Potential Impact of Major Hurricanes
On the NC Insurance Industry Page 26
to the applicant. In carrying out the Commissioner's duties under this section, the
Commissioner may request, and the Association shall provide, any information the
Commissioner deems necessary to a determination concerning the reason for the
denial or delay of the application.
( d) An agent who is licensed under Article 33 of this Chapter as an agent of
a company which is a member of the Association established under this Article
shall not be deemed an agent of the Association. The foregoing notwithstanding,
an agent of a company which is a member of the Association shall have the
authority, subject to the underwriting guidelines established by the Association, to
temporarily bind coverage with the Association. The Association shall establish
rules and procedures, including any limitations for binding authority, in the plan of
operation.
Any unearned premium on the temporary binder shall be returned to the
policyholder if the Association refuses to issue a policy. Nothing in this section
shall prevent the Association from suspending binding authority in accordance
with its plan of operation.
( e) Policies of windstorm and hail insurance provided for in subsection ( b)
of this section are available only for risks in the beach and coastal areas for which
essential property insurance has been written by licensed insurers. Whenever such
other essential property insurance written by licensed insurers includes
replacement cost coverage, the Association shall also offer replacement cost
coverage. In order to be eligible for a policy of windstorm and hail insurance, the
applicant shall provide the Association, along with the premium payment for the
windstorm and hail insurance, a certificate that the essential property insurance is
in force. The policy forms for windstorm and hail insurance shall be filed by the
Association with the Commissioner for the Commissioner's approval before they
may be used. Catastrophic losses, as determined by the Association and approved
by the Commissioner, that are covered under the windstorm and hail coverage in
the beach and coastal areas shall be adjusted by the licensed insurer that issued the
essential property insurance and not by the Association. The Association shall
reimburse the insurer for reasonable expenses incurred by the insurer in adjusting
windstorm and hail losses.
" § 58- 45- 36. Temporary contracts of insurance.
Consistent with G. S. 58- 45- 35( d), the Association shall be temporarily bound
by a written temporary binder of insurance issued by any duly licensed insurance
agent or broker. Coverage shall be effective upon payment to the agent or broker
of the entire premium or part of the premium, as prescribed by the Association's
plan of operation. Nothing in this section shall impair or restrict the rights of the
Association under G. S. 58- 45- 35( b) to decline to issue a policy based upon a lack
of insurability as determined by the Association or the existence of an unpaid
premium due from the applicant.