Senate Bill 905 would change North Carolina insurance law to make motor vehicle coverage more accessible for people receiving foster care and the foster parents who insure them. It directs the North Carolina Rate Bureau, with approval from the Commissioner of Insurance, to revise the existing named-driver exclusion framework so that a foster child or other person receiving foster care can be covered under a foster parent’s policy or under a separate named non-owner policy. The bill also clarifies that a foster parent may terminate an endorsement providing coverage for a person receiving foster care once that foster care placement ends.
In addition to the insurance rule changes, the bill requires the Rate Bureau to develop an optional policy form or endorsement for named non-owner passenger vehicle liability coverage for persons receiving foster care. It further creates a Foster Care Automobile Insurance Financial Assistance Program within the Department of Health and Human Services, in consultation with the Commissioner of Insurance, to help pay increased premiums, non-owner policy premiums, and certain deductibles, up to $1,000, for eligible claims. To qualify for assistance, the person receiving foster care must complete an approved driver education program. The bill appropriates $1 million in nonrecurring funds for fiscal year 2026-2027 to implement the program.
Impact
The bill would amend G.S. 20-309(a2) and add a new section to Chapter 58 requiring the Rate Bureau to create foster-care-specific insurance endorsements and policy forms, and it would add a new section to Chapter 131D establishing a state financial assistance program for auto insurance costs tied to foster youth. It would also require the Social Services Commission to adopt implementing rules and would appropriate state funds to DHHS for administration and assistance payments. The practical effect is to expand access to legally compliant motor vehicle liability coverage for foster youth and reduce the cost burden on foster families and young drivers transitioning out of foster care.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a supportive, access-oriented policy for foster youth. Its stated purpose suggests a generally favorable intent: helping young people in foster care obtain lawful driving coverage and easing the financial strain on foster parents. No contrary positions are documented in the supplied record, so there is no evidence here of formal opposition or divided sentiment.
Contention
The main policy issues likely to draw scrutiny are cost, administration, and insurance risk. The bill creates a new state-funded assistance program and appropriates $1 million, which could raise questions about adequacy of funding and program oversight. Insurers and regulators may also focus on how the new named-driver exclusion and non-owner endorsement will be structured, whether the coverage requirements are actuarially sound, and how to verify eligibility and driver-education completion. Another potential point of discussion is the balance between protecting foster youth access to transportation and limiting liability exposure for foster parents once foster care ends.