§ 58-11-20. Deposits and advance assessments required. - North Carolina Statutes

§58‑11‑20.  Deposits and advance assessments required.

Every domestic insurancecompany, association, order, or fraternal benefit society doing business on theassessment plan shall collect and keep at all times in its treasury one regularloss assessment sufficient to pay one regular average loss; and no suchcompany, association, order, or fraternal benefit society shall be licensed bythe Commissioner unless it makes and maintains with him for the protection ofits obligations at least five thousand dollars ($5,000) in United States orNorth Carolina bonds, in farm loan bonds issued by federal loan banks, or inthe bonds of some city, county, or town of North Carolina to be approved by theCommissioner, or deposit with him a good and sufficient bond , secured by adeed of trust on real estate situated in North Carolina and approved by him, orby depositing with the Commissioner a bond in an amount of not less than fivethousand dollars ($5,000), issued by any corporate surety company authorized todo business in this State.  The Commissioner may increase the amount of depositto the amount of reserve on the contracts of the association or society.  Theprovisions of this section shall not apply to the farmers mutual fire insuranceassociations now doing business in the State and restricting their activitiesto not more than six adjacent counties. (Rev., s. 4792; 1913, c. 119,s. 1; 1917, c. 191, s. 2; C.S., s. 6360; 1933, c. 47; 1945, c. 386; 1991, c.720, ss. 4, 87.)