State statute · North Carolina

North Carolina General Statutes Chapter 20, Article 9A

Motor Vehicle Safety and Financial Responsibility Act of 1953 (G.S. 20-279.1 through 20-279.39)

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.

Read the official text Practice questions from this source

What this document is

North Carolina General Statutes Chapter 20, Article 9A - Motor Vehicle Safety and Financial Responsibility Act of 1953 (G.S. 20-279.1 through 20-279.39) 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. 20-279.21(a), (b)(2) (Motor vehicle liability policy defined)
“§ 20-279.21. "Motor vehicle liability policy" defined. (a) A "motor vehicle liability policy" as said term is used in this Article shall mean an owner's or an operator's policy of liability insurance, certified as provided in G.S. 20-279.19 or 20-279.20 as proof of financial responsibility, and...”
G.S. 20-279.21(b)(4) (Motor vehicle liability policy defined)
“(4) Shall, in addition to the coverages set forth in subdivisions (2) and (3) of this subsection, provide underinsured motorist coverage. The limits of such underinsured motorist bodily injury coverage shall be equal to the highest limits of bodily injury liability coverage for any one vehicle...”
G.S. 20-279.21(f)(1) (Motor vehicle liability policy defined; absolute liability)
“Except as hereinafter provided, the liability of the insurance carrier with respect to the insurance required by this Article shall become absolute whenever injury or damage covered by said motor vehicle liability policy occurs; said policy may not be canceled or annulled as to such liability by...”
G.S. 20-279.21(c) ("Motor vehicle liability policy" defined; operator's policy)
“(c) Such operator's policy of liability insurance shall insure the person named as insured therein against loss from the liability imposed upon him by law for damages arising out of the use by him of any motor vehicle not owned by him, and within 30 days following the date of its delivery to him of...”
G.S. 20-279.21(f)(2) (Motor vehicle liability policy defined; satisfaction of judgment not a condition precedent)
“(2) The satisfaction by the insured of a judgment for such injury or damage shall not be a condition precedent to the right or duty of the insurance carrier to make payment on account of such injury or damage;”
G.S. 20-279.21(f)(3) (Motor vehicle liability policy defined; insurer's right to settle)
“(3) The insurance carrier shall have the right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in subdivision (2) of subsection (b) of this section;”
G.S. 20-279.21(f)(4) (Motor vehicle liability policy defined; entire contract)
“(4) The policy, the written application therefor, if any, and any rider or endorsement which does not conflict with the provisions of the Article shall constitute the entire contract between the parties.”
G.S. 20-279.21(d1) (Motor vehicle liability policy defined; alternative property damage appraisal)
“Should the appraisers fail to agree, they shall then select a competent and disinterested appraiser to serve as an umpire. If the appraisers cannot agree upon an umpire within 15 days, either the claimant or the insurer may request that a magistrate resident in the county where the insured motor...”
G.S. 20-279.21(l) (Motor vehicle liability policy defined; covenant not to enforce judgment)
“(l) A party injured by an uninsured motor vehicle covered under a policy in amounts less than those set forth in G.S. 20-279.5, may execute a contractual covenant not to enforce against the owner, operator, or maintainer of the uninsured vehicle any judgment that exceeds the liability policy...”
G.S. 20-279.21(e) (Uninsured or underinsured motorist coverage; workers' compensation offset)
“Uninsured or underinsured motorist coverage that is provided as part of a motor vehicle liability policy shall insure that portion of a loss uncompensated by any workers' compensation law and the amount of an employer's lien determined pursuant to G.S. 97-10.2(h) or (j). In no event shall this...”
G.S. 20-279.21(m) (Motor vehicle liability policy defined; uninsured/underinsured motorist notice requirement)
“Every insurer that sells motor vehicle liability policies subject to the requirements of subdivisions (b)(3) and (b)(4) of this section shall, when issuing and renewing a policy, give reasonable notice to the named insured of all of the following: (1) The named insured is required to purchase...”
G.S. 20-279.21(b)(3) (Motor vehicle liability policy defined; uninsured motorist coverage)
“The limits of such uninsured motorist bodily injury coverage shall be equal to the highest limits of bodily injury liability coverage for any one vehicle insured under the policy; provided, however, that (i) the limits shall not exceed one million dollars ($1,000,000) per person and one million...”

Practice this material

North Carolina Property & Casualty practice test North Carolina Personal Lines practice test

Questions about this source

North Carolina General Statutes Chapter 20, Article 9A - Motor Vehicle Safety and Financial Responsibility Act of 1953 (G.S. 20-279.1 through 20-279.39) 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.

More North Carolina sources

See all North Carolina sources →