AN ACT Authorizing licensed self‑insurers to operate nonfleet motor vehicles, allowing self‑insurance to serve as proof of financial responsibility, and removing the fleet restriction from self‑insured religious organizations.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑7 reads as rewritten:

§ 20‑7.  Issuance and renewal of drivers licenses.

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(c1)      Insurance. – The Division may not issue a drivers license to a person until the person has furnished proof of financial responsibility. Proof of financial responsibility shall be in one of the following forms:

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Nothing in this subsection precludes any person from showing proof of financial responsibility in any other manner authorized by Articles 9A and 13 of this Chapter. The Division shall not impose a restriction prohibiting a person from operating a nonfleet motor vehicle, as that term is defined in G.S. 58‑40‑10, solely because the person furnished proof of liability under G.S. 20‑279.33 or G.S. 20‑279.33A.

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SECTION 2.  G.S. 20‑279.33 reads as rewritten:

§ 20‑279.33.  Self‑insurers.

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(b)        The Commissioner may, in his discretion, upon the application  of such a person, issue a certificate of self‑insurance when he is satisfied that such person is possessed and will continue to be possessed of ability to pay judgments obtained against such person. The certificate shall serve as evidence of insurance for the purposes of G.S. 20‑7(c1), 20‑13.2(e), 20‑16.1, 20‑19(k), and 20‑179.3(l).

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SECTION 3.  G.S. 20‑279.33A reads as rewritten:

§ 20‑279.33A.  Religious organizations; self‑insurance.

(a)        Notwithstanding any other provision of this Article or Article 13 of this Chapter, any recognized religious organization having established tenets or teachings and that has been in existence at all times since December 31, 1950, may qualify as a self‑insurer by obtaining a certificate of self‑insurance from the Commissioner as provided in subsection (c) of this section if the Commissioner determines that all of the following conditions are met:

(1)        Members of the religious organization operate five or more vehicles that are registered in this State and are either owned or leased by them.

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SECTION 4.  This act is effective when it becomes law and applies to all drivers license applications submitted on or after that date.