§ 58-7-150. Consolidation. - North Carolina Statutes

§ 58‑7‑150. Consolidation.

(a)        A domestic insurermay consolidate with another insurer, subject to the following conditions:

(1)        The plan ofconsolidation must be submitted to and be approved by the Commissioner beforethe consolidation.

(2)        The Commissionershall not approve the plan unless the Commissioner finds that it is fair,equitable to policyholders, consistent with law, and will not conflict with thepublic interest. If the Commissioner disapproves the plan, the Commissionershall state the reasons for the disapproval and call for a hearing.

(3)        No director,officer, member or subscriber of any such insurer, except as is expresslyprovided by the plan of consolidation, shall receive any fee, commission, othercompensation or valuable consideration whatever, for in any manner aiding,promoting or assisting in the consolidation.

(4)        Any consolidation asto an incorporated domestic insurer shall in other respects be governed by thegeneral laws of this State relating to business corporations. The consolidationof a domestic mutual insurer may be effected by vote of two thirds of themembers voting thereon pursuant to such notice and procedure as theCommissioner may prescribe.

(b)        Reinsurance of allor substantially all of the insurance obligations or risks of existing or in‑forcepolicies of a domestic insurer by another insurer under an assumptionreinsurance agreement, as defined in G.S. 58‑10‑25(a)(2), shall bedeemed a consolidation for the purposes of this section. This section does notapply to consolidations to the extent regulated by Article 19 or other Articlesof this Chapter.

(c)        Repealed by SessionLaws 2005‑424, s. 1.3, effective January 1, 2006, and applicable toapplications filed, licenses issued, and licenses continued on or after that date.(1947, c. 923;1955, c. 905; 1985, c. 572, s. 4; 1989 (Reg. Sess., 1990), c. 1069, s. 10;1993, c. 452, s. 7; 1993 (Reg. Sess., 1994), c. 678, s. 10; 1995, c. 193, s.18; c. 507, s. 11A(c); 2001‑223, ss. 7.1, 7.2; 2005‑424, s. 1.3.)