North Carolina § 97-190 - Excess insurance.

§ 97-190. Excess insurance.

Every self-insurer, as a prerequisite for licensure under this Article, shall maintain specific and aggregate excess loss coverage through an insurance policy. A self-insurer shall maintain limits and retentions commensurate with its risk. A self-insurer's retention shall be the lowest retention suitable for the self-insurer's exposures and level of annual premium. The Commissioner may require different levels, or waive the requirement, of specific and aggregate excess loss coverage consistent with the market availability of excess loss coverage, the self-insurer's claims experience, and the self-insurer's or guarantor's financial condition. An excess insurance policy required by this section shall be issued by either an insurance company licensed in this State, a captive insurance company licensed in this State, or an eligible surplus lines insurer as defined in G.S. 58-21-10 and shall: Provide for at least 30 days' written notice of cancellation by registered or certified mail, return receipt requested, to the self-insurer and to the Commissioner. Be renewable automatically at its expiration, except upon 30 days' written notice of nonrenewal by certified mail, return receipt requested, to the self-insurer and to the Commissioner. Every self-insurer shall provide to the Commissioner evidence of coverage and any amendments within 30 days after their effective dates. Every self-insurer shall, at the request of the Commissioner, furnish copies of its excess insurance policies and amendments. History (1997-362, s. 4; 2005-400, s. 14; 2013-116, s. 5.) Editor's Note. - Session Laws 2013-116, s. 8, provides: "Nothing in this act shall be construed to obligate the General Assembly to appropriate funds to implement the provisions of this act. This act becomes effective July 1, 2013, if funds are appropriated for the 2013-2015 fiscal biennium to provide the Department with regulatory staff and resources to license and regulate captive insurance companies. If no funds are appropriated, then this act shall not become effective until July 1 of a year in which the General Assembly appropriates funds to implement it." Funds were appropriated for the 2013-2015 fiscal biennium during the 2013 Regular Session of the General Assembly. Effect of Amendments. - Session Laws 2005-400, s. 14, effective January 1, 2006, inserted "or guarantor's" preceding "financial condition" in subsection (a); and substituted "an insurance company licensed in this State or an eligible surplus lines insurer as defined in G.S. 58-21-10" for "a licensed insurance company or an approved surplus lines insurance company" in subsection (b). Session Laws 2013-116, s. 5, inserted ", a captive insurance company licensed in this State," in the introductory language of subsection (b). For effective date, see editor's note.