§ 58-44-20. Standard policy; permissible variations.
§ 58‑44‑20. Standard policy; permissible variations.
With the exception of policiescovering (i) automobile fire, theft, comprehensive, and collision or (ii)marine and inland marine insurance, no fire insurance company shall issue fireinsurance policies on property in this State other than those containing theprovisions set forth in G.S. 58‑44‑16 except as follows:
(1) A company may printon or in its policies the date of incorporation, the amount of its paid‑upcapital stock, the names of its officers, and to the words at the top of theback of said policy, "Standard Fire Insurance Policy for" may beadded after or before the words "North Carolina" the names of anystates or political jurisdiction in which the said policy form may be standardwhen the policy is used.
(2) A company may printin its policies or use in its policies written or printed forms of descriptionand specification of the property insured.
(3) A company may writeor print upon the margin or across the face of a policy, in unused spaces orupon separate slips or riders to be attached thereto, provisions adding to ormodifying those contained in the standard form, and all such slips, riders, andprovisions must be signed by an officer or agent of the company so using them.Provided, however, such provisions shall not have the effect of making theprovisions of the standard policy form more restrictive except for suchrestrictions as are provided for in the charter or bylaws of a domestic mutualfire insurance company doing business in no more than three adjacent countiesof the State and chiefly engaged in writing policies of insurance on ruralproperties upon an assessment or nonpremium basis, provided all suchrestrictions contained in the charter and bylaws of such domestic mutual fireinsurance company shall be actually included within the printed terms of thepolicy contract so affected as a condition precedent to their being effectiveand binding on any policyholder. The iron safe or any similar clause requiringthe taking of inventories, the keeping of books and producing the same in theadjustment of any loss, shall not be used or operative in the settlement oflosses on buildings, furniture and fixtures, or any property not subject to anychange in bulk and value.
(4) Binders or othercontracts for temporary insurance may be made, orally or in writing, for aperiod which shall not exceed 60 days, and shall be deemed to include all theterms of such standard fire insurance policy and all such applicableendorsements, approved by the Commissioner, as may be designated in suchcontract of temporary insurance; except that the cancellation clause of suchstandard fire insurance policy, and the clause thereof specifying the hour ofthe day at which the insurance shall commence, may be superseded by the expressterms of such contract of temporary insurance.
(5) Two or morecompanies authorized to do in this State the business of fire insurance, may,with the approval of the Commissioner, issue a combination standard form offire insurance policy which shall contain the following provisions:
a. A provisionsubstantially to the effect that the insurers executing such policy shall beseverally liable for the full amount of any loss or damage, according to theterms of the policy, or for specified percentages or amounts thereof,aggregating the full amount of such insurance under such policy.
b. A provisionsubstantially to the effect that service of process, or of any notice or proofof loss required by such policy, upon any of the companies executing suchpolicy, shall be deemed to be service upon all such insurers.
(6) Appropriate forms ofsupplemental contract or contracts or extended coverage endorsements and otherendorsements whereby the interest in the property described in such policy shallbe insured against one or more of the perils which the company is empowered toassume, in addition to the perils covered by said standard fire insurancepolicy may be approved by the Commissioner, and their use in connection with astandard fire insurance policy may be authorized by him. In his discretion theCommissioner may authorize the printing of such supplemental contract orcontracts or extended coverage endorsements and other endorsements in thesubstance of the form of the standard fire insurance policy. The first page ofthe policy may in form approved by the Commissioner be arranged to providespace for listing of amounts of insurance, rates and premiums, description ofconstruction, occupancy and location of property covered for the basic coveragesinsured under the standard form of policy and for additional coverages orperils insured under endorsements attached or printed therein, and such otherdata as may be conveniently included for duplication on daily reports foroffice records.
(7) A company may printon or in its policy, with the approval of the Commissioner, any provisionswhich it is required by law to insert in its policies not in conflict with thesubstance of provisions of such standard form. Such provisions shall be printedapart from the other provisions, agreements, or conditions of the policy, undera separate title, as follows: "Provisions Required by Law to Be Insertedin This Policy." (1899, c. 54, s. 43; 1901, c. 391, s. 4; Rev., s. 4759; 1907, c. 800,s. 1; 1915, c. 109, s. 10; C.S., s. 6436; 1925, c. 70, s. 5; 1945, c. 378;1949, c. 418; 1951, c. 767; c. 781, s. 5; 1955, c. 807, s. 3; 1979, c. 755, ss.5‑7; 2009‑171, s. 4.)