§ 58‑30‑62. Administrative supervision of insurers.
(a) As used in thissection, an insurer has "exceeded its powers" when it: has refused topermit examination of its books, papers, accounts, records or affairs by theCommissioner; has in violation of G.S. 58‑7‑50 removed from thisState books, papers, accounts or records necessary for an examination of theinsurer; has failed to comply promptly with applicable financial reportingstatutes or rules and related Department requests; continues to transact thebusiness of insurance after its license has been revoked or suspended by theCommissioner; by contract or otherwise, has unlawfully, or has in violation ofan order of the Commissioner, or has without first having obtained any legallyrequired written approval of the Commissioner, totally reinsured its entireoutstanding business or merged or consolidated substantially its entireproperty or business with another insurer; has engaged in any transaction inwhich it is not authorized to engage under the laws of this State; has notcomplied with G.S. 58‑7‑73; or has refused to comply with a lawfulorder of the Commissioner. As used in this section, "Commissioner"includes an authorized representative or designee of the Commissioner.
(b) This sectionapplies to all domestic insurers and any other insurer doing business in thisState whose state of domicile has asked the Commissioner to apply theprovisions of this section to that insurer.
(c) An insurer may besubject to administrative supervision by the Commissioner if upon examinationor at any other time it appears to the Commissioner that the insurer: hasexceeded its powers; has failed to comply with applicable provisions of thisChapter; is conducting its business in a manner that is hazardous to the publicor to its insureds; or consents to administrative supervision.
(d) If the Commissionerdetermines that the conditions set forth in subsection (c) of this sectionexist, the Commissioner shall: notify the insurer of that determination;furnish to the insurer a written list of the requirements to abate thoseconditions; and notify the insurer that it is under the supervision of theCommissioner and that the Commissioner is applying and effectuating theprovisions of this section.
(e) If placed underadministrative supervision, the insurer shall have 60 days, or a differentperiod of time determined by the Commissioner, to comply with the requirementsof the Commissioner under this section. If the Commissioner determines afternotice and hearing that the conditions giving rise to the supervision stillexist at the end of the supervision period specified in this subsection, theCommissioner may extend the period; or if the Commissioner determines that noneof the conditions giving rise to the supervision exist, the Commissioner shallrelease the insurer from supervision.
(f) Notwithstandingany other provision of law and except as set forth in this section, allproceedings, hearings, notices, correspondence, reports, records, and otherinformation in the possession of the Commissioner or the Department relating tothe supervision of any insurer are confidential. The Department shall haveaccess to such proceedings, hearings, notices, correspondence, reports,records, or other information as permitted by the Commissioner. TheCommissioner may open the proceedings or hearings, or disclose the notices,correspondence, reports, records, or information to a department, agency orinstrumentality of this or another state of the United States if theCommissioner determines that the disclosure is necessary or proper for theenforcement of the laws of this or another state of the United States. TheCommissioner may open the proceedings or hearings or make public the notices,correspondence, reports, records, or other information if the Commissionerconsiders that it is in the best interest of the insurer, its insureds orcreditors, or the general public. This section does not apply to hearings,notices, correspondence, reports, records, or other information obtained uponthe appointment of a receiver for the insurer by a court of competentjurisdiction.
(g) During the periodof supervision, the Commissioner shall serve as the administrative supervisor.The Commissioner may provide that the insurer shall not do any of the followingduring the period of supervision, without the Commissioner's prior approval:dispose of, convey, or encumber any of its assets or its business in force;withdraw from any of its bank accounts; lend or invest any of its funds;transfer any of its property; incur any debt, obligation, or liability; mergeor consolidate with another company; establish new premiums or renew anypolicies; enter into any new reinsurance contract or treaty; terminate,surrender, forfeit, convert, or lapse any insurance coverage, except fornonpayment of premiums due; release, pay, or refund premium deposits, accruedcash, or loan values, unearned premiums, or other reserves on any insurancecoverage; make any material change in management; increase salaries or benefitsof officers or directors or make preferential payment of bonuses, dividends, orother payments considered preferential; or make any other change in itsoperations that the Commissioner considers to be material.
