§ 20-281. Liability insurance prerequisite to engaging in business; coverage of policy. - North Carolina Statutes

Article11.

Liability InsuranceRequired of Persons Engaged in Renting Motor Vehicles.

§ 20‑281.  Liabilityinsurance prerequisite to engaging in business; coverage of policy.

From and after July 1, 1953,it shall be unlawful for any person, firm or corporation to engage in thebusiness of renting or leasing motor vehicles to the public for operation bythe rentee or lessee unless such person, firm or corporation has securedinsurance for his own liability and that of his rentee or lessee, in such anamount as is hereinafter provided, from an insurance company duly licensed tosell motor vehicle liability insurance in this State. Each such motor vehicleleased or rented must be covered by a policy of liability insurance insuringthe owner and rentee or lessee and their agents and employees while in theperformance of their duties against loss from any liability imposed by law fordamages including damages for care and loss of services because of bodilyinjury to or death of any person and injury to or destruction of propertycaused by accident arising out of the operation of such motor vehicle, subjectto the following minimum limits: thirty thousand dollars ($30,000) because ofbodily injury to or death of one person in any one accident, and sixty thousanddollars ($60,000) because of bodily injury to or death of two or more personsin any one accident, and twenty‑five thousand dollars ($25,000) becauseof injury to or destruction of property of others in any one accident.Provided, however, that nothing in this Article shall prevent such operatorsfrom qualifying as self‑insurers under terms and conditions to beprepared and prescribed by the Commissioner of Motor Vehicles or by giving bondwith personal or corporate surety, as now provided by G.S. 20‑279.24, inlieu of securing the insurance policy hereinbefore provided for. (1953,c. 1017, s. 1; 1955, c. 1296; 1965, c. 349, s. 1; 1967, c. 277, s. 8; 1973, c.745, s. 7; 1979, c. 832, s. 11; 1991, c. 469, s. 6; 1999‑228, s. 7.)