GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2005-210
HOUSE BILL 733
AN ACT to provide for the licensing of statistical organizations by the department of insurance.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58-2-190 reads as rewritten:
"§ 58-2-190. Commissioner may require special reports.
The Commissioner may also address to any authorized insurer, rating
organization, advisory organization, statistical organization, joint
underwriting or joint reinsurance organization, or the North Carolina Rate
Bureau or Motor Vehicle Reinsurance Facility, or its officers any inquiry in
relation to its transactions or condition or any matter connected therewith.
Every corporation or person so addressed shall reply in writing to such the
inquiry promptly and truthfully, and such the reply shall be
verified, if required by the Commissioner, by such individual, or by such
officer or officers of a corporation, as he shall designate."
SECTION 2. G.S. 58-40-1 reads as rewritten:
"§ 58-40-1. Purposes.
The purposes of this Article are
(1) To promote the public welfare by regulating rates to the end that they shall not be excessive, inadequate, or unfairly discriminatory;
(2) To authorize the
existence and operation of qualified rating organizations and advisory statistical
organizations and require that specified rating services of such
rating the organizations be generally available to all admitted
insurers;
(3) To encourage, as the most effective way to produce rates that conform to the standards of subsection (1) of this section, independent action by and reasonable price competition among insurers;
(4) To authorize cooperative action among insurers in the rate-making process, and to regulate such cooperation in order to prevent practices that tend to bring about monopoly or to lessen or destroy competition; and
(5) To encourage the most efficient and economic marketing practices."
SECTION 3. G.S. 58-40-5 reads as rewritten:
"§ 58-40-5. Definitions.
As used in this Article:
(1) "Advisory
organization" means every person, other than an admitted insurer, whether
located within or outside this State, who prepares policy forms or makes
underwriting rules incident to but not including the making of rates, or rating
plans or rating systems, or which collects and furnishes to admitted insurers
or rating organizations loss or expense statistics or other statistical
information and data and acts in an advisory, as distinguished from a rate-making,
capacity. No duly authorized attorney-at-law acting in the usual course of his
profession shall be deemed to be an advisory organization.
(2) Repealed by Session Laws 1991, c. 720, s. 6.
(3) "Inland marine insurance" shall be deemed to include insurance now or hereafter defined by statute, or by interpretation thereof, or if not so defined or interpreted, by ruling of the Commissioner or as established by general custom of the business, as inland marine insurance.
(4) "Member,"
unless otherwise apparent from the context, means an insurer who participates
in or is entitled to participate in the management of a rating, advisory or
other statistical organization.
(5) "Rating
organization" means every person, other than an admitted insurer, whether
located within or outside this State, who has as his object or purpose the
making of rates, rating plans, or rating systems. Two or more insurers which
act in concert for the purpose of making rates, rating plans, or rating
systems, and which do not operate within the specific authorizations contained
in G.S. 58-40-60, 58-40-65, 58-40-70 and 58-40-75, shall be deemed to be a
rating organization. No single insurer shall be deemed to be a rating
organization.
(5a) "Statistical organization" means every person, other than an admitted insurer, whether located within or outside this State, who performs one or more of the following functions:
a. Prepares policy forms or makes underwriting rules incident to, but not including, the making of rates, or rating plans or rating systems.
b. Collects and furnishes to admitted insurers or statistical organizations loss or expense statistics or other statistical information and data and acts in an advisory rather than a rate-making capacity. No duly authorized attorney-at-law acting in the usual course of his profession shall be deemed to be a statistical organization.
c. Makes rates, rating plans or rating systems, or develops loss costs. Two or more insurers that act in concert for the purpose of making rates, rating plans or rating systems, or developing loss costs and that do not operate within the specific authorizations contained in G.S. 58-40-60, 58-40-65, 58-40-70, and 58-40-75 shall be deemed to be a statistical organization.
d. Collects data and statistics from insurers and provides reports from these statistics to the Commissioner for the purpose of fulfilling the statistical reporting obligations of those insurers.
(5b) "Statistical plan" means the document used by a statistical organization to set forth which data elements are to be reported to the statistical organization and to describe the format in which the data must be reported.
(6)
"Subscriber," unless otherwise apparent from the context, means an
insurer which is furnished at its request (i) with rates and rating manuals by
a rating statistical organization of which it is not a member, or
(ii) with advisory services by an advisory a statistical
organization of which it is not a member.