(h) During the periodof supervision the insurer may contest an action taken or proposed to be takenby the Commissioner, specifying why the action being complained of would notresult in improving the insurer's condition.
(i) This section doesnot limit powers granted to the Commissioner by any other provision of law.This section does not preclude the Commissioner from initiating judicialproceedings to place an insurer in a delinquency proceeding under this Article,regardless of whether the Commissioner has previously initiated administrativesupervision proceedings under this section or under G.S. 58‑30‑60against the insurer. The determination as to actions under this section is inthe Commissioner's discretion.
(j) Notwithstandingany other provision of law, the Commissioner may meet with a supervisor appointedunder this section and with the attorney or other representative of thesupervisor, without the presence of any other person, at the time of anyproceeding or during the pendency of any proceeding held under the authority ofthis section, to carry out the Commissioner's duties under this section or forthe supervisor to carry out the supervisor's duties under this section.
(k) There is noliability by, and no cause of action of any nature arises against, theCommissioner for any acts or omissions by the Commissioner in the performanceof the Commissioner's powers and duties under this section. (1991, c. 681, s. 44; 2002‑187,s. 2.10; 2003‑212, s. 26(i).)
§ 58‑30‑62. Administrative supervision of insurers.
(a) As used in thissection, an insurer has "exceeded its powers" when it: has refused topermit examination of its books, papers, accounts, records or affairs by theCommissioner; has in violation of G.S. 58‑7‑50 removed from thisState books, papers, accounts or records necessary for an examination of theinsurer; has failed to comply promptly with applicable financial reportingstatutes or rules and related Department requests; continues to transact thebusiness of insurance after its license has been revoked or suspended by theCommissioner; by contract or otherwise, has unlawfully, or has in violation ofan order of the Commissioner, or has without first having obtained any legallyrequired written approval of the Commissioner, totally reinsured its entireoutstanding business or merged or consolidated substantially its entireproperty or business with another insurer; has engaged in any transaction inwhich it is not authorized to engage under the laws of this State; has notcomplied with G.S. 58‑7‑73; or has refused to comply with a lawfulorder of the Commissioner. As used in this section, "Commissioner"includes an authorized representative or designee of the Commissioner.
(b) This sectionapplies to all domestic insurers and any other insurer doing business in thisState whose state of domicile has asked the Commissioner to apply theprovisions of this section to that insurer.
(c) An insurer may besubject to administrative supervision by the Commissioner if upon examinationor at any other time it appears to the Commissioner that the insurer: hasexceeded its powers; has failed to comply with applicable provisions of thisChapter; is conducting its business in a manner that is hazardous to the publicor to its insureds; or consents to administrative supervision.
(d) If the Commissionerdetermines that the conditions set forth in subsection (c) of this sectionexist, the Commissioner shall: notify the insurer of that determination;furnish to the insurer a written list of the requirements to abate thoseconditions; and notify the insurer that it is under the supervision of theCommissioner and that the Commissioner is applying and effectuating theprovisions of this section.
(e) If placed underadministrative supervision, the insurer shall have 60 days, or a differentperiod of time determined by the Commissioner, to comply with the requirementsof the Commissioner under this section. If the Commissioner determines afternotice and hearing that the conditions giving rise to the supervision stillexist at the end of the supervision period specified in this subsection, theCommissioner may extend the period; or if the Commissioner determines that noneof the conditions giving rise to the supervision exist, the Commissioner shallrelease the insurer from supervision.
