(a) No surplus lineslicensee shall place any coverage with a nonadmitted insurer, unless at thetime of placement, such nonadmitted insurer:
(1) Has establishedsatisfactory evidence of good repute and financial integrity; and
(2) Qualifies under oneof the following subdivisions:
a. Has capital andsurplus or its equivalent under the laws of its domiciliary jurisdiction, whichequals either:
1. This State's minimumcapital and surplus requirements under G.S. 58‑7‑75, or
2. Fifteen milliondollars ($15,000,000),
whicheveris greater, except that nonadmitted insurers already qualified under thisArticle must have ten million dollars ($10,000,000) by December 31, 1991,twelve million five hundred thousand dollars ($12,500,000) by December 31,1992, and fifteen million dollars ($15,000,000) by December 31, 1993. Therequirements of this sub‑subdivision may be satisfied by an insurerpossessing less than the commitment capital and surplus upon an affirmativefinding of acceptability by the Commissioner. The finding shall be based uponsuch factors as quality of management, capital and surplus of any parentcompany, company underwriting profit and investment income trends, and theinsurer's record and reputation within the industry. In no event shall theCommissioner make an affirmative finding of acceptability when the insurer'scapital and surplus is less than four million five hundred thousand dollars($4,500,000).
Inaddition, an alien insurer qualifies under this subdivision if it complies withthe capital and surplus requirements of this subdivision and maintains in theUnited States an irrevocable trust fund in either a national bank or a memberof the Federal Reserve System, in an amount not less than five million fourhundred thousand dollars ($5,400,000) for the protection of all of itspolicyholders in the United States, and the trust fund consists of cash,securities, letters of credit, or of investment of substantially the samecharacter and quality as those which are eligible investments for the capitaland statutory reserves of admitted insurers authorized to write like kinds ofinsurance in this State. The trust fund, which shall be included in anycalculation of capital and surplus or its equivalent, shall have an expirationdate which at no time shall be less than five years; or
b. In the case of anyLloyd's plans or other similar group of insurers, which consists ofunincorporated individual insurers, or a combination of both unincorporated andincorporated insurers, maintains a trust fund in an amount of not less than onehundred million dollars ($100,000,000) as security to the full amount thereoffor all policyholders and creditors in the United States of each member of thegroup, and the trust shall likewise comply with the terms and conditionsestablished in subdivision (2)a. of this section for alien insurers; and
c. In the case of an"insurance exchange" created by the laws of individual states,maintain capital and surplus, or the substantial equivalent thereof, of notless than seventy‑five million dollars ($75,000,000) in the aggregate.For insurance exchanges which maintain funds in an amount of not less thanfifteen million dollars ($15,000,000) for the protection of all insuranceexchange policyholders, each individual syndicate shall maintain minimumcapital and surplus, or the substantial equivalent thereof, of not less thanfive million dollars ($5,000,000). If the insurance exchange does not maintainfunds in an amount of not less than fifteen million dollars ($15,000,000) forthe protection of all insurance exchange policyholders, each individualsyndicate shall meet the minimum capital and surplus requirements ofsubdivision (2)a. of this section.
d. In the case of agroup of incorporated insurers under common administration, which hascontinuously transacted an insurance business outside the United States for atleast three years immediately before this time, and which submits to thisState's authority to examine its books and records and bears the expense of theexamination, and maintains an aggregate policyholders' surplus of not less thanten billion dollars ($10,000,000,000), and maintains in trust a surplus of notless than one hundred million dollars ($100,000,000) for the benefit of UnitedStates surplus lines policyholders of any member of the group, and each insurermaintains capital and surplus of not less than twenty‑five milliondollars ($25,000,000) per company.
(3) Has caused to beprovided to the Commissioner a copy of its current annual statement certifiedby such insurer; such statement to be provided no more than two months, and foralien insurers six months, after the close of the period reported upon and thatis either:
a. Filed with andapproved by the regulatory authority in the domicile of the nonadmittedinsurer; or
b. Certified by anaccounting or auditing firm licensed in the jurisdiction of the insurer'sdomicile; or
c. In the case of aninsurance exchange, the statement may be an aggregate combined statement of allunderwriting syndicates operating during the period reported.
