§ 58-66-20. Format requirements. - North Carolina Statutes

§58‑66‑20.  Format requirements.

(a)        All certificatesand contracts covered by G.S. 58‑66‑35 must be printed in a typeface at least as large as 10 point modern type, one point leaded, be written ina logical and clear order and form, and contain the following items:

(1)        On the cover, first,or insert page of the certificate a statement that the certificate is a legalcontract between the certificate owner and the insurer, and the statement,printed in larger or other contrasting type or color, "Read your certificatecarefully";

(2)        An index of themajor provisions of the certificate, which may include the following items:

a.         The person orpersons insured by the certificate;

b.         The applicableevents, occurrences, conditions, losses, or damages covered by the certificate;

c.         The limitations orconditions on the coverage of the certificate;

d.         Definitionalsections of the certificate;

e.         Provisions governingthe procedure for filing a claim under the certificate;

f.          Provisionsgoverning cancellation, renewal, or amendment of the certificate by either theinsurer or the subscriber;

g.         Any options underthe certificate; and

h.         Provisions governingthe insurer's duties and powers in the event that suit is filed against thesubscriber.

(b)        In determiningwhether or not a certificate is written in a logical and clear order and formthe Commissioner 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 contrastingtitles or headings for sections. (1979, 2nd Sess., c. 1161, s.1.)