§ 58-30-10. Definitions. - North Carolina Statutes

§ 58‑30‑10. Definitions.

For the purposes of thisArticle only:

(1)        "Aliencountry" means any other jurisdiction not in any state.

(2)        "Ancillarystate" means any state other than a domiciliary state.

(3)        "Court"means the Superior Court of Wake County.

(4)        "Creditor"means a person having any claim, whether matured or unmatured, liquidated orunliquidated, secured or unsecured, absolute, fixed, or contingent.

(5)        "Delinquencyproceeding" means any proceeding instituted against an insurer for thepurpose of supervising, rehabilitating, conserving, or liquidating suchinsurer.

(6)        "Doingbusiness" includes any of the following acts by insurers, whether effectedby mail or otherwise:

a.         The issuance ordelivery of contracts of insurance to persons resident in this State;

b.         The solicitation ofapplications for such contracts, or other negotiations preliminary to theexecution of such contracts;

c.         The collection ofpremiums, membership fees, assessments, or other consideration for suchcontracts;

d.         The transaction ofmatters subsequent to execution of such contracts and arising out of them;

e.         Operating as aninsurer under a license issued by the Department; or

f.          The purchase ofcontracts of insurance issued to persons in this State by an assumptionagreement.

(7)        "Domesticguaranty association" means the Postassessment Insurance GuarantyAssociation in Article 48 of this Chapter, as amended; the North Carolina Self‑InsuranceSecurity Association in Article 4 of Chapter 97 of the General Statutes; theLife and Accident and Health Insurance Guaranty Association in Article 62 ofthis Chapter, as amended; or any other similar entity hereafter created by theGeneral Assembly for the payment of claims of insolvent insurers.

(8)        "Domiciliarystate" means the state in which an insurer is incorporated or organized;or, in the case of an alien insurer, its state of entry.

(9)        "Fairconsideration" is given for property or obligation when:

a.         In exchange for suchproperty or obligation, as a fair equivalent therefor, and in good faith,property is conveyed or services are rendered or an obligation is incurred oran antecedent debt is satisfied; or

b.         Such property orobligation is received in good faith to secure a present advance or antecedentdebt in amount not disproportionately small as compared to the value of theproperty or obligation obtained.

(10)      "Foreignguaranty association" means a guaranty association now in existence in orhereafter created by the legislature of any other state.

(11)      "Formaldelinquency proceeding" means any liquidation or rehabilitationproceeding.

(12)      "Generalassets" means all real, personal, or other property that is notspecifically mortgaged, pledged, hypothecated, deposited, or otherwiseencumbered for the security or benefit of specified persons or classes ofpersons. As to specifically encumbered property, "general assets"includes all such property or its proceeds in excess of the amount necessary todischarge the sum or sums secured thereby. Assets that are held in trust and ondeposit for the security or benefit of all policyholders in more than one stateor all policyholders and creditors in more than one state shall be treated as"general assets". No person shall have a claim against general assetsunless that claim is in an amount in excess of fifty dollars ($50.00).

(13)      "Insolvency"or "insolvent" means that an insurer is unable to pay its obligationswhen they are due, or that its admitted assets do not exceed its liabilitiesplus the greater of (i) any capital and surplus required by law for itsorganization; or (ii) the total par or stated value of its authorized andissued capital stock. For the purposes of this subdivision,"liabilities" includes reserves required by statute, by Departmentrules, or by specific requirements imposed by the Commissioner upon a subjectcompany at the time of admission or subsequent thereto, except those reservesthat are an allocation of surplus as specified in G.S. 58‑65‑95.

(14)      "Insurer"means any entity that is or should be licensed under Articles 7, 16, 26, 47,49, 64, 65, or 67 of this Chapter.

(15)      "Preferredclaim" means any claim with respect to which the provisions of thisArticle accord priority of payment from the general assets of the insurer.

(16)      "Receiver"includes a liquidator, rehabilitator, or conservator, as the context requires.

(17)      "Reciprocalstate" means any state other than this State in which in substance andeffect the provisions of G.S. 58‑30‑105(a), 58‑30‑270,58‑30‑275, and 58‑30‑285 through 58‑30‑295are in force, and in which provisions are in force requiring that the insuranceregulator of that state be the receiver of a delinquent insurer; and in whichprovisions exist for the avoidance of fraudulent conveyances and preferentialtransfers.

(18)      "Securedclaim" means any claim secured by mortgage, trust deed, pledge, deposit assecurity, escrow, or otherwise; and includes any claim that has become a lienupon specific assets by reason of judicial process. "Secured claim"does not include a special deposit claim or a claim against general assets.

(19)      "Special depositclaim" means any claim in excess of fifty dollars ($50.00) secured by adeposit made pursuant to statute for the security or benefit of a limited classor classes of persons, but does not include any claim secured by generalassets.

(20)      "Transfer"includes the sale and every other and different mode, whether direct orindirect, of disposing of or of parting with property, an interest therein, orthe possession thereof; or of voluntarily fixing a lien upon property or aninterest therein, whether absolutely or conditionally, by or without judicialproceedings. The retention of a security title to property delivered to adebtor is a transfer suffered by the debtor. (1989, c. 452, s. 1; 1995, c. 471, ss. 4, 5; 1995(Reg. Sess., 1996), c. 582, s. 2; c. 742, s. 24; 1999‑132, ss. 2.1, 7.3,9.1; 1999‑294, s. 11(a), (b); 2000‑140, s. 13; 2001‑223, ss.24.2, 24.3; 2001‑487, s. 103(a); 2005‑400, s. 18; 2007‑127,s. 9.)