Various Civil and Insurance Law Changes.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 6
HOUSE BILL 356
Committee Substitute Favorable 5/6/25
Senate Commerce and Insurance Committee Substitute Adopted 6/2/26
Senate Finance Committee Substitute Adopted 6/16/26
Senate Judiciary Committee Substitute Adopted 6/17/26
Sixth Edition Engrossed 6/24/26

Short Title: Various Civil and Insurance Law Changes. (Public)
Sponsors:
Referred to:
March 12, 2025
*H356-v-6*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE TECHN ICAL CORRECTIONS TO REMOVE REFERENCES TO 2
PRELICENSING EDUCATION, TO PROHI BIT MORTGAGE LICENSE ES FROM 3
REQUIRING RECONSTRUCTION COST ESTIMATES AS A CONDITION OF ISSUING 4
A LOAN, TO DELAY THE EFFECTIVE DATE FOR INEXPERIENCED OPERAT OR 5
CONTINUOUS COVERAGE REQUIREMENTS, TO AME ND REPORTING 6
REQUIREMENTS FOR INEXPERIENCED DRIVERS, TO REQUIRE ACCEPTANCE OF 7
CERTIFICATES OF INSU RANCE AS PROOF OF IN SURANCE, TO UPDATE 8
PROVISIONS REGARDING PEER-TO-PEER VEHICLE SHARING, TO UPDATE THE 9
NORTH CAROLINA PROFE SSIONAL EMPLOYER ORG ANIZATION ACT, TO 10
ALLOW CASH CONVENIEN CE FEES UNDER O NE DOLLAR WHEN AN 11
INSURANCE PREMIUM IS BEING PAID IN CASH, TO MAKE VARIOUS CHANGES 12
TO BAIL BONDSMEN REQ UIREMENTS, TO REQUIR E BEACH PROPERTY 13
INSURANCE COVERAGE FOR HABITATIONAL PROPERTY CONTENTS TO BE SET 14
IN ACCORDANCE WITH S TATE APPROVED RATES, AND TO AUTHORIZE A 15
LANDLORD TO CHARGE A TENANT THE FAIR MARKET VALUE FOR REQUIRED 16
INSURANCE FOR THE LE ASED PREMISES IF THE TENANT FAILS TO TIM ELY 17
PROVIDE PROOF OF THE REQUIRED INSURANCE. 18
The General Assembly of North Carolina enacts: 19
20
PART I. TECHNICAL CO RRECTIONS TO REMOVE REFERENC ES TO 21
PRELICENSING EDUCATION 22
SECTION 1. G.S. 58-33-132 reads as rewritten: 23
"§ 58-33-132. Qualifications of instructors. 24
(a) The Commissioner may adopt rules to establish requisite qualifications for and 25
issuance, renewal, summary susp ension, and termination of provider, presenter, and instructor 26
authority for prelicensing and continuing insurance education courses. During any suspension, 27
the instructor shall not engage in any instruction of prelicensing or continuing insurance 28
education courses prior to an administrative review. No person shall provide, present, or instruct 29
any continuing education course unless that person has been qualified by and possesses a license 30
from the Commissioner or administrator. 31
General Assembly Of North Carolina Session 2025
Page 2 House Bill 356-Sixth Edition
(b) The Commissioner or admi nistrator may summarily suspend or terminate the 1
authority of an a continuing education instructor, course provider, or presenter if the course 2
presentation:any of the following occur: 3
(1) Is The course presentation by that i nstructor, course provider, or presenter is 4
determined to be inaccurate; orinaccurate. 5
(2) Receives The course presentation by that instructor, course provider, or 6
instructor receives an evaluation of poor from any Department monitor and a 7
majority of attendees responding to Department questionnaires about the 8
presentation." 9
10
PART II. PROHIBIT MO RTGAGE LICENSEES FRO M REQUIRING THE 11
DISCLOSURE OF RECONSTRUCTION COST ESTIMATES 12
SECTION 2.(a) G.S. 53-244.111 is amended by adding a new subdivision to read: 13
"(24) To fail to comply with G.S. 58-3-137(a)." 14
SECTION 2.(b) G.S. 58-3-137 is amended by adding a new subsection to read: 15
"(c) The Office of Commissioner of Banks may investigate the affairs of any person 16
licensed under G.S. 53-244.040 to whom thi s section applies to determine whether the person 17
has violated this section. If a violation of this section is found to have been committed knowingly, 18
the person in violation shall be subject to the same procedures and penalties as provided in 19
G.S. 53-244.116." 20
SECTION 2.(c) This section becomes effective October 1, 2026. 21
22
PART III. DELAY EFFE CTIVE DATE FOR INEXP ERIENCED OPERATOR 23
CONTINUOUS COVERAGE 24
SECTION 3. Section 8(d) of S.L. 2025-45 reads as rewritten: 25
"SECTION 8.(d) This section becomes effective July 1, 2026.January 1, 2027." 26
27
PART IV. REPORTING REQUIREMENT FOR INEXPERIENCED DRIVERS 28
SECTION 4.(a) G.S. 20-309.2 reads as rewritten: 29
"§ 20-309.2. Insurer shall notify Division of actions on insurance policies. 30
(a) Notice Required. – An insurer shall notify the Division upon any of the following 31
with regard to a motor vehicle liability policy: 32
(1) Issues a new or replacement policy. 33
(2) Terminates a policy, either by cancellation or failure to renew, unless the same 34
insurer issues a replacement policy complying with this Article at the same 35
time the insurer terminates the old policy and no lapse in coverage results. 36
(3) Reinstates a policy after the insurer has notified the Division of a cancellation 37
or termination. 38
(4) A person with a North Carolina drivers license and w ho is subject to an 39
inexperienced operator premium surcharge pursuant to G.S. 58-36-65(k) is 40
added to or removed from the policy's coverage, or if a policy to which a that 41
