§ 58-22-35. Purchasing groups; exemption from certain laws relating to the group purchase of insurance. - North Carolina Statutes

§58‑22‑35.  Purchasing groups; exemption from certain laws relatingto the group purchase of insurance.

(a)        Any purchasinggroup meeting the criteria established under the provisions of 15 U.S.C. § 3901et seq. is exempt from any law of this State relating to the creation of groupsfor the purchase of insurance, prohibition of group purchasing, or any law thatdiscriminates against a purchasing group or its members. In addition, aninsurer is exempt from any law of this State that prohibits providing, or offeringto provide, to a purchasing group or its members, advantages based on theirloss and expense experience not afforded to other persons with respect torates, policy forms, coverages, or other matters. A purchasing group is subjectto all other applicable laws of this State.

(b)        Taxes on premiumspaid for coverage of risks resident or located in this State by a purchasinggroup or any members of the purchasing group shall be:

(1)        Imposed at the samerate and subject to the same interest, fines, and penalties as those applicableto premium taxes on similar coverage from a similar insurance source by otherinsureds. For example, coverage provided by a surplus lines licensee is taxedunder Article 21 of this Chapter, coverage provided by an insurance company istaxed under Article 8B of Chapter 105 of the General Statutes, and coverageprovided by an unlicensed insurer is taxed under G.S. 58‑28‑5(b).

(2)        Paid first by suchinsurance source, and if not by such source then by the agent or broker for thepurchasing group, and if not by such agent or broker then by the purchasinggroup, and if not by such group then by each of its members. (1987,c. 310, s. 1; c. 727, s. 9; 1995 (Reg. Sess., 1996), c. 747, s. 10.)