In North Carolina Farm Bureau Mut. Ins. Co. v. Armwood, No. COA06-176, 2007 WL 91129 (N.C. App. Jan. 16, 2007), a North Carolina appeals court ruled that “minimum liability coverage requirements of Financial Responsibility Act of 1957 for not-for-hire commercial vehicles are inserted as a matter of law into every insurance policy that is issued for such vehicles.”

T. J. Armwood was injured while exiting a passenger bus when another vehicle struck him. The bus was owned and operated by Jimmy Lee Best and insured by Farm Bureau. When Best's insurance agent sold him the policy, she offered liability limits of $750,000 per accident and for uninsured/underinsured motorists and $5,000 for medical payments per accident. Best refused the amounts offered, and the agent crossed through the original amounts and changed the limits to $50,000/$100,000/$25,000 per accident, $1,000 for medical payments per accident, and uninsured/underinsured motorists coverage of $50,000/$100,000/$25,000.