(b) In addition tomeeting the requirements in subdivisions (a)(1) through (a)(3) of this section,an insurer shall be an eligible surplus lines insurer if it appears on the mostrecent list of eligible surplus lines insurers published by the Commissioner.Nothing in this subsection shall require the Commissioner to place or maintainthe name of any nonadmitted insurer on the list of eligible surplus linesinsurers. There shall be no liability on the part of, and no cause of action ofany nature shall arise against, the Commissioner or his employees orrepresentatives for any action taken or not taken by them in the performance oftheir powers and duties under this subsection.
(c) Every surplus linesinsurer that applies for eligibility under this section shall pay anonrefundable fee of five hundred dollars ($500.00). In order to reneweligibility, such insurer shall pay a nonrefundable renewal fee of one thousanddollars ($1,000) on or before January 1 of each year thereafter. Such feesshall not be prorated. (1985, c. 688, s. 1; c. 793; 1985 (Reg. Sess., 1986), c. 1027, s. 46;1989 (Reg. Sess., 1990), c. 1069, s. 13; 1991, c. 681, s. 39; 1993 (Reg. Sess.,1994), c. 678, s. 15; 1995, c. 507, s. 11A(c); 2001‑223, s. 17.1; 2009‑451,s. 21.14(a).)
(a) No surplus lineslicensee shall place any coverage with a nonadmitted insurer, unless at thetime of placement, such nonadmitted insurer:
(1) Has establishedsatisfactory evidence of good repute and financial integrity; and
(2) Qualifies under oneof the following subdivisions:
a. Has capital andsurplus or its equivalent under the laws of its domiciliary jurisdiction, whichequals either:
1. This State's minimumcapital and surplus requirements under G.S. 58‑7‑75, or
2. Fifteen milliondollars ($15,000,000),
whicheveris greater, except that nonadmitted insurers already qualified under thisArticle must have ten million dollars ($10,000,000) by December 31, 1991,twelve million five hundred thousand dollars ($12,500,000) by December 31,1992, and fifteen million dollars ($15,000,000) by December 31, 1993. Therequirements of this sub‑subdivision may be satisfied by an insurerpossessing less than the commitment capital and surplus upon an affirmativefinding of acceptability by the Commissioner. The finding shall be based uponsuch factors as quality of management, capital and surplus of any parentcompany, company underwriting profit and investment income trends, and theinsurer's record and reputation within the industry. In no event shall theCommissioner make an affirmative finding of acceptability when the insurer'scapital and surplus is less than four million five hundred thousand dollars($4,500,000).
Inaddition, an alien insurer qualifies under this subdivision if it complies withthe capital and surplus requirements of this subdivision and maintains in theUnited States an irrevocable trust fund in either a national bank or a memberof the Federal Reserve System, in an amount not less than five million fourhundred thousand dollars ($5,400,000) for the protection of all of itspolicyholders in the United States, and the trust fund consists of cash,securities, letters of credit, or of investment of substantially the samecharacter and quality as those which are eligible investments for the capitaland statutory reserves of admitted insurers authorized to write like kinds ofinsurance in this State. The trust fund, which shall be included in anycalculation of capital and surplus or its equivalent, shall have an expirationdate which at no time shall be less than five years; or
b. In the case of anyLloyd's plans or other similar group of insurers, which consists ofunincorporated individual insurers, or a combination of both unincorporated andincorporated insurers, maintains a trust fund in an amount of not less than onehundred million dollars ($100,000,000) as security to the full amount thereoffor all policyholders and creditors in the United States of each member of thegroup, and the trust shall likewise comply with the terms and conditionsestablished in subdivision (2)a. of this section for alien insurers; and
c. In the case of an"insurance exchange" created by the laws of individual states,maintain capital and surplus, or the substantial equivalent thereof, of notless than seventy‑five million dollars ($75,000,000) in the aggregate.For insurance exchanges which maintain funds in an amount of not less thanfifteen million dollars ($15,000,000) for the protection of all insuranceexchange policyholders, each individual syndicate shall maintain minimumcapital and surplus, or the substantial equivalent thereof, of not less thanfive million dollars ($5,000,000). If the insurance exchange does not maintainfunds in an amount of not less than fifteen million dollars ($15,000,000) forthe protection of all insurance exchange policyholders, each individualsyndicate shall meet the minimum capital and surplus requirements ofsubdivision (2)a. of this section.
