Identical to S 269, and filed on 3/12/25.

Makes the following changes to Article 48 (concerning the Postassessment Insurance Guaranty Association [Association]) of GS Chapter 58.

Clarifies, in GS 58-48-10 (scope of Article), that coverages like warranties or service contracts that are set forth in a cybersecurity insurance policy are covered by the Article. Clarifies that the defined term covered claim includes claim obligations that arose through the issuance of an insurance policy by a member insurer, which are later allocated, transferred, merged into, novated, assumed by, or otherwise made the sole responsibility of a member or nonmember insurer if the four described conditions are met. Adds defined term cybersecurity insurance.

Modifies the Association’s powers/duties under GS 58-48-35 as follows. Limits the Association’s obligations to $500,000 in paying all first and third-party claims under a policy or endorsement providing cybersecurity insurance coverage arising out of a single insured event, as described. Removes Association’s right to review settlements and other described documents to determine the extent to which those documents may be properly contested as part of its authority to pay and deny covered claims. Authorizes the Association to: (1) appoint, substitute, and direct legal counsel for the defense of covered claims and appoint and direct other service providers for covered services and (2) establish priority of payment. Grants the Association the right to review and contest settlements, releases, compromises, waivers, and judgments to which the insolvent insurer or its insureds were parties prior to the entry of the order of liquidation, subject to the four described conditions.

Modifies the net worth requirement under GS 58-48-50 (effect of paid claims) so that the Association can only recover the described covered claim against an insured whose net worth exceeds $50 million in the year before the insured becomes insolvent so long as the insured’s net worth on that date is deemed to include the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated  basis.

Removes provisions pertaining to reopening of default provisions under GS 58-48-65, and makes conforming changes to statute's title.