GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	2 

HOUSE BILL 606*
Committee Substitute Favorable 5/4/93

Short Title:  Reinsurer Accreditation Fee.	(Public)
─────────────────────────────────────── 
Sponsors:
─────────────────────────────────────── 
Referred to: 
─────────────────────────────────────── 

March 29, 1993

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH A FEE FOR THE ACCREDITATION AND RENEWAL OF ACCREDITATION OF REINSURANCE COMPANIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-7-21(b)(2) reads as rewritten:
"(2)	Credit shall be allowed when the reinsurance is ceded to an assuming insurer that is accredited as a reinsurer in this State.  An accredited reinsurer is one that:
a.	Files with the Commissioner evidence of its submission to this State's jurisdiction;
b.	Submits to this State's authority to examine its books and records;
c.	Is licensed to transact insurance or reinsurance in at least one state, or in the case of a United States branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state;
d.	Files annually with the Commissioner a copy of its annual statement filed with the insurance regulator of its state of domicile, a copy of its most recent audited financial statement, and a fee of five hundred dollars ($500.00); and either
1.	Maintains a policyholders' surplus in an amount that is not less than twenty million dollars ($20,000,000) and whose accreditation has not been denied by the Commissioner within 90 days after its submission; or
2.	Maintains a policyholders' surplus in an amount less than twenty million dollars ($20,000,000) and whose accreditation has been approved by the Commissioner.
No credit shall be allowed a domestic ceding insurer if the assuming insurer's accreditation has been revoked by the Commissioner after notice and opportunity for a hearing."
Sec. 2.  This act is effective upon ratification.