§ 58-22-40. Notice and registration requirements of purchasing groups. - North Carolina Statutes

§58‑22‑40.  Notice and registration requirements of purchasinggroups.

(a)        A purchasing groupthat intends to do business in this State shall, before doing business, furnishnotice to the Commissioner that shall:

(1)        Identify the statein which the group is domiciled;

(2)        Specify the linesand classifications of liability insurance that the purchasing group intends topurchase;

(3)        Identify the insurerfrom which the group intends to purchase its insurance and the domicile of suchinsurer;

(4)        Identify theprincipal place of business of the group;

(5)        Provide such otherinformation as may be required by the Commissioner to verify that thepurchasing group is qualified under G.S. 58‑22‑10(9);

(6)        Specify the methodby which and the person or persons, if any, through whom insurance will beoffered to its members whose risks are resident or located in this State; andfurnish such information as may be required by the Commissioner to determinethe appropriate premium tax treatment; and

(7)        Identify all otherstates in which the group intends to do business.

(b)        The purchasinggroup shall register with and designate the Commissioner as its agent solelyfor the purpose of receiving service of legal documents or process, except thatsuch requirement does not apply in the case of a purchasing group:

(1)        That

a.         Was domiciled beforeApril 2, 1986, in any state of the United States; and

b.         Is domiciled on andafter October 27, 1986, in any state of the United States;

(2)        That before October27, 1986, purchased insurance from an insurer licensed in any state; and sinceOctober 27, 1986, purchased its insurance from an insurer licensed in anystate;

(3)        That was apurchasing group under the requirements of the Product Liability Retention Actof 1981 before October 27, 1986; and

(4)        That does notpurchase insurance that was not authorized for purposes of an exemption underthat act, as in effect before October 27, 1986.

(c)        A purchasing groupshall notify the Commissioner of any changes in any of the items in subsection(a) of this section within 10 days after those changes.

(d)        Each purchasinggroup that is required to give notice under subsection (a) of this sectionshall also furnish such information as may be required by the Commissioner to:

(1)        Verify that theentity qualifies as a purchasing group;

(2)        Determine where thepurchasing group is located; and

(3)        Determineappropriate tax treatment. (1987, c. 310, c. 727, s. 10; 1993, c. 452, s. 38.)