Bill > S269

This bill revises the Insurance Guaranty Association Act to update several key provisions related to insurance claims and insurer insolvency. The bill expands the definition of "covered claims" to include insurance policies that have been transferred, merged, or assumed by other insurers under specific conditions, and introduces a new definition for "cybersecurity insurance" that covers first and third-party losses related to data breaches, computer viruses, and similar cyber risks. The legislation increases the Association's powers by allowing it to investigate, adjust, and settle claims more flexibly, including the ability to appoint legal counsel and pay claims in any order deemed reasonable. The bill also provides the Association with broader rights to review and contest settlements, releases, and judgments made by insolvent insurers, including the ability to challenge settlements made within 120 days prior to liquidation or those entered through default, fraud, or collusion. Additionally, the bill modifies provisions about net worth calculations for large insureds and clarifies the Association's obligations, including a specific cap of $500,000 for cybersecurity insurance claims arising from a single insured event. The changes aim to provide more clarity and flexibility in handling insurance claims when an insurer becomes insolvent, with a particular focus on modern cybersecurity-related insurance scenarios.

https://www.ncleg.gov/BillLookUp/2025/S269