GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
SESSION LAW 2003-221
HOUSE BILL 270
AN ACT to make technical corrections to the insurance laws.
The General Assembly of North Carolina enacts:
SECTION 1. The introductory clause of Section 4 of S.L. 2002-144 reads as rewritten:
"SECTION 4. G.S. 143-10(a) G.S.
143-143.10(a) reads as rewritten:"
SECTION 2. G.S. 58-26-31(a) reads as rewritten:
"(a) Each domestic title
insurance company shall withdraw from use funds to be used by the Commissioner
in the event of the insurer's insolvency, the funds being equal to the
statutory premium reserve and the supplemental reserve pursuant to G.S. 58-26-25.
The amount shall be held in a trust account, as approved by the Commissioner.
The trust account will be held in favor of the holders of title policies in the
event of the insolvency of the insurer. insurer, and is not subject
to G.S. 41-15. Nothing in this section precludes the insurer from investing
the reserve in investments authorized by law for that insurer, and the income
from the invested reserve shall be included in the general income of the
insurer to be used by the insurer for any lawful purpose."
SECTION 3. G.S. 1-507.7 reads as rewritten:
"§ 1-507.7. Report on claims to court; exceptions and jury trial.
It is the duty of the receiver to report to the session of the superior court subsequent to a finding by him as to any claim against the corporation, and exceptions thereto may be filed by any person interested, within 10 days after notice of the finding by the receiver, and not later than within the first three days of the said term; and, if, on an exception so filed, a jury trial is demanded, it is the duty of the court to prepare a proper issue and submit it to a jury; and if the demand is not made in the exceptions to the report the right to a jury trial is waived. The judge may, in his discretion, extend the time for filing such exceptions. Provided, that no court shall issue any order of distribution or order of discharge of a receiver until said receiver has proved to the satisfaction of the court that written notice has been mailed to the last known address of every claimant who has properly filed claim with the receiver, to the effect that such orders will be applied for at a certain time and place therein set forth and by producing a receipt issued by the United States post office, showing that such notice has been mailed to each of such claimant's last known address at least 20 days prior to the time set for hearing and passing upon such application to the court for said orders of distribution and/or discharge.
As to delinquency proceedings for insurance companies under
Article 17A 30 of General Statutes Chapter 58, such prior notice
need be given only to those claimants whose presented claims have been denied
or have not been adjudicated; and notice is satisfied by mailing either a
general notice of application for distribution showing disposition of the
claims or a copy of the application to such claimants. Proof of mailing with
the United States Postal Service may be made by the receiver's certificate of
service without either the necessity of postal receipt or the listing of
individual claimants names and addresses."
SECTION 4. G.S. 1-339.1(8) reads as rewritten:
"(8) A sale made in the
course of liquidation of an insurance company pursuant to Article 17A 30
of Chapter 58 of the General Statutes, or".
SECTION 5. G.S. 58-33-133(c) reads as rewritten:
"(c) Fees collected by the
Commissioner under this section shall be credited to the Department of Insurance
Regulatory Fund created under G.S. 58-6-25."
SECTION 6. G.S. 143-138(g) reads as rewritten:
"(g) (Effective until June 30, 2003) Publication and Distribution of Code. - The Building Code Council shall cause to be printed, after adoption by the Council, the North Carolina State Building Code and each amendment thereto. It shall, at the State's expense, distribute copies of the Code and each amendment to State and local governmental officials, departments, agencies, and educational institutions, as is set out in the table below. (Those marked by an asterisk will receive copies only on written request to the Council.)
OFFICIAL OR AGENCY NUMBER OF COPIES
State Departments and Officials
Governor ............................................................................................................... 1
Lieutenant Governor............................................................................................. 1
Auditor .................................................................................................................. 1
Treasurer ............................................................................................................... 1
Secretary of State ................................................................................................. 1
Superintendent of Public Instruction .................................................................. 1
Attorney General (Library) ................................................................................. 1
Commissioner of Agriculture ............................................................................. 1
Commissioner of Labor ...................................................................................... 1
Commissioner of Insurance ................................................................................ 1
Department of Environment and Natural Resources ......................................... 1
Department of Health and Human Services ....................................................... 1
Department of Juvenile Justice and Delinquency Prevention........................... 1
Board of Transportation........................................................................................ 1
Utilities Commission .......................................................................................... 1
Department of Administration ............................................................................ 1
Clerk of the Supreme Court ................................................................................ 1
Clerk of the Court of Appeals ............................................................................. 1
Department of Cultural Resources [State Library]............................................ 1
Supreme Court Library ........................................................................................ 1
Legislative Library................................................................................................ 1
Office of Administrative Hearings ..................................................................... 1
Rules Review Commission.................................................................................. 1
Schools
All state-supported colleges and universities in the State of North
Carolina.................................................................................................... *1 each
Local Officials
Clerks of the Superior Courts.............................................................................. 1 each
Chief Building Inspector of each incorporated
municipality or county............................................................................... 1
In addition, the Building Code Council shall make additional
copies available at such price as it shall deem reasonable to members of the
general public. The proceeds from sales of the Building Code shall be credited
to the Department of Insurance Regulatory Fund under G.S. 58-6-25."
