§ 58-40-140. Extended reporting.
§58‑40‑140. Extended reporting.
(a) Any policy forcommercial general liability coverage or professional liability insurancewherein the insurer offers, and the insured elects to purchase, an extendedreporting period for claims arising during the expiring policy period mustprovide:
(1) That in the event ofa cancellation permitted by G.S. 58‑41‑15 or nonrenewal effectiveunder G.S. 58‑41‑20, there shall be a 30‑day period after theeffective date of the cancellation or nonrenewal during which the insured mayelect to purchase coverage for the extended reporting period.
(2) That the limit ofliability in the policy aggregate for the extended reporting period shall beone hundred percent (100%) of the expiring policy aggregate that was in effectat the inception of the policy.
(3) Within 45 days afterthe mailing or delivery of the written request of the insured, the insurershall mail or deliver the following loss information covering a three‑yearperiod:
a. Aggregateinformation on total closed claims, including date and description ofoccurrence, and any paid losses;
b. Aggregateinformation on total open claims, including date and description of occurrence,and amounts of any payments;
c. Information onnotice of any occurrence, including date and description of occurrence.
(b) In the event of acancellation or nonrenewal of a health care provider's professional liabilityinsurance policy by the insured or by the insurer, as permitted by G.S. 58‑41‑15or G.S. 58‑41‑20, except for nonpayment of premium, there shall bea 30‑day period after the effective date of the cancellation ornonrenewal during which the insured may elect to obtain an endorsementproviding an extended reporting period of unlimited duration covering claimsfirst reported during the extended reporting period and arising from the acts,errors, or omissions committed during the policy period and otherwise coveredby the policy.
(c) An unlimitedextended reporting period for health care provider professional liabilityclaims must be provided if the insured: (i) dies; (ii) becomes permanentlydisabled and is unable to carry out his or her profession or practice; or (iii)retires permanently from his or her profession or practice after attaining theage of 65 and accumulating five or more consecutive years of claims‑madecoverage. (1985 (Reg. Sess., 1986), c. 1013, s. 17; c. 1027, s.29; 1993, c. 409, s. 9; 1993 (Reg. Sess., 1994), c. 678, s. 21; 1999‑294,s. 2.)