GENERAL ASSEMBLY OF NORTH CAROLINA
SENATE BILL 893
AN ACT TO allow THE NORTH CAROLINA SELF-INSURANCE SECURITY ASSOCIATION to collect group self-insurer assessments; to exclude from participation in the association aggregate security system individual self-insurers that fail to submit certain financial information; and to adjust deposit requirements for all INDIVIDUAL SELF-INSURERS.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 97-133(a)(3a) is amended by adding a new sub-subdivision to read:
"f. Group assessments. - The Association may annually assess each member group self-insurer in an amount not to exceed two percent (2%) of the group self-insurer's annual gross premiums for the preceding calendar year, as determined under G.S. 105-228.5(b), (b1), and (c)."
SECTION 2. G.S. 97-185(a1)(3) reads as rewritten:
Individual self-insurers that have defaulted on the payment of
self-insured workers' compensation liabilities. liabilities from
participation in the Association Aggregate Security System."
SECTION 3. G.S. 97-185(a1) is amended by adding a new subdivision to read:
"(4) Individual self-insurers that fail to submit sufficient financial information to enable the Association to determine their total outstanding workers' compensation liabilities, or their creditworthiness, or both."
SECTION 4. G.S. 97-185(b3) reads as rewritten:
During any period of time that no Association Aggregate Security System is in
effect, individual self-insurers with a debt rating of BBB or better from
Standard & Poor's Rating Service, a division of McGraw Hill, Inc., or an
equivalent rating from another national rating agency shall deposit with the
Commissioner an amount not less than
twenty-five percent (25%) fifty
percent (50%) of the individual self-insurer's total undiscounted
outstanding claims liability per the most recent report from a qualified
actuary as required by G.S. 97-180(b), but not less than five hundred
thousand dollars ($500,000). An individual self-insurer licensed pursuant to
G.S. 97-177 may utilize the debt rating of its guarantor for the purpose
of establishing the application of this subsection. The Commissioner shall
consider and may, in the Commissioner's discretion, increase or reduce the
deposit to a greater or lesser percentage of the individual self-insurer's
claims liability based on the financial strength of the individual self-insurer
and other financial information submitted by the individual self-insurer. All
other individual self-insurers shall deposit with the Commissioner an amount
not less than one hundred percent (100%) of the individual self-insurer's total
undiscounted outstanding claims liability per the most recent report from a
qualified actuary as required by G.S. 97-180(b), but not less than five
hundred thousand dollars ($500,000), or such greater amount as the Commissioner
prescribes based on, but not limited to, the financial condition of the
individual self-insurer and the risk retained by the individual self-insurer."
SECTION 5. This act becomes effective July 1, 2009.
In the General Assembly read three times and ratified this the 25th day of June, 2009.
Walter H. Dalton
President of the Senate
Speaker of the House of Representatives
Beverly E. Perdue
Approved __________.m. this ______________ day of ___________________, 2009