§ 58-48-95. Use of deposits made by insolvent insurer. - North Carolina Statutes

§ 58‑48‑95.  Useof deposits made by insolvent insurer.

(a)        Notwithstanding anyother provision of this Chapter pertaining to the use of deposits made byinsurance companies for the protection of policyholders, the Association shallreceive, upon its request, from the Commissioner and may expend, any deposit ordeposits made, whether or not required by statute, by an insolvent insurer tothe extent those deposits are needed by the Association first to pay thecovered claims as required by this Article and then to the extent thosedeposits are needed to pay all expenses of the Association relating to theinsurer: Provided that the Commissioner may retain and use an amount of thedeposit up to ten thousand dollars ($10,000) to defray administrative costs to beincurred by the Commissioner in carrying out his powers and duties with respectto the insolvent insurer, notwithstanding G.S. 58‑5‑70.

(b)        In, however thecase of a deposit made by an insolvent domestic insurer, the Association shallreceive, upon its request, from the Commissioner, the portions of the depositmade for the protection of policyholders having covered claims. As for thegeneral deposit, those portions shall be in the proportions that the insolventdomestic insurer's domestic net direct written premiums for the precedingcalendar year on the kinds of insurance in the account bears to its total netdirect written premiums for the preceding calendar year on the kinds ofinsurance in the account.

(c)        The Associationshall account to the Commissioner and the insolvent insurer for all depositsreceived from the Commissioner under this section. After the deposits of theinsolvent insurer received by the Association under this section have beenexpended by the Association for the purposes set out in this section, themember insurers shall be assessed as provided by this Article to pay anyremaining liabilities of the Association arising under this Article. (1979, c. 628; 1985, c. 613,s. 10; c. 666, s. 41; 1987, c. 864, s. 6; 1989, c. 206, s. 9; c. 452, s. 5;1993 (Reg. Sess., 1994), c. 678, s. 23; 2001‑223, s. 24.4; 2001‑487,s. 103(a).)