§58-38-20. Format requirements

(a)        All insurance policies and contracts covered by G.S. 58-38-35 must be printed in a typeface at least as large as 10 point modern type, one point leaded, be written in a logical and clear order and form, and contain the following items:

(1)        On the cover, first, or insert page of the policy a statement that the policy is a legal contract between the policy owner and the insurer and the statement, printed in larger or other contrasting type or color, "Read your policy carefully";

(2)        An index of the major provisions of the policy, which may include the following items:

a.         The person or persons insured by the policy;

b.         The applicable events, occurrences, conditions, losses, or damages covered by the policy;

c.         The limitations or conditions on the coverage of the policy;

d.         Definitional sections of the policy;

e.         Provisions governing the procedure for filing a claim under the policy;

f.          Provisions governing cancellation, renewal, or amendment of the policy by either the insurer or the policyholder;

g.         Any options under the policy; and

h.         Provisions governing the insurer's duties and powers in the event that suit is filed against the insured.

(b)        In determining whether or not a policy is written in a logical and clear order and form the Commissioner must consider the following factors:

(1)        The extent to which sections or provisions are set off and clearly identified by titles, headings, or margin notations;

(2)        The use of a more readable format, such as narrative or outline forms;

(3)        Margin size and the amount and use of space to separate sections of the policy; and

(4)        Contrast and legibility of the colors of the ink and paper and the use of contrasting titles or headings for sections.

(1979, c. 755, s. 1.)