Inexperienced Operator Continuous Coverage.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 298

Short Title: Inexperienced Operator Continuous Coverage. (Public)
Sponsors: Senator Johnson (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 18, 2025
*S298-v-1*
A BILL TO BE ENTITLED 1
AN ACT REQUIRING DRI VERS SUBJECT TO THE INEXPERIENCED DRIVER 2
PREMIUM SURCHARGE TO MAINTAIN OR BENEFIT FROM CONTINUOUS 3
LIABILITY COVERAGE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 20-16 reads as rewritten: 6
"§ 20-16. Authority of Division to suspend license. 7
(a) The Division shall have authority to suspend the license of any operator with or 8
without a preliminary hearing upon a showing by its records or other satisfactory evidence that 9
the licensee: 10
… 11
(6a) Has violated G.S. 20-309(a3); 12
…." 13
SECTION 2. G.S. 20-309 reads as rewritten: 14
"§ 20 -309. Financial responsibility prerequisite to registration; must be maintained 15
throughout registration period. 16
… 17
(a3) No person subject to an inexperienced operator premium surcharge pursuant to 18
G.S. 58-36-65(k) shall operate a motor vehicle unless the liability insurance policy benefiting 19
that person includes any required premium surcharge. This subsection shall not apply to persons 20
who demonstrate financial responsibility in an authorized manner other than a liability insurance 21
policy. 22
…." 23
SECTION 3. G.S. 20-309.2 reads as rewritten: 24
"§ 20-309.2. Insurer shall notify Division of actions on insurance policies. 25
(a) Notice Required. – An insurer shall notify the Division upo n any of the following 26
with regard to a motor vehicle liability policy: 27
… 28
(4) A person subject to an inexperienced operator premium surcharge pursuant to 29
G.S. 58-36-65(k) is added or removed from the policy's coverage. 30
(a1) Division Records. – The Division shall ensure that its records accurately reflect the 31
insurance coverage status of of: (i) each owner of a motor vehicle registered or required to be 32
registered in this State and (ii) persons subject to an inexperienced operator premium surcharge 33
pursuant to G.S. 58-36-65 by reconciling all notices received under this section pertaining to that 34
individual or motor vehicle owner. A termination notice received under subdivision ( 2) of 35
subsection (a) of this section shall not be recorded as a lapse in financial responsibility or initiate 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 298-First Edition
action by the Division under G.S. 20-311 if an earlier notice received by the Division under this 1
section establishes that the owner of the motor vehicle has met the duty to have continuous 2
financial responsibility for the vehicle, as required under G.S. 20-309, through a motor vehicle 3
liability policy that is not the subject of the later termination notice. 4
…." 5
SECTION 4. This act becomes effective October 1, 2025. 6