§ 58-45-85. Assessment; inability to pay. - North Carolina Statutes

§ 58‑45‑85. Assessment; inability to pay.

(a)        If any insurerfails, by reason of insolvency, to pay any assessment as provided in thisArticle, the amount assessed each insurer shall be immediately recalculated,excluding the insolvent insurer, so that its assessment is assumed andredistributed among the remaining insurers. Any assessment against an insolventinsurer shall not be a charge against any special deposit fund held under theprovisions of Article 5 of this Chapter for the benefit of policyholders.

(b)        The nonrecoupableassessment of a member insurer may be ordered deferred in whole or in part uponapplication by the insurer if, in the opinion of the Commissioner or hisdesignee, payment of the assessment would render the insurer insolvent or in dangerof insolvency or would otherwise leave the insurer in a condition so thatfurther transaction of the insurer's business would be hazardous to itspolicyholders. If payment of an assessment against a member insurer is deferredby order of the Commissioner or his designee in whole or in part, the amount bywhich the assessment is deferred must be assessed against other member insurersin the same manner as provided in this Article. In its order of deferral, or innecessary subsequent orders, the Commissioner or his designee shall prescribe aplan by which the assessment so deferred must be repaid to the Association bythe impaired insurer with interest at the six‑month treasury bill rateadjusted semiannually. The plan also shall provide for the reimbursement ofexcess assessments paid by member companies as a result of a deferral ofassessments for an impaired insurer.  (1991 (Reg. Sess., 1992), c. 784, s. 7; 2009‑472,s. 1.)