GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 128

Short Title:  No Ins. Points for Infractions.	(Public)

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Sponsors: Senator Odom.

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Referred to:  Pensions & Retirement, and Insurance.

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February 17, 1997

A BILL TO BE ENTITLED
AN ACT TO ELIMINATE INFRACTIONS FROM CONSIDERATION IN THE SAFE DRIVER INCENTIVE PLAN, TO PROVIDE FOR A GRADUATED INSURANCE POINT AND SURCHARGE SCHEDULE FOR BODILY INJURY CAUSED IN AUTOMOBILE ACCIDENTS, AND TO PROHIBIT INSURANCE POINTS AND SURCHARGES IF BODILY INJURY DOES NOT OCCUR.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-36-65(b) reads as rewritten:
"(b)	The Bureau shall file, subject to review, modification, and promulgation by the Commissioner, a Safe Driver Incentive Plan ('Plan') that adequately and factually distinguishes among various classes of drivers that have safe driving records and various classes of drivers that have a record of at-fault accidents; a record of convictions of moving traffic violations; or a combination thereof; and that provides for premium differentials among those classes of drivers. Subsequently, the Commissioner may require the Bureau to file modifications of the Plan. If the Bureau does not file the modifications within a reasonable time, the Commissioner may promulgate the modifications. The Commissioner is authorized to structure the Plan to provide for surcharges above and discounts below the rate otherwise charged."
Section 2.  G.S. 58-36-65(i) reads as rewritten:
"(i)	As used in this section, 'conviction' does not include an infraction as defined in G.S. 14-3.1."
Section 3.  G.S. 58-36-75(a) reads as rewritten:
"(a)	The subclassification plan promulgated pursuant to G.S. 58-36-65(b) may provide for separate surcharges for major, intermediate, and minor accidents.  A 'major accident' is an at-fault accident that results in either (i) bodily injury or death or (ii) only property damage of two thousand dollars ($2,000) or more.  An 'intermediate accident' is an at-fault accident that results in only property damage of more than one thousand dollars ($1,000) but less than two thousand dollars ($2,000).  A 'minor accident' is an at-fault accident that results in only property damage of one thousand dollars ($1,000) or less.  The subclassification plan may also exempt certain minor accidents from the Facility recoupment surcharge.  The Bureau shall assign varying Safe Driver Incentive Plan point values and surcharges for bodily injury in at-fault accidents that are commensurate with the severity of the injury.  There shall be no points or insurance premium surcharge under the Safe Driver Incentive Plan or increase in insurance premium on account of payment of medical costs associated with obtaining a diagnosis when the diagnosis indicates that an accident did not result in bodily injury."
Section 4.  G.S. 58-36-75(g) reads as rewritten:
"(g)	As used in this section 'conviction' does not include an infraction as defined in G.S. 14-3.1."
Section 5.  The North Carolina Rate Bureau shall develop an amendment to the subclassification plan consistent with the provisions of this act.  The Bureau shall file the amendment with the Commissioner no later than October 1, 1997, and the amendment shall become effective January 1, 1998.
Section 6.  Sections 5 and 6 of this act are effective when it becomes law.  The remainder of this act becomes effective January 1, 1998, and applies to accidents occurring on or after January 1, 1998.