§ 58-51-20. Renewability of individual and blanket hospitalization and accident and health insurance policies. - North Carolina Statutes

§58‑51‑20.  Renewability of individual and blanket hospitalizationand accident and health insurance policies.

(a)        Every individual orblanket family hospitalization policy and accident and health policy, otherthan noncancelable or nonrenewable policies but including group, blanket andfranchise policies, as defined in Articles 1 through 64 of this Chapter,covering less than 10 persons, issued in North Carolina after January 1, 1956,shall include in substance the following provision:

Renewability: This policy isrenewable at the option of the policyholder unless sufficient notice ofnonrenewal is given the policyholder in writing by the insurer.

Sufficient notice shall be,during the first year of any policy, or during the first year following anylapse and reinstatement, a period of 30 days before the premium due date. Afterone continuous year of coverage and acceptance of premium for any portion ofthe second or subsequent year sufficient notice shall be a number of fullmonths most nearly equivalent to one fourth the number of months of continuouscoverage from the inception date of the policy, to the date of mailing of thenotice: Provided no period of required notice shall exceed two years.

(b)        No insurancecompany issuing individual or blanket family hospitalization or accident andhealth policies of insurance shall have the right to unilaterally restrictcoverage, reduce benefits or increase rates upon any contract ofhospitalization or accident and health insurance which is subject to theprovisions of this section except as provided herein.

(c)        Any hospitalizationor accident and health policy reissued or renewed in the name of the insuredduring the grace period shall be construed to be a continuation of the policyfirst issued.

(d)        The requirements ofthis section do not apply to a refusal or renewal because of a change ofoccupation of an insured to one classified by the insurer as uninsurable nor toan increase in rate due to a change of occupation of an insured to a morehazardous occupation. (1955, c. 886, s. 2; 1957, c. 1085, s. 2; 1979, c.755, s. 13; 1985, c. 666, s. 71; 1989, c. 485, s. 55; 1991, c. 644, s. 27.)