§ 58-2-46. State of disaster; automatic stay of proof of loss requirements; premium and debt deferrals; loss adjustments for separate windstorm policies. - North Carolina Statutes

§ 58‑2‑46.  Stateof disaster; automatic stay of proof of loss requirements; premium and debtdeferrals; loss adjustments for separate windstorm policies.

Whenever a state of disasteris proclaimed for the State or for an area within the State under G.S. 166A‑6or whenever the President of the United States has issued a major disasterdeclaration for the State or for an area within the State under the StaffordAct, 42 U.S.C. § 5121, et seq., as amended:

(1)        The application ofany provision in an insurance policy insuring real property and its contentsthat are located within the geographic area designated in the proclamation ordeclaration, which provision requires an insured to file a proof of loss withina certain period of time after the occurrence of the loss, shall be stayed forthe time period not exceeding the expiration of the disaster proclamation ordeclaration and all renewals of the proclamation or 45 days, whichever islater.

(2)        As used in thissubdivision, "insurance company" includes a service corporation, HMO,MEWA, surplus lines insurer, and the underwriting associations under Articles45 and 46 of this Chapter. All insurance companies, premium finance companies,collection agencies, and other persons subject to this Chapter shall give theircustomers who reside within the geographic area designated in the proclamationor declaration the option of deferring premium or debt payments that are dueduring the time period covered by the proclamation or declaration. Thisdeferral period shall be 30 days from the last day the premium or debt paymentmay be made under the terms of the policy or contract. This deferral periodshall also apply to any statute, rule, or other policy or contract provisionthat imposes a time limit on an insurer, insured, claimant, or customer toperform any act during the time period covered by the proclamation ordeclaration, including the transmittal of information, with respect toinsurance policies or contracts, premium finance agreements, or debtinstruments when the insurer, insured, claimant, or customer resides or islocated in the geographic area designated in the proclamation or declaration.Likewise, the deferral period shall apply to any time limitations imposed oninsurers under the terms of a policy or contract or provisions of law relatedto individuals who reside within the geographic area designated in theproclamation or declaration. Likewise, the deferral period shall apply to anytime limitations imposed on insurers under the terms of a policy or contract orprovisions of law related to individuals who reside within the geographic areadesignated in the proclamation or declaration. The Commissioner may extend anydeferral period in this subdivision, depending on the nature and severity ofthe proclaimed or declared disaster. No additional rate or contract filingshall be necessary to effect any deferral period.

(3)        With respect tohealth benefit plans, after a deferral period has expired, all premiums inarrears shall be payable to the insurer. If premiums in arrears are not paid,coverage shall lapse as of the date premiums were paid up, and preexistingconditions shall apply as permitted under this Chapter; and the insured shallbe responsible for all medical expenses incurred since the effective date of thelapse in coverage.

(4)        In addition to therequirements of G.S. 58‑45‑35(e), for separate windstorm policiesthat are written by an insurer other than the Underwriting Association, lossesshall be adjusted by the insurer that issued the property insurance and not bythe insurer that issued the windstorm policy. The insurer that issued thewindstorm policy shall reimburse the insurer that issued the property insurancefor reasonable expenses incurred by that insurer in adjusting the windstormlosses. (2006‑145,s. 3.)