(f) Notwithstandingany other provision of law and except as set forth in this section, allproceedings, hearings, notices, correspondence, reports, records, and otherinformation in the possession of the Commissioner or the Department relating tothe supervision of any insurer are confidential. The Department shall haveaccess to such proceedings, hearings, notices, correspondence, reports,records, or other information as permitted by the Commissioner. TheCommissioner may open the proceedings or hearings, or disclose the notices,correspondence, reports, records, or information to a department, agency orinstrumentality of this or another state of the United States if theCommissioner determines that the disclosure is necessary or proper for theenforcement of the laws of this or another state of the United States. TheCommissioner may open the proceedings or hearings or make public the notices,correspondence, reports, records, or other information if the Commissionerconsiders that it is in the best interest of the insurer, its insureds orcreditors, or the general public. This section does not apply to hearings,notices, correspondence, reports, records, or other information obtained uponthe appointment of a receiver for the insurer by a court of competentjurisdiction.
(g) During the periodof supervision, the Commissioner shall serve as the administrative supervisor.The Commissioner may provide that the insurer shall not do any of the followingduring the period of supervision, without the Commissioner's prior approval:dispose of, convey, or encumber any of its assets or its business in force;withdraw from any of its bank accounts; lend or invest any of its funds;transfer any of its property; incur any debt, obligation, or liability; mergeor consolidate with another company; establish new premiums or renew anypolicies; enter into any new reinsurance contract or treaty; terminate,surrender, forfeit, convert, or lapse any insurance coverage, except fornonpayment of premiums due; release, pay, or refund premium deposits, accruedcash, or loan values, unearned premiums, or other reserves on any insurancecoverage; make any material change in management; increase salaries or benefitsof officers or directors or make preferential payment of bonuses, dividends, orother payments considered preferential; or make any other change in itsoperations that the Commissioner considers to be material.
(h) During the periodof supervision the insurer may contest an action taken or proposed to be takenby the Commissioner, specifying why the action being complained of would notresult in improving the insurer's condition.
(i) This section doesnot limit powers granted to the Commissioner by any other provision of law.This section does not preclude the Commissioner from initiating judicialproceedings to place an insurer in a delinquency proceeding under this Article,regardless of whether the Commissioner has previously initiated administrativesupervision proceedings under this section or under G.S. 58‑30‑60against the insurer. The determination as to actions under this section is inthe Commissioner's discretion.
(j) Notwithstandingany other provision of law, the Commissioner may meet with a supervisor appointedunder this section and with the attorney or other representative of thesupervisor, without the presence of any other person, at the time of anyproceeding or during the pendency of any proceeding held under the authority ofthis section, to carry out the Commissioner's duties under this section or forthe supervisor to carry out the supervisor's duties under this section.
(k) There is noliability by, and no cause of action of any nature arises against, theCommissioner for any acts or omissions by the Commissioner in the performanceof the Commissioner's powers and duties under this section. (1991, c. 681, s. 44; 2002‑187,s. 2.10; 2003‑212, s. 26(i).)
§ 58‑30‑62. Administrative supervision of insurers.
(a) As used in thissection, an insurer has "exceeded its powers" when it: has refused topermit examination of its books, papers, accounts, records or affairs by theCommissioner; has in violation of G.S. 58‑7‑50 removed from thisState books, papers, accounts or records necessary for an examination of theinsurer; has failed to comply promptly with applicable financial reportingstatutes or rules and related Department requests; continues to transact thebusiness of insurance after its license has been revoked or suspended by theCommissioner; by contract or otherwise, has unlawfully, or has in violation ofan order of the Commissioner, or has without first having obtained any legallyrequired written approval of the Commissioner, totally reinsured its entireoutstanding business or merged or consolidated substantially its entireproperty or business with another insurer; has engaged in any transaction inwhich it is not authorized to engage under the laws of this State; has notcomplied with G.S. 58‑7‑73; or has refused to comply with a lawfulorder of the Commissioner. As used in this section, "Commissioner"includes an authorized representative or designee of the Commissioner.
(b) This sectionapplies to all domestic insurers and any other insurer doing business in thisState whose state of domicile has asked the Commissioner to apply theprovisions of this section to that insurer.