d. In the case of agroup of incorporated insurers under common administration, which hascontinuously transacted an insurance business outside the United States for atleast three years immediately before this time, and which submits to thisState's authority to examine its books and records and bears the expense of theexamination, and maintains an aggregate policyholders' surplus of not less thanten billion dollars ($10,000,000,000), and maintains in trust a surplus of notless than one hundred million dollars ($100,000,000) for the benefit of UnitedStates surplus lines policyholders of any member of the group, and each insurermaintains capital and surplus of not less than twenty‑five milliondollars ($25,000,000) per company.
(3) Has caused to beprovided to the Commissioner a copy of its current annual statement certifiedby such insurer; such statement to be provided no more than two months, and foralien insurers six months, after the close of the period reported upon and thatis either:
a. Filed with andapproved by the regulatory authority in the domicile of the nonadmittedinsurer; or
b. Certified by anaccounting or auditing firm licensed in the jurisdiction of the insurer'sdomicile; or
c. In the case of aninsurance exchange, the statement may be an aggregate combined statement of allunderwriting syndicates operating during the period reported.
(b) In addition tomeeting the requirements in subdivisions (a)(1) through (a)(3) of this section,an insurer shall be an eligible surplus lines insurer if it appears on the mostrecent list of eligible surplus lines insurers published by the Commissioner.Nothing in this subsection shall require the Commissioner to place or maintainthe name of any nonadmitted insurer on the list of eligible surplus linesinsurers. There shall be no liability on the part of, and no cause of action ofany nature shall arise against, the Commissioner or his employees orrepresentatives for any action taken or not taken by them in the performance oftheir powers and duties under this subsection.
(c) Every surplus linesinsurer that applies for eligibility under this section shall pay anonrefundable fee of five hundred dollars ($500.00). In order to reneweligibility, such insurer shall pay a nonrefundable renewal fee of one thousanddollars ($1,000) on or before January 1 of each year thereafter. Such feesshall not be prorated. (1985, c. 688, s. 1; c. 793; 1985 (Reg. Sess., 1986), c. 1027, s. 46;1989 (Reg. Sess., 1990), c. 1069, s. 13; 1991, c. 681, s. 39; 1993 (Reg. Sess.,1994), c. 678, s. 15; 1995, c. 507, s. 11A(c); 2001‑223, s. 17.1; 2009‑451,s. 21.14(a).)
(a) No surplus lineslicensee shall place any coverage with a nonadmitted insurer, unless at thetime of placement, such nonadmitted insurer:
(1) Has establishedsatisfactory evidence of good repute and financial integrity; and
(2) Qualifies under oneof the following subdivisions:
a. Has capital andsurplus or its equivalent under the laws of its domiciliary jurisdiction, whichequals either:
1. This State's minimumcapital and surplus requirements under G.S. 58‑7‑75, or
2. Fifteen milliondollars ($15,000,000),
whicheveris greater, except that nonadmitted insurers already qualified under thisArticle must have ten million dollars ($10,000,000) by December 31, 1991,twelve million five hundred thousand dollars ($12,500,000) by December 31,1992, and fifteen million dollars ($15,000,000) by December 31, 1993. Therequirements of this sub‑subdivision may be satisfied by an insurerpossessing less than the commitment capital and surplus upon an affirmativefinding of acceptability by the Commissioner. The finding shall be based uponsuch factors as quality of management, capital and surplus of any parentcompany, company underwriting profit and investment income trends, and theinsurer's record and reputation within the industry. In no event shall theCommissioner make an affirmative finding of acceptability when the insurer'scapital and surplus is less than four million five hundred thousand dollars($4,500,000).
