§ 97-131. Creation. - North Carolina Statutes

§ 97‑131.  Creation.

(a)        There is created anonprofit unincorporated legal entity to be known as the North Carolina Self‑InsuranceSecurity Association. The Association is to provide mechanisms for the paymentof covered claims against member self‑insurers, to avoid excessive delayin payment of covered claims, to avoid financial loss to claimants because ofthe insolvency of a member self‑insurer, to assist the Commissioner inthe detection of self‑insurer insolvencies, to fund the AssociationAggregate Security System, and to capitalize the Fund to ensure theavailability of financial resources to pay covered claims and to fund theactivities of the Association.

(b)        All individual self‑insurersand group self‑insurers shall be and remain members of the Association asa condition of being licensed to self‑insure in this State. TheAssociation shall perform its functions under a Plan of Operation establishedor amended, or both, by the Board and approved by the Commissioner, and shallexercise its powers through the Board.

(1)        An individual self‑insureror a group self‑insurer shall be deemed to be a member of the Associationfor purposes of another member's insolvency, as defined in G.S. 97‑135,when:

a.         The individual self‑insureror group self‑insurer is a member of the Association when an insolvencyoccurs, or

b.         The individual self‑insureror group self‑insurer has been a member of the Association at some pointin time during the 12‑month period immediately preceding the insolvencyin question.

(2)        An individual self‑insureror a group self‑insurer shall be deemed to be a member of the Associationfor purposes of its own insolvency if it is a member when the compensableinjury occurs.

(3)        In determining themembership of the Association for the purposes of subdivisions (1) and (2) ofthis subsection for any date after the effective date of this Article, noindividual self‑insurer or group self‑insurer may be deemed to be amember of the Association on any date after the effective date of this Article,unless that employer is on that date licensed as an individual self‑insurerby the Commissioner under Article 5 of this Chapter or a group of employers isat that time licensed as a group self‑insurer by the Commissioner underArticle 47 of Chapter 58 of the General Statutes. (1985 (Reg. Sess., 1986), c.1013, s. 1; 1987, c. 528, s. 2; 1997‑362, s. 9; 2005‑400, s. 2.)