House committee substitute makes the following changes to 3rd edition. Deletes proposed GS 58-21-3, which authorized the Commissioner of Insurance (Commissioner) to enter into a cooperative agreement or interstate agreement or compact for specified purposes. Amends GS 58-21-10 to delete the definition for the term reciprocal state.
Provides that the provisions of Article 21 of GS Chapter 58 apply to transactions in which North Carolina is the home state of the insured. Deletes the provision in subsection (f) of GS 58-21-65 that provides criteria to be met to allow a person licensed as a surplus lines licensee in a state bordering North Carolina to be licensed as a surplus licensee under Article 21 of GS Chapter 58; states only that a nonresident surplus lines licensee will be licensed in accordance with Article 33 of GS Chapter 58.
Amends GS 58-21-85 (Surplus lines tax) to clarify that gross premiums charged, minus any return premiums, for surplus lines insurance on an insured whose home state is North Carolina are subject to a premium receipts tax of 5%. Provides that any premium tax collected is to be retained by this state when portions of the properties, risks, or exposures reside in other states that have not entered into a compact or reciprocal allocation procedure with North Carolina.