§ 58-26-31. Statutory premium reserve held in trust or as a deposit. - North Carolina Statutes

§ 58‑26‑31. Statutory premium reserve held in trust or as a deposit.

(a)        Each domestic titleinsurance company shall withdraw from use funds to be used by the Commissionerin the event of the insurer's insolvency, the funds being equal to thestatutory premium reserve and the supplemental reserve pursuant to G.S. 58‑26‑25.The amount shall be held in a trust account, as approved by the Commissioner.The trust account will be held in favor of the holders of title policies in theevent of the insolvency of the insurer, and is not subject to G.S. 41‑15.Nothing in this section precludes the insurer from investing the reserve ininvestments authorized by law for that insurer, and the income from theinvested reserve shall be included in the general income of the insurer to beused by the insurer for any lawful purpose.

(b)        Each foreign oralien title insurance company shall withdraw from use funds to be used by theCommissioner in the event of the insurer's insolvency, the funds being equal tothe statutory premium reserve and the supplemental reserve as calculated underG.S. 58‑26‑25 for North Carolina risks. The Commissioner shall holdthe funds as a deposit in accordance with G.S. 58‑5‑20. Annually,the company shall file a statement of actuarial opinion consistent with theannual statement instructions for North Carolina risks, issued by a qualifiedactuary, in support of this deposit.

(c)        A title insurancecompany shall have 30 days after notification by the Commissioner to increasethe amounts held on deposit. If the amount held on deposit is greater than theamount required under subsection (b) of this section, the Commissioner shallrelease the excess within 30 days after a request by the insurer. (2002‑187, s. 7.8; 2003‑221,s. 2.)