§ 58-12-40. Supplemental provisions; rules; exemptions. - North Carolina Statutes

§ 58‑12‑40. Supplemental provisions; rules; exemptions.

(a)        The provisions ofthis Article are supplemental to any other provisions of the laws of thisState, and do not preclude or limit any other powers or duties of theCommissioner under those laws, including Article 30 of this Chapter.

(b)        Risk‑basedcapital instructions, risk‑based capital reports, adjusted risk‑basedcapital reports, risk‑based capital plans, and revised risk‑basedcapital plans are solely for use by the Commissioner in monitoring the solvencyof insurers and the need for possible corrective action with respect toinsurers. The Commissioner shall not use any of these reports or plans for ratemaking nor consider or introduce them as evidence in any rate proceeding. TheCommissioner shall not use these reports or plans to calculate or derive anyelements of an appropriate premium level or rate of return for any kind ofinsurance that an insurer or any affiliate is authorized to write.

(c)        The Commissionermay exempt from the application of this Article any domestic property orcasualty insurer that:

(1)        Writes directbusiness only in this State.

(2)        Writes direct annualpremiums of two million dollars ($2,000,000) or less.

(3)        Assumes noreinsurance in excess of five percent (5%) of direct written premiums.

(d)        The Commissionermay, in the Commissioner's discretion, exempt from the application of thisArticle:

(1)        Any domestic town orcounty mutual insurance company organized under G.S. 58‑7‑75(5)d.

(2)        Any domestic life orhealth insurer that:

a.         Has no direct orassumed annual premiums; and

b.         Has no direct orassumed policyholder obligations.

(3)        Any domestic healthmaintenance organization that:

a.         Writes only directbusiness in this State;

b.         Assumes noreinsurance in excess of five percent (5%) of direct written premiums; and

c.         Writes direct annualpremiums for a comprehensive medical business of two million dollars($2,000,000) or less, or is a single service health maintenance organizationthat covers less than 2,000 lives. (1993 (Reg. Sess., 1994), c. 678, s. 1; 1995, c. 318,s. 6; 2005‑215, s. 22.)