§ 58‑45‑25. Eachmember of Association to participate in nonrecoupable assessments.
(a) Subject to thelimitations contained in G.S. 58‑45‑47, each member of theAssociation shall participate in the nonrecoupable assessments levied by theAssociation in the proportion that its net direct premium written in this Stateduring the preceding calendar year for residential and commercial propertiesoutside of the beach and coastal areas bears to the aggregate net directpremiums written in this State during the preceding calendar year forresidential and commercial properties outside of the beach and coastal areas byall members of the Association, as certified to the Association by theCommissioner. The Commissioner shall certify each member's participation afterreview of annual statements and any other reports and data necessary todetermine participation and may obtain any necessary information or data fromany member of the Association for this purpose. Any insurer that is authorizedto write and that is engaged in writing any insurance, the writing of whichrequires the insurer to be a member of the Association under G.S. 58‑45‑10,shall become a member of the Association on the first day of January afterauthorization. The determination of the insurer's participation in theAssociation shall be made as of the date of membership of the insurer in thesame manner as for all other members of the Association.
(b) All membercompanies shall receive credit each year for essential property insurance,farmowners insurance, homeowners insurance, and the property portion ofcommercial multiple peril policies voluntarily written in the beach and coastalareas in accordance with guidelines and procedures to be submitted by theDirectors to the Commissioner for approval. Such credits also shall apply toany nonrecoupable assessments levied pursuant to G.S. 58‑45‑47. Theparticipation of each member company in the nonrecoupable assessments levied bythe Association shall be reduced accordingly; provided, no credit shall be givenwhere coverage for the peril of wind has been excluded. The guidelines andprocedures for granting credit shall encourage and assist each member companyto voluntarily write these coverages in the beach and coastal areas forcommercial and residential properties.
(b1) The accumulatedsurplus of the Association shall be retained from year to year and used to paylosses, reinsurance costs, and other operating expenses as necessary. No membercompany shall be entitled to the distribution of any portion of theAssociation's surplus, except pursuant to judgments entered prior to August 26,2009.
(b2) The premiums,surplus, assessments, investment income, and other revenue of the Associationare funds received for the sole purpose of providing insurance coverage, payingclaims for Association policyholders, purchasing reinsurance, securing andrepaying debt obligations issued by the Association, and conducting all otheractivities of the Association, as required or permitted by this Article.Accumulated surplus shall not be removed from the Association or used for otherpurposes except pursuant to judgments entered prior to August 26, 2009.
(c) The North CarolinaInsurance Underwriting Association shall use the "take out" program,as filed with and approved by the Commissioner, in the coastal area. (1967, c. 1111, s. 1; 1969,c. 249; 1991, c. 720, s. 58; 1995 (Reg. Sess., 1996), c. 592, s. 1; 1997‑498,s. 2; 2009‑472, s. 1.)
§ 58‑45‑25. Eachmember of Association to participate in nonrecoupable assessments.
(a) Subject to thelimitations contained in G.S. 58‑45‑47, each member of theAssociation shall participate in the nonrecoupable assessments levied by theAssociation in the proportion that its net direct premium written in this Stateduring the preceding calendar year for residential and commercial propertiesoutside of the beach and coastal areas bears to the aggregate net directpremiums written in this State during the preceding calendar year forresidential and commercial properties outside of the beach and coastal areas byall members of the Association, as certified to the Association by theCommissioner. The Commissioner shall certify each member's participation afterreview of annual statements and any other reports and data necessary todetermine participation and may obtain any necessary information or data fromany member of the Association for this purpose. Any insurer that is authorizedto write and that is engaged in writing any insurance, the writing of whichrequires the insurer to be a member of the Association under G.S. 58‑45‑10,shall become a member of the Association on the first day of January afterauthorization. The determination of the insurer's participation in theAssociation shall be made as of the date of membership of the insurer in thesame manner as for all other members of the Association.
(b) All membercompanies shall receive credit each year for essential property insurance,farmowners insurance, homeowners insurance, and the property portion ofcommercial multiple peril policies voluntarily written in the beach and coastalareas in accordance with guidelines and procedures to be submitted by theDirectors to the Commissioner for approval. Such credits also shall apply toany nonrecoupable assessments levied pursuant to G.S. 58‑45‑47. Theparticipation of each member company in the nonrecoupable assessments levied bythe Association shall be reduced accordingly; provided, no credit shall be givenwhere coverage for the peril of wind has been excluded. The guidelines andprocedures for granting credit shall encourage and assist each member companyto voluntarily write these coverages in the beach and coastal areas forcommercial and residential properties.
