reglab/statecodes huggingface dataset:
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-1 - Findings; purpose; legislative intent.

§ 58-19-1. Findings; purpose; legislative intent.
(a) The General Assembly finds that the public interest and the interests of policyholders are or may be adversely affected when any of the following occur:
(1) Control of an insurer is sought by persons who would utilize such control adversely to the interests of policyholders.
(2) Acquisition of control of an insurer would substantially lessen competition or create a monopoly in the insurance business in this State.
(3) An insurer that is part of an insurance holding company system is caused to enter into transactions or relationships with affiliated companies on terms that are not fair and reasonable.
(4) An insurer pays dividends to shareholders that jeopardize the financial condition of such insurer.
(b) The General Assembly declares that the policies and purposes of this Article are to promote the public interest by doing all of the following:
(1) Requiring disclosure of pertinent information relating to changes in control of an insurer.
(2) Requiring disclosure by an insurer of material transactions and relationships between the insurer and its affiliates, including certain dividends to shareholders paid by the insurer.
(3) Providing standards governing material transactions between an insurer and its affiliates. (1989, c. 722, s. 1; 2015-146, s. 1.1; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-2 - Compliance with federal law.

§ 58-19-2. Compliance with federal law.
(a) As used in this section, "depository institution" has the same meaning as in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813, and includes any foreign bank that maintains a branch, an agency, or a commercial lending company in the United States.
(b) With respect to affiliations between a depository institution or any affiliate of a depository institution and any insurer, the provisions of section 104(c) of the Gramm-Leach-Bliley Act, P.L. 106-102, shall apply to this Article. (2001-215, s. 2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-17 - Foreign or alien insurer's report of change of control.

§ 58-19-17. Foreign or alien insurer's report of change of control.
(a) As used in this section, "controlling capital stock" means enough of an insurer's shares of the issued and outstanding stock, as defined in G.S. 58-19-5(2), to give its owner the power to exercise a controlling influence over the management or policies of the insurer.
(b) If there is a change in the controlling capital stock or a change of twenty-five percent (25%) or more of the assets of a foreign or alien insurer, the insurer shall report the change in writing to the Commissioner within 30 days after the effective date of the change. The report shall be in a form prescribed by the Commissioner and shall contain the name and address of the new owners of the controlling stock or assets, the nature and value of the new assets, and other relevant information that the Commissioner requires. (1991, c. 681, s. 38.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-37 - Supervisory colleges.

§ 58-19-37. Supervisory colleges.
(a) With respect to any insurer registered under G.S. 58-19-25, and in accordance with subsection (c) of this section, the Commissioner shall also have the power to participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this Chapter. The powers of the Commissioner with respect to supervisory colleges include, but are not limited to, the following:
(1) Initiating the establishment of a supervisory college.
(2) Clarifying the membership and participation of other supervisors in the supervisory college.
(3) Clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a group-wide supervisor.
(4) Coordinating the ongoing activities of the supervisory college, including planning meetings, supervisory activities, and processes for information sharing.
(5) Establishing a crisis management plan.
(b) Each registered insurer subject to this section shall be liable for and shall pay the reasonable expenses of the Commissioner's participation in a supervisory college in accordance with subsection (c) of this section, including reasonable travel expenses. For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the Commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(c) In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual insurers in accordance with G.S. 58-19-35, the Commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies. The Commissioner may enter into agreements in accordance with G.S. 58-19-40 providing the basis for cooperation between the Commissioner and the other regulatory agencies and the activities of the supervisory college. Nothing in this section shall delegate to the supervisory college the authority of the Commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction. (2015-146, s. 1.7; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-45 - Injunctions; prohibitions against the voting of securities; sequestration of voting securities.

