Bill > S270

This bill modifies existing North Carolina insurance law by placing specific restrictions on automobile physical damage insurance within credit property insurance policies. The bill prohibits such insurance from including coverage for repossession costs, "skip, confiscation, and conversion" (which means insurance that covers situations where a borrower has sold, traded, or disposed of collateral, or where the borrower and collateral cannot be located), insurance with deductibles less than $250, and insurance coverage broader than the minimum required insurance requirements. Importantly, while these specific types of coverage are restricted within the primary insurance policy, the bill allows insurers to issue separate policies or endorsements for these coverages, provided that no additional charges are passed on to the borrower. The law will take effect immediately upon becoming law and will apply to insurance contracts that are issued, renewed, or amended after that date, giving insurers and lenders clear guidance on the permissible scope of automobile physical damage insurance in credit property insurance policies.

https://www.ncleg.gov/BillLookUp/2025/S270