(7) "Willful" means in relation to an act or omission which constitutes a violation of this Article with actual knowledge or belief that such act or omission constitutes such violation and with specific intent to commit such violation.
(8), (9) Repealed by Session Laws 1987, c. 864, s. 66."
SECTION 4. G.S. 58-40-30(a) reads as rewritten:
"(a) With the exception of
inland marine insurance that is not written according to manual rates and
rating plans, every admitted insurer and every licensed rating statistical
organization, which has been designated by any insurer for the filing of rates
under G.S. 58-40-40, shall file with the Commissioner all rates and all
changes and amendments thereto made by it for use in this State prior to the
time they become effective."
SECTION 5. G.S. 58-40-40 reads as rewritten:
"§ 58-40-40. Delegation of rate making and rate filing obligation.
(a) An insurer may itself
establish rates based on the factors in G.S. 58-40-25 or it may use rates
prepared by a rating statistical organization, with average
expense factors determined by the rating statistical
organization or with such modification for its own expense and loss experience
as the credibility of that experience allows.
(b) An insurer may
discharge its obligation under G.S. 58-40-30 by giving notice to the
Commissioner that it uses rates prepared by a designated rating statistical
organization, with such information about modifications thereof as are
necessary to fully inform the Commissioner. The insurer's rates shall be those
filed from time to time by the rating statistical organization,
including any amendments thereto as filed, subject, however, to the
modifications filed by the insurer."
SECTION 6. G.S. 58-40-45(c) reads as rewritten:
"(c) No person shall
willfully withhold information required by this Article from or knowingly
furnish false or misleading information to the Commissioner, any statistical agency
organization designated by the Commissioner, any rating or
advisory organization, or any insurer, which information will affect the
rates, rating plans, loss costs, classifications, or policy forms
subject to this Article."
SECTION 7. G.S. 58-40-50 reads as rewritten:
"§ 58-40-50.
Rating Statistical organizations.
(a) No rating statistical
organization shall provide any service relating to rates subject to this
Article conduct its operations in this State, and no insurer shall
utilize the service of such organization for such any purpose enumerated
in G.S. 58-40-5 unless the organization has obtained a license from
the Commissioner.
(b) No rating statistical
organization shall refuse to supply any services for which it is licensed in
this State to any insurer admitted to do business in this State and offering to
pay the fair and usual compensation for the services.
(c) A rating statistical
organization applying for a license shall include with its application:
(1) A copy of its
constitution, charter, articles of organization, agreement, association, or
incorporation, and a copy of its bylaws, plan of operation, and any other rules
or regulations governing the conduct of its business;business, all
duly certified by the custodian of the originals thereof;
(2) A list of its members and subscribers;
(3) The name and address of one or more residents of this State upon whom notices, process affecting it, or orders of the Commissioner may be served;
(4) A statement showing its technical qualifications for acting in the capacity for which it seeks a license; and
(5) Any other relevant information and documents that the Commissioner may require.
(d) If the Commissioner finds
determines that the applicant and the natural persons through whom
it acts are qualified to provide the services proposed, and that all
requirements of law are met, he shall issue a license specifying the authorized
activity of the applicant. He shall not issue a license if the proposed
activity would tend to create a monopoly or to lessen or to destroy price
competition. Licenses issued pursuant to this section shall remain in effect
until the licensee withdraws from the State or until the license is suspended
or revoked.
(e) Any change in or amendment to any document required to be filed under this section shall be promptly filed with the Commissioner.
(f) Every
rating organization providing services in this State on September 1, 1977, may
continue to provide services thereafter as a rating organization, subject to
the provisions of this Article and pending its application to the Commissioner
for a license to provide services as a rating organization, which application
shall be made within 30 days after September 1, 1977.
(g) Every statistical organization shall file a statistical plan with the Commissioner for approval for each line of insurance for which the organization requests to be licensed. The Commissioner may, in the Commissioner's discretion, modify the plan to collect additional types of data.
(h) No statistical organization shall engage in any unfair or unreasonable practice with respect to its activities."
SECTION 8. G.S. 58-40-55 is repealed.
SECTION 9. G.S. 58-40-65 reads as rewritten:
"§ 58-40-65. Insurers authorized to act in concert.