§ 58-19-45. Injunctions; prohibitions against the voting of securities; sequestration of voting securities.
(a) Whenever it appears to the Commissioner that any person has committed or is about to commit a violation of this Article or of any rule or order of the Commissioner under this Article, the Commissioner may apply to the Superior Court of Wake County for an order enjoining such person from violating or continuing to violate this Article or any such rule or order; and for such other equitable relief as the nature of the case and the interest of the domestic insurer's policyholders or the public may require.
(b) No security that is the subject of any agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in contravention of the provisions of this Article or of any rule or order of the Commissioner under this Article, may be voted at any shareholder's meeting nor may be counted for quorum purposes; and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though such securities were not issued and outstanding. No action taken at any such meeting shall be invalidated by the voting of such securities, unless the action would materially affect control of the insurer or unless the courts of this State have so ordered. If an insurer or the Commissioner has reason to believe that any security of the insurer has been or is about to be acquired in contravention of the provisions of this Article or of any rule or order issued by the Commissioner under this Article, the insurer or the Commissioner may apply to the Superior Court of Wake County to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of G.S. 58-19-15 or any rule or order of the Commissioner under that section to enjoin the voting of any security so acquired, to void any vote of such security already cast at any meeting of shareholders, and for such other equitable relief as the nature of the case and the interest of the insurer's policyholders or the public may require.
(c) In any case where a person has acquired or is proposing to acquire any voting securities in violation of this Article or any rule or order of the Commissioner under this Article, the Superior Court of Wake County may, on such notice as the court considers appropriate and upon the application of the insurer or the Commissioner, seize or sequester any voting securities of the insurer owned directly or indirectly by the person, and issue an order with respect thereto as may be appropriate to effectuate the provisions of this Article. Notwithstanding any other provision of law, for the purposes of this Article the sites of the ownership of the securities of domestic insurers are in this State. (1989, c. 722, s. 1; 1991, c. 681, s. 37; 1993, c. 452, s. 34.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-55 - Receivership.

§ 58-19-55. Receivership.
Whenever it appears to the Commissioner that any person has committed a violation of this Article that so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the public, then the Commissioner may proceed as provided in Article 30 of this Chapter. (1989, c. 722, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-60 - Recovery.

§ 58-19-60. Recovery.
(a) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under such order has a right to recover on behalf of the insurer, (i) from any parent corporation or insurance holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions (other than distributions of shares of the same class of stock) paid by the insurer on its capital stock, or (ii) any payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment made by the insurer or its subsidiary or subsidiaries to a director, officer, or employee, where the distribution or payment pursuant to (i) or (ii) above is made at any time during the one year preceding the petition for liquidation or rehabilitation, as the case may be, subject to the limitations of subsections (b), (c), and (d) of this section.
(b) No such distribution is recoverable if the parent or affiliate shows that when paid such distribution was lawful and reasonable, and that the insurer did not know and could not reasonably have known that such distribution might adversely affect the ability of the insurer to fulfill its contractual obligations.
(c) Any person that was a parent corporation or insurance holding company or a person that otherwise controlled the insurer or affiliate at the time such distributions were paid is liable up to the amount of distributions or payments under subsection (a) of this section such person received. Any person who otherwise controlled the insurer at the time such distributions were declared is liable up to the amount of distributions he would have received if they had been paid immediately. If two or more persons are liable with respect to the same distributions, they are jointly and severally liable.
(d) The maximum amount recoverable under this section is the amount needed in excess of all other available assets of the insurer to pay its contractual obligations and to reimburse any guaranty funds.
(e) To the extent that any person liable under subsection (c) of this section is insolvent or otherwise fails to pay claims due from it pursuant to that subsection, its parent corporation, insurance holding company, or person who otherwise controlled it at the time that the distribution was paid, are jointly and severally liable for any resulting deficiency in the amount recovered from such parent corporation or insurance holding company or person who otherwise controlled it. (1989, c. 722, s. 1; 2015-146, s. 1.10; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-65 - Revocation or suspension of insurer's license.

§ 58-19-65. Revocation or suspension of insurer's license.
Whenever it appears to the Commissioner that any person has committed a violation of this Article that makes the continued operation of an insurer contrary to the interests of policyholders or the public, the Commissioner may, after giving notice and an opportunity to be heard, suspend or revoke such insurer's license to do business in this State for such period as he finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusions of law. (1989, c. 722, s. 1; 2003-212, s. 26(f).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-70 - Judicial review; mandatory injunction or writ of mandamus.

§ 58-19-70. Judicial review; mandatory injunction or writ of mandamus.
(a) Any person aggrieved by any order made by the Commissioner pursuant to this Article may appeal in accordance with G.S. 58-2-75.
(b) Any person aggrieved by any failure of the Commissioner to act or make a determination required by this Article may petition the Superior Court of Wake County for a mandatory injunction or a writ of mandamus directing the Commissioner to act or make such determination forthwith. (1989, c. 722, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-75 - Forms general requirements.

