§ 58-37-1. Definitions.

Article 37.

North Carolina MotorVehicle Reinsurance Facility.

§ 58‑37‑1. Definitions.

As used in this Article:

(1)        "Cede" or"cession" means the act of transferring the risk of loss from theindividual insurer to all insurers through the operation of the facility.

(2)        Repealed by SessionLaws 1991, c. 720, s. 6.

(3)        "Company"means each member of the Facility.

(4)        "Eligiblerisk," for the purpose of motor vehicle insurance other than nonfleetprivate passenger motor vehicle insurance,  means:

a.         A person who is aresident of this State who owns a motor vehicle registered or principallygaraged in this State;

b.         A person who has avalid driver's license in this State;

c.         A person who isrequired to file proof of financial responsibility under Article 9A or 13 ofChapter 20 of the General Statutes in order to register his or her motorvehicle or to obtain a driver's license in this State;

d.         A nonresident ofthis State who owns a motor vehicle registered or principally garaged in thisState; or

e.         The State and itsagencies and cities, counties, towns and municipal corporations in this Stateand their agencies.

However,no person shall be deemed an eligible risk if timely payment of premium is nottendered or if there is a valid unsatisfied judgment of record against suchperson for recovery of amounts due for motor vehicle insurance premiums andsuch person has not been discharged from paying said judgment, or if suchperson does not furnish the information necessary to effect insurance.

(4a)      "Eligiblerisk," for the purpose of nonfleet private passenger motor vehicleinsurance, means:

a.         A resident of thisState who owns a motor vehicle registered or principally garaged in this State;

b.         A resident of thisState and who has a valid driver's license issued by this State;

c.         A person who isrequired to file proof of financial responsibility under Article 9A or 13 ofChapter 20 of the General Statutes in order to register his or her vehicle orto obtain a driver's license in this State;

d.         A nonresident ofthis State who owns a motor vehicle registered and principally garaged in thisState;

e.         A nonresident of theState who is one of the following:

1.         A member of thearmed forces of the United States stationed in this State, or deployed outsidethis State from a home base in this State, who intends to return to his or herhome state;

2.         The spouse of anonresident member of the armed forces of the United States stationed in thisState, or deployed outside this State from a home base in this State, whointends to return to his or her home state;

3.         An out‑of‑statestudent who intends to return to his or her home state upon completion of hisor her time as a student enrolled in school in this State; or

f.          The State and itsagencies and cities, counties, towns, and municipal corporations in this Stateand their agencies.

However,no person shall be deemed an eligible risk if timely payment or premium is nottendered or if there is a valid unsatisfied judgment of record against theperson for recovery of amounts due for motor vehicle insurance premiums and theperson has not been discharged from paying the judgment or if the person doesnot furnish the information necessary to effect insurance.

(5)        "Facility"means the North Carolina Motor Vehicle Reinsurance Facility established underthis Article.

(6)        "Motorvehicle" means every self‑propelled vehicle that is designed for useupon a highway, including trailers and semitrailers designed for use with suchvehicles (except traction engines, road rollers, farm tractors, tractor cranes,power shovels, and well drillers). "Motor vehicle" also means amotorcycle, as defined in G.S. 20‑4.01(27)d.

(7)        "Motor vehicleinsurance" means direct insurance against liability arising out of theownership, operation, maintenance or use of a motor vehicle for bodily injuryincluding death and property damage and includes medical payments and uninsuredand underinsured motorist coverages.

            Withrespect to motor carriers who are subject to the financial responsibilityrequirements established under the Motor Carrier Act of 1980, the term,"motor vehicle insurance" includes coverage with respect toenvironmental 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. Environmentalrestoration includes the cost of removal and the cost of necessary measurestaken to minimize or mitigate damage to human health, the natural environment,fish, shellfish, and wildlife.

(8)        "Person"means every natural person, firm, partnership, association, trust, limitedliability company, firm, corporation, government, or governmental agency.

(9)        "Plan ofoperation" means the plan of operation approved pursuant to the provisionsof this Article.

(10)      Repealed by SessionLaws 1977, c. 828, s. 10.

(11)      "Principallygaraged" means the vehicle is garaged for six or more months of thecurrent or preceding year on property in this State which is owned, leased, orotherwise lawfully occupied by the owner of the vehicle. (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.)