§ 58-38-20. Format requirements. - North Carolina Statutes

§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.)