person subject to the inexperienced operator surcharge pursuant to 42
G.S. 58-36-65(k) was added has been canceled. 43
(a1) Division Records. – The Division shall ensure that its records accurately reflect the 44
insurance coverage status of: (i) each owner of a motor vehicle registered or required to be 45
registered in this State and (ii) persons with a North Carolina drivers license and who are subject 46
to an inexperienced operator premium surcharge pursuant to G.S. 58-36-65 by reconciling all 47
notices received under this section pertainin g to that individual or motor vehicle owner. A 48
termination notice received under subdivision (2) of subsection (a) of this section shall not be 49
recorded as a lapse in financial responsibility or initiate action by the Division under G.S. 20-311 50
if an earlier notice received by the Division under this section establishes that the owner of the 51
General Assembly Of North Carolina Session 2025
House Bill 356-Sixth Edition Page 3
motor vehicle has met the duty to have continuous financial responsibility for the vehicle, as 1
required under G.S. 20-309, through a motor vehicle liability policy that is not the subject of the 2
later termination notice. 3
…." 4
SECTION 4.(b) This section is effective January 1, 2027. 5
6
PART V. REQUIRE ACCEPTANCE OF CERTIFICATES OF INSURANCE 7
SECTION 5.(a) G.S. 58-3-149 reads as rewritten: 8
"§ 58-3-149. Certificates of insurance. 9
(a) For the purposes of this section, the following definitions apply: 10
… 11
(3) Occupational licensing board. – As defined in G.S. 93B-1(2). 12
(4) State agency licensing board. – As defined in G.S. 93B-1(3). 13
… 14
(f) With respect to any requirement to maintain insurance coverage, (i) the State, or any 15
department, agency, or political subdivision of the State , (ii) any county, municipality, or other 16
unit of local government, or (iii) any occupational licensing board or State agency licensing board 17
shall accept a certificate of insurance issued in accordance with this section as sufficient evidence 18
of the required coverage and shall not require any additional proof of coverage." 19
SECTION 5.(b) Chapter 93B of the General Statutes is amended by adding a new 20
section to read: 21
"§ 93B-17. Proof of insurance requirements. 22
Notwithstanding any other provision of law, an occupational licensing board or a State 23
agency licensing board shall accept a certificate of insurance issued in accordance with 24
G.S. 58-3-149 from an individual or firm who is applying for or maintaining a license issued by 25
that occupational licensing board or State agency licensing board." 26
SECTION 5.(c) This section becomes effective October 1, 2026. 27
28
PART VI. REVISIONS T O LAWS GOVERNING P EER-TO-PEER VEHICLE 29
SHARING 30
SECTION 6.(a) Article 10B of Chapter 20 of the General Statutes reads as rewritten: 31
"Article 10B. 32
"Peer-to-Peer Vehicle Sharing. 33
"§ 20-280.15. Definitions. 34
The following definitions apply in this Article: 35
(1) Airport operator. – As defined in G.S. 20-280.1. 36
(2) Peer-to-peer vehicle sharing. – The authorized use of a shared vehicle for 37
financial consideration by an individual other than the shared vehicle owner 38
through a peer-to-peer vehicle sharing program. 39
(3) Peer-to-peer vehicle sharing program. – A business platform that connects 40
shared vehicle owners with drivers to enable the sharing of vehicles for 41
financial consideration.peer-to-peer vehicle sharing. 42
(4) Shared vehicle. – A vehicle that is available for sharing through a peer-to-peer 43
vehicle sharing program.sharing. 44
(4a) Shared vehicle delivery period. – The period of time during which a shared 45
vehicle is being delivered to the location of the vehicle sharing start time , if 46
applicable, as documented by the governing vehicle sharing agreement. 47
(4b) Shared vehicle driver. – An individual who is authorized to drive the shared 48
vehicle by the shared vehicle owner under a vehicle sharing agreement. 49
(5) Shared vehicle owner. – The registered owner of a shared vehicle that is made 50
available for sharing through a peer-to-peer vehicle sharing program.vehicle, 51
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or a person or entity designated by the registered owner, who has not made an 1
election under G.S. 105-187.5. 2
(5a) Vehicle sharing agreement. – The terms and conditions applicable to a shared 3
vehicle owner and a shared vehicle driver that govern the use of that shared 4
vehicle through a peer-to-peer vehicle sharing program. 5
(5b) Vehicle sharing period. – The period of time that commences with the shared 6
vehicle delivery period, or if there is no shared vehicle delivery period, the 7
vehicle sharing start time, and in either case ends at the vehicle sharing 8
termination time. 9
(6) Vehicle sharing provider. – The person or entity that operates, facilitates, or 10
administers the provision of personal vehicle sharing through a peer -to-peer 11
vehicle sharing program. 12
(7) Vehicle sharing start time. – The time when a shared vehicle becomes subject 13
to the control of a shared vehicle driver at or after the time the res ervation of 14
