§ 58-62-95. Use of deposits made by impaired insurer. - North Carolina Statutes

§58‑62‑95.  Use of deposits made by impaired insurer.

Notwithstanding any otherprovision of this Chapter pertaining to the use of deposits made by insurancecompanies for the protection of policyholders, the Association shall receive,upon its request, from the Commissioner and may expend, any deposit or depositsmade, whether or not made pursuant to statute, by an insurer determined to beimpaired under this Article to the extent those deposits are needed by theAssociation to pay contractual obligations of that impaired insurer owed undercovered policies as required by this Article, and to the extent those depositsare needed to pay all expenses of the Association relating to the impairedinsurer: Provided that the Commissioner may retain and use an amount of thedeposit up to ten thousand dollars ($10,000) to defray administrative costs tobe incurred by the Commissioner in carrying out his powers and duties withrespect to the insolvent insurer, notwithstanding G.S. 58‑5‑70. TheAssociation shall account to the Commissioner and the impaired insurer for alldeposits received from the Commissioner under this section. After the depositsof the impaired insurer received by the Association under this section havebeen expended 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. 418; 1985, c. 666, s. 42; 1989, c. 452, s. 6; 1993 (Reg. Sess., 1994), c.678, s. 28.)