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.)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 38 - Readable Insurance Policies.
§ 58-38-10 - Scope of application.
§ 58-38-20 - Format requirements.
§ 58-38-25 - Flesch scale analysis readability score; procedures.
§ 58-38-30 - Filing requirements; duties of the Commissioner.
§ 58-38-35 - Application to policies; dates; duties of the Commissioner.