a shared vehicle is scheduled to begin as documented in the records of a 15
peer-to-peer vehicle sharing program. 16
(8) Vehicle sharing termination time. – The earliest occurrence of any of the 17
following events: 18
a. The expiration of the agreed upon period of time established for the 19
use of a shared vehicle according to the terms of the vehicle sharing 20
agreement if the shared vehicle is delivered to the location agreed upon 21
in the vehicle sharing agreement. 22
b. When the shared vehicle is returned to an alternate location agreed 23
upon by the shared vehicle owner and shared vehicle driver as 24
communicated through a peer-to-peer vehicle sharing program, which 25
alternate location shall be incorporated into the vehicle sharing 26
agreement. 27
c. When the shared vehi cle owner, or the shared vehicle owner 's 28
authorized designee, takes possession and control of the shared 29
vehicle. 30
"§ 20-280.19. Assumption of liability; exceptions. 31
(a) Amount and Manner of Assumption of Liability. – Except as otherwise provided in 32
subsection (b) of this section, a peer -to-peer vehicle sharing program shall assume the liability 33
of a shared vehicle owner during the vehicle sharing period for any of the following: 34
(1) Bodily injury or property damage to third parties. 35
(2) Uninsured and underinsured motorist losses. 36
(3) Personal injury protection losses. 37
The liability shall be to the extent personal injury protection is required by law in an amount 38
stated in the vehicle sharing agreement. The liability amount shall not be less than that required 39
by G.S. 20-279.21(b)(2) and G.S. 20-279.21(b)(3) and the manner of the assumption of liability 40
shall also be the same as required by those statutes. 41
(b) Exceptions. – The assumption of liability under subsection (a) of this section does not 42
apply if any of the following apply: 43
(1) A shared vehicle owner makes an intentional or fraudulent material 44
misrepresentation or omission to the peer -to-peer vehicle sharing program 45
before the vehicle sharing period in which the loss occurred. 46
(2) A shared vehicle driver, acting in concert with a shared vehicle owner, fails to 47
return the shared vehicle pursuant to the terms of the vehicle sharing 48
agreement. 49
"§ 20-280.21. Insurance coverage. 50
General Assembly Of North Carolina Session 2025
House Bill 356-Sixth Edition Page 5
(a) Insurance Coverage of Shared Vehicle. – A peer -to-peer vehicle sharing program 1
shall ensure that during each vehicle sharing period, both the shared vehicle owner and the shared 2
vehicle driver are each insured under a motor vehicle liability insurance policy that provides 3
insurance coverage in amounts no less than the minimum amounts set forth in 4
G.S. 20-279.21(b)(2) and G.S. 20-279.21(b)(3). The motor vehicle liability insurance policy 5
shall also do one of the following: 6
(1) Acknowledge that the shared vehicle insured under the motor vehicle liability 7
insurance policy is made available and used in a peer-to-peer vehicle sharing 8
program. 9
(2) Not exclude the use of a shared vehicle in a peer -to-peer vehicle sharing 10
program by a shared vehicle driver. 11
(b) Maintenance of Insurance Coverage of Shared Vehicle. – The required motor vehicle 12
liability insurance policy shall be maintained by at least one of the following: 13
(1) The shared vehicle owner. 14
(2) The shared vehicle driver. 15
(3) The peer-to-peer vehicle sharing program. 16
(c) Insurance Coverage Differences. – The motor vehicle liability insurance policy 17
required under this section shall be the primary motor vehicle liability insurance policy during 18
each vehicle sharing period . If a claim occurs in another state with minimum financial 19
responsibility limits higher than those required by G.S. 20-279.21(b)(2) and 20
G.S. 20-279.21(b)(3) during the vehicle sharing period, the motor vehicle liability insurance 21
policy required by this section shall satisfy the difference in minimum coverage amounts, up to 22
the applicable policy limits. 23
(d) Assumption of Primary Liability. – The entity or entities maintaining the motor 24
vehicle liability insurance policy shall assume primary liability for a claim when any of the 25
following occur: 26
(1) A dispute exists as to who controlled the shared vehicle at the time of the loss 27
and the peer-to-peer vehicle sharing program does not have available, did not 28
retain, or fails to provide the information required by G.S. 20-280.25. 29
(2) A dispute exists as to whether the shared vehicle was returned to the alternate 30
location agreed upon by the shared vehicle owner and shared vehicle driver 31
and incorporated into the vehicle sharing agreement. 32
(e) Lapsed or Inadequate Insurance Coverage. – If the motor vehicle liability insurance 33
policy maintained by a shared vehicle owner or shared vehicle driver has lapsed or does not 34
provide the required coverage, the motor vehicle liability insurance policy maintained by a 35
peer-to-peer vehicle sharing program shall provide the required coverage beginning with the first 36
