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UNIGARD MUT. INS. CO. v. INGRAM

No. 8410SC177

323 S.E.2d 442 (1984)

UNIGARD MUTUAL INSURANCE COMPANY v. John Randolph INGRAM, Commissioner of Insurance of the State of North Carolina.

Court of Appeals of North Carolina.

December 18, 1984.

Attorney(s) appearing for the Case

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan by Henry A. Mitchell, Jr., and Julian D. Bobbitt, Jr., Raleigh, for petitioner, appellee.

Atty. Gen. Rufus L. Edmisten by Special Deputy Atty. Gen. Isham B. Hudson, Jr., Raleigh, for respondent, appellant.

HEDRICK, Judge.

The record reveals the following undisputed facts:

Under North Carolina law an insurance company doing business in this State is required to insure all applicants for motor vehicle liability insurance. When a particular applicant is judged by the insurance company to present an unacceptable risk, the company is permitted by statute to "cede" the risk of loss on that insured to the North Carolina Motor Vehicle Reinsurance Facility. When a policy...

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