STATE EX REL. HUNT v. N. C. REINSURANCE FAC.

No. 8010SC422.

271 S.E.2d 302 (1980)

STATE of North Carolina ex rel. His Excellency James B. HUNT, Jr., Governor of the State of North Carolina; State of North Carolina, ex rel. the Honorable John R. Ingram, Commissioner of Insurance of the State of North Carolina; and State of North Carolina, ex rel. the Honorable Rufus L. Edmisten, Attorney General of the State of North Carolina, Plaintiffs, v. NORTH CAROLINA REINSURANCE FACILITY et al.

Court of Appeals of North Carolina.

October 21, 1980.


Attorney(s) appearing for the Case

Atty. Gen., Rufus L. Edmisten by Asst. Atty. Gen., Isham B. Hudson, Jr., and Hunter, Wharton & Howell by V. Lane Wharton, Jr., Raleigh, for plaintiffs.

Allen, Steed & Allen, P. A. by Arch T. Allen, III, and Charles D. Case, Raleigh, for defendants Hartford Acc. and Indem. Co., Hartford Cas. Ins. Co., New York Underwriters Ins. Co., and Twin City Fire Ins. Co.

Bailey, Dixon, Wooten, McDonald & Fountain by J. Ruffin Bailey and Gary S. Parsons, Raleigh, for defendants American Auto. Ins. Co., American Ins. Co., Associated Indem. Corp., Fireman's Fund Ins. Co. and National Sec. Corp.

Broughton, Wilkins & Crampton by J. Melville Broughton, Jr., and Charles P. Wilkins, Raleigh, for defendants Nationwide Mut. Fire Ins. Co., Nationwide Mut. Ins. Co., and N. C. Farm Bureau Mut. Ins. Co.

Johnson, Patterson, Dilthey & Clay by Grady S. Patterson, Jr., and D. James Jones, Jr., Raleigh, for defendants American Fire and Cas. Co., Ohio Cas. Co., Utica Mut. Ins. Co., Virginia Mut. Ins. Co., Carolina Cas. Ins. Co. and West American Ins. Co.

Jordan Law Offices by John R. Jordan, Jr., and Robert R. Price, Raleigh, for defendants American Manufacturers Mut. Ins. Co., American Motorists Ins. Co., American Protection Ins., Federal Kemper Ins. Co., Kemper Sec. Ins. Co., and Lumbermens Mut. Cas. Co.

Manning, Fulton & Skinner by Howard E. Manning and John B. McMillan, Raleigh, for defendants Allstate Indem. Co., Allstate Ins. Co., Northbrook Fire and Cas. Co., State Farm Fire and Cas. Co., State Farm Mut. Auto. Ins. Company.

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan by Henry A. Mitchell, Jr., and R. Marks Arnold, Raleigh, for defendants The Aetna Cas. and Sur. Co., Automobile Ins. Co. of Hartford, Bankers Standard Ins. Co., The Connecticut Indem. Co., Horace Mann Ins. Co., Insurance Co. of North America, INA Reinsurance Co., INA Underwriters Ins. Co., Indemnity Ins. Co. of North America, Pacific Employers Ins. Co., Security Ins. Co. of Hartford, Standard Fire Ins. Co. and Teachers Ins. Co.

Adams, Kleemeier, Hagan, Hannah & Fouts by Walter L. Hannah, Greensboro, for defendant Peerless Ins. Co.

Hudson, Petree, Stockton, Stockton & Robinson by James H. Kelly, Jr., Winston-Salem, for defendant First General Ins. Co.

Young, Moore, Henderson & Alvis by Charles H. Young, Jr., Raleigh, for remaining defendant insurance companies.


WELLS, Judge.

The factual context of this case centers around the statutory requirement for liability insurance coverage for all licensed motor vehicles (The Vehicle Financial Responsibility Act of 1957, G.S. 20-309) and the insurance industry's reluctance to insure all drivers. The North Carolina Reinsurance Facility (hereinafter Facility) was created to provide motor vehicle insurance to those eligible risk applicants that insurance companies would not voluntarily...

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