§ 58-47-125. Admission and termination of group members. - North Carolina Statutes

§ 58‑47‑125. Admission and termination of group members.

(a)        Prospective groupmembers shall submit applications for membership to the board. The board, adesignated employee of the group, or TPA shall approve an application formembership under the bylaws of the group. Members shall have bona fide officesin this State and members' employees shall be primarily engaged in businessactivities within this State. Members shall receive certificates of coveragefrom the board on a form acceptable to the Commissioner.

(b)        The group shallmake available to the Commissioner properly executed applications and indemnityagreements for all members, on forms prescribed by the Commissioner. If theapplications and indemnity agreements are not executed properly and maintained,the Commissioner may order the group to cease writing all new business untilall of the agreements are executed properly and obtained.

(c)        Members may electto terminate their participation in a group and may be terminated by the groupunder subsection (d) of this section and the bylaws of the group.

(d)        A group mayterminate a member's participation in the group on 30 days' written notice tothe member. A group may terminate a member's participation in the group fornonpayment of premium on 10 days' written notice to the member. A member mayterminate its participation in the group on 10 days' written notice to thegroup. Notices under this subsection shall be given by certified mail, returnreceipt requested. No termination by the group is effective until the notice isreceived by the member. (1997‑362, s. 3; 2001‑451, s. 3.)