Subject to and in compliance with the provisions of Articles
1 through 64 of this Chapter authorizing insurers to be members or subscribers
of rating or advisory organizations statistical organizations or
to engage in joint underwriting or joint reinsurance, two or more insurers may
act in concert with each other and with others with respect to any matters
pertaining to the making of rates or rating systems, the preparation or making
of insurance policy or bond forms, underwriting rules, surveys, inspections and
investigations, the furnishing of loss or expense statistics or other
information and data, the creation, administration, or termination of a market
assistance program, or carrying on of research."
SECTION 10. G.S. 58-40-75 reads as rewritten:
"§ 58-40-75. Agreements to adhere.
No insurer shall assume any obligation to any person, other
than a policyholder or other insurers with which it is under common control or
management or is a member of a market assistance program or of a joint
underwriting or joint reinsurance organization, to use or adhere to certain
rates or rules; and no other person shall impose any penalty or other adverse
consequence for failure of an insurer to adhere to certain rates or rules. This
section does not apply to mandatory or voluntary risk sharing plans established
under Article 42 of this Chapter or apportionment agreements among insurers
approved by the Commissioner pursuant to G.S. 58-40-95. Provided, however,
that members and subscribers of rating or advisory statistical
organizations may use the rates, rating systems, underwriting rules, or policy
or bond forms of such organizations either consistently or intermittently. The
fact that two or more admitted insurers, whether or not members or subscribers
of a rating or advisory statistical organization, consistently or
intermittently use the rates or rating systems made or adopted by a rating statistical
organization, or the underwriting rules or policy or bond forms prepared by a rating
or advisory statistical organization, shall not be sufficient in
itself to support a finding that an agreement to so adhere exists, and it may
be used only for the purpose of supplementing or explaining direct evidence of
the existence of any such agreement."
SECTION 11. G.S. 58-40-80 reads as rewritten:
"§ 58-40-80.
Exchange of information or experience data; consultation with rating statistical
organizations and insurers.
Rating Statistical organizations licensed
pursuant to G.S. 58-40-50 and admitted insurers are authorized to exchange
information and experience data between and among themselves in this State and
with rating statistical organizations and insurers in other
states and may consult with them with respect to rate making and the
application of rating systems."
SECTION 12. G.S. 58-40-85 reads as rewritten:
"§ 58-40-85. Recording and reporting of experience.
The Commissioner shall promulgate or approve reasonable
rules, including rules providing statistical plans, for use thereafter by all
insurers in the recording and reporting of loss and expense experience, in
order that the experience of such insurers may be made available to him. No
insurer shall be required to record or report its experience on a
classification basis inconsistent with its own rating system. The
Commissioner may designate one or more rating statistical
organizations to assist him in gathering and making compilations of such
experience. All insurers, for lines of insurance that require data to be
reported, shall report their data to one of these designated statistical
organizations."
SECTION 13. G.S. 58-40-90 reads as rewritten:
"§ 58-40-90. Examination of rating, joint underwriting, and joint reinsurance organizations.
The Commissioner shall, at least once every three years, make
or cause to be made an examination of each rating statistical
organization licensed pursuant to G.S. 58-40-50 and each advisory
organization licensed pursuant to G.S. 58-40-55. G.S. 58-40-50.
The Commissioner may, as often as deemed expedient, make or cause to be made, an
examination of each group, association, or other organization referred to in
G.S. 58-40-60. This examination shall relate only to the activities
conducted pursuant to this Article and to the organizations licensed under this
Article. The officers, manager, agents and employees of any such organization
may be examined at any time under oath and shall exhibit all books, records,
accounts, documents or agreements governing its method of operation. In lieu of
any such examination, the Commissioner may accept the report of an examination
made by the insurance advisory official of another state, pursuant to the laws
of that state."
SECTION 14. G.S. 58-40-100 reads as rewritten:
"§ 58-40-100. Request for review of rate, rating plan, rating system or underwriting rule.
