North Carolina § 58-40-1 - Purposes.

§ 58-40-1. Purposes.

The purposes of this Article are To promote the public welfare by regulating rates to the end that they shall not be excessive, inadequate, or unfairly discriminatory; To authorize the existence and operation of qualified statistical organizations and require that specified services of the organizations be generally available to all admitted insurers; 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; 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 To encourage the most efficient and economic marketing practices. History (1977, c. 828, s. 2; 2005-210, s. 2.) Cross References. - As to the North Carolina Rate Bureau, see G.S. 58-36-1 et seq. Editor's Note. - Session Laws 2009-472, s. 8, provides: "The Legislative Research Commission may study the need for changes in the composition of the Board of Directors of the North Carolina Insurance Association and the method of selection of Board members. The Commission also may study the adequacy of public participation in the filing of rates for property insurance by the North Carolina Rate Bureau, the North Carolina Insurance Underwriting Association, and the North Carolina Joint Underwriting Association and the approval of those rates by the Commissioner, including the time limits for approval or disapproval by the Commissioner of rate filings. In its study, the Commission may examine the feasibility of establishing a permanent public advocacy staff to participate and advocate in rate-making proceedings under Articles 36, 45, and 46 of Chapter 58 of the General Statutes. "The Legislative Research Commission may make an interim report to the 2009 General Assembly, 2010 Regular Session and shall submit a final report to the 2011 General Assembly." Effect of Amendments. - Session Laws 2005-210, s. 2, effective October 1, 2005, substituted "statistical" for "rating organizations and advisory," deleted "rating" preceding "services" and substituted "the" for "such rating" in subdivision (2). Legal Periodicals. - For a survey of 1977 law on insurance, see 56 N.C.L. Rev. 1084 (1978).