§58‑38‑20.  Format requirements.

(a) All insurancepolicies and contracts covered by G.S. 58‑38‑35 must be printed ina typeface at least as large as 10 point modern type, one point leaded, bewritten in a logical and clear order and form, and contain the following items:

(1) On the cover, first,or insert page of the policy a statement that the policy is a legal contractbetween the policy owner and the insurer and the statement, printed in largeror other contrasting type or color, "Read your policy carefully";

(2) An index of themajor provisions of the policy, which may include the following items:

a. The person orpersons insured by the policy;

b. The applicableevents, occurrences, conditions, losses, or damages covered by the policy;

c. The limitations orconditions on the coverage of the policy;

d. Definitionalsections of the policy;

e. Provisions governingthe procedure for filing a claim under the policy;

f. Provisionsgoverning cancellation, renewal, or amendment of the policy by either the insureror the policyholder;

g. Any options underthe policy; and

h. Provisions governingthe insurer's duties and powers in the event that suit is filed against theinsured.

(b) In determiningwhether or not a policy is written in a logical and clear order and form theCommissioner must consider the following factors:

(1) The extent to whichsections or provisions are set off and clearly identified by titles, headings,or margin notations;

(2) The use of a morereadable format, such as narrative or outline forms;

(3) Margin size and theamount and use of space to separate sections of the policy; and

(4) Contrast andlegibility of the colors of the ink and paper and the use of contrasting titlesor headings for sections. (1979, c. 755, s. 1.)