AN ACT TO MAKE CLARIFYING, CONFORMING, AND OTHER CHANGES TO THE NORTH CAROLINA LIFE AND HEALTH INSURANCE GUARANTY ASSOCIATION ACT. Enacted June 19, 2013. Effective July 1, 2013.
Summary date: Jun 24 2013 - View summary
Bill H 650 (2013-2014)Summary date: Apr 10 2013 - View summary
Amends GS 58-62-21 (Coverage and limitations), providing that this Article does not provide coverage for any part of a policy where the rate of interest on which it is based, the interest rate, crediting rate, or other factor determined by the use of an index or other external reference stated in the policy or contract and employed in calculating returns or changes in value is averaged in certain specified ways, including when the rate of interest exceeds certain national averages.
Also adds that this Article does not cover policies or contracts providing certain benefits pursuant to what is commonly known as Medicare Parts C and D or portions of a policy or contract to the extent it provides for interest or other changes in values determined by using an index or external reference which have not been credited to the policy or contract as of the date the member insurer becomes an impaired or insolvent insurer. Provides that the benefits for which the Guaranty Association (Association) is liable does not exceed the lesser of specified amounts, or with respect to health insurance benefits for any one individual, (1) $300,000 for coverage not defined as basic hospital, medical, and surgical insurance or major medical insurance, including disability insurance and long-term care insurance or (2) $500,000 for basic hospital, medical, and surgical insurance or major medical insurance. Provides that the Association will never be obligated to cover more than an aggregate of $300,000 in benefits with respect to any one individual under GS 58-62-21(d)(2), (d)(3), and (d)(2a)a, except with respect to benefits for basic hospital, medical, and surgical and major medical insurance under GS 58-62-21 (2a)b, which sets the aggregate liability limit at $500,000.
Amends GS 58-62-36 (Powers and duties of the Association), deleting GS 58-62-36(b) and (c), which details the acts the Association can take in regards to member impaired insurers. Provides that the Association, in the course of guaranteeing, assuming, or reinsuring policies or contracts for impaired insurers under subsections (a) and (d), can issue substitute coverage for a policy or contract that provides an interest rate, crediting rate, or similar factor determined by use of an index or other external references stated in the policy or contract employed in calculating returns or changes in value by issuing an alternative policy or contract in accordance with specified provisions.
Amends GS 58-62-41 (Assessments), establishing that the amount of any Class A assessment can be prorated. If prorated, the assessment cannot exceed $500 (previously, could not exceed $150) per member insurer in any one calendar year.
Effective July 1, 2013.
Bill H 650 (2013-2014)Summary date: Apr 9 2013 - View summary
To be summarized at a later date.