§ 58-15-100. Declaration for license. - North Carolina Statutes

Part 2. Domestic Reciprocals.

§ 58‑15‑100. Declaration for license.

(a)        One hundred or morepersons domiciled in this State and designated as subscribers may organize adomestic reciprocal and apply to the Commissioner for a license to transact thebusiness of insurance.  The Commissioner may authorize such a reciprocal toform with a lesser number of subscribers upon being satisfied that the risksare adequately spread and financial projections indicate that such a reciprocalwill have a reasonable potential to succeed in its business with such a lessernumber of subscribers.  The original subscribers and the proposed attorneyshall execute and file with the Commissioner a declaration setting forth:

(1)        The name of theattorney and the business name of the reciprocal;

(2)        The location of thereciprocal's principal office, which shall be the same as that of the attorneyand shall be in this State;

(3)        The kinds ofinsurance proposed to be written;

(4)        The names andaddresses of the original subscribers;

(5)        The designation andappointment of the attorney, and a copy of the power of attorney andsubscriber's agreement;

(6)        The names andaddresses of the officers and directors of the attorney, if a corporation, orof its members if not a corporation;

(7)        The powers of thesubscribers' advisory committee, and the names and terms of office of itsmembers;

(8)        A statement thateach of the original subscribers has in good faith applied for insurance of thekind proposed to be written and that the reciprocal has received from eachoriginal subscriber the anticipated premium or premium deposit for a term ofnot less than six months for the policy for which application is made;

(9)        A statement of thefinancial condition of the reciprocal, including a schedule of its assets;

(10)      A statement that thereciprocal has the surplus to policyholders required by G.S. 58‑15‑30;

(11)      A copy of eachpolicy, endorsement, and application form it proposes to issue or use; and

(12)      Financial projectionsof the anticipated operational results of the reciprocal for a five‑yearperiod based upon the initial surplus of the proposed reciprocal and its planof operation.

(b)        The declarationshall be acknowledged by each original subscriber and by the attorney. (1989,c. 425, s. 1.)