State statute · North Carolina

North Carolina General Statutes Chapter 20, Article 13

The Vehicle Financial Responsibility Act of 1957 (G.S. 20-309 through 20-319)

Publisher: North Carolina General Assembly
Edition: N.C. General Statutes, official ncleg.gov HTML. The publisher prints no currency...
Last checked: 2026-09-17
Status: US state statute

Edition and licensing notes

Edition. N.C. General Statutes, official ncleg.gov HTML. The publisher prints no currency statement on these pages; the latest session law referenced in the stripped history notes across this batch is S.L. 2026-14. Retrieved 2026-09-17.

Status. US state statute.

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What this document is

North Carolina General Statutes Chapter 20, Article 13 - The Vehicle Financial Responsibility Act of 1957 (G.S. 20-309 through 20-319) is a state statute published by North Carolina General Assembly. It is one of the North Carolina documents that insurance license exam questions are written from, including north carolina property & casualty, north carolina personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

G.S. 20-309.2(a) (Insurer shall notify Division of actions on insurance policies; Notice Required)
“(a) Notice Required. - An insurer shall notify the Division upon any of the following with regard to a motor vehicle liability policy: (1) Issues a new or replacement policy. (2) Terminates a policy, either by cancellation or failure to renew, unless the same insurer issues a replacement policy...”
G.S. 20-311(b) (Action by the Division when notified of a lapse in financial responsibility; Penalty Amount)
“(b) Penalty Amount. - The following table determines the amount of a penalty payable under this section by an owner who has had a lapse in financial responsibility; the amount is based on the number of times the owner has been assessed a penalty under this section during the three-year period...”
G.S. 20-311(c) (Action by the Division when notified of a lapse in financial responsibility; Revocation Period)
“(c) Revocation Period. - The revocation period for a revocation based on a response that establishes that a vehicle owner does not have financial responsibility is indefinite and ends when the owner obtains financial responsibility or transfers the vehicle to an owner who has financial...”
G.S. 20-313(a) (Operation of motor vehicle without financial responsibility a misdemeanor)
“(a) On or after July 1, 1963, any owner of a motor vehicle registered or required to be registered in this State who shall operate or permit such motor vehicle to be operated in this State without having in full force and effect the financial responsibility required by this Article shall be guilty...”
G.S. 20-311(a)(2) (Action by the Division when notified of a lapse in financial responsibility; Penalty only)
“(2) Penalty only. - If the owner responds within the required time and the response establishes all of the following, the Division shall assess the owner a penalty in the amount set in subsection (b) of this section: a. The owner had a lapse in financial responsibility, but the owner now has...”
G.S. 20-309(a2) (Financial responsibility prerequisite to registration; foster parent named-driver exclusion)
“Notwithstanding any other provision of this Chapter, an owner's policy of liability insurance issued to a foster parent or parents, which policy includes an endorsement excluding coverage for one or more foster children residing in the foster parent's or parents' household, may be certified as...”
G.S. 20-313.1(a) (Making false certification or giving false information a misdemeanor)
“Any owner of a motor vehicle registered or required to be registered in this State who shall make a false certification concerning his financial responsibility for the operation of such motor vehicle shall be guilty of a Class 1 misdemeanor.”

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Questions about this source

North Carolina General Statutes Chapter 20, Article 13 - The Vehicle Financial Responsibility Act of 1957 (G.S. 20-309 through 20-319) is a state statute published by North Carolina General Assembly. Edition: N.C. General Statutes, official ncleg.gov HTML. The publisher prints no currency statement on these pages; the latest session law referenced in the stripped history notes across this batch is S.L. 2026-14. Retrieved 2026-09-17..

No. This page summarizes the document and links to the official version. Always rely on the text published by North Carolina General Assembly for the current law.

Practice questions for North Carolina Property & Casualty, North Carolina Personal Lines cite this document.

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