dollar of a claim and have the duty to defend that claim, except under the exceptions set forth in 37
G.S. 20-280.19(b). 38
(f) No Dependence on Another Insurance Policy. – Coverage under a motor vehicle 39
liability insurance policy maintained by the peer -to-peer vehicle sharing program shall not be 40
dependent on another automobile insurer first denying a claim nor shall another motor vehicle 41
liability insurance policy be required to first deny a claim. 42
"§ 20-280.23. No limitations on liability; indemnification. 43
No Limitations or Restrictions on Liability of Peer -to-Peer Vehicle Sharing Program ; 44
Indemnification. – Nothing in this Article shall be interpreted as either limiting or restricting any 45
of the following: 46
(1) The liability of the peer -to-peer vehicle sharing pro gram for any act or 47
omission of the peer -to-peer vehicle sharing program itself that results in 48
injury to any person as a result of the use of a shared vehicle through a 49
peer-to-peer vehicle sharing program. 50
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(2) The ability of the peer -to-peer vehicle sharing program to, by contract, seek 1
indemnification from the shared vehicle owner or the shared vehicle driver for 2
economic loss sustained by the peer-to-peer vehicle sharing program resulting 3
from a breach of the terms and conditions of the vehicle sharing agreement. 4
"§ 20-280.25. Notification of implications of lien on shared vehicle. 5
At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer vehicle 6
sharing program and prior to the time when the shared vehicle owner makes a shared vehicle 7
available for sharing on the peer -to-peer vehicle sharing program, t he peer -to-peer vehicle 8
sharing program shall notify the shared vehicle owner that if the shared vehicle has a lien against 9
it, the use of the shared vehicle through the peer-to-peer vehicle sharing program, including use 10
without physical damage coverage, may violate the terms of the contract with the lienholder. 11
"§ 20-280.27. Exclusions for personal motor vehicle liability insurance policies. 12
(a) A motor vehicle insurer that writes motor vehicle liability insurance policies in this 13
State may exclude any and all coverage and the duty to defend or indemnify for any claim arising 14
out of peer-to-peer vehicle sharing that is covered under a shared vehicle owner's motor vehicle 15
liability insurance policy for any of the following: 16
(1) Liability coverage for bodily injury and property damage. 17
(2) Personal injury protection coverage. 18
(3) Uninsured and underinsured motorist coverage. 19
(4) Medical payments coverage. 20
(5) Comprehensive physical damage coverage. 21
(6) Collision physical damage coverage. 22
(b) Nothing in this Article shall be interpreted or construed as invalidating or limiting an 23
exclusion contained in a motor vehicle liability insurance policy, including any insurance policy 24
in use or approved for use that excludes coverage for motor vehicles made available for rent, 25
sharing, or hire or for any business use. 26
(c) Nothing in this Article shall be interpreted or construed as invalidating, limiting, or 27
restricting a motor vehicle insurer's ability to underwrite any insurance policy. 28
(d) Nothing in this Article sh all be interpreted or construed as invalidating, limiting, or 29
restricting a motor vehicle insurer 's ability to cancel and nonrenew policies, including for 30
participation in a peer-to-peer vehicle sharing program. 31
"§ 20-280.29. Record keeping. 32
(a) A peer-to-peer vehicle sharing program shall collect and verify records pertaining to 33
the use of the shared vehicle. The records shall include vehicle sharing times used, vehicle 34
sharing period pickup and drop-off locations, fees paid by the shared vehicle driver, and revenues 35
received by the shared vehicle owner . Upon request, t his information shall be provided to the 36
shared vehicle driver, the shared vehicle owner, the shared vehicle owner's insurer, and the shared 37
vehicle driver's insurer for claim coverage investigation, settlement, negotiation, or litigation. 38
(b) The peer-to-peer vehicle sharing program shall retain all records required under this 39
section for a time period not less than the applicable personal injury statute of limitations. 40
"§ 20-280.31. Vicarious liability. 41
A peer-to-peer vehicle sharing program and a shared vehicle owner shall be exempt from 42
vicarious liability consistent with 49 U.S.C. § 30106 and under any state or local law that imposes 43
liability solely based on vehicle ownership. 44
"§ 20-280.33. Contribution against indemnification. 45
A motor vehicle insurer that defends or indemnifies a claim involving a shared vehicle that 46
is excluded under the terms of its policy shall have the right to seek contribution against the motor 47
vehicle insurer of the peer-to-peer vehicle sharing program if the claim meets all of the following 48
conditions: 49
(1) The claim is made against the shared vehicle owner or the shared vehicle 50
