H287 - Amend Insurance Laws. (SL 2016-78)

Overview: SUMMARY: S.L. 2016-78 amends various insurance laws as follows:

• Increases property damage thresholds under the State's Safe Driver Incentive Plan. This provision becomes effective on October 1, 2017, and applies to accidents that occur on or after that date.
• Places a 25% cap on annual premium increases on long-term care insurance policies. This provision becomes effective October 1, 2017, and applies to policies issued, renewed, or amended on or after that date.
• Adds notice requirements to North Carolina's consent to rate laws for homeowner's insurance and allows the use of catastrophe models in rate filings under certain circumstances. These provisions become effective on October 1, 2017, and apply to policies issued, renewed, or amended on or after that date and filings submitted on or after that date.
• Makes various updates to the fire and rescue provisions in North Carolina's insurance statutes.
• Directs the Office of the State Fire Marshal in the Department of Insurance (DOI) to study the reduction in recruitment and retention of volunteer firefighters in North Carolina.
• Effective December 1, 2016, increases penalties for fraudulent and criminal acts involving insurance.
• Makes technical and substantive changes to North Carolina's captive insurance laws
• Authorizes the DOI to plan for and establish a private flood insurance market.
• Effective December 1, 2016, enables third parties, including insurers, to recover restitution from convicted defendants.
• Exempts accountable care organizations participating in Medicare programs from DOI regulation.
• Makes various other changes to insurance laws, as recommended by the DOI.

Except as otherwise provided, this act became effective June 30, 2016.