§ 97-143. Use of deposits made by insolvent member self-insurers. - North Carolina Statutes

§ 97‑143.  Use ofdeposits made by insolvent member self‑insurers.

After the Commissioner hasnotified the Association, under G.S. 97‑136(a), that a member isinsolvent, the Commissioner shall assign and deliver to the Association, andthe Association is authorized to expend any deposit made by the insolventmember under G.S. 58‑47‑90 or G.S. 97‑185, to the extent thedeposit is needed by the Association to pay covered claims against theinsolvent member as required by this Article, and to the extent the deposit isneeded to pay expenses of the Association relating to covered claims againstthe insolvent member. For insolvent individual member self‑insurers thatparticipate in the Association Aggregate Security System, the Association isauthorized to pursue recovery under every instrument, contract, and form ofsecurity comprising the composite security. The Association shall account tothe Commissioner and the insolvent member or its successor for all depositsreceived from the Commissioner under this section. (1991, c. 644, s. 25; 1997‑362,s. 6; 2005‑400, s. 8.)