A new bill filed by State Sen. Eddie D. Settle seeks to revise the Insurance Guaranty Association Act, aiming to update definitions and procedures related to claims after insurer insolvency, according to the North Carolina State Senate.
The bill, filed as SB 269 on March 12 during the 2025 regular session, was formally listed with the short title: ‘Insurance Guaranty Association Act Revisions.-AB’
The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.
In essence, this bill enacts revisions to the North Carolina Insurance Guaranty Association Act, updating definitions, obligations, and processes related to insurance claims following an insurer’s insolvency. Key changes include defining “cybersecurity insurance” and detailing how the Association handles claims, especially in cases of insolvency, such as limiting covered claims to between $50 and $500,000, except for certain coverages. The bill clarifies rules for recovering claim payments from insureds with a net worth over $50 million and outlines procedures for contesting and vacating default judgments against insolvent insurers. It specifies the Association’s rights and procedures in handling settlements and also provides for an automatic stay of court proceedings involving insolvent insurers. The act takes effect upon becoming law.
Of the three sponsors of this bill, Todd Johnson proposed the most bills (28) during the 2025 regular session.
Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.
You can read more about the bills and other measures here.
Settle graduated from Wilkes Community College in 1979 with an AA.
Settle, a Republican, was elected to the North Carolina State Senate in 2023 to represent the state’s 36th Senate district, replacing previous state senator Paul Newton.
| Authors | Bill Number | Date Filed | Title |
|---|---|---|---|
| Eddie D. Settle, Danny Earl Britt, Jr., and Todd Johnson | SB 269 | 03/12/2025 | Insurance Guaranty Association Act Revisions.-AB |
| Eddie D. Settle, Danny Earl Britt, Jr., and Todd Johnson | SB 268 | 03/12/2025 | Amend NC PEO Act.-AB |
| Eddie D. Settle, Danny Earl Britt, Jr., and Todd Johnson | SB 270 | 03/12/2025 | Credit Property Insurance Restrictions.-AB |
| Eddie D. Settle, Danny Earl Britt, Jr., and Todd Johnson | SB 271 | 03/12/2025 | Permitted Trade Practices/Insurance Rebates.-AB |
| Eddie D. Settle | SB 264 | 03/11/2025 | Flags at Every School. |
| Eddie D. Settle, Tom McInnis, and Vickie Sawyer | SB 231 | 03/05/2025 | State Surplus Property/Third-Party Auctions. |
| Eddie D. Settle, David W. Craven, Jr., and Todd Johnson | SB 240 | 03/05/2025 | Establish NCSTARS Grant Program. |
| Eddie D. Settle, Timothy D. Moffitt, and W. Ted Alexander | SB 164 | 02/25/2025 | Theft of Temporary Housing During Emergency. |
| Eddie D. Settle, Carl Ford, and W. Ted Alexander | SB 123 | 02/21/2025 | Flags at Every School. |
| Eddie D. Settle, Michael A. Lazzara, and Vickie Sawyer | SB 113 | 02/17/2025 | Removal of Squatters from Private Property. |
| Eddie D. Settle, Michael A. Lazzara, and Timothy D. Moffitt | SB 71 | 02/11/2025 | Expedited Removal of Unauthorized Persons. |
| Eddie D. Settle, Bobby Hanig, and Timothy D. Moffitt | SB 58 | 02/05/2025 | AG/Restrict Challenge to Presidential EOs. |
| Eddie D. Settle, Danny Earl Britt, Jr., and Warren Daniel | SB 50 | 02/04/2025 | Freedom to Carry NC. |
| Eddie D. Settle, Danny Earl Britt, Jr., and Todd Johnson | SB 51 | 02/04/2025 | Maintain NAIC Accreditation of DOI.-AB |
| Eddie D. Settle | SB 41 | 02/03/2025 | 36th Senatorial District Local Act-1. |