§ 58-19-75. Forms – general requirements.
(a) Forms A, B, C, D, E, and F are intended to be guides in the preparation of the statements required by G.S. 58-19-15, 58-19-25, and 58-19-30. They are not intended to be fill-in-the-blank forms. The statements filed shall contain the numbers and captions of all items, but the text of the items may be omitted, provided the answers are prepared in such a manner as to indicate clearly the scope and coverage of the items. All instructions, whether appearing under the items of the form or elsewhere, are to be omitted. Unless expressly provided otherwise, if any item is inapplicable or the answer to the item is in the negative, an appropriate statement to that effect shall be made.
(b) A complete copy of each statement, including exhibits and all other papers and documents filed as a part of the statement, shall be filed with the Commissioner by mail addressed to the Commissioner and shall be signed in the manner prescribed on the form. Unsigned copies shall be conformed. If the signature of any person is affixed pursuant to a power of attorney or other similar authority, a copy of the power of attorney or other authority shall also be filed with the statement.
(c) If an applicant requests a hearing on a consolidated basis under G.S. 58-19-15, in addition to filing the Form A with the Commissioner, the applicant shall file a copy of the Form A with the NAIC in electronic form.
(d) Statements should be prepared electronically. Statements shall be easily readable and suitable for review and reproduction. Debits in credit categories and credits in debit categories shall be designated so as to be clearly distinguishable as such on photocopies. Statements shall be in the English language and monetary values shall be stated in United States dollars. If any exhibit or other paper or document filed with the statement is in a foreign language, it shall be accompanied by a translation into the English language and any monetary value shown in a foreign currency normally shall be converted into United States dollars. (2015-146, s. 1.11; 2015-281, s. 13; 2022-46, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-80 - Forms incorporation by reference, summaries and omissions.

§ 58-19-80. Forms – incorporation by reference, summaries and omissions.
(a) Information required by any item of Form A, Form B, Form D, Form E, or Form F may be incorporated by reference in answer or partial answer to any other item. Information contained in any financial statement, annual report, proxy statement, statement filed with a governmental authority, or any other document may be incorporated by reference in answer or partial answer to any item of Form A, Form B, Form D, Form E, or Form F provided the document is filed as an exhibit to the statement. Excerpts of documents may be filed as exhibits if the documents are extensive. Documents currently on file with the Commissioner which were filed within three years need not be attached as exhibits. References to information contained in exhibits or in documents already on file shall clearly identify the material and shall specifically indicate that such material is to be incorporated by reference in answer to the item. Such materials shall not be incorporated by reference in any case where the incorporation would render the statement incomplete, unclear, or confusing.
(b) Where an item requires a summary or outline of the provisions of any document, only a brief statement shall be made as to the pertinent provisions of the document. In addition to the statement, the summary or outline must incorporate by reference particular parts of any exhibit or document currently on file with the Commissioner which was filed within three years and may be qualified in its entirety by such reference. In any case where two or more documents required to be filed as exhibits are substantially identical in all material respects except as to the parties thereto, the dates of execution, or other details, a copy of only one of the documents need be filed with a schedule identifying the omitted documents and setting forth the material details in which those documents differ from the documents, a copy of which is filed. (2015-146, s. 1.11; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-85 - Forms information unknown or unavailable and extension of time to furnish.

§ 58-19-85. Forms – information unknown or unavailable and extension of time to furnish.
If it is impractical to furnish any required information, document, or report at the time it is required to be filed, there shall be filed with the Commissioner a separate document:
(1) Identifying the information, document, or report in question.
(2) Stating why the filing thereof at the time required is impractical.
(3) Requesting an extension of time for filing the information, document, or report to a specified date. The request for extension shall be deemed granted unless the Commissioner after receipt of the request denies the request prior to the time the information, document, or report is required. (2015-146, s. 1.11; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 19 - Insurance Holding Company System Regulatory Act. › § 58-19-90 - Forms additional information and exhibits.

