Insurance Guaranty Association Act Revisions.-AB

SB 269 revises North Carolina's Insurance Guaranty Association Act to specifically include cybersecurity insurance coverage under the law. It defines "cybersecurity insurance" to cover losses from data breaches, ransomware, cyberattacks, and similar events, and sets a $500,000 cap per policy for all first- and third-party claims arising from a single cyber incident. This affects North Carolina residents or property located in the state who hold cybersecurity insurance policies with an insolvent insurer. The bill ensures the Guaranty Association pays covered claims up to this cap for cybersecurity events, while excluding punitive damages, high-net-worth claimants ($50M+ net worth), and certain other excluded claims.