11 N.C. Admin. Code 4.0316

Current through Register Vol. 38, No. 20, April 15, 2024

Section 04 .0316 - CONTESTABILITY CLAUSE AND RESCISSION

If an insurer does not attempt to rescind an accident, health, or disability policy upon becoming aware that the insured's application contained false statements, the insurer may not subsequently use such false statements as a basis for attempted rescission or alteration of the policy. The Commissioner shall consider failure to adhere to this principle an unfair trade practice pursuant to G.S. 58-63-15.

11 N.C. Admin. Code 04 .0316

Authority G.S. 58-2-40; 58-63-40; 58-65-1; 58-63-15; 58-65-40;
Eff. December 15, 1979;
Readopted Eff. December 1, 2021.

Authority G.S. 58-2-40; 58-63-40; 58-65-1; 58-65-40;
Eff. December 15, 1979.

Readopted by North Carolina Register Volume 36, Issue 13, January 3, 2022 effective 12/1/2021.