§ 58-19-90. Forms – additional information and exhibits.
In addition to the information expressly required to be included in Form A, Form B, Form C, Form D, Form E, and Form F, the Commissioner may request such further material information, if any, as may be necessary to make the information contained therein not misleading. The person filing may also file such exhibits as it may desire in addition to those expressly required by the statement. The exhibits shall be so marked as to indicate clearly the subject matters to which they refer. Changes to Form A, B, C, D, or F shall include on the top of the cover page the phrase: "Change No. [insert number] to" and shall indicate the date of the change and not the date of the original filing. (2015-146, s. 1.11; 2015-281, s. 13.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-5 - Definitions.

§ 58-20-5. Definitions.
For purposes of this Article:
(1) "Association" means a trade or professional association that has been in existence for at least five years, and has adopted a written constitution, and a written set of bylaws, and was created for purposes other than for participating in a club.
(2) "Club" means a commercial fishermen's hull insurance and protection and indemnity club created under this Article.
(3) "Commercial fisherman" means any individual, corporation, or other business entity whose earned income is at least fifty percent (50%) derived from taking and selling food resources living in any ocean, bay, river, gulf, estuary, tidal wetlands, spoil area, estuation exit or entrance, or any other body of water or tidal wetlands from which a commercial harvest of fish may be taken.
(4) "Hull Insurance and Protection and Indemnity" means:
a. Insurance against loss or damage to a vessel's hull, lifeboats, rafts, and other operating equipment of the vessel other than its electrical machinery; and
b. Insurance against loss of life, personal injury, or illness to the master, the crew, and other third parties, and against damage to any other vessel or property, such as cargo, for which the insured is legally liable. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-10 - Commercial Fishermen Hull Insurance, and Protection and Indemnity Clubs authorized.

§ 58-20-10. Commercial Fishermen Hull Insurance, and Protection and Indemnity Clubs authorized.
In addition to other authority granted under Articles 1 through 64 of this Chapter, ten or more commercial fishermen who are members of an association may enter into contracts or agreements under this Article for the joint protection and retention of their risk for Hull Insurance, and Protection and Indemnity, and for the payment of losses or claims made against any member. Any group of commercial fishermen intending to organize and operate a Club under this Article shall give the Commissioner 30 days' advance written notification of its intention in a form prescribed by the Commissioner. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-15 - Board of trustees.

§ 58-20-15. Board of trustees.
(a) A Club shall be operated by a board of trustees. Each trustee shall also be a member of an association. The trustees shall be selected by the Club members under the rules of organization of the Club. The board of trustees shall:
(1) Establish the terms and conditions of hull insurance and protection and indemnity coverage within the Club, including underwriting and exclusions of coverage;
(2) Ensure that all valid claims are paid promptly;
(3) Take all necessary precautions to safeguard the assets of the Club;
(4) Maintain minutes of its meeting and make those minutes available to the Commissioner;
(5) Designate an administrator to carry out the policies established by the trustees; and
(6) Establish guidelines for membership in the Club.
(b) The board of trustees shall not:
(1) Extend credit to an individual member for payment of a premium, except under a payment plan approved by the Commissioner; or
(2) Borrow money from the Club, or in the name of the Club, except in the ordinary course of business.
Whenever the board of trustees borrow money from the Club as authorized by this subdivision it shall first advise the Commissioner of the nature and purpose of the loan, and shall obtain his prior approval of such loan. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-20 - Mutual agreement for indemnification.

§ 58-20-20. Mutual agreement for indemnification.
(a) An agreement made under this Article shall contain provisions for:
(1) A system or program of loss control;
(2) The termination of membership;
(3) The payment by the Club of all claims for which a member incurred liability during the period of his membership;
(4) The non-payment of claims where a member has individually retained the risk, or where the risk is not specifically covered, or where the amount of the claim exceeds the coverage provided by the Club;
(5) The assessment of members;
(6) The payment of contributions from members to satisfy deficiencies;
(7) The maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and
(8) Final accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled.
(b) The agreement required by this section may also include provisions authorizing the Club to:
(1) To establish offices where necessary in this State, and employ necessary staff to carry out its purposes;
(2) Retain legal counsel, actuaries, claims adjusters, auditors, engineers, private consultants, and advisors, and other persons as the board of trustees or the administrator deem to be necessary;
(3) Amend or repeal its bylaws;
(4) Purchase, lease, or rent real and personal property as it deems necessary; and
(5) Enter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-25 - Termination of Club membership; notice.

