§ 58-15-15. Risk limitations. - North Carolina Statutes

§58‑15‑15.  Risk limitations.

(a)        Except for Article11 of this Chapter and as otherwise specifically provided, all the provisionsof Articles 1 through 64 of this Chapter relating to insurers generally, andthose relating to insurers writing the same kinds of insurance that reciprocalsare permitted to write, are applicable to reciprocals.

(b)        A reciprocal shallbe deemed to comply with G.S. 58‑3‑105 if:

(1)        It issues policiescontaining a contingent assessment liability, provided for in G.S. 58‑15‑60;and

(2)        It maintainsreinsurance in an amount that the Commissioner considers adequate to reasonablylimit the reciprocal's aggregate losses to the lesser of:

a.         Ten percent (10%) ofthe surplus to policyholders of the reciprocal multiplied by the number of subscribers;

b.         The surplus topolicyholders of the reciprocal multiplied by three; or

c.         Five million dollars($5,000,000). (1989, c. 425, s. 1.)