§ 58-57-90. Credit property insurance; personal household property coverage. - North Carolina Statutes

§58‑57‑90.  Credit property insurance; personal household propertycoverage.

(a)        As used in thisArticle, the term "single interest credit property" insurance meansinsurance of the personal household property of the debtor against loss, withthe creditor as sole beneficiary; and the term "dual credit property"insurance means insurance of personal household property of the debtor, withthe creditor as primary beneficiary and the debtor as beneficiary of proceedsnot paid to the creditor. For the purpose of this Article, "personalhousehold property" means household furniture, furnishings and appliancesdesigned for household use and not used by the debtor in a business trade orprofession.

(b)        Premium ratescharged shall not exceed eighty‑seven cents (87¢) per year per onehundred dollars ($100.00) of insured value for single interest credit propertyinsurance and shall not exceed one dollar and thirty‑one cents ($1.31)per year per one hundred dollars ($100.00) of insured value for dual interestcredit property insurance. The insured value shall not exceed the lesser of thevalue of the property or the amount of the initial indebtedness.

In addition to the premiumrate authorized, a charge may also be made for a nonrefundable origination feeper credit property insurance transaction as set forth below:

                        InsuredValue                                       Fee Permitted

                        less than$250.00                                      none

                        $250.00or more but                                 $1.00

                           lessthan $500.00

                        $500.00or more                                       $3.00

No third or subsequentorigination fee may be charged in connection with the third or subsequentrefinancing within any twelve‑month period.

The Department shall collectdata on credit property insurance written in North Carolina, including but notlimited to: the amount of coverage written, direct premiums, earned premiums,dividends and retrospective rate credits paid, direct losses paid, directlosses incurred, commissions paid, loss ratios and policy provisions. (1981,c. 759, s. 7; 1987, c. 826, s. 9; 1993, c. 226, s. 11; 1993 (Reg. Sess., 1994),c. 720, s. 2.)