North Carolina HB 356: Full Repeal of HB2.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 6
HOUSE BILL 356
Committee Substitute Favorable 5/6/25
Senate Commerce and Insurance Committee Substitute Adopted 6/2/26
Senate Finance Committee Substitute Adopted 6/16/26
Senate Judiciary Committee Substitute Adopted 6/17/26
Sixth Edition Engrossed 6/24/26

Short Title: Various Civil and Insurance Law Changes. (Public)
Sponsors:
Referred to:
March 12, 2025
*H356-v-6*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE TECHNICAL CORRECTIONS TO REMOVE REFERENCES TO 2
PRELICENSING EDUCATION, TO PROHIBIT MORTGAGE LICENSEES FROM 3
REQUIRING RECONSTRUCTION COST ESTIMATES AS A CONDITION OF ISSUING 4
A LOAN, TO DELAY THE EFFECTIVE DATE FOR INEXPERIENCED OPERATOR 5
CONTINUOUS COVERAGE REQUIREMENTS, TO AMEND REPORTING 6
REQUIREMENTS FOR INEXPERIENCED DRIVERS, TO REQUIRE ACCEPTANCE OF 7
CERTIFICATES OF INSURANCE AS PROOF OF INSURANCE, TO UPDATE 8
PROVISIONS REGARDING PEER-TO-PEER VEHICLE SHARING, TO UPDATE THE 9
NORTH CAROLINA PROFESSIONAL EMPLOYER ORGANIZATION ACT, TO 10
ALLOW CASH CONVENIENCE FEES UNDER ONE DOLLAR WHEN AN 11
INSURANCE PREMIUM IS BEING PAID IN CASH, TO MAKE VARIOUS CHANGES 12
TO BAIL BONDSMEN REQUIREMENTS, TO REQUIRE BEACH PROPERTY 13
INSURANCE COVERAGE FOR HABITATIONAL PROPERTY CONTENTS TO BE SET 14
IN ACCORDANCE WITH STATE APPROVED RATES, AND TO AUTHORIZE A 15
LANDLORD TO CHARGE A TENANT THE FAIR MARKET VALUE FOR REQUIRED 16
INSURANCE FOR THE LEASED PREMISES IF THE TENANT FAILS TO TIMELY 17
PROVIDE PROOF OF THE REQUIRED INSURANCE. 18
The General Assembly of North Carolina enacts: 19
20
PART I. TECHNICAL CORRECTIONS TO REMOVE REFERENCES TO 21
PRELICENSING EDUCATION 22
SECTION 1. G.S. 58-33-132 reads as rewritten: 23
"§ 58-33-132. Qualifications of instructors. 24
(a) The Commissioner may adopt rules to establish requisite qualifications for and 25
issuance, renewal, summary suspension, and termination of provider, presenter, and instructor 26
authority for prelicensing and continuing insurance education courses. During any suspension, 27
the instructor shall not engage in any instruction of prelicensing or continuing insurance 28
education courses prior to an administrative review. No person shall provide, present, or instruct 29
any continuing education course unless that person has been qualified by and possesses a license 30
from the Commissioner or administrator. 31

General Assembly Of North Carolina Session 2025
Page 2 House Bill 356-Sixth Edition
(b) The Commissioner or administrator may summarily suspend or terminate the 1
authority of an a continuing education instructor, course provider, or presenter if the course 2
presentation:any of the following occur: 3
(1) Is The course presentation by that instructor, course provider, or presenter is 4
determined to be inaccurate; orinaccurate. 5
(2) Receives The course presentation by that instructor, course provider, or 6
instructor receives an evaluation of poor from any Department monitor and a 7
majority of attendees responding to Department questionnaires about the 8
presentation." 9
10
PART II. PROHIBIT MORTGAGE LICENSEES FROM REQUIRING THE 11
DISCLOSURE OF RECONSTRUCTION COST ESTIMATES 12
SECTION 2.(a) G.S. 53-244.111 is amended by adding a new subdivision to read: 13
"(24) To fail to comply with G.S. 58-3-137(a)." 14
SECTION 2.(b) G.S. 58-3-137 is amended by adding a new subsection to read: 15
"(c) The Office of Commissioner of Banks may investigate the affairs of any person 16
licensed under G.S. 53-244.040 to whom this section applies to determine whether the person 17
has violated this section. If a violation of this section is found to have been committed knowingly, 18
the person in violation shall be subject to the same procedures and penalties as provided in 19
G.S. 53-244.116." 20
SECTION 2.(c) This section becomes effective October 1, 2026. 21
22
PART III. DELAY EFFECTIVE DATE FOR INEXPERIENCED OPERATOR 23
CONTINUOUS COVERAGE 24
SECTION 3. Section 8(d) of S.L. 2025-45 reads as rewritten: 25
"SECTION 8.(d) This section becomes effective July 1, 2026.January 1, 2027." 26
27
PART IV. REPORTING REQUIREMENT FOR INEXPERIENCED DRIVERS 28
SECTION 4.(a) G.S. 20-309.2 reads as rewritten: 29
"§ 20-309.2. Insurer shall notify Division of actions on insurance policies. 30
(a) Notice Required. – An insurer shall notify the Division upon any of the following 31
with regard to a motor vehicle liability policy: 32
(1) Issues a new or replacement policy. 33
(2) Terminates a policy, either by cancellation or failure to renew, unless the same 34
insurer issues a replacement policy complying with this Article at the same 35
time the insurer terminates the old policy and no lapse in coverage results. 36
(3) Reinstates a policy after the insurer has notified the Division of a cancellation 37
or termination. 38
(4) A person with a North Carolina drivers license and who is subject to an 39
inexperienced operator premium surcharge pursuant to G.S. 58-36-65(k) is 40
added to or removed from the policy's coverage, or if a