NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 962

SENATE BILL 242

 

 

AN ACT TO AMEND G.S. 58‑250.1, RELATING TO NOTICE TO THE INSURED AS TO THE EFFECT OF MISREPRESENTATIONS AND OMISSION OF INFORMATION IN APPLICATION FOR HOSPITALIZATION INSURANCE POLICIES AND RIGHT OF SUCH PERSON TO RETURN THE POLICY AND RECEIVE A FULL REFUND OF PREMIUM.

 

The General Assembly of North Carolina do enact:

Section 1.  G.S. 58‑250.1, as the same appears in the 1960 Replacement Volume of the General Statutes, is hereby amended by rewriting the first sentence thereof, the same appearing on lines 1‑6 of said Section, to read as follows:

"Every individual or family hospitalization policy, certificate, contract or plan issued for delivery in the State of North Carolina on and after July 1, 1961, must have printed thereon or attached thereto a notice stating substantially: 'YOUR POLICY MAY NOT BE IN FORCE WHEN YOU HAVE A CLAIM! PLEASE READ! Your policy was issued based on the information entered in your application, a copy of which is attached to the policy. If, to the best of your knowledge and belief, there is any misstatement in your application or if any information concerning the medical history of any insured person has been omitted, you should advise the Company immediately regarding the incorrect or omitted information; otherwise, your policy may not be a valid contract. RIGHT TO RETURN POLICY WITHIN 10 DAYS. If for any reason you are not satisfied with your policy, you may return it to the Company within ten (10) days of the date you received it and the premium you paid will be promptly refunded.'"

Sec. 2.  All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.

Sec. 3.  This Act shall become effective July 1, 1961.

In the General Assembly read three times and ratified, this the 17th day of June, 1961.