Bill > H347

This bill modifies existing North Carolina law regarding credit property insurance for automobiles by establishing specific restrictions on automobile physical damage insurance coverage. The bill prohibits including certain types of coverage in credit property insurance policies, including: (1) repossession cost coverage, (2) "skip, confiscation, and conversion" coverage (which protects lenders when a borrower sells, trades, or cannot be located with the collateral), (3) insurance policies with deductibles less than $250, and (4) insurance coverage that is broader than the minimum required insurance standards. While these specific types of coverage are restricted from being included in the primary insurance policy, the bill does allow for separate policies or endorsements that provide such coverages, provided that no additional charges are passed on to the borrower. The new regulations aim to standardize and limit the types of automobile physical damage insurance that can be bundled with credit property insurance, potentially protecting consumers from overly broad or expensive insurance products. The bill will take effect immediately upon becoming law and will apply to insurance contracts issued, renewed, or amended after that date.

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https://www.ncleg.gov/BillLookUp/2025/H347