driver for loss or injury that occurs during the vehicle sharing period. 51
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(2) The claim is excluded under the terms of its policy. 1
"§ 20-280.35. Insurable interest. 2
(a) Notwithstanding any provision of this Chapter and Chapter 58 of the General Statutes 3
and any other law regarding insurable interests in vehicles, a peer -to-peer vehicle sharing 4
program shall have an insurable interest in a shared vehicle during the vehicle sharing period. 5
(b) Nothing in this section creates liability on a peer -to-peer vehicle sharing program to 6
maintain the coverage mandated by this Article. 7
(c) A peer-to-peer vehicle sharing program may own and maintain as the named insured 8
one or more policies of motor vehicle liability insurance that provides coverage for any of the 9
following: 10
(1) Liabilities assumed by the peer -to-peer vehicle sharing program u nder a 11
vehicle sharing agreement. 12
(2) Any liability of the shared vehicle owner. 13
(3) Damage or loss to the shared motor vehicle. 14
(4) Any liability of the shared vehicle driver. 15
"§ 20-280.37. Consumer protections for peer-to-peer vehicle sharing programs. 16
Each vehicle sharing agreement made in this State shall disclose to the shared vehicle owner 17
and the shared vehicle driver, at a minimum, all of the following: 18
(1) Any right of the peer-to-peer vehicle sharing program to seek indemnification 19
from the shared vehicle owner or the shared vehicle driver for economic loss 20
sustained by the peer-to-peer vehicle sharing program resulting from a breach 21
of the terms and conditions of the vehicle sharing agreement. 22
(2) That a motor vehicle liability insurance policy issued to the shared vehicle 23
owner for the shared vehicle or to the shared vehicle driver does not provide 24
a defense or indemnification for any claim asserted by the peer-to-peer vehicle 25
sharing program. 26
(3) That t he peer -to-peer vehicle sharing program 's insurance coverage on the 27
shared vehicle owner and the shared vehicle driver is in effect only during 28
each vehicle sharing period and that the shared vehicle driver and the shared 29
vehicle owner may not have insurance coverage for any use of the shared 30
vehicle by the shared vehicle driver after the vehicle sharing termination time. 31
(4) The daily rate, fees, and , if applicable, any insurance or protection package 32
costs that are charged to the shared vehicle owner or the shared vehicle driver. 33
(5) The shared vehicle owner's motor vehicle liability insurance may not provide 34
coverage for a shared vehicle. 35
(6) An emergency telephone number to personnel capable of fielding roadside 36
assistance and other customer service inquiries. 37
(7) Any conditions under which a shared vehicle driver must maintain a motor 38
vehicle liability insurance policy with certain applicable coverage limits on a 39
primary basis in order to book a shared motor vehicle. 40
"§ 20-280.39. Drivers license verification and data retention. 41
(a) A peer -to-peer vehicle sharing program may not enter into a peer-to-peer vehicle 42
sharing program agreement with a shared vehicle driver unless the shared vehicle driver who will 43
operate the shared vehicle meets one of the following requirements: 44
(1) Has a valid drivers license issued pursuant to G.S. 20-7 that authorizes the 45
driver to operate a motor vehicle of the class of the shared vehicle. 46
(2) Is a nonresident of this State who meets all of the following requirements: 47
a. Has a valid drivers license issued by the state or country of the driver's 48
residence that authorizes the driver in that state or country to drive a 49
motor vehicle of the class of the shared vehicle. 50
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b. Is at least the same age as that required of a resident of this State to 1
operate a motor vehicle of the class of the shared vehicle. 2
(3) Is otherwise specifically authorized by the applicable provisions of G.S. 20-7 3
to operate a motor vehicle of the class of the shared vehicle. 4
(b) A peer-to-peer vehicle sharing program shall keep a record of all of the following: 5
(1) The name and address of the shared vehicle driver. 6
(2) The number of the valid drivers license of the shared vehicle driver and each 7
other person, if any, who will operate the shared vehicle. 8
(3) The date and place of issuance of the class of valid drivers license for that 9
class of vehicle of the shared vehicle driver. 10
"§ 20-280.41. Responsibility for equipment of a shared vehicle. 11
A peer-to-peer vehicle sharing program shall have sole responsibility for any equipment, such 12
as a global positioning system (GPS) or other special equipment that is put in or on the vehicle 13
to monitor or facilitate the vehicle sharing transaction, and shall agree to indemnify and hold 14
harmless the shared vehicle owner for any damage to or theft of such equipment during the 15
vehicle sharing period not caused by the shared vehicle owner. The peer-to-peer vehicle sharing 16
program shall have the right to seek indemnity from the shared vehicle driver for any loss or 17
