Insurance; Comprehensive general liability insurance-housemovers

Subject:

Insurance; Comprehensive general liability insurance-housemovers; G.S. 20-359.1(a)(2)

Requested By:

W. F. Rosser, PE Head of Maintenance NCDOT

Question:

Can liability for the movement of any building or structure by automobile or mobile equipment be excluded from the insurance coverage required to be furnished for licensure by a professional house mover pursuant to G.S. 20-359.1?

Conclusion:

No.

G.S. 20-359.1 is set out in pertinent part as follows:

"§ 20.359.1 Insurance requirements.

(a)

No license shall be issued or renewed pursuant to this Article unless the applicant presents to the Department a certificate or certificates of insurance, from an insurance company or companies licensed to do business in this State, providing:

(1)

Motor vehicle insurance with minimum coverage of one hundred thousand dollars ($100,000) for bodily injury to or death of one person in any one accident, three hundred thousand dollars ($300,000) for bodily injury to or death of two or more persons in any one accident, and fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one accident;

(2)

Comprehensive general liability insurance with a minimum coverage of three hundred fifty thousand dollars ($350,000) combined single limit of liability; and"

This statute requires that no license shall be issued or renewed pursuant to Article 16 of Chapter 20 of the North Carolina General Statutes unless certain insurance requirements are met. Housemovers have been certifying to the Department of Transportation that they have met the insurance requirements of G.S. 20-359.1. However, while securing a general liability insurance policy in the amount of $350,000.00, the policy, by means of an attached rider, excluded from the coverage the movement of any building or structure by automobile or mobile equipment. The exact exclusion is set out in full as follows:

"This classification does not apply to bodily injury or property damage arising out of and occurring during the course of the movement of any building or structure by automobile or mobile equipment, the period of movement being considered as commencing when such building or structure is removed from its old foundation and terminating when the unloading of the vehicle commences for the purpose of placing the building or structure on its new foundation. End. GL 21 17. If coverage for this hazard is desired, refer to Division One-Automobile."

It has been argued that the reference on the exclusion set out above to Division One Automobile Coverage in the amount of $50,000.00 as provided by G.S. 20-359.1(a)(1) covers the general liability provisions of this statute in the amount of $50,000.00. But this interpretation denies the expressed intent of the General Assembly in requiring $350,000.00 worth of comprehensive general liability insurance as is shown in G.S. 20-359.1(a)(2). If the above interpretation was accepted as expressing the intent of the General Assembly, the members of the general public would be denied $300,000.00 worth of protection for the most difficult and dangerous part of any housemoving operation which is of course moving the structure from the ground and placing it on the trailer or dolly and transporting it along state roads to the location where it is to be placed in permanent position by the housemover. It is obvious that such an exclusion would remove coverage that the General Assembly expressly intended to be provided; otherwise, there would be no reason for the enactment of the statute.

Therefore, it is the opinion of this office that an insurance policy issued to meet the requirements of G.S. 20-359.1 with a rider attached that excludes all liability arising out of the course of "the movement of any building or structure by automobile or other mobile equipment" fails to meet the insurance requirements of the statute and that no license should be issued until the proper insurance is obtained. Proof that the applicant has the necessary insurance prescribed by G.S. 20

359.1 should be required by the issuing authority prior to granting the license.

Rufus L. Edmisten Attorney General

James E. Magner, Jr. Assistant Attorney General