North Carolina § 58-37-1 - Definitions.

§ 58-37-1. Definitions.

As used in this Article: "Cede" or "cession" means the act of transferring the risk of loss from the individual insurer to all insurers through the operation of the facility. Repealed by Session Laws 1991, c. 720, s. 6. "Company" means each member of the Facility. "Eligible risk," for the purpose of motor vehicle insurance other than nonfleet private passenger motor vehicle insurance, means: A person who is a resident of this State who owns a motor vehicle registered or principally garaged in this State; A person who has a valid driver's license in this State; A person who is required to file proof of financial responsibility under Article 9A or 13 of Chapter 20 of the General Statutes in order to register his or her motor vehicle or to obtain a driver's license in this State; A nonresident of this State who owns a motor vehicle registered and principally garaged in this State; or The State and its agencies and cities, counties, towns and municipal corporations in this State and their agencies. "Eligible risk," for the purpose of nonfleet private passenger motor vehicle insurance, means: A resident of this State who owns a motor vehicle registered or principally garaged in this State; A resident of this State and who has a valid driver's license issued by this State; A person who is required to file proof of financial responsibility under Article 9A or 13 of Chapter 20 of the General Statutes in order to register his or her vehicle or to obtain a driver's license in this State; A nonresident of this State who owns a motor vehicle registered and principally garaged in this State; A nonresident of the State who is one of the following: A member of the Armed Forces of the United States stationed in this State, or deployed outside this State from a home base in this State, who intends to return to his or her home state; The spouse of a nonresident member of the Armed Forces of the United States stationed in this State, or deployed outside this State from a home base in this State, who intends to return to his or her home state; An out-of-state student who intends to return to his or her home state upon completion of his or her time as a student enrolled in school in this State; or The State and its agencies and cities, counties, towns, and municipal corporations in this State and their agencies. Motor vehicle insurance premiums; or Payments recoverable under a policy provision authorized by G.S. 58-2-164(g1). "Facility" means the North Carolina Motor Vehicle Reinsurance Facility established under this Article. "Motor vehicle" means every self-propelled vehicle that is designed for use upon a highway, including trailers and semitrailers designed for use with such vehicles (except traction engines, road rollers, farm tractors, tractor cranes, power shovels, and well drillers). "Motor vehicle" also means a motorcycle, as defined in G.S. 20-4.01(27)h., and a moped, as defined in G.S. 20-4.01(27)j. "Motor vehicle" does not mean an electric assisted bicycle, as defined in G.S. 20-4.01(7a). "Motor vehicle insurance" means direct insurance against liability arising out of the ownership, operation, maintenance or use of a motor vehicle for bodily injury including death and property damage and includes medical payments and uninsured and underinsured motorist coverages. "Person" means every natural person, firm, partnership, association, trust, limited liability company, firm, corporation, government, or governmental agency. "Plan of operation" means the plan of operation approved pursuant to the provisions of this Article. Repealed by Session Laws 1977, c. 828, s. 10. "Principally garaged" means the vehicle is garaged for six or more months of the current or preceding year on property in this State which is owned, leased, or otherwise lawfully occupied by the owner of the vehicle. However, no person shall be deemed an eligible risk if timely payment of premium is not tendered or if there is a valid unsatisfied judgment of record against such person for recovery of amounts due for motor vehicle insurance premiums and such person has not been discharged from paying said judgment, or if such person does not furnish the information necessary to effect insurance. However, no person shall be deemed an eligible risk if timely payment or premium is not tendered or if there is a valid unsatisfied judgment of record against the person which the person has not been discharged from paying, for recovery of amounts due for: Further, no person shall be deemed an eligible risk if the person does not furnish the information necessary to effect insurance. With respect to motor carriers who are subject to the financial responsibility requirements established under the Motor Carrier Act of 1980, the term, "motor vehicle insurance" includes coverage with respect to environmental restoration. As used in this subsection the term, "environmental restoration" means restitution for the loss, damage, or destruction of natural resources arising out of the accidental discharge, dispersal, release, or escape into or upon the land, atmosphere, watercourse, or body of water of any commodity transported by a motor carrier. Environmental restoration includes the cost of removal and the cost of necessary measures taken to minimize or mitigate damage to human health, the natural