Credit Property Insurance Restrictions.-AB

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 347

Short Title: Credit Property Insurance Restrictions.-AB (Public)
Sponsors: Representative Humphrey.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Insurance, if favorable, Finance, if favorable, Rules, Calendar, and Operations of
the House
March 11, 2025
*H347-v-1*
A BILL TO BE ENTITLED 1
AN ACT PROHIBITING T HE INCLUSION OF CERT AIN AUTOMOBILE PHYSI CAL 2
DAMAGE INSURANCE COV ERAGE IN A CREDIT PR OPERTY INSURANCE 3
POLICY, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 58-57-100 reads as rewritten: 6
"§ 58-57-100. Credit property insurance; automobile physical damage insurance. 7
… 8
(c) Automobile physical damage insurance as described in this section shall not include 9
any of the following: 10
(1) Coverage for the cost of repossession. 11
(2) Skip, confiscation, and conversion coverage . For the purposes of this 12
subdivision, "skip, confiscation, and conversion coverage " means insurance 13
which provides coverage when a borrower has sold, traded, or disposed of the 14
collateral, or the borrower and the collateral cannot be found. 15
(3) Coverage that requires a borrower 's insurance deductible to be less than two 16
hundred fifty dollars ($250.00). 17
(4) Coverage that is broader than the insurance coverages that meet the minimum 18
insurance requirements in subsection (a) of this section. 19
(d) Nothing in subsection (c) of this section prohibits the issuance of a separate policy or 20
endorsement providing the coverages listed in subsection (c) of this section, so long as no charge 21
is passed along to the borrower for those coverages." 22
SECTION 2. This act is effective when it becomes law and applies to contracts 23
issued, renewed, or amended on or after that date. 24