§ 58-28-1. Purpose of Article. - North Carolina Statutes

Article28.

Unauthorized Insurers.

§ 58‑28‑1. Purpose of Article.

It is the purpose of thisArticle to abate and prevent the practices of unauthorized insurers within theState of North Carolina, and to provide methods for effectively enforcing thelaws of this State against such practices.  The General Assembly finds thatthere is within this State a substantial amount of insurance business beingtransacted by insurers who have not complied with the laws of this State andhave not been authorized by the Commissioner to do business.  These practicesby unauthorized insurers are deemed to be harmful and contrary to publicwelfare of the citizens of this State.  The difficulties which arise from theacts and practices of unauthorized insurers are compounded by the fact thatsuch companies may be licensed in foreign jurisdictions and conduct a long‑rangebusiness without having personal representatives or agents in proximity toinsureds.  The General Assembly further declares that it is a subject of vitalpublic interest to the State that unlicensed and unauthorized companies havebeen and are now engaged in soliciting by way of direct mail and otheradvertising media, insurance risks within this State, and that such companiesenjoy the many benefits and privileges provided by the State as well as theprotection afforded to citizens under exercise of the police powers of theState, without themselves being subject to the laws designed to protect theinsurance consuming public.  The provisions of this Article are in addition toall other statutory provisions of Articles 1 through 64 of this Chapterrelating to unauthorized insurers and do not replace, alter, modify or repealsuch existing provisions. (1967, c. 909, s. 1; 1987, c. 864, s. 46; 1991, c.720, s. 4.)