NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 418

SENATE BILL 572

 

 

AN ACT TO PROVIDE FOR THE EXPENDITURE OF INSURANCE COMPANY DEPOSITS FOR THE BENEFIT AND PROTECTION OF POLICYHOLDERS OF INSOLVENT LIFE AND ACCIDENT AND HEALTH INSURANCE COMPANIES.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Chapter 58 of the General Statutes is amended by adding a new section to read as follows:

"§ 58-155.84.  Use of deposits made by impaired insurer. — Notwithstanding any other provision of Chapter 58 of the General Statutes pertaining to the use of deposits made by insurance companies for the protection of policyholders, the commissioner shall deliver to the association, and the association is hereby authorized to expend, any deposit or deposits previously or hereinafter made, whether or not made pursuant to statute, by an insurer determined to be impaired under this Article to the extent those deposits are needed by the association to pay contractual obligations of that impaired insurer owed under covered policies as required by this Article, and to the extent those deposits are needed to pay all expenses of the association relating to the impaired insurer. The association shall account to the commissioner and the impaired insurer for all deposits received from the commissioner hereunder. After all of the deposits of the impaired insurer have been expended by the association for the purposes set out in this section, the member insurers shall be assessed as provided by this Article to pay any remaining liabilities of the association arising under this Article."

Sec. 2.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 19th day of April, 1979.