(a) Any person aggrieved
by any rate charged, rating plan, rating system, or underwriting rule followed
or adopted by an insurer or rating statistical organization may
request the insurer or rating organization to review the manner in which the
rate, plan, system, or rule has been applied with respect to insurance afforded
him. Such request may be made by his authorized representative, and shall be in
writing. If the request is not granted within 30 days after it is made, the
requestor may treat it as rejected. Any person aggrieved by the action of an
insurer or rating statistical organization in refusing the review
requested or in failing or refusing to grant all or part of the relief
requested, may file a written complaint and request for hearing with the
Commissioner, and shall specify the grounds relied upon. If the Commissioner
has information concerning a similar complaint he may deny the hearing. If the
Commissioner believes that probable cause for the complaint does not exist or
that the complaint is not made in good faith, he shall deny the hearing. If the
Commissioner finds that the complaint charges a violation of this Article and
that the complainant would be aggrieved if the violation is proven, he shall
proceed as provided in G.S. 58-2-50 or 58-2-70.
(b) Repealed by Session Laws 1985 (Regular Session, 1986), c. 1027, s. 15."
SECTION 15. G.S. 58-40-110 reads as rewritten:
"§ 58-40-110. Suspension of license.
(a) Repealed by Session Laws 1985, c. 666, s. 36.
(b) The Subject
to the requirements of this Article and of G.S. 58-2-70, the
Commissioner may suspend or revoke the license of any rating statistical
organization or insurer that or impose a monetary penalty against any
statistical organization or insurer where (i) the Commissioner has reason to
believe that any statistical organization or insurer has violated any provision
of this Chapter, or (ii) the statistical agent fails to comply with an
order of the Commissioner within the time limited by such order, or within any
extension thereof that the Commissioner may grant. The Commissioner shall not
suspend the license of any rating statistical organization
or insurer for failure to comply with an order until the time prescribed for an
appeal therefrom has expired or, if an appeal has been taken, until such the
order has been affirmed. The Commissioner may determine when a suspension of a
license shall become effective, and such the suspension shall
remain in effect for the period fixed by him unless he modifies or rescinds such
the suspension, or until the order upon which such the
suspension is based is modified, rescinded, or reversed.
(c) No license shall be
suspended or revoked, and no monetary penalty shall be imposed except
upon a written order of the Commissioner stating his findings, made after a
hearing held upon not less than 10 days' written notice to such the
person or organization, and specifying the alleged violation."
SECTION 16. G.S. 58-40-130 reads as rewritten:
"§ 58-40-130. Financial disclosure; rate modifications; reporting requirements.
(a) The Commissioner may require each insurer subject to this Article to report, on a form prescribed by the Commissioner, its loss and expense experience, investment income, administrative expenses, and other data that he may require, for kinds of insurance or classes of risks that he designates. These reports are in addition to financial or other statements required by Articles 1 through 64 of this Chapter.
(b) The Commissioner may
designate one or more rating organizations or advisory statistical
organizations to gather and compile the experience and data referred to in
subsection (a) of this section for their member companies.
(c) Whereas the provisions
enacted by the General Assembly in 1986 regarding modifications in North
Carolina civil law may have a prospective effect upon the loss experience of
insurers subject to this Article, the Commissioner is authorized to review each
company's rates by type of insurance that are in effect on and after January 1,
1987, and, when and where appropriate, require modification of such those
rates.
(d) Each insurer subject
to this Article shall record the experience and data referred to in subsection
(a) of this section arising from causes of action arising against its
insureds on and after January 1, 1987.section. Such experience and
data shall be reported to the Commissioner by March 31, 1988, which report
shall be on a form prescribed by the Commissioner reflecting such
experience and data for the one-year period beginning on January 1, 1987.
Subsequently, such experience and data shall be reported to the Commissioner by
March 31 of each year for each one-year period ending on December 31 of the
previous year.
(e) On or before July 1, 1988, and annually thereafter, the Commissioner shall report to the General Assembly the effects, if any, of changes in North Carolina civil law statutes on the experience of insurers subject to this section."
SECTION 17. G.S. 143B-472.96(b) reads as rewritten:
"(b) Rate Standards. - The
rate standards in G.S. 58-40-20 apply to premiums set by the Authority
under this section. The Authority may also use the forms and rates of rating
or advisory statistical organizations licensed under G.S. 58-40-50
or G.S. 58-40-55. G.S. 58-40-50. The Authority may vary
from these rates in order to broaden participation by small businesses that are
unable to obtain adequate financing and bonding assistance in connection with
contracts. The premiums set and forms developed by the Authority under this
section must be approved by the Commissioner of Insurance before they may be
used."
SECTION 18. Article 36 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-36-4. Statistical organizations; licensing; recording and reporting; examination; suspension of license; financial disclosure.
