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:
"(3) Individual self‑insurers
that have defaulted on the payment of
its their 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:
"(b3) 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
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