§ 58-21-40. Surplus lines regulatory support organization. - North Carolina Statutes

§ 58‑21‑40. Surplus lines regulatory support organization.

(a)        A surplus linesregulatory support organization of surplus lines licensees shall be formed to:

(1)        Facilitate andencourage compliance by resident and nonresident surplus lines licensees with thelaws of this State and the rules and regulations of the Commissioner relativeto surplus lines insurance;

(2)        Communicate withorganizations of admitted insurers with respect to the proper use of thesurplus lines market;

(3)        Receive anddisseminate to surplus lines licensees information about surplus linesinsurance, including, without limitation, new electronic filing proceduresapproved by the Commissioner, changes in the list of eligible surplus linesinsurers, and modifications in coverages, procedures, and requirements as maybe requested by the Commissioner; and

(4)        Countersignnonresident produced surplus lines coverages and remit premium taxes for thosecoverages under G.S. 58‑21‑70 by means satisfactory to theCommissioner; and charge the nonresident surplus lines licensee a fee for thecertification and countersignature as approved by the Commissioner.

(b)        The regulatorysupport organization shall file with the Commissioner:

(1)        A copy of itsconstitution, articles of agreement or association, or certificate ofincorporation;

(2)        A copy of its bylawsand rules governing its activities;

(3)        An annually updatedlist of resident and nonresident licensees;

(4)        The name and addressof a resident of this State upon whom notices or orders of the Commissioner orprocesses issued at his direction may be served; and

(5)        An agreement thatthe Commissioner may examine the regulatory support organization in accordancewith subsection (c) of this section.

(c)        The Commissionermay, at times deemed appropriate, make or cause to be made an examination ofeach regulatory support organization; in which case the provisions of G.S. 58‑2‑131,58‑2‑132, 58‑2‑133, 58‑2‑134, 58‑2‑150,58‑2‑155, 58‑2‑180, 58‑2‑185, 58‑2‑190,58‑2‑195, and 58‑2‑200 shall apply. If the Commissionerfinds the regulatory support organization or any surplus lines licensee,whether resident or nonresident, to be in violation of this Article, theCommissioner may issue an order requiring the discontinuance of the violation.

(d)        Each resident surpluslines licensee shall maintain active membership in a regulatory supportorganization as a condition of continued licensure under this Article. (1985, c. 688, s. 1; 1987(Reg. Sess., 1988), c. 975, s. 13; 1995, c. 193, s. 28; 1999‑132, s.11.3; 2001‑203, s. 28; 2001‑451, ss. 2.1, 2.2; 2001‑487, s.63.)