damage to such equipment that occurs during the vehicle sharing period. 18
"§ 20-280.43. Automobile safety recalls. 19
(a) At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer 20
vehicle sharing program and prior to the time when the shared vehicle owner makes a shared 21
vehicle available for sharing on the peer -to-peer vehicle sharing program, the peer -to-peer 22
vehicle sharing program shall do all of the following: 23
(1) Verify that the shared vehicle does not have any safety recalls on the vehicle 24
for which the repairs have not been made. 25
(2) Notify the shared vehicle owner of the requirements of this section. 26
(b) If the shared vehicle owner has received actual notice of a safety recall on the shared 27
vehicle, the shared vehicle owner shall do the following: 28
(1) Refrain from making a vehicle available as a shared vehicle on a peer-to-peer 29
vehicle sharing program until the safety recall repair has been made. 30
(2) Remove the shared vehicle as available on the peer -to-peer vehicle sharing 31
program as soon as practicab le after receiving the notice of the safety recall 32
and until the safety recall repair has been made. 33
(3) Notify the peer-to-peer vehicle sharing program about the safety recall so that 34
the shared vehicle owner may address the safety recall repair as soon as 35
practicable." 36
SECTION 6.(b) This section becomes effective October 1, 2026, and applies to all 37
peer-to-peer vehicle sharing agreements entered into on or after that date. 38
39
PART VII. NORTH CARO LINA PROFESSIONAL EM PLOYER ORGANIZATION 40
ACT UPDATE 41
SECTION 7.(a) G.S. 58-89A-5 reads as rewritten: 42
"§ 58-89A-5. Definitions. 43
In this Article: 44
… 45
(3) "Audited GAAP financial statement" means a financial statement that is 46
audited by an independent certified public accountant and presented in 47
accordance with generally accepted accounting principles. 48
… 49
(16d) "Tangible net worth" means the difference between total tangible assets and 50
total liabilities. For purposes of this definition, tangible assets are physical 51
General Assembly Of North Carolina Session 2025
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assets and do not include goodwill, patents, copyrights, intellectual property, 1
trademarks, and any other non-physical asset. 2
…." 3
SECTION 7.(b) G.S. 58-89A-60 reads as rewritten: 4
"§ 58-89A-60. License application. 5
… 6
(b) Every applicant shall file with the Commissioner an audited GAAP financial 7
statement, prepared as of a date not more than 120 days be fore the date of application that 8
demonstrates that the applicant has a tangible net worth of not less than fifty thousand dollars 9
($50,000) and positive working capital. or licensee's current assets exceed current liabilities. The 10
applicant shall attach t o the audited financial statement a separate document signed by the 11
applicant's chief executive and the chief financial officer certifying that (i) each has reviewed the 12
audited financial statement; (ii) based on each signatory's knowledge, the audited fin ancial 13
statement does not contain any untrue or misleading statement of material fact or omit a fact with 14
respect to the period covered by the audited financial statement; and (iii) based on each 15
signatory's knowledge, the audited financial statement fairly presents in all material respects the 16
financial condition of the applicant as of, and for, the period presented in the audited financial 17
statement. 18
Notwithstanding the requirements of this subsection, the Commissioner may, in the 19
Commissioner's discretion, accept an audited GAAP financial statement that has been prepared 20
more than 120 days before submission to the Commissioner if the Commissioner deems such 21
acceptance appropriate. The Commissioner may, in the Commissioner's discretion, impose 22
conditions upon such acceptance of audited financial statements prepared more than 120 days 23
prior to submission. 24
The audited GAAP financial statement shall be prepared and audited by an independent 25
certified public accountant licensed to practice in the jurisdiction i n which such accountant is 26
located and shall be without qualification as to the going concern status of the applicant. Persons 27
applying for a professional employer organization group license may submit combined or 28
consolidated audited financial statements to meet the requirements of this section, provided that 29
the combined or consolidated audited financial statement include[s] a combining or consolidating 30
balance sheet and statement of operations of each proposed member as supplemental information 31
to the combined or consolidated audited financial statement. An applicant that does not have at 32
least 12 months of operating history may meet the financial requirements of this subsection by 33
filing with the Commissioner financial statements that have been reviewed by an independent 34
certified public accountant and that have been prepared as of a date not more than 90 days before 35
the date of application. 36
… 37