environment, fish, shellfish, and wildlife. History (1973, c. 818, s. 1; 1977, c. 828, s. 10; 1981, c. 776, s. 1; 1985, c. 666, s. 48; 1989, c. 485, s. 48; 1991, c. 720, s. 6; 1999-132, s. 8.2; 2001-389, s. 4; 2002-187, s. 1.1; 2007-443, s. 1; 2007-481, s. 8; 2007-495, s. 8; 2011-183, s. 43; 2015-125, s. 5; 2016-78, s. 3.2(b); 2016-90, ss. 12.6(b), 13(f); 2017-102, ss. 5.2(b), 36.) Cross References. - For provisions relating to motor vehicle financial responsibility, referenced in subdivision (4) above, see G.S. 20-279.1 et seq. and 20-309 et seq. Editor's Note. - Session Laws 2001-389, s. 6, provides: "This act becomes effective January 1, 2002. Rates, rating systems, territories, classifications, and policy forms lawfully in use on January 1, 2002, may continue to be used thereafter." Session Laws 2015-125, s. 10, made the amendment to subdivision (6) of this section by Session Laws 2015-125, s. 5, which added the last two sentences, applicable to offenses committed on or after July 1, 2016. Subdivision (6) was amended by Session Laws 2016-90, ss. 12.6(b) and 13(f), in the coded bill drafting format provided by G.S. 120-20.1 . Each section failed to account for changes by the other section. Session Laws 2017-102, s. 36, amended subdivision (6) to correct the problem. Session Laws 2016-90, s. 13(j), made the last two sentences in subdivision (6) of this section, as added by Session Laws 2016-90, s. 13(f), applicable to offenses committed on or after December 1, 2016. Session Laws 2017-102, s. 5.2(b), provides: "The Revisor of Statutes is authorized to reletter the definitions in G.S. 20-4.01(27) and G.S. 20-4.01 (32b) to place them in alphabetical order. The Revisor of Statutes may conform any citations that change as a result of the relettering." Pursuant to that authority, the references to G.S. 20-4.01(27) d. and G.S. 20-4.01 (27)d1. in subdivision (6) were changed to G.S. 20-4.01(27)h. and G.S. 20-4.01(27)j., respectively. Effect of Amendments. - Session Laws 2007-443, s. 1, effective January 1, 2008, and applicable to motor vehicle insurance policies issued or renewed on or after January 1, 2008, rewrote subdivision (4); added subdivision (4)(a); inserted "or deployed outside this State from a home base in this State" in sudivisions (4a)e.1. and (4a)e.2., and made minor grammatical changes; substituted "under" for "pursuant to the provisions of" in subdivision (5); and added subdivision (11). Session Laws 2007-481, s. 8, effective January 1, 2008, in subdivisions (4a)e.1. and (4a)e.2., substituted "armed forces of the United States" for "United States armed forces" and inserted "'or deployed outside this State from a home base in this State." Session Laws 2007-495, s. 8, effective August 30, 2007, substituted "watercourse" for "water course" in the second sentence of the second paragraph of subdivision (7). Session Laws 2011-183, s. 43, effective June 20, 2011, in subdivisions (4a)e.1. and (4a)e.2., substituted "Armed Forces" for "armed forces." Session Laws 2015-125, s. 5, effective July 1, 2016, added the last two sentences in subdivision (6). For applicability, see editor's note. Session Laws 2016-78, s. 3.2(b), effective December 1, 2016, substituted "and" for "or" preceding "principally garaged" in subdivision (4)d; in subdivision (4a)(f), inserted "which the person has not been discharged from paying" following "against the person" and substituted subdivisions (4a)f.1 and (4a)f.2 for "motor vehicle insurance premiums and the person has not been discharged from paying the judgment or if the person does not furnish the information necessary to effect insurance" at the end. Session Laws 2016-90, s. 12.6(b), effective July 1, 2016, in subdivision (6), substituted "G.S. 20-4.01(27)d., and a moped, as defined in G.S. 20-4.01(27) d1" for "G.S. 20-4.01(27)d. 'Motor vehicle' does not mean a moped as defined in G.S. 105-164.3 . Notwithstanding any other provisions of this Article, liability insurance on a moped is not eligible for cession to the Facility." Session Laws 2016-90, s. 13(f), effective December 1, 2016, in subdivision (6), substituted "G.S. 20-4.01(27)d1., or an electric assisted bicycle, as defined in G.S. 20-4.01 (7a)" for "G.S. 105-164.3." See editor's note for applicability. Session Laws 2017-102, s. 36, effective July 12, 2017, subdivided the second sentence into two sentences and added " 'Motor vehicle' does not mean" at the beginning of the current third sentence in subdivision (6). Legal Periodicals. - For survey of 1977 law on insurance, see 56 N.C.L. Rev. 1084 (1978). For survey of 1979 administrative law, see 58 N.C.L. Rev. 1185 (1980). For note discussing changes in automobile rate regulation and the role of the Insurance Commissioner in North Carolina, see 17 Wake Forest L. Rev. 822 (1981). For survey of 1981 administrative law, see 60 N.C.L. Rev. 1165 (1982). For 1984 survey, "Employee Exclusion Clauses in Automobile Liability Insurance Policies," see 63 N.C.L. Rev. 1228 (1985). For 1984 survey, "Application of the Tate Test to Notice Requirements in Reinsurance Contracts," see 63 N.C.L. Rev. 1240 (1985). For note as to terminating an insurance policy according to North Carolina's financial responsibility legislation, in light of Peerless Ins. Co. v. Freeman, 78 N.C. App. 774, 338 S.E.2d 570, aff'd per curiam, 317 N.C. 145 , 343 S.E.2d 539 (1986), see 65 N.C.L. Rev. 1409 (1987).