§ 58-20-25. Termination of Club membership; notice.
If a member fails to pay his contributions calls, or assessment, or other property required by the board of trustees as authorized by this Article, he shall not be entitled to any hull insurance and protection and indemnity coverage under this Article, and the Club may terminate his membership upon giving the member at least 10 days' notice. The Club may terminate a membership for any other reason upon giving the member at least 90 days' written notice of the termination. A member may terminate his membership with the Club upon giving at least 90 days' written notice of the termination. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-30 - Financial monitoring and evaluation of clubs.

§ 58-20-30. Financial monitoring and evaluation of clubs.
Each club shall be audited annually, at the Club's expense, by a certified public accounting firm. A copy of the audit report shall be furnished to each member, and to the Commissioner. The trustees shall obtain an appropriate actuarial evaluation of the loss and loss adjustment expenses reserves of the Club, including estimate of losses and loss adjustment expenses incurred but not reported. The provisions of G.S. 58-2-131 through G.S. 58-2-134, G.S. 58-2-150, 58-2-160, 58-2-165, 58-2-180, 58-2-185, 58-2-190, 58-2-200, and G.S. 58-6-5 apply to each Club and to persons that administer the Clubs. (1987, c. 330, s. 1; 1991, c. 681, s. 5; 1999-132, s. 11.2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-35 - Insolvency or impairment of Club.

§ 58-20-35. Insolvency or impairment of Club.
(a) If an annual audit or an examination by the Commissioner reveals that the assets of a Club are insufficient to discharge its legal liabilities and other obligations, the Commissioner shall notify the administrator and board of trustees of the Club's deficiency; and he shall recommend the measures to be taken in order to abate the deficiency. He may recommend that the Club refrain from adding new members until the deficiency is abated. If the Club fails to comply with the recommendations within 30 days after the date of the notice, the Commissioner may apply to the Superior Court of Wake County for an order requiring the Club to abate the deficiency and authorizing the Commissioner to appoint one or more special deputy commissioners, counsel, clerks, or assistants to oversee the implementation of the Court's order. The compensation and expenses of such persons shall be fixed by the Commissioner, subject to the approval of the Court, and shall be paid out of the funds or assets of the Club.
(b) If a Club is determined to be insolvent, financially impaired, or is otherwise unable to discharge its legal liabilities and other obligations, each member shall be assessed on a pro rata basis as provided under G.S. 58-20-15. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 20 - Hull Insurance, and Protection and Indemnity Clubs. › § 58-20-40 - Immunity of administrators and boards of trustees.

§ 58-20-40. Immunity of administrators and boards of trustees.
There is no liability on the part of and no cause of action arises against any board of trustees established under this Article, or against any administrator appointed as their representative, or any Club, its members or its employees, agents, contractors, or subcontractors for any good faith action taken by them in the performance of their powers and duties in creating or administering any Club under this Article. (1987, c. 330.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-2 - Relationship to other insurance laws.

§ 58-21-2. Relationship to other insurance laws.
Except as provided in G.S. 58-21-21(c) and (g), unless surplus lines insurance, surplus lines licensees, nonadmitted domestic surplus lines insurers, or nonadmitted insurers are specifically referenced in a particular section of this Chapter, no sections contained in Articles of this Chapter other than this Article apply to surplus lines insurance, surplus lines licensees, nonadmitted domestic surplus lines insurers, or nonadmitted insurers. (1999-219, s. 6.2; 2018-120, s. 2.1(a).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-4 - Nonadmitted and Reinsurance Reform Act duties.

§ 58-21-4. Nonadmitted and Reinsurance Reform Act duties.
(a) For the purposes of carrying out the provisions of the Nonadmitted and Reinsurance Reform Act of 2010, the Commissioner is authorized to utilize the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of an individual or an entity as a surplus lines producer and for renewal of such license.
(b) In order to assist in the performance of the Commissioner's duties, under the Nonadmitted and Reinsurance Reform Act of 2010, the Commissioner may contract with nongovernmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions that the Commissioner and the nongovernmental entity may deem to be appropriate, including (i) the collection of fees related to producer licensing and (ii) the collection of the premium tax under G.S. 58-21-85. The NAIC or other entity with whom the Commissioner contracts may charge a reasonable fee to the insurer, insured, or other appropriate person for the functions performed. (2011-120, s. 1.1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-5 - Purposes; necessity for regulation.

