§ 58-15-150. Financial impairment; assessment; liquidation. - North Carolina Statutes

§58‑15‑150.  Financial impairment; assessment; liquidation.

(a)        If (i) the assetsof a domestic reciprocal are at any time insufficient to settle the sum of itsliabilities, except those on account of funds contributed by the attorney orother parties, and its required surplus to policyholders, and (ii) thedeficiency is not cured from other sources, its attorney shall levy anassessment upon subscribers made subject to assessment by the terms of theirpolicies for the amount needed to make up the deficiency.  However, theassessment shall be subject to G.S. 58‑15‑60.

(b)        If the attorneyfails to make the assessment within 30 days after the Commissioner orders himto do so, or if the deficiency is not fully made up within 60 days after thedate the assessment is made, delinquency proceedings may be instituted andconducted against the insurer as provided in Article 30 of this Chapter.

(c)        If liquidation ofthe reciprocal is ordered, an assessment shall be levied upon the subscribersfor the amount the Commissioner or the Court, as the case may be, determines tobe necessary to discharge all liabilities of the reciprocal.  This assessmentshall exclude any funds contributed by the attorney or other persons, but shallinclude the reasonable cost of the liquidation.  However, the assessment issubject to G.S. 58‑15‑60. (1989, c. 425, s. 1; c. 770,s. 71.)