(g1) The Commissioner may deny the license of an applicant under this Article if the 38
Commissioner finds any of the following: 39
(1) That an officer, director, or other controlling person has:has done any of the 40
following: 41
a. Not met the requirements of G.S. 58-89A-40. 42
b. Made any untrue material statement or omitted any material 43
information regarding their background or experience. 44
c. Violated, or failed to comply with, any professional employer services 45
law or any rule or order of the Commissioner or of any other State 46
official responsible for the regulation of any aspect of the applicant's 47
business. 48
d. Obtained or attempted to obtain the license through misrepresentation 49
or fraud. 50
e. Been convicted of a felony. 51
General Assembly Of North Carolina Session 2025
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f. Been found in a final judgment or administrative proceeding to have 1
committed fraud or an unfair trade practice. 2
g. Been an officer, director, or other controlling person in another 3
professional employer organization that has had its license or 4
registration suspended, terminated, or revoked by any state. 5
(2) That the applicant is not current with respect to all of its obligations for 6
payroll, payroll -related taxes, workers' compensation insurance, and 7
employee benefits and the applicant has failed to satisfy the Commissioner as 8
to the reasons why. 9
(3) That the applicant does not possess:possess positive working capital, or in lieu 10
of positive working capit al, substitute security as provided under 11
G.S. 58-89A-50(a). 12
a. A tangible net worth of not less than fifty thousand dollars ($50,000). 13
b. Positive working capital, or in lieu of positive working capital, 14
substitute security as provided under G.S. 58-89A-50(a). 15
(4) That the applicant has not provided evidence satisfactory to the Commissioner 16
of financial responsibility. 17
(5) That the applicant has failed to satisfy the requirements of G.S. 58-89A-50. 18
(6) That a ground upon which the Commissioner could take d isciplinary action 19
against a licensee or other person subject to licensure requirements pursuant 20
to G.S. 58-89A-155 applies to the applicant." 21
SECTION 7.(c) G.S. 58-89A-70 reads as rewritten: 22
"§ 58-89A-70. License issuance and maintenance. 23
… 24
(e) In order to maintain licensure, each licensee may be required to file with the 25
Commissioner no later than 60 days after the end of each quarter of the fiscal year: 26
(1) A financial statement for the preceding quarter that is not audited but is set 27
forth in a format similar to the annual audited GAAP financial statement; and 28
(2) An attestation in the form required by subdivision (3a) of subsection (d) of 29
this section." 30
31
PART VIII. CASH CONVENIENCE FEE UNDER ONE DOLLAR ALLOWED 32
SECTION 8. G.S. 58-33-85(b) reads as rewritten: 33
"(b) No insurer, insurance producer, or limited representative shall knowingly charge to 34
or demand or receive from an applicant for insurance any money or other consideration in return 35
for the processing of applications or other forms or for the rendering of services associated with 36
a contract of insurance, which money or other consideration is in addition to the premium for 37
such contract, unless the applicant consents in writing before any services are rendered. This 38
subsection does not apply to th e charging or collection of any fees otherwise provided for by 39
law.law, or any amount ninety -nine cents (99 ¢) or less, when paid in cash and considered a 40
convenience fee." 41
42
PART IX. BAIL BONDSMEN AMENDMENTS 43
SECTION 9.(a) G.S. 58-71-40 is amended by adding a new subsection to read: 44
"(a1) No electronic system shall act in the capacity of a professional bondsman, surety 45
bondsman, or runner or perform any of the functions, duties, or powers prescribed for 46
professional bondsmen, surety bondsmen, or runners under this Article. This subsection does not 47
apply to electronic monitoring devices, as defined in G.S. 14-226.3. A licensed professional 48
bondsman, surety bondsman, or runner shall be physically present at the time an appearance bond 49
is executed and posted and shall personally sign the bond before the judicial official, magistrate, 50
clerk, or detention facility officer accepting the bond. No appearance bond shall be executed, 51
General Assembly Of North Carolina Session 2025
House Bill 356-Sixth Edition Page 11
acknowledged, or accepted solely through an electronic or automated process without the 1
physical presence of the licensed professional bondsman, surety bondsman, or runner posting the 2
bond." 3
SECTION 9.(b) G.S. 58-71-71 reads as rewritten: 4
"§ 58-71-71. Examination; educational requirements; penalties. 5
… 6
(b) Each year by June 30 May 15 every licensee shall complete at least three hours of 7
continuing education as provided by an approved provider in subjects related to the duties and 8
responsibilities of a runner or bail bondsman. This continuing education shall not include a 9
written or oral examination. A person who receives his or her first license on or after January 1 10
