N.C. Gen. Stat. » Chapter 1
NC General Statutes

N.C. Gen. Stat. § 1-540.2 (2026)

Settlement of property damage claims arising from motor vehicle collisions or accidents; same not to constitute admission of liability, nor bar party seeking damages for bodily injury or death

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In any claim, civil action, or potential civil action which arises out of a motor vehicle collision or accident, settlement of any property damage claim arising from such collision or accident, whether such settlement be made by an individual, a self-insurer, or by an insurance carrier under a policy of insurance, shall not constitute an admission of liability on the part of the person, self-insurer or insurance carrier making such settlement, which arises out of the same motor vehicle collision or accident. It shall be incompetent for any claimant or party plaintiff in the said civil action to offer into evidence, either by oral testimony or paper writing, the fact that a settlement of the property damage claim arising from such collision or accident has been made; provided further, that settlement made of such property damage claim arising out of a motor vehicle collision or accident shall not in and of itself act as a bar, release, accord and satisfaction, or discharge of any claims other than the property damage claim, unless by the written terms of a properly executed settlement agreement it is specifically stated that the acceptance of  said settlement constitutes full settlement of all claims and causes of action arising out of the said motor vehicle collision or accident. (1967, c. 662, s. 1.)

 

Notes of Decisions
Cited in 3 cases, 1980–2009 · leading case: Hewett v. Weisser, 689 S.E.2d 408 (N.C. Ct. App. 2009).
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Hewett v. Weisser, 689 S.E.2d 408 (N.C. Ct. App. 2009). · cites it 22× “Plaintiff appeals arguing, inter alia, that pursuant to N.C. Gen. Stat. § 1-540.2 the trial court could not properly grant summary judgment for defendants Robert and Bonnie Weisser.”
Garrett v. Smith, 594 S.E.2d 232 (N.C. Ct. App. 2004). · cites it 4× “Furthermore, under N.C. Gen. Stat. § 1-540.2 : In any claim, civil action, or potential civil action which arises out of a motor vehicle collision or accident, settlement of any property damage claim arising from such collision or accident, whether such settlement be made by an…”
Leach v. Robertson, 271 S.E.2d 405 (N.C. Ct. App. 1980). · cites it 4× “That statute provides in pertinent part: In any claim, civil action, or potential civil action which arises out of a motor vehicle collision or accident, settlement of any property damage claim arising from such collision or accident, whether such settlement be made by an…”
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