North Carolina Senate Approves Motorist Liability Coverage Measures

A North Carolina bill passed through the Senate Commerce Committee on June 24 that would require insurers to notify consumers of their choice to buy more than the required minimum uninsured motorist and underinsured motorist coverage.

The minimum amounts required for bodily injury are $30,000 for injury or death to one person and a total of $60,000 for injury or death to two or more persons.

Under the legislation, insurers would face civil penalty for neglecting to inform a customer of their option to increase coverage above the minimum requirement, not to exceed $1 million per person and $1 million per accident.

The same bill (HB 738) states that insureds would not be allowed to waive uninsured motorist and underinsured motorist coverage — an option available under current law if the policyholder requests it in writing.

Joe Stewart, executive director of the Insurance Federation of North Carolina said the industry supports the measures.

Full text of the legislation can be viewed at www.ncleg.net/gascripts/BillLookUp

Latest Comments

• February 26, 2009 at 4:53 am

  Jeff says:

  That is exactley what it reads. So, you need to split up your liability.
• January 25, 2009 at 10:17 am

  Joe D. says:

  My insurer (USAA) says that HB738 requires UM/UIM coverage to be same limits as liability coverage. I don't read it that way. Anybody got an opinion?
• June 26, 2008 at 9:35 am

  InsIsMyPassion says:

  Rodney, I think it's supposed to be: "The same law (HB738) will ONLY..." Looks like a simple typo.