§ 58-21-5. Purposes; necessity for regulation.
This Article shall be liberally construed and applied to promote its underlying purposes, which include all of the following:
(1) Protecting persons in this State seeking insurance.
(2) Permitting surplus lines insurance to be placed with reputable and financially sound nonadmitted domestic surplus lines insurers, nonadmitted insurers and exported from this State pursuant to this Article.
(3) Establishing a system of regulation that will permit orderly access to surplus lines insurance in this State and encourage admitted insurers to provide new and innovative types of insurance available to consumers in this State.
(4) Protecting revenues of this State. (1985, c. 688, s. 1; 2018-120, s. 2.1(b).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-11 - Home state.

§ 58-21-11. Home state.
(a) The provisions of this Article shall apply to those transactions in which North Carolina is the home state of the insured.
(b) Except as provided in subsection (c) of this section, the term "home state" means, with respect to an insured, either of the following:
(1) The state in which an insured maintains its principal place of business or, in the case of an individual, the individual's principal residence.
(2) If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (1) of this subsection, the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
(c) Affiliated Groups. – If two or more insureds from an affiliated group are named insureds on a single nonadmitted insurance contract, the term "home state" means the home state, as determined pursuant to subsection (b) of this section, of the member of the affiliated group that has the largest percentage of premium attributed to it under that insurance contract. (2011-120, s. 3.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-15 - Placement of surplus lines insurance.

§ 58-21-15. Placement of surplus lines insurance.
Surplus lines may be placed by a surplus lines licensee if all of the following apply:
(1) Each insurer is an eligible surplus lines insurer.
(1a) Each insurer is authorized to write the kind of insurance in its domiciliary jurisdiction.
(2) The full amount or kind of insurance cannot be obtained from insurers who are admitted to do business in this State. Such full amount or kind of insurance may be procured from eligible surplus lines insurers, provided that a diligent search is made among the insurers who are admitted to transact and are actually writing the particular kind and class of insurance in this State.
(3) All other requirements of this Article are met. (1985, c. 688, s. 1; 1985 (Reg. Sess., 1986), c. 1013, s. 5; 2011-120, s. 4.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-17 - Placement with alien insurers.

§ 58-21-17. Placement with alien insurers.
Nothing in this Article prohibits a surplus lines licensee from placing surplus lines insurance with, or procuring surplus lines insurance from, a nonadmitted insurer domiciled outside the United States that is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC. (2011-120, s. 5.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-22 - Limitation on amount of salary protection insurance.

§ 58-21-22. Limitation on amount of salary protection insurance.
When salary protection insurance benefits are payable to an individual or an individual's beneficiary, the amount of salary protection insurance plus the amount of any in-force disability income insurance, if the individual can obtain disability insurance from an admitted insurer, shall not exceed seventy-five percent (75%) of the individual's annual earned income. As used in this section, "disability income insurance" has the same meaning as "accident and health insurance" in G.S. 58-7-15(3). (2011-370, s. 2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-25 - Other nonadmitted insurers.

§ 58-21-25. Other nonadmitted insurers.
Only that portion of any risk eligible for export for which the full amount of coverage is not procurable from eligible surplus lines insurers may be placed with any other nonadmitted insurer that does not appear on the list of eligible surplus lines insurers published by the Commissioner pursuant to G.S. 58-21-20(b), but nonetheless meets the requirements set forth in G.S. 58-21-20(a)(1) through (a)(3) and any regulations of the Commissioner. The surplus lines licensee seeking to provide coverage through an unlisted nonadmitted insurer shall make a filing specifying the amount and percentage of each risk to be placed, and naming the nonadmitted insurer with which placement is intended. Within 30 days after the coverage has been placed, the producing broker or surplus lines licensee shall send written notice to the insured that the insurance, or a portion thereof, has been placed with such nonadmitted insurer. (1985, c. 688, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-30 - Withdrawal of eligibility from a surplus lines insurer.

§ 58-21-30. Withdrawal of eligibility from a surplus lines insurer.
If at any time the Commissioner has reason to believe that an eligible surplus lines insurer:
(1) Is in unsound financial condition or has acted in an untrustworthy manner,
(2) Is no longer eligible under G.S. 58-21-20,
(3) Has willfully violated the laws of this State, or
(4) Does not make reasonably prompt payment of just losses and claims in this State or elsewhere, the Commissioner may declare it ineligible. The Commissioner shall promptly mail notice of all such declarations to each surplus lines licensee. (1985, c. 688, s. 1; 2001-223, s. 17.2.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-35 - Duty to file and retain reports.

