§ 58-47-135. Assessment plan and indemnity agreement. - North Carolina Statutes

§58‑47‑135.  Assessment plan and indemnity agreement.

(a)        Each group shallestablish an assessment plan that provides for a reasonable and equitablemechanism for assessing its members. The plan and any amendments shall beapproved by the Commissioner.  The plan shall include descriptions of thecircumstances that initiate an assessment, basis, and allocation to members ofthe amount being assessed, and collection of the assessment.

(b)        The board shallnotify the Commissioner of an assessment no fewer than 60 days before anassessment.

(c)        The Commissionershall impose an assessment on members if the board or third‑partyadministrator fails to take action to correct a hazardous financial condition.

(d)        Every group shallfile an indemnity agreement on a form prescribed by the Commissioner, whichjointly and severally binds the members of the group to comply with theprovisions of the act and pay obligations imposed by the Act. (1997‑362,s. 3.)