§ 58-48-90. Termination; distribution of funds. - North Carolina Statutes

§58‑48‑90.  Termination; distribution of funds.

(a)        The Commissionershall by order terminate the operation of the North Carolina Insurance GuarantyAssociation as to any kind of insurance covered by this Article with respect towhich he has found, after hearing, that there is in effect a statutory orvoluntary plan which:

(1)        Is a permanent planwhich is adequately funded or for which adequate funding is provided; and

(2)        Extends, or willextend to the North Carolina policyholders and residents protection andbenefits with respect to insolvent insurers not substantially less favorableand effective to such policyholders and residents than the protection andbenefits provided with respect to such kinds of insurance under this Article.

(b)        The Commissioner shallby the same such order authorize discontinuance of future payments by insurersto the North Carolina Insurance Guaranty Association with respect to the samekinds of insurance; provided, the assessments and payments shall continue, asnecessary, to liquidate covered claims of insurers adjudged insolvent prior tosaid order and the related expenses not covered by such other plan.

(c)        In the event theoperation of the North Carolina Insurance Guaranty Association shall be soterminated as to all kinds of insurance otherwise within its scope, theAssociation as soon as possible thereafter shall distribute the balance ofmoneys and assets remaining (after discharge of the functions of theAssociation with respect to prior insurer insolvencies not covered by suchother plan, together with related expenses) to the insurers which are thenwriting in this State policies of the kinds of insurance covered by thisArticle and which had made payments to the Association, pro rata upon the basisof the aggregate of such payments made by the respective insurers during theperiod of five years next preceding the date of such order. Upon completion ofsuch distribution with respect to all of the kinds of insurance covered by thisArticle, this Article shall be deemed to have expired. (1971,c. 670, s. 1.)