§ 58-2-134. Cost of certain examinations. - North Carolina Statutes

§ 58‑2‑134.  Costof certain examinations.

(a)        An insurer shallreimburse the State Treasurer for the actual expenses incurred by theDepartment in any examination of those records or assets conducted under G.S.58‑2‑131, 58‑2‑132, or 58‑2‑133 under anyof the following circumstances:

(1)        The insurermaintains part of its records or assets outside this State under G.S. 58‑7‑50or G.S. 58‑7‑55 and the examination is of the records or assetsoutside this State.

(2)        The insurer requestsan examination of its records or assets.

(3)        The Commissionerexamines an insurer that is impaired or insolvent or is unlikely to be able tomeet obligations with respect to known or anticipated claims or to pay otherobligations in the normal course of business.

(4)        The examinationinvolves analysis of the company's investment portfolio, a material portion ofwhich comprises a sophisticated derivatives program, material holdings ofcollateralized mortgage obligations with high flux scores, unusual real estateor limited partnership holdings, high or unusual portfolio turnover, materialasset movement between related parties, or unusual securities lendingactivities.

(b)        The amount paid byan insurer for an examination of records or assets under this section shall notexceed one hundred thousand dollars ($100,000), unless the insurer and theCommissioner agree on a higher amount. The State Treasurer shall deposit allfunds received under this section in the Insurance Regulatory Fund establishedunder G.S. 58‑6‑25. Funds received under this section shall be usedby the Department for offsetting the actual expenses incurred by the Departmentfor examinations under this section. (1998‑212, s. 26B(d); 1999‑435, s. 7; 2002‑187,s. 2.3.)