§ 58-36-5. Membership as a prerequisite for writing insurance; governing committee; rules and regulations; expenses. - North Carolina Statutes

§58‑36‑5.  Membership as a prerequisite for writing insurance;governing committee; rules and regulations; expenses.

(a)        Before theCommissioner shall grant permission to any stock, nonstock, or reciprocalinsurance company or any other insurance organization to write in this Stateinsurance against loss to residential real property with not more than fourhousing units located in this State or any contents thereof or valuableinterest therein or other insurance coverages written in connection with the saleof such property insurance; or insurance against theft of or physical damage toprivate passenger (nonfleet) motor vehicles; or liability insurance for suchmotor vehicles, automobile medical payments insurance, uninsured motoristscoverage or other insurance coverage written in connection with the sale ofsuch liability insurance; or workers' compensation and employers' liabilityinsurance written in connection therewith; except for insurance excluded fromthe Bureau's jurisdiction in G.S. 58‑36‑1(3); it shall be arequisite that they shall subscribe to and become members of the Bureau.

(b)        Each member of theBureau writing any one or more of the above lines of insurance in NorthCarolina shall, as a requisite thereto, be represented in the Bureau and shallbe entitled to one representative and one vote in the administration of theaffairs of the Bureau.  They shall, upon organization, elect a governingcommittee which governing committee shall be composed of equal representationby stock and nonstock members.  The governing committee of the Bureau shallalso have as nonvoting members two persons who are not employed by oraffiliated with any insurance company or the Department and who are appointedby the Governor to serve at his pleasure.

(c)        The Bureau, whencreated, shall adopt such rules and regulations for its orderly procedure asshall be necessary for its maintenance and operation.  No such rules andregulations shall discriminate against any type of insurer because of its planof operation, nor shall any insurer be prevented from returning any unused orunabsorbed premium, deposit, savings or earnings to its policyholders orsubscribers.  The expense of such Bureau shall be borne by its members byquarterly contributions to be made in advance, such contributions to be made inadvance by prorating such expense among the members in accordance with theamount of gross premiums derived from the above lines of insurance in NorthCarolina during the preceding year and members entering the Bureau since that dateto advance an amount to be fixed by the governing committee.  After the firstfiscal year of operation of the Bureau the necessary expense of the Bureaushall be advanced by the members in accordance with rules and regulations to beestablished and adopted by the governing committee.  The Bureau shall beempowered to subscribe for or purchase any necessary service, and employ andfix the salaries of such personnel and assistants as are necessary.

(d)        The Commissioner ishereby authorized to compel the production of all books, data, papers andrecords and any other data necessary to compile statistics for the purpose ofdetermining the underwriting experience of lines of insurance referred to inthis Article, and this information shall be available and for the use of theBureau for the capitulation and promulgation of rates on lines of insurance asare subject to the ratemaking authority of the Bureau. (1977,c. 828, s. 6; 1981, c. 888, s. 4; 1985 (Reg. Sess., 1986), c. 1027, s. 6; 1991,c. 720, s. 4.)