NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 1186

HOUSE BILL 1172

 

 

AN ACT TO AMEND G.S. 20-279.21, AS THE SAME RELATES TO UNINSURED MOTORIST INSURANCE, SO AS TO REQUIRE THAT ENDORSEMENT OF SUCH INSURANCE CONTAINS CERTAIN PROVISIONS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 20-279.21(b)(3) is hereby amended by adding immediately after the first paragraph thereof and before the second paragraph thereof the following:

"In addition to the above requirements relating to uninsured motorist insurance, every policy of bodily injury liability insurance covering liability arising out of the ownership, maintenance or use of any motor vehicle, which policy is delivered or issued for delivery in this State, shall be subject to the following provisions which need not be contained therein.

(1)        A provision that the insurer shall be bound by a final judgment taken by the insured against an uninsured motorist if the insurer has been served with copy of summons, complaint or other process in the action against the uninsured motorist in any manner provided by law; provided however, that the determination of whether a motorist is uninsured may be decided only by an action against the insurer alone. The insurer upon being served as herein provided, shall be a party to the action between the insured and the uninsured motorist though not named in the caption of the pleadings and may defend the suit in the name of the uninsured motorist or in its own name. The insurer upon being served with copy of summons, complaint or other pleading, shall have the time allowed by statute in which to answer, demur or otherwise plead (whether such pleading is verified or not) to the summons, complaint or other process served upon it. The consent of the insurer shall not be required for the initiation of suit by the insured against the uninsured motorist: Provided, however, no action shall be initiated by the insured until 60 days following the posting of notice to the insurer at the address shown on the policy or after personal delivery of such notice to the insurer or its agent setting forth the belief of the insured that the prospective defendant or defendants are uninsured motorists. No default judgment shall be entered when the insurer has timely filed an answer or other pleading as required by law.

(2)        Where the insured, under the uninsured motorist coverage, claims that he has sustained bodily injury as the result of collision between motor vehicles and asserts that the identity of the operator or owner of a vehicle (other than a vehicle in which the insured is a passenger) cannot be ascertained, the insured may institute an action directly against the insurer: Provided, in such event, the insured or someone in his behalf, shall report the accident within 24 hours or as soon thereafter as may be practicable, to a police officer, peace officer, other judicial officer, or to the Commissioner of Motor Vehicles. The insured shall also within a reasonable time give notice to the insurer of his injury, the extent thereof, and shall set forth in such notice the time, date and place of such injury. Thereafter, on forms to be mailed by the insurer within 15 days following receipt of the notice of the accident to the insurer, the insured shall furnish to insurer such further reasonable information concerning the accident and the injury as the insurer shall request. If such forms are not so furnished within 15 days, the insured shall be deemed to have complied with the requirements for furnishing information to the insurer. Suit may not be instituted against the insurer in less than 60 days from the posting of the first notice of such injury or accident to the insurer at the address shown on the policy or after personal delivery of such notice to the insurer or its agent.

"No insurer may cancel, refuse to renew or reduce the coverage under any automobile liability insurance policy because an insured under such policy has made a claim in good faith under the uninsured motorist endorsement of such policy.

"Where an insured's policy has been cancelled, or the insurer has failed to renew following a claim made by the insured under the uninsured motorist's endorsement, the insurer upon the written request of the insured shall furnish such insured with the reason or reasons why it has cancelled or failed to renew such policy. Such information furnished by the insurer to the insured shall be privileged, and shall not subject the insurer to liability for libel, slander or other defamation."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall become effective from and after the date of its ratification, but the same shall not apply to existing policies of insurance, but shall apply to renewals and to new policies issued after such effective date.

In the General Assembly read three times and ratified, this the 6th day of July, 1967.