§ 58-21-35. Duty to file and retain reports.
(a) Within 30 days after the placing of any surplus lines insurance, the surplus lines licensee shall file with the Commissioner or the stamping office, as appropriate, a report in a format prescribed by the Commissioner regarding the insurance and including the following information:
(1) The name of the insured.
(2) The identity of the insurer or insurers.
(3) A description of the subject and location of the risk.
(4) The amount of premium charged for the insurance.
(5) The amount of premium tax for the insurance.
(6) The policy period.
(7) The policy number.
(7a) An acknowledged statement that the surplus lines licensee has complied with G.S. 58-21-15 or G.S. 58-21-16, whichever is applicable.
(8) The name, address, telephone number, facsimile telephone number, and electronic mail address of the licensee, as applicable.
(9) Any other relevant information the Commissioner may reasonably require.
(b) The licensee shall complete and retain a copy of the report in paper or electronic form as required by the Commissioner. The report required by this section is not a public record under G.S. 132-1 or G.S. 58-2-100. (1985, c. 688, s. 1; 1987, c. 864, s. 35; 1993 (Reg. Sess., 1994), c. 678, s. 16; 1999-219, s. 6.1; 2006-105, s. 2.6; 2011-120, s. 7; 2015-101, s. 2; 2019-179, s. 2(a).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-40 - Surplus lines regulatory support organization.

§ 58-21-40. Surplus lines regulatory support organization.
(a) The North Carolina Surplus Lines Association (NCSLA) shall serve as the regulatory support organization of surplus lines licensees and shall carry out the following functions:
(1) Facilitate and encourage compliance by resident and nonresident surplus lines licensees with the laws of this State and the rules and regulations of the Commissioner relative to surplus lines insurance.
(2) Communicate with organizations of admitted insurers with respect to the proper use of the surplus lines market.
(3) Receive and disseminate to surplus lines licensees information about surplus lines insurance, including, without limitation, new electronic filing procedures approved by the Commissioner, changes in the list of eligible surplus lines insurers, and modifications in coverages, procedures, and requirements as may be requested by the Commissioner.
(4) Establish and operate a stamping office to process all surplus lines insurance and remit premium taxes for those coverages under G.S. 58-21-85 by means satisfactory to the Commissioner, and charge surplus lines licensees a fee for such processing.
(b) The NCSLA shall file with the Commissioner all of the following:
(1) A copy of its constitution, articles of agreement or association, or certificate of incorporation.
(2) A copy of its bylaws and rules governing its activities.
(3) Repealed by Session Laws 2019-179, s. 2(b), effective July 26, 2019.
(4) The name and address of a resident of this State upon whom notices or orders of the Commissioner or processes issued at his direction may be served.
(5) An agreement that the Commissioner may examine the NCSLA in accordance with subsection (c) of this section.
(c) The Commissioner may, at times deemed appropriate, make or cause to be made an examination of the NCSLA in which case the provisions of G.S. 58-2-131, 58-2-132, 58-2-133, 58-2-134, 58-2-150, 58-2-155, 58-2-180, 58-2-185, 58-2-190, 58-2-195, and 58-2-200 shall apply. If the Commissioner finds the NCSLA or any surplus lines licensee to be in violation of this Article, the Commissioner may issue an order requiring the discontinuance of the violation.
(d) Each surplus lines licensee shall maintain active membership in the NCSLA as a condition of continued licensure under this Article. (1985, c. 688, s. 1; 1987 (Reg. Sess., 1988), c. 975, s. 13; 1995, c. 193, s. 28; 1999-132, s. 11.3; 2001-203, s. 28; 2001-451, ss. 2.1, 2.2; 2001-487, s. 63; 2015-101, s. 3; 2018-120, s. 2.1(g); 2019-179, s. 2(b).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-50 - Duty to notify insured.

