(a) No employer shallself‑insure its workers' compensation liabilities under the Act unless itis licensed by the Commissioner under this Article. This subsection does notapply to an employer authorized to self‑insure its workers' compensationliabilities under the Act prior to December 1, 1997, whose authority to self‑insureits workers' compensation liabilities under the Act has not terminated afterthat date.
(b) An applicant for alicense as a self‑insurer shall file with the Commissioner theinformation required by subsection (d) of this section on a form prescribed bythe Commissioner at least 90 days before the proposed licensing date. Noapplication is complete until the Commissioner has received all requiredinformation. A copy of the application must also be filed with the NorthCarolina Self‑Insurance Security Association at least 90 days before theproposed licensing date.
(c) Only an applicantwhose total fixed assets amount to five hundred thousand dollars ($500,000) ormore may apply for a license. In judging the applicant's financial strength andliquidity relative to its ability to comply with the Act, the Commissionershall consider all of the following relative to the applicant:
(1) Organizationalstructure and management.
(2) Financial strength.
(3) Source andreliability of financial information.
(4) Risks to beretained.
(5) Workers'compensation loss history.
(6) Number of employees.
(7) Claimsadministration.
(8) Excess insurance.
(9) Access to excessinsurance.
(d) The licenseapplication shall be comprised of the following information:
(1) Applicant name;organizational structure of the applicant, including any controlling entity,subsidiaries, or affiliates; location of principal office; contact person;organization date; type of operations within this State; management background;and addresses of all plants or offices in this State.
(2) Certified auditedfinancial statements prepared by a CPA or submitted by a foreign registeredpublic accounting firm for the two most recent years. The financial statementpresentation shall facilitate application of ratio and trend analysis.
(3) Evidence of theinsurance required by G.S. 97‑190.
(4) Repealed by SessionLaws 1999‑132, s. 13.7, effective June 4, 1999.
(5) For applicants with20 or more full‑time employees, a certificate or other evidence of safetyinspection, satisfactory to the Commissioner, that certifies that all safetyrequirements of the Department of Labor have been met.
(6) Summary of workers'compensation benefits paid for the last three calendar years and the totalliability for all open claims within 30 days or some other period acceptable tothe Commissioner not to exceed 90 days, before the filing of the application.
(7) Summary, by riskclassification, of annual payroll and number of employees within the State.
(8) Repealed by SessionLaws 2005‑400, s. 10, effective January 1, 2006.
(9) Proof of compliancewith the claims administration provisions of Article 47 of Chapter 58 of theGeneral Statutes.
(10) A letter of approvalfor membership by the North Carolina Self‑Insurance Security Association.
(e) Every applicantshall execute and file with the Commissioner an agreement, as part of theapplication, in which the applicant agrees to participate in the AssociationAggregate Security System, or if excluded from the Association AggregateSecurity System, to deposit with the Commissioner pursuant to G.S. 97‑185cash, acceptable securities, an irrevocable letter of credit in a formacceptable to the Commissioner issued by a bank acceptable to the Commissioner,or a surety bond issued by a corporate surety, or a combination thereof, thatwill guarantee the applicant's compliance with this Article and the Act. (1997‑362, s. 4; 1999‑132,ss. 13.6, 13.7; 2003‑212, s. 25; 2005‑400, s. 10; 2009‑172,s. 6.)
(a) No employer shallself‑insure its workers' compensation liabilities under the Act unless itis licensed by the Commissioner under this Article. This subsection does notapply to an employer authorized to self‑insure its workers' compensationliabilities under the Act prior to December 1, 1997, whose authority to self‑insureits workers' compensation liabilities under the Act has not terminated afterthat date.
(b) An applicant for alicense as a self‑insurer shall file with the Commissioner theinformation required by subsection (d) of this section on a form prescribed bythe Commissioner at least 90 days before the proposed licensing date. Noapplication is complete until the Commissioner has received all requiredinformation. A copy of the application must also be filed with the NorthCarolina Self‑Insurance Security Association at least 90 days before theproposed licensing date.
(c) Only an applicantwhose total fixed assets amount to five hundred thousand dollars ($500,000) ormore may apply for a license. In judging the applicant's financial strength andliquidity relative to its ability to comply with the Act, the Commissionershall consider all of the following relative to the applicant:
(1) Organizationalstructure and management.
(2) Financial strength.
(3) Source andreliability of financial information.
(4) Risks to beretained.
(5) Workers'compensation loss history.
(6) Number of employees.
(7) Claimsadministration.
(8) Excess insurance.
(9) Access to excessinsurance.
(d) The licenseapplication shall be comprised of the following information:
(1) Applicant name;organizational structure of the applicant, including any controlling entity,subsidiaries, or affiliates; location of principal office; contact person;organization date; type of operations within this State; management background;and addresses of all plants or offices in this State.
(2) Certified auditedfinancial statements prepared by a CPA or submitted by a foreign registeredpublic accounting firm for the two most recent years. The financial statementpresentation shall facilitate application of ratio and trend analysis.