(c) An insurer may besubject to administrative supervision by the Commissioner if upon examinationor at any other time it appears to the Commissioner that the insurer: hasexceeded its powers; has failed to comply with applicable provisions of thisChapter; is conducting its business in a manner that is hazardous to the publicor to its insureds; or consents to administrative supervision.
(d) If the Commissionerdetermines that the conditions set forth in subsection (c) of this sectionexist, the Commissioner shall: notify the insurer of that determination;furnish to the insurer a written list of the requirements to abate thoseconditions; and notify the insurer that it is under the supervision of theCommissioner and that the Commissioner is applying and effectuating theprovisions of this section.
(e) If placed underadministrative supervision, the insurer shall have 60 days, or a differentperiod of time determined by the Commissioner, to comply with the requirementsof the Commissioner under this section. If the Commissioner determines afternotice and hearing that the conditions giving rise to the supervision stillexist at the end of the supervision period specified in this subsection, theCommissioner may extend the period; or if the Commissioner determines that noneof the conditions giving rise to the supervision exist, the Commissioner shallrelease the insurer from supervision.
(f) Notwithstandingany other provision of law and except as set forth in this section, allproceedings, hearings, notices, correspondence, reports, records, and otherinformation in the possession of the Commissioner or the Department relating tothe supervision of any insurer are confidential. The Department shall haveaccess to such proceedings, hearings, notices, correspondence, reports,records, or other information as permitted by the Commissioner. TheCommissioner may open the proceedings or hearings, or disclose the notices,correspondence, reports, records, or information to a department, agency orinstrumentality of this or another state of the United States if theCommissioner determines that the disclosure is necessary or proper for theenforcement of the laws of this or another state of the United States. TheCommissioner may open the proceedings or hearings or make public the notices,correspondence, reports, records, or other information if the Commissionerconsiders that it is in the best interest of the insurer, its insureds orcreditors, or the general public. This section does not apply to hearings,notices, correspondence, reports, records, or other information obtained uponthe appointment of a receiver for the insurer by a court of competentjurisdiction.
(g) During the periodof supervision, the Commissioner shall serve as the administrative supervisor.The Commissioner may provide that the insurer shall not do any of the followingduring the period of supervision, without the Commissioner's prior approval:dispose of, convey, or encumber any of its assets or its business in force;withdraw from any of its bank accounts; lend or invest any of its funds;transfer any of its property; incur any debt, obligation, or liability; mergeor consolidate with another company; establish new premiums or renew anypolicies; enter into any new reinsurance contract or treaty; terminate,surrender, forfeit, convert, or lapse any insurance coverage, except fornonpayment of premiums due; release, pay, or refund premium deposits, accruedcash, or loan values, unearned premiums, or other reserves on any insurancecoverage; make any material change in management; increase salaries or benefitsof officers or directors or make preferential payment of bonuses, dividends, orother payments considered preferential; or make any other change in itsoperations that the Commissioner considers to be material.
(h) During the periodof supervision the insurer may contest an action taken or proposed to be takenby the Commissioner, specifying why the action being complained of would notresult in improving the insurer's condition.
(i) This section doesnot limit powers granted to the Commissioner by any other provision of law.This section does not preclude the Commissioner from initiating judicialproceedings to place an insurer in a delinquency proceeding under this Article,regardless of whether the Commissioner has previously initiated administrativesupervision proceedings under this section or under G.S. 58‑30‑60against the insurer. The determination as to actions under this section is inthe Commissioner's discretion.
(j) Notwithstandingany other provision of law, the Commissioner may meet with a supervisor appointedunder this section and with the attorney or other representative of thesupervisor, without the presence of any other person, at the time of anyproceeding or during the pendency of any proceeding held under the authority ofthis section, to carry out the Commissioner's duties under this section or forthe supervisor to carry out the supervisor's duties under this section.
(k) There is noliability by, and no cause of action of any nature arises against, theCommissioner for any acts or omissions by the Commissioner in the performanceof the Commissioner's powers and duties under this section. (1991, c. 681, s. 44; 2002‑187,s. 2.10; 2003‑212, s. 26(i).)
