Insurance Guaranty Association Act Revisions.

This bill revises North Carolina's Insurance Guaranty Association Act, affecting policyholders and the Association by adjusting how claims are handled when an insurer becomes insolvent. It clarifies that cybersecurity insurance policies are generally covered, but sets a maximum payout of $500,000 for all first and third-party cybersecurity claims arising from a single event. The bill also expands the definition of a "covered claim" to include certain transferred policy obligations, while explicitly excluding claims from very large entities and specific fines or penalties. Additionally, it enhances the Association's authority to investigate, adjust, and contest settlements or judgments made by an insolvent insurer or its insureds prior to liquidation, allowing them to defend claims on their merits.