NOTE: The format of the AAIS Advisory has changed, starting in June 2012. Notices are now posted individually as they arise, then combined in a periodic email message.
A new law in North Carolina modifies the language of a notice property insurers are required to provide policyholders regarding perils not covered under a policy.
Effective Dec. 1, 2012, insurers are required to add "windstorm or hail" to a disclosure notice indicating if certain perils are not insured under a property policy. The notice requirement was already in place for flood, earthquake, mudslide, mudflow, and landslide.
If one or more of the perils mentioned above is/are not covered, the disclosure must indicate that in a format specified by statute.
The change in the notice requirement was enacted in the same bill that charged the North Carolina Rate Bureau with developing an optional form policy form or endorsement for providing residential property insurance without coverage for windstorm or hail.
The notice requirement applies to both commercial and residential policies, however.
AAIS Advisory notices are posted periodically to announce AAIS product developments, and to provide news items that are relevant to our program users. Advisory notices are news summaries that paraphrase documents which should be consulted directly for complete, authoritative information.