(a) The transactionsspecified in subsections (b) through (e) of this section are expressly allowedor prohibited as provided in this section and to the extent they are not inconflict with other provisions of this Chapter.
(b) An insurer mayengage in derivative transactions under the provisions and limitations of G.S.58‑7‑205.
(c) No insurer shalldirectly or indirectly invest in, or lend its funds to, any of its directors,officers, controlling stockholders, or any other person in which an officer,director, or controlling stockholder is substantially interested, nor shall anydirector, officer, or controlling stockholder directly or indirectly accept thefunds.
(d) No director,officer, or controlling stockholder of any insurer shall receive any money orvaluable thing, either directly or indirectly or through any substantialinterest in any other person, for negotiating, procuring, recommending, oraiding in any purchase or sale of property or loan from the insurer; or bemonetarily interested either as principal, corporation, agent, or beneficiary,in any such purchase, sale, or loan; and no financial obligation of any suchdirector, officer, or stockholder shall be guaranteed by the insurer."Substantial interest in any other person" means an interestequivalent to ownership or control by a director, officer, or controllingstockholder or the aggregate ownership or control by all directors, officers,and controlling stockholders of the same insurer of those percentages or moreof the stock of the person, as defined under "control" in G.S. 58‑19‑5(2).
(e) Nothing in thissection prohibits:
(1) A director orofficer of any insurer from receiving the usual salary, compensation, oremoluments for services rendered in the ordinary course of that person's dutiesas a director or officer, if the salary, compensation, or emolument isauthorized by vote of the board of directors of the insurer;
(2) Any insurer inconnection with the relocation of the place of employment of an officer,including any relocation in connection with the initial employment of theofficer, from (i) making, or the officer from accepting therefrom, a mortgageloan to the officer on real property owned by the officer that is to serve asthe officer's residence or (ii) acquiring, or the officer from selling thereto,at not more than its fair market value, the officer's prior residence;
(3) The payment to adirector or officer of any such insurer who is a licensed attorney‑at‑lawof fees in connection with loans made by the insurer if and when the fees arepaid by the borrower and do not constitute a charge against the insurer;
(4) An insurer frommaking a loan upon a policy held therein by the borrower not in excess of thepolicy's net value; or
(5) Subject to G.S. 58‑19‑30and G.S. 58‑7‑163, an insurer from advancing funds to directors,officers, or controlling stockholders, for expenses reasonably expected to beincurred in the ordinary course of the insurer's business, as authorized orapproved by the insurer's board of directors or by individuals authorized bythe board and charged with the supervision or making of the advances. (1991, c. 681, s. 29; 2001‑223,ss. 8.15, 8.16; 2007‑127, s. 8.)
(a) The transactionsspecified in subsections (b) through (e) of this section are expressly allowedor prohibited as provided in this section and to the extent they are not inconflict with other provisions of this Chapter.
(b) An insurer mayengage in derivative transactions under the provisions and limitations of G.S.58‑7‑205.
(c) No insurer shalldirectly or indirectly invest in, or lend its funds to, any of its directors,officers, controlling stockholders, or any other person in which an officer,director, or controlling stockholder is substantially interested, nor shall anydirector, officer, or controlling stockholder directly or indirectly accept thefunds.
(d) No director,officer, or controlling stockholder of any insurer shall receive any money orvaluable thing, either directly or indirectly or through any substantialinterest in any other person, for negotiating, procuring, recommending, oraiding in any purchase or sale of property or loan from the insurer; or bemonetarily interested either as principal, corporation, agent, or beneficiary,in any such purchase, sale, or loan; and no financial obligation of any suchdirector, officer, or stockholder shall be guaranteed by the insurer."Substantial interest in any other person" means an interestequivalent to ownership or control by a director, officer, or controllingstockholder or the aggregate ownership or control by all directors, officers,and controlling stockholders of the same insurer of those percentages or moreof the stock of the person, as defined under "control" in G.S. 58‑19‑5(2).
