§ 58-47-75. Reporting and records. - North Carolina Statutes

§58‑47‑75.  Reporting and records.

(a)        As used in thissection:

(1)        "Auditedfinancial report" has the same meaning as in the NAIC Model Rule RequiringAnnual Audited Financial Reports, as specified in G.S. 58‑2‑205.

(2)        "Duplicaterecord" means a counterpart produced by the same impression as theoriginal record, or from the same matrix, or by mechanical or electronicrerecording or by chemical reproduction, or by equivalent techniques, such asimaging or image processing, that accurately reproduce the original record.

(3)        "Originalrecord" means the writing or recording itself or any counterpart intendedto have the same effect by a person executing or issuing it, in the normal andordinary course of business, or data stored in a computer or similar device,the printout or other output readable by sight, shown to reflect the dataaccurately.  An "original" of a photograph includes the negative orany print from the negative.

(b)        Each group shallfile with the Commissioner the following:

(1)        A statement in accordancewith G.S. 58‑2‑165.

(2)        An audited financialreport.

(3)        Annual payrollinformation within 90 days after the close of its fiscal year.  The reportshall summarize the payroll by annual amount paid and by classifications usingthe rules, classifications, and rates set forth in the most recently approvedWorkers' Compensation and Employers' Liability Insurance Manual governingaudits of payrolls and adjustments of premiums. Each group shall maintain trueand accurate payroll records.  The payroll records shall be maintained to allowfor verification of the completeness and accuracy of the annual payroll report.

(c)        Each group shallmake its financial statement and audited financial report available to itsmembers upon request.

(d)        All records shall bemaintained by the group for the years during which an examination under G.S. 58‑2‑131has not yet been completed.

(e)        All records thatare required to be maintained by this section shall be either original orduplicate records.

(f)         If only duplicaterecords are maintained, the following requirements apply:

(1)        The data shall beaccessible to the Commissioner in legible form, and legible, reproduced copiesshall be available.

(2)        Before thedestruction of any original records, the group in possession of the originalrecords shall:

a.         Verify that therecords stored consist of all information contained in the original records,and that the original records can be reconstructed therefrom in a formacceptable to the Commissioner; and

b.         Implement disasterpreparedness or disaster recovery procedures that include provisions for themaintenance of duplicate records at an off‑site location.

(3)        Adequate controlsshall be established with respect to the transfer and maintenance of data.

(g)        Each group shallmaintain its records under G.S. 58‑7‑50, G.S. 58‑7‑55,and the Act.

(h)        All books oforiginal entry and corporate records shall be retained by the group or itssuccessor for a period of 15 years after the group ceases to exist. (1997‑362,s. 3.)