage insurance as described in this section isa form of credit property insurance, as referred to in G.S. 53‑189. It issubject to the following conditions:
(1) Such insurance maybe written only on a motor vehicle that is in compliance with the inspectionrequirements of Part 2 of Article 3A of Chapter 20 of the General Statutes.
(2) If a motor vehicleis already insured and the lender is named loss payee and that insurancecontinues in force, then no other physical damage insurance may be written.
(3) Notification must begiven orally and in writing to the borrower that he has the option to providehis own insurance coverage at any point during the term of the loan.
(4) The creditor musthave either a first or second lien on the motor vehicle to be insured.
(5) The amount ofinsurance coverage may not exceed the lesser of (i) the principal amount of theloan plus allowable charges, excluding interest, plus two scheduled installmentpayments or (ii) the actual fair market value of the collateral at the time theinsurance is written.
(6) When a creditoraccepts other collateral in addition to a motor vehicle as herein defined, thecombined insurance on all collateral may not exceed the initial indebtedness ofthe loan.
(b) Policy forms,rates, rating plans, and classifications for single or dual interest nonfleetprivate passenger motor vehicle physical damage insurance shall be filed withthe Commissioner in accordance with Articles 40 and 41 of this Chapter. Everyinsurer writing such insurance shall, on or before April 1 of each year, file asupplemental financial statement in such form and detail that the Commissionerprescribes that will enable the Commissioner to review and analyze the filingsmade under this subsection. (1989, c. 485, s. 13; 1989 (Reg. Sess., 1990), c.1021, s. 2; 1993 (Reg. Sess., 1994), c. 720, s. 1; 2009‑382, s. 34.)
