Policy forms will be disapproved if they contain any of the following kind of policy provisions:

(1)           a provisions that the application is a consideration of coverage; unless the application is physically attached to the policy;

(2)           a provision that the rules or bylaws of the company are a part of the contract; unless such rules or bylaws are actually written into or physically attached to the policy;

(3)           a provision that a portion of the premium becomes due and payable only after the occurrence of a loss, for example, a premium retention policy;

(4)           a provision in a liability policy that relieves the company of liability on account of insolvency of the insured;

(5)           a provision that knowledge of the agent is not binding on the company;

(6)           a provision purporting to limit to less than three years any suit on the contract by the policyholder.


History Note:        Authority G.S. 58-2-40; 58-3-10; 58-3-15; 58-7-15;

Eff. January 1, 1989;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. January 3, 2017.