GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2122

Short Title:  Insurance Department Fees - 1.	(Public)
─────────────────────────────────────── 
Sponsors: Representative Beall.
─────────────────────────────────────── 
Referred to:  Commerce.
─────────────────────────────────────── 

May 25, 1990

A BILL TO BE ENTITLED
AN ACT TO INCREASE VARIOUS FEES AND CREATE NEW FEES CHARGED BY THE DEPARTMENT OF INSURANCE.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-6-5 reads as rewritten:
"§ 58-6-5.  Schedule of fees and charges.
The Commissioner shall collect and pay into the State treasury fees and charges as follows:
(1)	For filing and examining statement preliminary to admission, a nonrefundable fee of five hundred dollars ($500.00) to be submitted with such filing; for filing and auditing annual statement, one hundred dollars ($100.00); for filing any other papers required by law, twenty-five dollars ($25.00); for each certificate of examination, condition, or qualification of company or association, ten dollars ($10.00); for each seal when required, ten dollars ($10.00); for a list of licensed insurance companies, ten dollars ($10.00).
(2)	Repealed by Session Laws 1977, c. 376, s. 2.
(3)	The Commissioner shall receive for copy of any record or paper in his office fifty cents (50¢) per copy sheet and ten dollars ($10.00) for certifying same, or any fact or data from the records of his office; for examination of any foreign company, not less than forty dollars ($40.00) per diem and all expenses or the fees as prescribed by the Examination Committee of the National Association of Insurance Commissioners, and for examining any domestic company, actual expenses incurred; for the examination and approval of charters of companies, twenty-five dollars ($25.00).  Notwithstanding the provisions of G.S. 138-6, the Commissioner of Insurance is authorized to pay examiners an amount in lieu of traveling expenses equal to the rate charged to and collected from the companies, associations or orders.  For the investigation of tax returns and the collection of any delinquent taxes disclosed by such investigation, the Commissioner may, in lieu of the above per diem charge, assess against any such delinquent company the expense of the investigation and collection of such delinquent tax, a reasonable percentage of such delinquent tax, not to exceed ten per centum (10%) of such delinquency, and in addition thereto.
(4)	He shall collect all other fees and charges due and payable into the State treasury by any company, association, order, or individual under his Department. 
(5)	The Commissioner shall charge and insurers shall pay, as a prerequisite to receipt and review by the Commissioner of policy form or rate filings, a nonrefundable fee of fifty dollars ($50.00) per policy form filing submitted for approval and a nonrefundable fee of fifty dollars ($50.00) per rate filing submitted.  Payment of the fee shall be made at the time the form or rate filing is submitted.  If an insurer fails to pay the fee at the time of submittal, the Commissioner shall return the filing to the insurer; and any statutory time periods relating to the filing shall be tolled until the insurer remits the fee with the resubmitted filing.  As used in this subdivision, ‘insurer' includes an entity subject to Articles 65 through 67 of this Chapter; and ‘policy form' includes an endorsement, rider, or an amendment to a policy that has already been approved by the Commissioner."
Sec. 2.  G.S. 58-6-15 reads as rewritten:
"§ 58-6-15.  Licenses run from July 1.
The license required of insurance companies shall continue for the next ensuing 12 months after July 1 of each year, unless revoked as provided in Articles 1 through 64 of this Chapter.  Application for renewal of the company license must be submitted on or before the first day of March on a form to be supplied by the Commissioner.  Upon satisfying himself that the company has met all requirements of law and appears to be financially solvent he shall forward the renewal license to the company.  Any company which does not qualify for a renewal license before July 1 shall cease to do business in the State of North Carolina as of July 1, unless its license is sooner revoked by the Commissioner.
	Nothing contained in this section shall be interpreted as applying to licenses issued to individual representatives of insurance companies."
Sec. 3.  G.S. 105-228.4(a) reads as rewritten:
"(a)	Each insurance company shall, as a condition precedent for doing business in this State, on or before the first day of March of each year apply for and obtain from the Commissioner of Insurance a certificate of registration, or license, effective the first day of July, and shall pay for such certificate the following annual fees except as hereinafter provided in subsections (b) and (c):
For each domestic farmer's mutual assessment fire 
insurance company or association, and each branch
	thereof	$25.00
For each fraternal order	500.00
