Sen. Todd Johnson

Maddy summaryThis bill requires drivers subject to an inexperienced operator premium surcharge (under G.S. 58-36-65(k)) to maintain continuous liability insurance coverage that includes their surcharge. Insurers must notify the Division when these drivers are added to or removed from policies. The law ensures that a policy termination notice won’t count as a coverage lapse if continuous coverage was maintained through another policy. It applies specifically to drivers with this surcharge and takes effect October 1, 2025.

Maddy summarySB 226 expands eligibility for death benefits under North Carolina's Public Safety Employees' Death Benefits Act to include firefighters who die from specific cancers. It adds any cancer diagnosed after January 1, 2022, that qualified a firefighter for benefits under the Firefighters' Cancer Insurance Program (or its predecessor, the Health Benefits Pilot Program) to the list of cancers presumed to be "killed in the line of duty." This means firefighters receiving cancer benefits under the program will automatically qualify for death benefits if they later die from that cancer. The bill also permanently establishes the Cancer Insurance Program as the successor to the pilot program and allocates $2 million annually for related death benefits starting July 1, 2025.

Maddy summarySB 290, the NC REINS Act, requires North Carolina's General Assembly to approve certain state agency regulations before they take effect. It directly affects state agencies creating rules with significant economic impact (over $1 million annually) and gives legislators a 30-day window to block such rules through a specific disapproval bill. The bill adds a legislative review period for all permanent rules and mandates that rules with substantial economic impact must be ratified by the legislature, effectively creating a veto power over those regulations. This changes current process by requiring explicit legislative action for high-impact rules instead of automatic implementation after agency approval.

Maddy summaryThis bill clarifies rules for insurance producers exchanging business between licensed agents. It allows producers to transfer client insurance business to another licensed producer (who is also appointed with the same insurer) and split commissions, provided both agents are properly licensed, disclose the transfer to the insurer and consumer, and believe the exchange complies with the law. The bill specifically permits this for standard business types while excluding general business exchanges without these safeguards. It applies to contracts entered into or renewed after the law takes effect.

Maddy summarySB 276 directs North Carolina's insurance associations (NCIUA and the Joint Underwriting Association) to study potential improvements to the state's property insurance systems for disasters. Specifically, it requires them to examine two options: creating "excess property coverage" for policyholders to cover costs beyond their primary insurance, and exploring "post-event catastrophe bonds" to help pay for major storm losses exceeding insurer capacity. The study must be completed by March 1, 2026, with findings and recommendations reported to legislative insurance committees. This bill does not change current law or provide funding - it only mandates a study of potential future solutions for property insurance challenges after natural disasters.

Maddy summarySB 270 prohibits credit property insurance policies (which cover vehicles used as loan collateral) from including specific automobile physical damage coverages. It bans coverage for repossession costs, "skip/confiscation/conversion" scenarios, deductibles under $250, and broader coverage than minimum state requirements. Borrowers would no longer have these excluded coverages bundled into their credit insurance, though insurers could offer them separately without charging borrowers. If enacted, the law would apply to new or renewed insurance contracts after its effective date.

Maddy summarySB 271 clarifies permitted insurance rebate practices in North Carolina by defining specific exceptions to existing rebate prohibitions. It allows insurers and producers to offer value-added services (like risk assessments, financial wellness tools, or post-loss support) at no or reduced cost, provided they meet criteria such as being reasonably priced relative to premiums and not being discriminatory. The bill also permits non-cash gifts under $250 per policy term and small raffles with prizes under $250, as long as they don’t require insurance purchases. These provisions directly affect insurers, producers, and their employees who market or sell insurance policies. The bill explicitly maintains bans on direct premium rebates or "free" insurance promotions not specified in the policy.

Maddy summarySB 273 requires day camps providing aquatic activities (like swimming or water instruction) for school-age children (up to age 18) to have certified lifeguards on-site. It mandates specific ratios (two lifeguards for every 25 children, plus one additional per 15 children), a 6-foot lifeguard chair, and a mandatory swim test before activities begin - requiring U.S. Coast Guard-approved life jackets for non-swimmers. The bill prohibits aquatic activities in hot tubs, spas, saunas, portable pools, and unfiltered water containers. It applies to all day camps operating for less than four months yearly and takes effect June 1, 2026.

Maddy summarySB 268 amends North Carolina's Professional Employer Organization (PEO) Act to update financial requirements for PEOs seeking or maintaining a license. The bill extends the deadline for submitting an audited financial statement from 90 to 120 days before application and requires PEOs to maintain at least $50,000 in tangible net worth with positive working capital. PEOs with negative working capital must provide an additional surety bond equal to the negative amount. Additionally, the bill clarifies that multiple PEOs under the same parent can apply for a single group license, with each member guaranteeing the financial obligations of all others.

Maddy summarySB 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.