NORTH CAROLINA GENERAL ASSEMBLY

1969 SESSION

CHAPTER 1252

HOUSE BILL 1328

AN ACT TO REQUIRE THE NORTH CAROLINA AUTOMOBILE RATING BUREAU TO PRESENT STATISTICS AS TO THE EARNINGS FROM INVESTMENTS OF THE UNEARNED PREMIUM RESERVE OF AUTOMOBILE LIABILITY POLICIES AND REQUIRING THE INSURANCE COMMISSIONER TO CONSIDER SUCH INCOME IN REVIEWING AUTOMOBILE LIABILITY RATES.

The General Assembly of North Carolina do enact:

Section 1.  G.S. 58-246 is hereby amended by adding immediately after the present subsection (4) a new subsection to be designated as subsection (5) and reading as follows:

"(5)      The Bureau shall maintain and furnish to the Insurance Commissioner on an annual basis the statistics on income derived by member companies from the investment of unearned premium reserves on automobile liability policies written in this State. Whenever the Bureau has propounded a rate under this Article, it shall prepare a separate exhibit for the experience years in question showing the combined earnings realized from the investment of such unearned premium reserves on policies written in this State. The Commissioner may require further information as to such earnings and may require calculations of the Bureau bearing on such earnings."

Sec. 2.  G.S. 58-248 is hereby amended by adding at the end of the paragraph the following sentences: "The Insurance Commissioner in considering any rate compiled and promulgated by the Bureau may take into consideration the earnings of all companies writing automobile liability insurance in this State realized from the investment of unearned premium reserves on policies written in this State. The amount of earnings may in an equitable manner be included in the rate-making formula to arrive at a fair and equitable rate."

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall be effective upon ratification and shall apply to all private passenger automobile liability rates made on or after September 1, 1969.

In the General Assembly read three times and ratified, this the 2nd day of July, 1969.