North Carolina General Statutes 58-9-21. Miscellaneous provisions
Terms Used In North Carolina General Statutes 58-9-21
- Actuary: means a person who meets the standards of a qualified actuary, as specified in the NAIC Annual Statement Instructions, as amended or clarified by rule or order of the Commissioner, for the type of insurer for which an intermediary is establishing loss reserves. See North Carolina General Statutes 58-9-2
- Commissioner: includes the Commissioner's authorized deputies and employees. See North Carolina General Statutes 58-9-2
- Contract: A legal written agreement that becomes binding when signed.
- Controlling person: means any person who directly or indirectly has the power to direct or cause to be directed the management, control, or activities of an intermediary. See North Carolina General Statutes 58-9-2
- Intermediary: includes a broker or a manager, as those terms are defined in this section. See North Carolina General Statutes 58-9-2
- Manager: means any person who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer (including the management of a separate division, department, or underwriting office) and acts as an agent for the reinsurer. See North Carolina General Statutes 58-9-2
- Reinsurer: means any insurer that is licensed by the Commissioner and that is authorized to assume reinsurance. See North Carolina General Statutes 58-9-2
(a) A reinsurer shall not engage the services of any person to act as a manager on its behalf unless the person is licensed under N.C. Gen. Stat. § 58-9-6 or exempted under this Article.
(b) If a manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the manager. This opinion shall be in addition to any other required loss reserve certification.
(c) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall be given to an officer of the reinsurer who is not affiliated with the manager.
(d) Within 30 days after termination of a contract with a manager, the reinsurer shall provide written notification of the termination to the Commissioner.
(e) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling person, or subproducer of its manager. This Article does not apply to relationships governed by Article 19 of this Chapter or N.C. Gen. Stat. § 58-3-165.
(f) An intermediary is subject to examination by the Commissioner. The Commissioner shall have access to all books, bank accounts, and records of an intermediary in a form usable to the Commissioner. A manager may be examined as if it were the reinsurer. (1993, c. 452, s. 23; 2001-223, s. 10.3.)