For each of all other insurance companies, except
mutual burial associations taxed under G.S.
105-121.1	500.00
The fees levied above shall be in addition to those specified in G.S. 58-6-5."
Sec. 4.  G.S. 58-65-55 reads as rewritten:
"§ 58-65-55.  Issuance of certificate.
Before issuing any such license or certificate the Commissioner may make such an examination or investigation as he deems expedient.  The Commissioner shall issue a certificate of authority or license upon the payment of an annual fee of five hundred dollars ($500.00) and upon being satisfied on the following points:
(1)	The applicant is established as a bona fide nonprofit hospital service corporation as defined by this Article and Article 66 of this Chapter.
(2)	The rates charged and benefits to be provided are fair and reasonable.
(3)	The amounts provided as working capital of the corporation are repayable only out of earned income in excess of amounts paid and payable for operating expenses and hospital and medical and/or dental expenses and such reserve as the Department deems adequate, as provided hereinafter.
(4)	That the amount of money actually available for working capital be sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of the issuance of the certificate."
Sec. 5.  G.S. 58-67-160 reads as rewritten:
"§ 58-67-160.  Fees.
Every health maintenance organization subject to this Article shall pay to the Commissioner the following fees:
(1)	For filing an application for a certificate of authority or renewal thereof, five hundred dollars ($500.00);
(2)	For filing each annual report, one hundred dollars ($100.00)."
Sec. 6.  G.S. 58-35-5(e) reads as rewritten:
"(e)	There shall be two types of licenses issued to an insurance premium finance company:
(1)	An ‘A' type license shall be issued to insurance premium finance companies whose business of insurance premium financing is limited to the financing of insurance premiums of one insurance agent or agency and whose primary function is to finance only the insurance premium of such agent or agency. The license fee for an ‘A' type license shall be three hundred dollars ($300.00) for each license year or part thereof.
(2)	A ‘B' type license shall be issued to an insurance premium finance company whose business of insurance premium financing is not limited to the financing of insurance premiums of one insurance agent or agency and whose primary function is to finance the insurance premiums of more than one insurance agent or agency. The license fee for a ‘B' type license shall be one thousand two hundred dollars ($1,200) for each license year or part thereof.
A branch office license may be issued for either an ‘A' type or ‘B' type license. The fee for the branch office license shall be fifty dollars ($50.00) for each license year or part thereof. The examination fee when required by this section shall be two hundred fifty dollars ($250.00) per application."
Sec. 7.  G.S. 58-9-5 is amended by adding a new subdivision to read:
"(5)	Application fee.–The copies of the plan of exchange filed in accordance with subdivision (2) of this section shall be accompanied by a nonrefundable fee of five hundred dollars ($500.00)."
Sec. 8.  Article 7 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-7-155.  Application fee.
Every application for redomestication under G.S. 58-7-60 and G.S. 58-7-65 shall be accompanied by a nonrefundable fee of two hundred dollars ($200.00)."
Sec. 9.  G.S. 58-7-150 is amended by adding a new subsection to read:
"( c)	An application for merger or consolidation under this section shall be accompanied by a nonrefundable fee of five hundred dollars ($500.00)."
Sec. 10.  Article 18 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-18-25.  Application fee.
An application for a certificate of authority under this Article shall be accompanied by a nonrefundable fee of fifty dollars ($50.00)."
Sec. 11.  Article 22 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-22-70.  Registration and renewal fees.
Every risk retention group and purchasing group that registers with the Commissioner under this Article shall pay the following fees:
Risk retention group registration	 $250.00
Purchasing group registration	 50.00
Risk retention group renewal	250.00
Purchasing group renewal	50.00
Registration fees are nonrefundable, shall not be prorated, and must be submitted with the application for registration.  Renewal fees are nonrefundable, shall not be prorated, and must be paid on or before January 1 of each year."
Sec. 12.  G.S. 58-21-20 is amended by adding a new subsection to read:
"( c)	Every surplus lines insurer that applies for eligibility under this section shall pay a nonrefundable fee of two hundred fifty dollars ($250.00).  In order to renew eligibility, such insurer shall pay a nonrefundable renewal fee of two hundred fifty dollars ($250.00) on or before January 1 of each year thereafter.  Such fees shall not be prorated."
Sec. 13.  This act is effective upon ratification.