(a) For purposes of this Article:
(1) "Statistical organization" means every person, other than an admitted insurer, whether located within or outside this State, who performs one or more of the following functions:
a. Prepares policy forms or makes underwriting rules incident to, but not including, the making of rates, rating plans, or rating systems.
b. Collects and furnishes to admitted insurers or statistical organizations loss or expense statistics or other statistical information and data and acts in an advisory rather than a rate-making capacity. No duly authorized attorney-at-law acting in the usual course of that person's profession shall be deemed to be a statistical organization.
c. Makes rates, rating plans or rating systems, or develops loss costs. Two or more insurers that act in concert for the purpose of making rates, rating plans or rating systems, or developing loss costs and that do not operate within the specific authorizations contained in this Article shall be deemed to be a statistical organization.
d. Collects data and statistics from insurers and provides reports from these statistics to the Commissioner for the purpose of fulfilling the statistical reporting obligations of those insurers.
"Statistical organization" shall not mean the North Carolina Rate Bureau, the North Carolina Motor Vehicle Reinsurance Facility, the North Carolina Insurance Underwriting Association, or the North Carolina Joint Underwriting Association.
(2) "Statistical plan" means the document used by a statistical organization to set forth which data elements are to be reported to the statistical organization and to describe the format in which the data must be reported.
(b) No statistical organization shall conduct its operations in this State, and no insurer shall utilize the service of that organization for any purpose enumerated in this Article unless the organization has obtained a license from the Commissioner. No statistical organization shall refuse to supply any services for which it is licensed in this State to any insurer admitted to do business in this State and offering to pay the fair and usual compensation for the services. A statistical organization applying for a license shall include with its application:
(1) A copy of its constitution, charter, articles of organization, agreement, association, or incorporation, and a copy of its bylaws, plan of operation, and any other rules or regulations governing the conduct of its business, all duly certified by the custodian of the originals thereof;
(2) A list of its members and subscribers;
(3) The name and address of one or more residents of this State upon whom notices, process affecting it, or orders of the Commissioner may be served;
(4) A statement showing its technical qualifications for acting in the capacity for which it seeks a license; and
(5) Any other relevant information and documents that the Commissioner may require.
If the Commissioner determines that the applicant and the natural persons through whom it acts are qualified to provide the services proposed and that all requirements of law are met, the Commissioner shall issue a license specifying the authorized activity of the applicant. The Commissioner shall not issue a license if the proposed activity would tend to create a monopoly or to lessen or to destroy price competition. Licenses issued pursuant to this section shall remain in effect until the licensee withdraws from the State or until the license is suspended or revoked. Any change in or amendment to any document required to be filed under this section shall be promptly filed with the Commissioner. Every statistical organization shall file a statistical plan with the Commissioner for approval for each line of insurance for which the organization requests to be licensed. The Commissioner may, in the Commissioner's discretion, modify the plan to collect additional types of data. No statistical organization shall engage in any unfair or unreasonable practice with respect to its activities.
(c) Statistical organizations licensed pursuant to subsection (b) of this section and admitted insurers are authorized to exchange information and experience data between and among themselves in this State and with statistical organizations and insurers in other states and may consult with them with respect to rate making and the application of rating systems.
(d) The Commissioner shall adopt or approve reasonable rules, including rules providing statistical plans, for use thereafter by all insurers in the recording and reporting of loss and expense experience, in order that the experience of those insurers may be made available to the Commissioner. The Commissioner may designate one or more statistical organizations to assist him or her in gathering and making compilations of the experience. All insurers, for lines of insurance that require data to be reported, shall report their data to one of the designated statistical organizations.
(e) The Commissioner shall, at least once every three years, make or cause to be made an examination of each statistical organization licensed pursuant to subsection (b) of this section. This examination shall relate only to the activities conducted pursuant to this Article and to the organizations licensed under this Article. The officers, manager, agents, and employees of any statistical organization may be examined at any time under oath and shall exhibit all books, records, accounts, documents, or agreements governing its method of operation. In lieu of any examination, the Commissioner may accept the report of an examination made by the insurance advisory official of another state, pursuant to the laws of that state.