§ 58-21-50. Duty to notify insured.
No contract of insurance placed by a surplus lines licensee under this Article shall be binding upon the insured and no premium charged therefor shall be due and payable until the producing broker or surplus lines licensee notifies the insured in writing, a copy of which shall be maintained by the broker or licensee with the records of the contract and available for possible examination, that:
(1) For surplus lines insurers that are not a nonadmitted domestic surplus lines insurer, the insurer with which the coverage has been placed is not licensed by this State and is not subject to its supervision and in the event the insurer who issued this policy becomes insolvent, losses will not be paid by any State guaranty or solvency fund.
(2) For nonadmitted domestic surplus lines insurers, in the event of the insolvency of the surplus lines insurer with which the coverage has been placed, losses will not be paid by any State insurance guaranty or solvency fund.
Nothing in this section shall nullify any agreement by any insurer to provide insurance. (1985, c. 688, s. 1; 2018-120, s. 2.1(i).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-60 - Effect of payment to surplus lines licensee.

§ 58-21-60. Effect of payment to surplus lines licensee.
A payment of premium to a surplus lines licensee acting for a person other than himself in negotiating, continuing, or reviewing any policy of insurance under this Article shall be deemed to be payment to the insurer, notwithstanding any conditions or stipulations inserted in the policy or contract. (1985, c. 688, s. 1.)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-65 - Licensing of surplus lines license.

§ 58-21-65. Licensing of surplus lines license.
(a) For insureds whose home state is this State, no insurance producer licensed by the Commissioner shall directly procure any contract of surplus lines insurance with any nonadmitted domestic surplus lines insurer or nonadmitted insurer, unless he possesses a current surplus lines insurance license issued by the Commissioner.
(b) The Commissioner shall issue a surplus lines license to any qualified holder of a current insurance producer license with property and casualty lines of authority, but only when the agent has done all of the following:
(1) Remitted the fifty dollars ($50.00) annual fee to the Commissioner.
(2) Submitted a completed license application on a form supplied by the Commissioner, and the application has been approved by the Commissioner.
(3) Passed a qualifying examination approved by the Commissioner; except that all holders of a license prior to July 11, 1985 shall be deemed to have passed such an examination.
(4) Repealed by Session Laws 2004-199, s. 20(c), effective August 17, 2004.
(c) Corporations shall be eligible to be surplus lines licensees, upon the following conditions:
(1) The corporate licensee shall list individuals within the corporation who have satisfied all requirements of this Article to become surplus lines licensees; and
(2) Only those individuals listed on the corporate license and who are surplus lines licensees shall transact surplus lines business.
(d) Each surplus lines license shall be issued on September 1 of each year and expire August 31 of the following year unless renewed. Application for renewal shall be made 30 days before the expiration date. The license shall be renewed upon payment of the annual license fee and compliance with the other applicable provisions of this section. Any person who places surplus lines insurance without a valid surplus lines license in effect shall pay a penalty of one thousand dollars ($1,000) and be subject to such other penalties as provided by law.
The clear proceeds of civil penalties provided for in this subsection shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2.
(e) Any person who does not renew a surplus lines license and applies for another surplus lines license more than two years after the expiration date of the previous license shall be required to satisfy every condition in this section, including the written exam, before the Commissioner issues another surplus lines license to that person.
(f) Repealed by Session Laws 2011-120, s. 8, effective July 21, 2011. (1985, c. 688, s. 1; 1985 (Reg. Sess., 1986), c. 928, s. 6; c. 1013, ss. 4, 16; 1987, c. 629, s. 18; c. 752, s. 6; 1987 (Reg. Sess., 1988), c. 975, s. 14; 1991, c. 212, s. 1; c. 644, s. 41; 1998-215, s. 85; 2004-199, s. 20(c); 2008-124, s. 10.2; 2009-566, s. 11; 2011-120, s. 8; 2015-101, s. 4; 2015-281, s. 14; 2018-120, s. 2.1(j); 2022-46, s. 14(x).)
2023 North Carolina General Statutes › Chapter 58 - Insurance › Article 21 - Surplus Lines Act. › § 58-21-70 - Surplus lines licensees may accept business from other agents or brokers.

§ 58-21-70. Surplus lines licensees may accept business from other agents or brokers.
(a) A surplus lines licensee may originate surplus lines insurance or accept such insurance from any other duly licensed insurance producer, and the surplus lines licensee may compensate such insurance producer therefor.
(b), (c) Repealed by Session Laws 2015-101 s. 5, effective January 1, 2017. (1985, c. 688, s. 1; 2001-451, s. 2; 2015-101, s. 5; 2015-281, s. 14; 2022-46, s. 14(y).)