§ 97-195. Revocation, suspension or restriction of license. - North Carolina Statutes

§ 97‑195.  Revocation,suspension or restriction of license.

(a)        Repealed by SessionLaws 2005‑400, s. 15, effective January 1, 2006.

(a1)      The Commissionermay, upon at least 45 days notice and opportunity for a hearing, revoke,suspend, or restrict the license of a self‑insurer if any of thefollowing apply:

(1)        The self‑insurerfails or refuses to comply with any law, order, or rule applicable to the self‑insurer.

(2)        There is adetermination of insolvency by a court of competent jurisdiction.

(3)        The self‑insureris in a hazardous financial condition.

(4)        The self‑insurerhas experienced a material loss or deteriorating operating trends, or hasreported a deficit financial position.

(5)        Any affiliate orsubsidiary is insolvent, threatened with insolvency, or delinquent in paymentof its monetary or any other obligation.

(6)        The self‑insurerhas failed to pay premium taxes pursuant to Article 8B of Chapter 105 of theGeneral Statutes.

(7)        Contingentliabilities, pledges, or guaranties that either individually or collectivelyinvolve a total amount that in the Commissioner's opinion may affect a self‑insurer'ssolvency.

(8)        The management of aself‑insurer has failed to respond to the Commissioner's inquiries aboutthe condition of the self‑insurer or has furnished false and misleadinginformation in response to an inquiry by the Commissioner.

(9)        The management of aself‑insurer has filed any false or misleading sworn financial statement,has released a false or misleading financial statement to a lending institutionor to the general public, or has made a false or misleading entry or omitted anentry of material amount in the filed financial information.

(10)      The self‑insurerhas experienced, or will experience in the foreseeable future, cash flow orliquidity problems.

(11)      The self‑insurerhas failed to make proper and timely payment of claims, as required by thisArticle.

(12)      Failure to pay anyNorth Carolina Self‑Insurance Security Association assessments madepursuant to G.S. 97‑133.

(13)      Failure to participatein the Association Aggregate Security System or, if excluded from participationin the Association Aggregate Security System, failure to provide and maintainthe deposit required by G.S. 97‑185.

(b)        Repealed by SessionLaws 2005‑400, s. 15, effective January 1, 2006.

(c)        Any self‑insurersubject to license revocation, suspension, or restriction under subsection (a1)of this section may request an administrative hearing before the Commissionerto review that order. If a hearing is requested, a notice of hearing shall beserved, and the notice shall state the time and place of hearing and theconduct, condition, or ground on which the Commissioner based the order. Unlessmutually agreed upon between the Commissioner and the self‑insurer, thehearing shall occur not less than 10 days nor more than 30 days after notice isserved and shall be either in Wake County or in some other place designated bythe Commissioner. The Commissioner shall hold all hearings under this sectionprivately unless the self‑insurer requests a public hearing, in whichcase the hearing shall be public. The request for a hearing shall not stay theeffect of the order. (1997‑362, s. 4; 2003‑221, s. 15; 2005‑400, s. 15.)