Bill Summary for S 321 (2011-2012)

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Summary date: 

Apr 14 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 321 (Public) Filed Thursday, March 10, 2011
TO CONFORM PROVISIONS OF NORTH CAROLINA SURPLUS LINES INSURANCE LAWS TO THE FEDERAL NONADMITTED AND REINSURANCE REFORM ACT OF 2010, TO STREAMLINE APPLICATIONS FOR COMMERCIAL PURCHASERS, AND TO PREVENT ANY LOSS OF PREMIUM TAX REVENUE TO THE STATE.
Intro. by Apodaca.

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Bill summary

Senate committee substitute makes the following changes to 1st edition.
Amends proposed GS 58-21-3 to add that the Commissioner of Insurance (Commissioner) is also authorized to enter into a cooperative agreement or interstate agreement or compact to facilitate the collection, allocation, and disbursement of premium taxes attributable to nonadmitted insurance, provide for uniform methods of allocation and reporting among nonadmitted insurance risk classifications, and share information relating to nonadmitted insurance premium taxes among states. Also authorizes the Commissioner to enter the NAIC Nonadmitted Insurance and Multi-State Agreement or other interstate agreement to carry out the Nonadmitted and Reinsurance Reform Act of 2010. Makes organizational changes.
Deletes sections amending GS 58-21-85, which required licensed persons to collect and pay the Commissioner 5% of the gross premiums charged for surplus lines insurance, and GS 58-28-5(b), which concerned multistate risks and premium taxes. Adds a section to amend the definition of risk retention group in GS 58-22-10(10) as follows: the term means any corporation or other limited liability association that, among other things, (1) is only owned by persons comprising the membership of the risk retention group and who receive insurance from the group or (2) is solely owned by an organization whose (a) only members comprise the risk retention group and (b) whose only owners comprise the risk retention group and receive insurance by the group (clarifies current language). Makes other clarifying changes.
Makes a conforming change to the bill title to reflect bill content.