(b1) The accumulatedsurplus of the Association shall be retained from year to year and used to paylosses, reinsurance costs, and other operating expenses as necessary. No membercompany shall be entitled to the distribution of any portion of theAssociation's surplus, except pursuant to judgments entered prior to August 26,2009.
(b2) The premiums,surplus, assessments, investment income, and other revenue of the Associationare funds received for the sole purpose of providing insurance coverage, payingclaims for Association policyholders, purchasing reinsurance, securing andrepaying debt obligations issued by the Association, and conducting all otheractivities of the Association, as required or permitted by this Article.Accumulated surplus shall not be removed from the Association or used for otherpurposes except pursuant to judgments entered prior to August 26, 2009.
(c) The North CarolinaInsurance Underwriting Association shall use the "take out" program,as filed with and approved by the Commissioner, in the coastal area. (1967, c. 1111, s. 1; 1969,c. 249; 1991, c. 720, s. 58; 1995 (Reg. Sess., 1996), c. 592, s. 1; 1997‑498,s. 2; 2009‑472, s. 1.)
§ 58‑45‑25. Eachmember of Association to participate in nonrecoupable assessments.
(a) Subject to thelimitations contained in G.S. 58‑45‑47, each member of theAssociation shall participate in the nonrecoupable assessments levied by theAssociation in the proportion that its net direct premium written in this Stateduring the preceding calendar year for residential and commercial propertiesoutside of the beach and coastal areas bears to the aggregate net directpremiums written in this State during the preceding calendar year forresidential and commercial properties outside of the beach and coastal areas byall members of the Association, as certified to the Association by theCommissioner. The Commissioner shall certify each member's participation afterreview of annual statements and any other reports and data necessary todetermine participation and may obtain any necessary information or data fromany member of the Association for this purpose. Any insurer that is authorizedto write and that is engaged in writing any insurance, the writing of whichrequires the insurer to be a member of the Association under G.S. 58‑45‑10,shall become a member of the Association on the first day of January afterauthorization. The determination of the insurer's participation in theAssociation shall be made as of the date of membership of the insurer in thesame manner as for all other members of the Association.
(b) All membercompanies shall receive credit each year for essential property insurance,farmowners insurance, homeowners insurance, and the property portion ofcommercial multiple peril policies voluntarily written in the beach and coastalareas in accordance with guidelines and procedures to be submitted by theDirectors to the Commissioner for approval. Such credits also shall apply toany nonrecoupable assessments levied pursuant to G.S. 58‑45‑47. Theparticipation of each member company in the nonrecoupable assessments levied bythe Association shall be reduced accordingly; provided, no credit shall be givenwhere coverage for the peril of wind has been excluded. The guidelines andprocedures for granting credit shall encourage and assist each member companyto voluntarily write these coverages in the beach and coastal areas forcommercial and residential properties.
(b1) The accumulatedsurplus of the Association shall be retained from year to year and used to paylosses, reinsurance costs, and other operating expenses as necessary. No membercompany shall be entitled to the distribution of any portion of theAssociation's surplus, except pursuant to judgments entered prior to August 26,2009.
(b2) The premiums,surplus, assessments, investment income, and other revenue of the Associationare funds received for the sole purpose of providing insurance coverage, payingclaims for Association policyholders, purchasing reinsurance, securing andrepaying debt obligations issued by the Association, and conducting all otheractivities of the Association, as required or permitted by this Article.Accumulated surplus shall not be removed from the Association or used for otherpurposes except pursuant to judgments entered prior to August 26, 2009.
(c) The North CarolinaInsurance Underwriting Association shall use the "take out" program,as filed with and approved by the Commissioner, in the coastal area. (1967, c. 1111, s. 1; 1969,c. 249; 1991, c. 720, s. 58; 1995 (Reg. Sess., 1996), c. 592, s. 1; 1997‑498,s. 2; 2009‑472, s. 1.)