(3) Evidence of theinsurance required by G.S. 97‑190.
(4) Repealed by SessionLaws 1999‑132, s. 13.7, effective June 4, 1999.
(5) For applicants with20 or more full‑time employees, a certificate or other evidence of safetyinspection, satisfactory to the Commissioner, that certifies that all safetyrequirements of the Department of Labor have been met.
(6) Summary of workers'compensation benefits paid for the last three calendar years and the totalliability for all open claims within 30 days or some other period acceptable tothe Commissioner not to exceed 90 days, before the filing of the application.
(7) Summary, by riskclassification, of annual payroll and number of employees within the State.
(8) Repealed by SessionLaws 2005‑400, s. 10, effective January 1, 2006.
(9) Proof of compliancewith the claims administration provisions of Article 47 of Chapter 58 of theGeneral Statutes.
(10) A letter of approvalfor membership by the North Carolina Self‑Insurance Security Association.
(e) Every applicantshall execute and file with the Commissioner an agreement, as part of theapplication, in which the applicant agrees to participate in the AssociationAggregate Security System, or if excluded from the Association AggregateSecurity System, to deposit with the Commissioner pursuant to G.S. 97‑185cash, acceptable securities, an irrevocable letter of credit in a formacceptable to the Commissioner issued by a bank acceptable to the Commissioner,or a surety bond issued by a corporate surety, or a combination thereof, thatwill guarantee the applicant's compliance with this Article and the Act. (1997‑362, s. 4; 1999‑132,ss. 13.6, 13.7; 2003‑212, s. 25; 2005‑400, s. 10; 2009‑172,s. 6.)
(a) No employer shallself‑insure its workers' compensation liabilities under the Act unless itis licensed by the Commissioner under this Article. This subsection does notapply to an employer authorized to self‑insure its workers' compensationliabilities under the Act prior to December 1, 1997, whose authority to self‑insureits workers' compensation liabilities under the Act has not terminated afterthat date.
(b) An applicant for alicense as a self‑insurer shall file with the Commissioner theinformation required by subsection (d) of this section on a form prescribed bythe Commissioner at least 90 days before the proposed licensing date. Noapplication is complete until the Commissioner has received all requiredinformation. A copy of the application must also be filed with the NorthCarolina Self‑Insurance Security Association at least 90 days before theproposed licensing date.
(c) Only an applicantwhose total fixed assets amount to five hundred thousand dollars ($500,000) ormore may apply for a license. In judging the applicant's financial strength andliquidity relative to its ability to comply with the Act, the Commissionershall consider all of the following relative to the applicant:
(1) Organizationalstructure and management.
(2) Financial strength.
(3) Source andreliability of financial information.
(4) Risks to beretained.
(5) Workers'compensation loss history.
(6) Number of employees.
(7) Claimsadministration.
(8) Excess insurance.
(9) Access to excessinsurance.
(d) The licenseapplication shall be comprised of the following information:
(1) Applicant name;organizational structure of the applicant, including any controlling entity,subsidiaries, or affiliates; location of principal office; contact person;organization date; type of operations within this State; management background;and addresses of all plants or offices in this State.
(2) Certified auditedfinancial statements prepared by a CPA or submitted by a foreign registeredpublic accounting firm for the two most recent years. The financial statementpresentation shall facilitate application of ratio and trend analysis.
(3) Evidence of theinsurance required by G.S. 97‑190.
(4) Repealed by SessionLaws 1999‑132, s. 13.7, effective June 4, 1999.
(5) For applicants with20 or more full‑time employees, a certificate or other evidence of safetyinspection, satisfactory to the Commissioner, that certifies that all safetyrequirements of the Department of Labor have been met.
(6) Summary of workers'compensation benefits paid for the last three calendar years and the totalliability for all open claims within 30 days or some other period acceptable tothe Commissioner not to exceed 90 days, before the filing of the application.
(7) Summary, by riskclassification, of annual payroll and number of employees within the State.
(8) Repealed by SessionLaws 2005‑400, s. 10, effective January 1, 2006.
(9) Proof of compliancewith the claims administration provisions of Article 47 of Chapter 58 of theGeneral Statutes.
(10) A letter of approvalfor membership by the North Carolina Self‑Insurance Security Association.
(e) Every applicantshall execute and file with the Commissioner an agreement, as part of theapplication, in which the applicant agrees to participate in the AssociationAggregate Security System, or if excluded from the Association AggregateSecurity System, to deposit with the Commissioner pursuant to G.S. 97‑185cash, acceptable securities, an irrevocable letter of credit in a formacceptable to the Commissioner issued by a bank acceptable to the Commissioner,or a surety bond issued by a corporate surety, or a combination thereof, thatwill guarantee the applicant's compliance with this Article and the Act. (1997‑362, s. 4; 1999‑132,ss. 13.6, 13.7; 2003‑212, s. 25; 2005‑400, s. 10; 2009‑172,s. 6.)