(f) Subject to the requirements of this Article and of G.S. 58-2-70, the Commissioner may suspend or revoke the license of any statistical organization or impose a monetary penalty against any statistical organization where (i) the Commissioner has reason to believe that any statistical organization has violated any provision of this Chapter, or (ii) the statistical organization fails to comply with an order of the Commissioner within the time limited by the order, or within any extension thereof that the Commissioner may grant. The Commissioner shall not suspend the license of any statistical organization for failure to comply with an order until the time prescribed for an appeal from the order has expired or, if an appeal has been taken, until the order has been affirmed. The Commissioner may determine when a suspension of a license shall become effective, and the suspension shall remain in effect for the period fixed by the Commissioner unless the Commissioner modifies or rescinds the suspension, or until the order upon which the suspension is based is modified, rescinded, or reversed. No license shall be suspended or revoked, and no monetary penalty shall be imposed except upon a written order of the Commissioner stating the Commissioner's findings, made after a hearing held upon not less than 10 days' written notice to the person or organization, and specifying the alleged violation."
SECTION 19. G.S. 58-37(l) reads as rewritten:
"(l) The
classifications, rules, rates, rating plans and policy forms used on motor
vehicle insurance policies reinsured by the Facility may be made by the
Facility or by any licensed or statutory rating statistical organization
or bureau on its behalf and shall be filed with the Commissioner. The Board of
Governors shall establish a separate subclassification within the Facility for
"clean risks". For the purpose of this Article, a "clean risk"
is any owner of a nonfleet private passenger motor vehicle as defined in
G.S. 58-40-10, if the owner, principal operator, and each licensed
operator in the owner's household have two years' driving experience as
licensed drivers and if none of the persons has been assigned any Safe Driver
Incentive Plan points under Article 36 of this Chapter during the three-year
period immediately preceding either (i) the date of application for a motor
vehicle insurance policy or (ii) the date of preparation of a renewal of a
motor vehicle insurance policy. The filings may incorporate by reference any
other material on file with the Commissioner. Rates shall be neither excessive,
inadequate nor unfairly discriminatory. If the Commissioner finds, after a
hearing, that a rate is either excessive, inadequate or unfairly
discriminatory, the Commissioner shall issue an order specifying in what
respect it is deficient and stating when, within a reasonable period
thereafter, the rate is no longer effective. The order is subject to judicial
review as set out in Article 2 of this Chapter. Pending judicial review of said
order, the filed classification plan and the filed rates may be used, charged
and collected in the same manner as set out in G.S. 58-40-45 of this
Chapter. The order shall not affect any contract or policy made or issued
before the expiration of the period set forth in the order. All rates shall be
on an actuarially sound basis and shall be calculated, insofar as is possible,
to produce neither a profit nor a loss. However, the rates made by or on behalf
of the Facility with respect to "clean risks" shall not exceed the
rates charged "clean risks" who are not reinsured in the Facility.
The difference between the actual rate charged and the actuarially sound and
self-supporting rates for "clean risks" reinsured in the Facility may
be recouped in similar manner as assessments under G.S. 58-37-40(f). Rates
shall not include any factor for underwriting profit on Facility business, but
shall provide an allowance for contingencies. There shall be a strong
presumption that the rates and premiums for the business of the Facility are
neither unreasonable nor excessive."
SECTION 20. G.S. 58-41-50(b) reads as rewritten:
"(b) With the exception of
inland marine insurance that is not written according to manual rates and
rating plans, all rates or prospective loss cost multipliers by licensed fire
and casualty companies or their designated rating statistical organizations
must be filed with the Commissioner at least 60 days before they may be used in
this State. Any filing may become effective on a date earlier than that
specified in this subsection upon agreement between the Commissioner and the
filer."
SECTION 21. G.S. 58-42-10(a) reads as rewritten:
"(a) Each plan shall require participation:
(1) By all insurers licensed in this State to write the kinds of insurance covered by the specific plan;
(2) By all agents licensed to represent those insurers for that kind of insurance; and
(3)
By every rating statistical organization that makes rates for
that kind of insurance."
SECTION 22. G.S. 58-42-25 reads as rewritten:
"§ 58-42-25. Basis for participation.
Each plan shall specify the basis for participation by
insurers, agents, rating statistical organizations, and other
participants and shall specify the conditions under which risks shall be
accepted and underwritten by the plan."
SECTION 23. This act becomes effective October 1, 2005.
In the General Assembly read three times and ratified this the 11th day of July, 2005.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 1:57 p.m. this 20th day of July, 2005