GOVERNMENT
The Daily Bulletin: 2016-06-22
PUBLIC/HOUSE BILLS
H 287 (2015-2016) AMEND INSURANCE LAWS.-AB Filed Mar 18 2015, AN ACT TO ENHANCE AND IMPROVE CONSUMER
PROTECTIONS AND TRANSPARENCY RELATED TO MOTOR VEHICLE MAINTENANCE AND REPAIRS. LONG-TERM CARE
INSURANCE, AND CONSENT TO RATE; TO STUDY VOLUNTEER FIREFIGHTER RECRUITMENT AND RETENTION EFFORTS;
TO INCREASE THE CRIMINAL PENALTY FOR LARGE-SCALE FRAUD COMMITTED BY AN INSURANCE FIDUCIARY AND
STRENGTHEN COMMERCIAL AUTO RATE EVASION REFORM; TO MAKE VARIOUS TECHNICAL AND POLICY CHANGES TO
NORTH CAROLINA 'S CAPTIVE INSURANCE LAW PRO VISIONS; TO ENABLE THE ESTABLISHMENT OF A STATE-BASED PRIVATE
FLOOD INSURANCE MARKET; TO ENABLE INSURERS TO RECEIVE RESTITUTION FROM CONVICTED DEFENDANTS; TO
EXEMPT CERTAIN ACCOUNTABLE CARE ORGANIZATIONS FROM DEPARTMENT REGULATION; AND TO MAKE OTHER
AMENDMENTS TO INSURANCE LAWS, AS RECOMMENDED BY THE DEPARTMENT.
Senate amendment makes the following changes to the 5th edition.
Amends proposed subsection (fl) of GS 58-51-95, concerning approval by the Commissioner of Insurance (Commissioner) of
forms, classification, and rates, by increasing the maximum rate increase that may be implemented in any calendar year for any
policyholder for long-term care policy forms to 25% (was, 1 5%) of the current policy premium rate in effect prior to the increase.
Amends GS 58-87-5(a), which creates tire Volunteer Rescue/EMS Fund, to add EMS units that are volunteer fire departments
that are a part of a county's EMS system plan to the units and services that may receive grants from the Fund.
Amends proposed subsection (b 1 ) of GS 58-2-164. concerning rate evasion fraud, to make it a Class H felony for any applicant,
as the term is defined in subsection (a) as amended by tire act (previously, any person) who, with the intent to deceive the insurer,
knowingly violates GS 58-2- 164(b) for the purpose of obtaining auto insurance covering one or more vehicles, the operation of
which requires a Commercial Driver's License pursuant to GS 20-4.01 (3c).
Changes the proposed revision to GS 58-56A-1 0, concerning civil penalties for violations of Article 56A of GS Chapter 58
(Pharmacy Benefits Management) and administrative procedure that is effective July 1, 2016, to allow, upon petition ofthe
Commissioner, a court to order the pharmacy benefits manager w ho committed a violation specified in subsection (b) of the
statute to make restitution for expenses (previously, for administrative expenses, including expenses) under subsection (0 of the
statute, inclin ed in the investigation, hearing, and any appeals associated with the violation in the amount that would reimburse
the agency for the expenses.
Amends the following effective date provisions.
Clarifies that Section 1.3(a) becomes effective October 1, 2017. and applies to policies issued, renewed, or amended on or after
that date, and that Sections 1.3(b) and 1 .3(c) become effective October 1, 201 7. and apply to filings submitted on or after that date
(previously. Section 1.3 becomes effective October 1. 201 7, and applies to policies issued, renewed, or amended on or after that
date and applies to filings submitted on or after that date).
Deletes the provision making Part III of the act effective December 1. 2016, and instead provides that Sections 3.1. 3.2, and 6.4
become effective December 1 . 2016.
Intro, by Setzcr, Bumgardner.
GS 15A, GS 58
View summary
Business and Commerce, Insurance, Courts/Judiciary,
Criminal Justice, Criminal Larv and Procedure, Government,
Public Safety, State Agencies, Department of Insurance,
Health and Human Services, Health, Health Insurance