of any year does not have to comply with this subsection until June 30 May 15 of the following 11
year. 12
… 13
(g) Approved providers of prelicensing education and continuing educa tion required 14
under this Article shall be independent third-party providers and shall not include the Department 15
of Insurance, the Bail Bond Regulatory Division, or any entity owned, operated, controlled, 16
administered, or substantially directed by the Department of Insurance. 17
The Department of Insurance, the Bail Bond Regulatory Division, and any employee, 18
contractor, or agent thereof shall not provide, sponsor, administer, directly conduct, or otherwise 19
serve as an approved provider of prelicensing education or continuing education courses required 20
under this Article for professional bondsmen, surety bondsmen, accommodation bondsmen, or 21
runners. 22
Nothing in this subsection shall prohibit the Department from issuing bulletins, advisory 23
notices, legal updates, disciplinary guidance, administrative memoranda, or regulatory materials 24
relating to the bail bond profession or from participating as a guest speaker or informational 25
presenter during educational programs conducted by an approved independent provider." 26
SECTION 9.(c) G.S. 58-71-72 is amended by adding a new subsection to read: 27
"(c) In adopting rules and administering the educational requirements of this Article, the 28
Commissioner shall ensure that all required prelicensing education and continuing educati on 29
programs are conducted solely through independent third -party providers. The Department of 30
Insurance, the Bail Bond Regulatory Division, and any entity owned, operated, controlled, 31
administered, or substantially directed by the Department shall not serve as an approved provider 32
of mandatory prelicensing education or continuing education under this Article." 33
SECTION 9.(d) This section becomes effective June 30, 2026. 34
35
PART X. REQUIRE BEAC H PROPERTY INSURANCE COVERAGE FOR 36
HABITATIONAL PROPERTY CONTENTS TO BE SENT IN ACCORDAN CE WITH 37
STATE APPROVED RATES 38
SECTION 10.(a) G.S. 58-45-41 reads as rewritten: 39
"§ 58-45-41. Coverage limits. 40
(a) The Association shall cause to be issued insurance up to the reasonable value of the 41
insurable property, subject to a maxi mum of one million dollars ($1,000,000) on habitational 42
property. The above limits on habitational property shall apply to the value of the building only. 43
Insurance issued by the Association for commercial property shall not exceed four million dollars 44
($4,000,000) on any freestanding structure or any building unit within multiple firewall divisions, 45
provided the aggregate insurance on structures with multiple firewall divisions shall not exceed 46
ten million dollars ($10,000,000) on all interest at one risk. 47
(b) Contents of habitational property can be insured up to forty percent (40%) of the 48
building value. The Association shall ensure that rates accurately reflect the maximum limits for 49
contents coverage and any reduction in contents coverage limits for hab itational property.are 50
governed by G.S. 58-45-45(a). 51
General Assembly Of North Carolina Session 2025
Page 12 House Bill 356-Sixth Edition
(c) If the value of the property exceeds the maximum coverage limits as described in this 1
section, the Association shall not issue coverage without the insured's purchase of excess 2
coverage to the full value of the property insured." 3
SECTION 10.(b) This section is effective January 1, 2027, and applies to contracts 4
issued, amended, and renewed on or after that date. 5
6
PART XI. AUTHORIZE A LANDLORD TO CHARGE A TENANT THE FAIR 7
MARKET VALUE FOR REQUIRED INSURANCE FOR LEASED PRE MISES IF THE 8
TENANT FAILS TO TIMELY PROVIDE PROOF OF THE REQUIRED INSURANCE 9
SECTION 11.(a) G.S. 42-46(l) reads as rewritten: 10
"(l) The following provisions apply to any a lease that requires a tenant to maintain 11
insurance coverage for the leased premises: 12
(1) The tenant shall not be required to obtain the required insurance coverage 13
from a designated carrier or through a designated agent. 14
(2) The If a tenant fails to provide proof of the required insurance coverage to the 15
landlord within three business days of the landlord's request, the landlord may 16
charge the tenant for the actual cost incurred by the landlord to obtain the 17
required insurance coverage coverage, charge the tenant the fair market value 18
for the required insurance coverage, and charge an administrative fee not to 19
exceed fifty dollars ($50.00) per year, only if the tenant fails to provide, within 20
three business days after the request of the landlord, proof that the tenant has 21
obtained the required insurance coverage.year." 22
SECTION 11.(b) This section is effective when it becomes law and applies to leases 23
requiring a tenant to maintain insurance coverage for the leased premises entered into on or after 24
that date. 25
26
PART XII. EFFECTIVE DATE 27
SECTION 12. Except as otherwise provided, this act is effective when it becomes 28
law. 29