§ 58-5-70. Lien of policyholders; action to enforce. - North Carolina Statutes

§ 58‑5‑70.  Lienof policyholders; action to enforce.

Upon the securities depositedwith the Commissioner by any foreign or alien insurance company, the holders ofall contracts of the company who are citizens or residents of this State at thetime, or who hold policies issued upon property in the State, shall have a lienfor amounts in excess of fifty dollars ($50.00) due them, respectively, underor in consequence of the contracts for losses, equitable values, returnpremiums, or otherwise, and shall be entitled to be paid ratably out of theproceeds of the securities, if the proceeds are not sufficient to pay all ofthe contract holders. When any foreign or alien insurance company depositingsecurities under this Article becomes insolvent or bankrupt or makes anassignment for the benefit of its creditors, any holder of the contract maybegin an action in the Superior Court of the County of Wake to enforce the lienfor the benefit of all the holders of the contracts. The Commissioner shall bea party to the suit, and the funds shall be distributed by the court, but thecost of the action shall not be adjudged against the Commissioner. (1909, c. 923, s. 4; C.S., s.6445; 1991, c. 720, s. 4; 1995, c. 193, s. 12; 2001‑223, s. 24.1; 2001‑487,s. 103(a).)