§ 58-40-75. Agreements to adhere. - North Carolina Statutes

§ 58‑40‑75. Agreements to adhere.

No insurer shall assume anyobligation to any person, other than a policyholder or other insurers withwhich it is under common control or management or is a member of a marketassistance program or of a joint underwriting or joint reinsuranceorganization, to use or adhere to certain rates or rules; and no other personshall impose any penalty or other adverse consequence for failure of an insurerto adhere to certain rates or rules. This section does not apply to mandatoryor voluntary risk sharing plans established under Article 42 of this Chapter orapportionment agreements among insurers approved by the Commissioner pursuantto G.S. 58‑40‑95. Provided, however, that members and subscribersof statistical organizations may use the rates, rating systems, underwritingrules, or policy or bond forms of such organizations either consistently orintermittently. The fact that two or more admitted insurers, whether or notmembers or subscribers of a statistical organization, consistently orintermittently use the rates or rating systems made or adopted by a statisticalorganization, or the underwriting rules or policy or bond forms prepared by astatistical organization, shall not be sufficient in itself to support afinding that an agreement to so adhere exists, and it may be used only for thepurpose of supplementing or explaining direct evidence of the existence of anysuch agreement. (1977,c. 828, s. 2; 1986, Ex. Sess., c. 7, ss. 10, 11; 1987, c. 731, s. 1; 2005‑210,s. 10.)