February 6, 1980
Subject:
Insurance; Financing of travel insurance via credit cards; G.S. 58-61.2, as amended.
Requested By:
Joseph E. Johnson, Representative 15th District
Question:
Does the 1979 amendment to G.S. 58-61.2 permit insurance premiums to be charged to a credit card facility respecting travel accident insurance as to both public and private modes of transportation?
Conclusion:
Yes.
Chapter 58 of the N.C. General Statutes does not define "travel" insurance, but does define many other types of insurance. For instance, respecting the definitions of both life and accident insurance, there is no limitation imposed concerning the use of public or private conveyances.
G.S. 58-72. Prior to the 1979 amendment, G.S. 58-61.2, which deals with credit card financing of insurance, did not mention any particular kind of insurance but concerned itself with all kinds without restriction concerning public and private transportation.
As a result of the mentioned failures to limit, generally, the concept of travel insurance, we must conclude that prior ton the 1979 amendment there was no statutory restriction as to the use of private or public conveyances concerning travel insurance.
The language of the 1979 amendment to G.S. 58-61.2, which is being here interpreted, is, respecting travel insurance, that:
". . . any contract of travel accident insurance upon any life or risk in the State of North Carolina arising from travel, including but limited to airline flight insurance . . ."
The fact that airline flight insurance relates to insurance concerned solely with public transportation does not restrict the entire section so as to deal only with public transportation. The work "including" is not a word of limitation in this context but rather a word of enlargement. Turnpike Authority v. Pine Island, 265 N.C. 109, 120, 143 S.E. 2d 319 (1965).
Of primary importance is the fact that the statutory amendment concerns "travel" insurance. Primarily, such insurance would be in the nature of either life or accident insurance. As mentioned, G.S. 58-72(1) & (3), which defines both life and accident insurance, in no manner imposes limitations as to the type of transportation which can be used. More significantly the word "travel" has broad meaning. In 42A. Words and Phrases, Travel, among the many cited cases, are those which state: ""To" "travel" is to pass or make a journey from place to place, whether on foot, on horseback, or in any conveyance"
""Travel" has no precise or technical meaning when used without limitation, but its primary and general import is to pass from one place to another, whether for pleasure, instruction, business or health."
For a similar definition, see 87 CJS, Travel, p. 907. Whether an accident suffered while traveling is within the scope of an accident policy depends upon the terms of the policy. 45 CJS, Insurance § 762. We believe that as used in the statute the word "travel" is of broad rather than of limited scope.
We do not believe that the statute uses the word "travel" in some technical sense so as to relate only to travel by public conveyance since "travel insurance" has no technical definition under the North Carolina General Statutes. Accordingly, the word "travel" must be interpreted in a nontechnical sense; in this instance, by its popular definition. 82 CJS, Statutes § 330.
We conclude that the legislature did not intend to permit financing of travel insurance by way of credit cards where travel is [*4] via public systems and to forbid such financing where the travel is via private systems. Both kinds of travel are treated the same and financing of both is allowable under the statute.
Rufus L. Edmisten Attorney General
Richard L. Griffin Assistant Attorney General