GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	1 

SENATE BILL 1114

Short Title:  JUA Reauthorization.	(Public)

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Sponsors: Senator Soles.

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Referred to:  Commerce.

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May 13, 1998

A BILL TO BE ENTITLED
AN ACT TO REENACT THE 1986 LAW PROVIDING FOR RISK-SHARING PLANS, TO AMEND THE IMMUNITY STATUTES FOR THE FAIR AND BEACH PLANS, AND TO MAKE A TECHNICAL AMENDMENT IN THE BEACH PLAN LAWS.
The General Assembly of North Carolina enacts:
Section 1. Article 42 of Chapter 58 of the General Statutes, which expired July 1, 1997, is reenacted.
Section 2.  G.S. 58-42-1, as reenacted in Section 1 of this act, reads as rewritten:
"§ 58-42-1.  Establishment of plans.
If the Commissioner finds, after a public hearing, that in all or any part of this State, any amount or kind of insurance authorized by G.S. 58-7-15(4)	through G.S. 58-7-15(22) is not readily available in the voluntary market and that the public interest requires the availability of that insurance, he may either:
(1)	Promulgate plans to provide insurance coverage for any risks in this State that are, based on reasonable underwriting standards, entitled to obtain but are otherwise unable to obtain coverage; or
(2)	Call upon insurers to prepare plans for his approval."
Section 3.  G.S. 58-42-45, as reenacted by Section 1 of this act, reads as rewritten:
"§ 58-42-45.  Article not subject to Administrative Procedure Act; legislative oversight of plans.
(a)	The provisions of Chapter 150B of the General Statutes shall not apply to this Article, except that G.S. 150B-39 and G.S. 150B-41 apply to hearings conducted under G.S. 58-42-1.
(b)	At the same time the Commissioner issues a notice of hearing under G.S. 58-42-1, the Commissioner shall provide copies of the notice to the Joint Legislative Administrative Procedure Oversight Committee and to the Joint Legislative Commission on Governmental Operations.  The Commissioner shall provide the Committee and Commission with copies of any plan promulgated by or approved by the Commissioner under G.S. 58-42-1(1) or (2)."
Section 4. G.S. 58-42-55, as reenacted in Section 1 of this act, reads as rewritten:
"§ 58-42-55.  Expiration.
This Article shall expire on July 1, 2001."
Section 5.  G.S. 58-45-60 reads as rewritten:
"§ 58-45-60.  Association and Commissioner immune from liability.
There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the Association or its agents or employees, the board of directors, or the Commissioner or his representatives for any action taken by them in good faith in the performance of their powers and duties under this Article."
Section 6.  G.S. 58-46-35 reads as rewritten:
"§ 58-46-35.  Reports of inspection made available; immunity from liability.
All reports of inspection performed by or on behalf of the association shall be made available to the members of the association, applicants and the Commissioner.  There shall be no liability on the part of and no cause of action of any nature shall arise against any member insurer, the Association or its agents or employees, the board of directors, or the Commissioner or his representatives for any action taken by them in good faith in the performance of their powers and duties under this Article."
Section 7.  G.S. 58-45-15 reads as rewritten:
"§ 58-45-15.  Powers and duties of Association.
The Association shall, pursuant to the provisions of this Article and the plan of operation, and with respect to the insurance coverages authorized in this Article, have the power on behalf of its members:
(1)	To cause to be issued policies of insurance to applicants;
(2)	To assume reinsurance from its members;
(3)	To cede reinsurance to its members and to purchase reinsurance in behalf of its members."
Section 8.  If any section or provision of this act is declared unconstitutional or invalid by the courts, it does not affect the validity of the act as a whole or any part other than the part so declared to be unconstitutional or invalid.
Section 9.  This act is effective when it becomes law.