(a)        All certificates and contracts covered by N.C. Gen. Stat. § 58-66-35 must be printed in a type face 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 certificate a statement that the certificate is a legal contract between the certificate owner and the insurer, and the statement, printed in larger or other contrasting type or color, “Read your certificate carefully”;

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

a.         The person or persons insured by the certificate;

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

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

d.         Definitional sections of the certificate;

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

f.          Provisions governing cancellation, renewal, or amendment of the certificate by either the insurer or the subscriber;

g.         Any options under the certificate; and

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

(b)        In determining whether or not a certificate 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, 2nd Sess., c. 1161, s. 1.)

Terms Used In North Carolina General Statutes 58-66-20

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • certificate: means an agreement as defined by N. See North Carolina General Statutes 58-66-15
  • Commissioner: means the Commissioner of Insurance. See North Carolina General Statutes 58-66-15
  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
  • Insurer: means every corporation providing contracts or certificates of coverage of insurance as described in N. See North Carolina General Statutes 58-66-15