AN ACT TO MAINTAIN NAIC ACCREDITATION OF THE DEPARTMENT OF INSURANCE BY MAKING REVISIONS TO THE LAWS GOVERNING INSURANCE COMPANY HOLDING SYSTEMS, RISK‑BASED CAPITAL REQUIREMENTS FOR LIFE INSURERS, AND CORPORATE GOVERNANCE REQUIREMENTS FOR RISK RETENTION GROUPS; AND TO MAKE CONFORMING AND CLARIFYING CHANGES TO THE LAWS GOVERNING MOTOR VEHICLE FINANCIAL RESPONSIBILITY AND AUTO AND HOMEOWNERS' INSURANCE OPTIONAL PROGRAM ENHANCEMENTS, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE.
House committee substitute makes the following changes to the 1st edition.
Amends the information that must be included in the registration statement for insurers under GS 58-19-25 to no longer require a statement that the insurer's board of directors is responsible for corporate governance and internal controls. Also amends the statute to reinstate language allowing the Commissioner of Insurance to disallow a disclaimer of affiliation only after providing all parties with notice and opportunity to be heard and after making specific findings of fact to support the disallowance.
Recodifies GS 58-19-30(b)(5) as GS 58-19-30(b)(6) instead of (b)(7).
Amends GS 58-19-30 to delete new (b)(6), which provided notice must be given to the Commissioner at least 30 days before a transaction concerning direct or indirect acquisitions or investment in a person that controls the insurer or in an affiliate of the insurer in an amount which, together with its present holdings in such investments, exceeds 2.5% of the insurer's surplus to policyholders.
Amends the act's long title.
© 2022 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.