{"data":{"id":"us-nc/n.c.-gen.-stat.-58-3-140","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-3-140","heading":"Temporary contracts of insurance permitted.","body":"A lender engaged in making or servicing real estate mortgage or deed of trust loans on one to four family residences shall accept as evidence of insurance a temporary written contract of insurance meeting the requirements of G.S. 58-44-20(4) and issued by any duly licensed insurance producer or insurance company.\nNothing herein prohibits the lender from refusing to accept a binder or from disapproving such insurer or insurance producer provided such refusal or disapproval is reasonable.\nSuch lender need not accept a binder unless such binder:\n(1)\tIncludes:\na.\tThe name and address of the insured;\nb.\tThe name and address of the mortgagee;\nc.\tA description of the insured collateral;\nd.\tA provision that it may not be cancelled within a term of the binder except upon 10 days' written notice to the mortgagee; and\ne.\tThe amount of insurance bound.\n(2)\tIs accompanied by a paid receipt for one year's premium, except in the case of the renewal of a policy subsequent to the closing of a loan; and\n(3)\tIncludes an undertaking of insurance producer to use his best efforts to have the insurance company issue a policy.\nThe Department may require binders to contain any additional information to permit the binders to comply with the reasonable requirements of Fannie Mae, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation for purchase of mortgage loans. (1989, c. 459, s. 1; 1991, c. 720, s. 4; 2001-487, s. 14(f); 2022-46, s. 14(j).)","path":["Chapter 58. Insurance.","Article 3. General Regulations for Insurance."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-3-140.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"61b39274601baa8f736225d1b6dfd8a2857d75ee81d1b9a53c8660ff826a7dbf","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-3-137","next":"us-nc/n.c.-gen.-stat.-58-3-145"},"notice":"GroundRules: Original legal text. Not legal advice."}