Inaddition, an alien insurer qualifies under this subdivision if it complies withthe capital and surplus requirements of this subdivision and maintains in theUnited States an irrevocable trust fund in either a national bank or a memberof the Federal Reserve System, in an amount not less than five million fourhundred thousand dollars ($5,400,000) for the protection of all of itspolicyholders in the United States, and the trust fund consists of cash,securities, letters of credit, or of investment of substantially the samecharacter and quality as those which are eligible investments for the capitaland statutory reserves of admitted insurers authorized to write like kinds ofinsurance in this State. The trust fund, which shall be included in anycalculation of capital and surplus or its equivalent, shall have an expirationdate which at no time shall be less than five years; or
b. In the case of anyLloyd's plans or other similar group of insurers, which consists ofunincorporated individual insurers, or a combination of both unincorporated andincorporated insurers, maintains a trust fund in an amount of not less than onehundred million dollars ($100,000,000) as security to the full amount thereoffor all policyholders and creditors in the United States of each member of thegroup, and the trust shall likewise comply with the terms and conditionsestablished in subdivision (2)a. of this section for alien insurers; and
c. In the case of an"insurance exchange" created by the laws of individual states,maintain capital and surplus, or the substantial equivalent thereof, of notless than seventy‑five million dollars ($75,000,000) in the aggregate.For insurance exchanges which maintain funds in an amount of not less thanfifteen million dollars ($15,000,000) for the protection of all insuranceexchange policyholders, each individual syndicate shall maintain minimumcapital and surplus, or the substantial equivalent thereof, of not less thanfive million dollars ($5,000,000). If the insurance exchange does not maintainfunds in an amount of not less than fifteen million dollars ($15,000,000) forthe protection of all insurance exchange policyholders, each individualsyndicate shall meet the minimum capital and surplus requirements ofsubdivision (2)a. of this section.
d. In the case of agroup of incorporated insurers under common administration, which hascontinuously transacted an insurance business outside the United States for atleast three years immediately before this time, and which submits to thisState's authority to examine its books and records and bears the expense of theexamination, and maintains an aggregate policyholders' surplus of not less thanten billion dollars ($10,000,000,000), and maintains in trust a surplus of notless than one hundred million dollars ($100,000,000) for the benefit of UnitedStates surplus lines policyholders of any member of the group, and each insurermaintains capital and surplus of not less than twenty‑five milliondollars ($25,000,000) per company.
(3) Has caused to beprovided to the Commissioner a copy of its current annual statement certifiedby such insurer; such statement to be provided no more than two months, and foralien insurers six months, after the close of the period reported upon and thatis either:
a. Filed with andapproved by the regulatory authority in the domicile of the nonadmittedinsurer; or
b. Certified by anaccounting or auditing firm licensed in the jurisdiction of the insurer'sdomicile; or
c. In the case of aninsurance exchange, the statement may be an aggregate combined statement of allunderwriting syndicates operating during the period reported.
(b) In addition tomeeting the requirements in subdivisions (a)(1) through (a)(3) of this section,an insurer shall be an eligible surplus lines insurer if it appears on the mostrecent list of eligible surplus lines insurers published by the Commissioner.Nothing in this subsection shall require the Commissioner to place or maintainthe name of any nonadmitted insurer on the list of eligible surplus linesinsurers. There shall be no liability on the part of, and no cause of action ofany nature shall arise against, the Commissioner or his employees orrepresentatives for any action taken or not taken by them in the performance oftheir powers and duties under this subsection.
(c) Every surplus linesinsurer that applies for eligibility under this section shall pay anonrefundable fee of five hundred dollars ($500.00). In order to reneweligibility, such insurer shall pay a nonrefundable renewal fee of one thousanddollars ($1,000) on or before January 1 of each year thereafter. Such feesshall not be prorated. (1985, c. 688, s. 1; c. 793; 1985 (Reg. Sess., 1986), c. 1027, s. 46;1989 (Reg. Sess., 1990), c. 1069, s. 13; 1991, c. 681, s. 39; 1993 (Reg. Sess.,1994), c. 678, s. 15; 1995, c. 507, s. 11A(c); 2001‑223, s. 17.1; 2009‑451,s. 21.14(a).)
