NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 1077

HOUSE BILL 634

AN ACT TO PROVIDE THAT INSURANCE COMPANIES SHALL SETTLE A LOSS PAYEE'S OR MORTGAGEES CLAIM WITHOUT WAITING TO LITIGATE THE INSURED'S CLAIM.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 58-160 is hereby amended by adding at the end thereof the following sentence:

"Any payment due by the insuring company to mortgagees or loss payees under the terms of the policy shall be made within ninety (90) days of the loss or within sixty (60) days of the filing of proof of loss, whichever is the longer period; provided, the payment of or settlement of the claim of the mortgagee or loss payee under the policy shall in no way constitute an admission of liability as to the insured and the fact of such payment or settlement shall be inadmissible in any action at law."

Sec. 2.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 3.  This Act shall be effective upon ratification, but shall apply only to fire and extended coverage policies written after the date of its ratification.

In the General Assembly read three times and ratified, this the 27th day of June, 1969.