North Carolina General Statutes 58-62-56. Prevention of delinquencies
(a) To aid in the detection and prevention of member insurer delinquencies, it is the Commissioner’s duty to:
(1) Notify insurance regulators of all the other states, territories of the United States, and the District of Columbia within 30 days when revoking or suspending the license of a member insurer, or making any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from this State, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policy owners, contract owners, certificate holders or creditors.
Terms Used In North Carolina General Statutes 58-62-56
- Account: means any of the two accounts created under N. See North Carolina General Statutes 58-62-16
- Board: means the board of directors of the Association established under N. See North Carolina General Statutes 58-62-16
- Contract: A legal written agreement that becomes binding when signed.
- Germane: On the subject of the pending bill or other business; a strict standard of relevance.
- Insurance regulator: means the official or agency of another state that is responsible for the regulation of a foreign insurer. See North Carolina General Statutes 58-62-16
- Member insurer: means any insurer, health maintenance organization that is governed by Article 67 of this Chapter, and any full-service corporation that is governed by Article 65 of this Chapter and that is licensed or that holds a license to transact in this State any kind of insurance or health maintenance organization business for which coverage is provided under N. See North Carolina General Statutes 58-62-16
- State: means any state, the District of Columbia, Puerto Rico, and a United States possession, territory, or protectorate. See North Carolina General Statutes 58-62-16
- United States: shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
(2) Report to the Board when the Commissioner has taken any of the actions in subdivision (1) of this subsection or has received a report from another insurance regulator indicating that any such action has been taken in another state. The report to the Board shall contain all significant details of the action taken or the report received from another insurance regulator.
(3) Report to the Board when the Commissioner has reasonable cause to believe from any examination, whether completed or in process, of any member insurer that the member insurer may be delinquent.
(4) Furnish the Board with the NAIC Insurance Regulatory Information System financial test ratios and a listing of companies that are not included in the ratios developed by the NAIC; and the Board may use that data in carrying out its duties and responsibilities under this section. The data shall be kept confidential by the Board until it is made public by the Commissioner or another lawful authority.
(b) The Commissioner may seek the advice and recommendations of the Board concerning any matter affecting the Commissioner’s duties and responsibilities regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in this State.
(c) The Board may, upon majority vote, make reports and recommendations to the Commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to do business in this State. The reports and recommendations are not public records.
(d) The Board shall, upon majority vote, notify the Commissioner of any information indicating that any member insurer may be delinquent.
(e) Repealed by Session Laws 2018-120, s. 1.1(j), effective June 28, 2018.
(f) The Board may, upon majority vote, make recommendations to the Commissioner for the detection and prevention of member insurer insolvencies.
(g) Repealed by Session Laws 2018-120, s. 1.1(j), effective June 28, 2018. (1991, c. 681, s. 56; 1995, c. 360, s. 2(k); 2018-120, s. 1.1(j).)