(e) Nothing in thissection prohibits:
(1) A director orofficer of any insurer from receiving the usual salary, compensation, oremoluments for services rendered in the ordinary course of that person's dutiesas a director or officer, if the salary, compensation, or emolument isauthorized by vote of the board of directors of the insurer;
(2) Any insurer inconnection with the relocation of the place of employment of an officer,including any relocation in connection with the initial employment of theofficer, from (i) making, or the officer from accepting therefrom, a mortgageloan to the officer on real property owned by the officer that is to serve asthe officer's residence or (ii) acquiring, or the officer from selling thereto,at not more than its fair market value, the officer's prior residence;
(3) The payment to adirector or officer of any such insurer who is a licensed attorney‑at‑lawof fees in connection with loans made by the insurer if and when the fees arepaid by the borrower and do not constitute a charge against the insurer;
(4) An insurer frommaking a loan upon a policy held therein by the borrower not in excess of thepolicy's net value; or
(5) Subject to G.S. 58‑19‑30and G.S. 58‑7‑163, an insurer from advancing funds to directors,officers, or controlling stockholders, for expenses reasonably expected to beincurred in the ordinary course of the insurer's business, as authorized orapproved by the insurer's board of directors or by individuals authorized bythe board and charged with the supervision or making of the advances. (1991, c. 681, s. 29; 2001‑223,ss. 8.15, 8.16; 2007‑127, s. 8.)
(a) The transactionsspecified in subsections (b) through (e) of this section are expressly allowedor prohibited as provided in this section and to the extent they are not inconflict with other provisions of this Chapter.
(b) An insurer mayengage in derivative transactions under the provisions and limitations of G.S.58‑7‑205.
(c) No insurer shalldirectly or indirectly invest in, or lend its funds to, any of its directors,officers, controlling stockholders, or any other person in which an officer,director, or controlling stockholder is substantially interested, nor shall anydirector, officer, or controlling stockholder directly or indirectly accept thefunds.
(d) No director,officer, or controlling stockholder of any insurer shall receive any money orvaluable thing, either directly or indirectly or through any substantialinterest in any other person, for negotiating, procuring, recommending, oraiding in any purchase or sale of property or loan from the insurer; or bemonetarily interested either as principal, corporation, agent, or beneficiary,in any such purchase, sale, or loan; and no financial obligation of any suchdirector, officer, or stockholder shall be guaranteed by the insurer."Substantial interest in any other person" means an interestequivalent to ownership or control by a director, officer, or controllingstockholder or the aggregate ownership or control by all directors, officers,and controlling stockholders of the same insurer of those percentages or moreof the stock of the person, as defined under "control" in G.S. 58‑19‑5(2).
(e) Nothing in thissection prohibits:
(1) A director orofficer of any insurer from receiving the usual salary, compensation, oremoluments for services rendered in the ordinary course of that person's dutiesas a director or officer, if the salary, compensation, or emolument isauthorized by vote of the board of directors of the insurer;
(2) Any insurer inconnection with the relocation of the place of employment of an officer,including any relocation in connection with the initial employment of theofficer, from (i) making, or the officer from accepting therefrom, a mortgageloan to the officer on real property owned by the officer that is to serve asthe officer's residence or (ii) acquiring, or the officer from selling thereto,at not more than its fair market value, the officer's prior residence;
(3) The payment to adirector or officer of any such insurer who is a licensed attorney‑at‑lawof fees in connection with loans made by the insurer if and when the fees arepaid by the borrower and do not constitute a charge against the insurer;
(4) An insurer frommaking a loan upon a policy held therein by the borrower not in excess of thepolicy's net value; or
(5) Subject to G.S. 58‑19‑30and G.S. 58‑7‑163, an insurer from advancing funds to directors,officers, or controlling stockholders, for expenses reasonably expected to beincurred in the ordinary course of the insurer's business, as authorized orapproved by the insurer's board of directors or by individuals authorized bythe board and charged with the supervision or making of the advances. (1991, c. 681, s. 29; 2001‑223,ss. 8.15, 8.16; 2007‑127, s. 8.)
