§ 58-47-90. Deposits. - North Carolina Statutes

§58‑47‑90.  Deposits.

(a)        Each group shalldeposit with the Commissioner an amount equal to ten percent (10%) of thegroup's total annual earned premium, according to the group's annual statementfiling, but not less than six hundred thousand dollars ($600,000), or anotheramount that the Commissioner prescribes based on, but not limited to, thefinancial condition of the group and the risk retained by the group.

(b)        G.S. 58‑5‑1,58‑5‑20, 58‑5‑25, 58‑5‑30, 58‑5‑35,58‑5‑40, 58‑5‑63, 58‑5‑75, 58‑5‑80,58‑5‑90(a) and (c), 58‑5‑95, 58‑5‑110, 58‑5‑115,and 58‑5‑120 apply to groups.

(c)        A group organizedand authorized before January 1, 1998, has until January 1, 2001, to complywith subsection (b) of this section. However, a dividend request shall not beapproved by the Commissioner until the group has replaced its surety bonds withthe deposit required by subsection (b) of this section.

(d)        No judgmentcreditor, other than a claimant entitled to benefits under the Act, may levyupon any deposits made under this section.

(e)        Surety bonds shallbe in a form prescribed by the Commissioner and issued by an insurer authorizedby the Commissioner to write surety business in North Carolina.

(f)         Any surety bondmay be exchanged or replaced with another surety bond that meets therequirements of this section if 90 days' advance written notice is provided tothe Commissioner. An endorsement to a surety bond shall be filed with theCommissioner within 30 days after its effective date.

(g)        If a group ceasesto self‑insure, dissolves, or transfers its workers' compensationobligations under an assumption reinsurance agreement, the Commissioner shallnot release any deposits until the group has fully discharged all of itsobligations under the Act. (1997‑362, s. 3.)