SECTION 7. G.S. 58-69-40 reads as rewritten:
"§ 58-69-40. Disposition of fees.
All fees collected by the Commissioner under this Article
shall be credited to the Department of Insurance Regulatory Fund
created under G.S. 58-6-25."
SECTION 8. G.S. 58-70-45 reads as rewritten:
"§ 58-70-45. Disposition of permit fees.
All permit fees collected under this Article shall be
credited to the Department of Insurance Regulatory Fund created
under G.S. 58-6-25."
SECTION 9. G.S. 58-71-180 reads as rewritten:
"§ 58-71-180. Disposition of fees.
Fees collected by the Commissioner pursuant to this Article
shall be credited to the Department of Insurance Regulatory Fund
created under G.S. 58-6-25."
SECTION 10. G.S. 143-151.21 reads as rewritten:
"§ 143-151.21. Disposition of fees.
Fees collected by the Commissioner under this Article shall
be credited to the Department of Insurance Regulatory Fund
created under G.S. 58-6-25."
SECTION 11. G.S. 58-85-30 reads as rewritten:
"§ 58-85-30. Treasurer to pay fund to Volunteer Firemen's Association.
(a) The treasurer
of the North Carolina State Firemen's Association shall pay to the treasurer of
the North Carolina State Volunteer Firemen's Association one sixth of the funds
arising from the five percent (5%) three percent (3%) paid him
the treasurer of the North Carolina State Firemen's Association by
the Insurance Commissioner each year to be used by said the
North Carolina State Volunteer Firemen's Association for the purposes set forth
in G.S. 58-84-35.
(b) Local units of
the North Carolina State Volunteer Firemen's Association shall maintain records
and report to the North Carolina State Firemen's Association in the same
manner and to the same extent as provided for in accordance with
G.S. 58-84-40, and shall be subject to the sanctions as set forth therein.in
G.S. 58-84-40."
SECTION 12. G.S. 58-51-80(c) reads as rewritten:
"(c) The term
"employees" as used in this section shall be deemed to include, for
the purposes of insurance hereunder, employees of a single employer, the
officers, managers, and employees of the employer and of subsidiary or
affiliated corporations of a corporation employer, and the individual
proprietors, partners, and employees of individuals and firms of which the
business is controlled by the insured employer through stock ownership, contract
or otherwise. Employees With the exception of disability income
insurance, employees shall be added to the group coverage no later than 90
days after their first day of employment. Employment shall be considered
continuous and not be considered broken except for unexcused absences from work
for reasons other than illness or injury. The term "employee" is
defined as a nonseasonal person who works on a full-time basis, with a normal
work week of 30 or more hours and who is otherwise eligible for coverage, but
does not include a person who works on a part-time, temporary, or substitute
basis. The term "employer" as used herein may be deemed to include
the State of North Carolina, any county, municipality or corporation, or the
proper officers, as such, of any unincorporated municipality or any department
or subdivision of the State, county, such corporation, or municipality
determined by conditions pertaining to the employment."
SECTION 13. G.S. 58-33-83 reads as rewritten:
"§ 58-33-83. Assumed names.
An insurance producer doing business under any name other
than the producer's legal name shall notify the Commission Commissioner
before using the assumed name."
SECTION 14. G.S. 58-30-200(c) reads as rewritten:
"(c) The liquidator shall
make his recommendations to the Court under G.S. 58-30-125, G.S.
58-30-225 for the allowance of an insured's claim under subsection (b) of
this section after consideration of the probable outcome of any pending action
against the insured on which the claim is based, the probable damages
recoverable in the action, and the probable costs and expenses of defense.
After allowance by the Court, the liquidator shall withhold any dividends
payable on the claim, pending the outcome of litigation and negotiation with
the insured. Whenever it seems appropriate, he shall reconsider the claim on
the basis of additional information and amend his recommendations to the Court.
The insured shall be afforded the same notice and opportunity to be heard on
all changes in the recommendation as in its initial determination. The Court
may amend its allowance as it thinks appropriate. As claims against the insured
are settled or barred, the insured shall be paid from the amount withheld the
same percentage dividend as was paid on other claims of like property, based on
the lesser of (i) the amount actually recovered from the insured by action or
paid by agreement plus the reasonable costs and expense of defense, or (ii) the
amount allowed on the claims by the Court. After all claims are settled or
barred, any sum remaining from the amount withheld shall revert to the
undistributed assets of the insurer. Delay in final payment under this
subsection shall not be a reason for unreasonable delay of final distribution
and discharge of the liquidator."
SECTION 15. G.S. 97-195(b)(4) is repealed.
SECTION 16. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 10th day of June, 2003.
s/ Marc Basnight
President Pro Tempore of the Senate
s/ Richard T. Morgan
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 12:42 p.m. this 19th day of June, 2003