§ 58-33A-50. (Effective July 1, 2010) Bond or letter of credit. - North Carolina Statutes

§ 58‑33A‑50. (Effective July 1, 2010) Bond or letter of credit.

(a)        Before issuance ofa license as a public adjuster and for the duration of the license, theapplicant shall secure evidence of financial responsibility in a formatprescribed by the Commissioner through any of the following instruments:

(1)        A bond executed andissued by an insurer authorized to issue bonds in this State which meets all ofthe following requirements:

a.         It shall be in theminimum amount of twenty thousand dollars ($20,000).

b.         It shall be in favorof this State and shall specifically authorize recovery by the Commissioner onbehalf of any person in this State who sustained damages as the result oferroneous acts, failure to act, conviction of fraud, or conviction of unfair practicesin his or her capacity as a public adjuster.

c.         It shall not beterminated unless at least 30 days' prior written notice will have been filedwith the Commissioner and given to the licensee.

(2)        An irrevocableletter of credit issued by a qualified financial institution, which meets allof the following requirements:

a.         It shall be in theminimum amount of twenty thousand dollars ($20,000).

b.         It shall be to anaccount to the Commissioner and subject to lawful levy of execution on behalfof any person to whom the public adjuster has been found to be legally liableas the result of erroneous acts, failure to act, fraudulent acts, or unfairpractices in his or her capacity as a public adjuster.

c.         It shall not beterminated unless at least 30 days' prior written notice will have been filedwith the Commissioner and given to the licensee.

(b)        The issuer of theevidence of financial responsibility shall notify the Commissioner upontermination of the bond or letter of credit, unless otherwise directed by theCommissioner.

(c)        The Commissionermay ask for the evidence of financial responsibility at any time he or shedeems relevant.

(d)        The authority toact as a public adjuster shall automatically terminate if the evidence offinancial responsibility terminates or becomes impaired.  (2009‑565, s. 1.)