AN ACT to make various changes related to real estate title insurance companies and to amend the deposit required of professional bailbondsmen acting as sureties on bail bonds.

The General Assembly of North Carolina enacts:

SECTION 2.1  G.S. 58‑26‑1(b1) reads as rewritten:
"(b1)	Domestic and foreign title insurance companies are subject to the same capital, surplus, deposit, and investment requirements that govern the formation and operation of stock casualty companies. "
SECTION 2.2  G.S. 58‑26‑25 reads as rewritten:
"§ 58‑26‑25.  Amount of unearned statutory premium reserve.

	
(a1)	A domestic title insurance company shall establish and maintain a statutory premium reserve in an amount equal to $0.17 per $1,000 of net retained liability for each title insurance policy which is defined as the total liability retained by a title insurer for a single risk after taking into account any ceded liability. The net retained liability of a simultaneous issue of an owner's policy and a loan policy shall be calculated on the greater coverage amount of the two policies. The amount set aside in the statutory premium reserve shall be released over a period of 20 years, pursuant to the following formula: 30% of the aggregate sum in the year next succeeding the year of addition; 15% of the aggregate sum in the next succeeding year; 10% of the aggregate sum in each of the next succeeding two years; 5% of the aggregate sum in each of the next succeeding two years; 3% of the aggregate sum in each of the next succeeding two years; 2% of the aggregate sum in each of next succeeding seven years; and 1% of the aggregate sum in each of the next succeeding five years. The title insurer shall make authorized releases under this section in equal quarterly amounts on March 31, June 30, September 30 and December 31 annually.

	
(b1)	All amounts held as of December 31, 2018, which are in excess of the requirements of subsection (a1) of this section, shall be released on December 31, 2018, to net profits.

(e)	A supplemental reserve shall be established in accordance with the instructions of the annual statement required by G.S. 58‑2‑165 and G.S. 58‑26‑10 consisting of the reserves necessary, when taken in combination with the reserve required by subsection (a1) of this section to cover the company's liabilities with respect to all losses, claims, and loss adjustment expenses.
(f)	Each title insurer subject to the provisions of this Article shall file with its annual statement required by G.S. 58‑2‑165 and G.S. 58‑26‑10 a certification of a member in good standing of the American Academy of Actuaries. The actuarial certification required of a title insurer must conform to the annual statement instructions for title insurers of the National Association of Insurance Commissioners."
SECTION 2.3  G.S. 58‑26‑31 is repealed.
SECTION 2.4  G.S. 58‑26‑35 is repealed.
SECTION 3.  G.S. 58‑71‑145. reads as rewritten:
"§ 58‑71‑145.  Financial responsibility of professional bondsmen.
Each professional bondsman acting as surety on bail bonds in this State shall maintain a deposit of securities with and satisfactory to the Commissioner of a fair market value of at least one‑twelfth the amount of all bonds or undertakings written in this State on which he is absolutely or conditionally liable as of the first day of the current month. The amount of this deposit must be reconciled with the bondsman's liabilities as of the first day of the month on or before the fifteenth day of said month and the value of said deposit shall in no event be less than fifteen thousand dollars ($15,000)."
SECTION 4.  Sections 2.1, 2.2, 2.3, and 2.4 of this act become effective October 1, 2018.  The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 14th day of June, 2018.

	s/	 Philip E. Berger
	 President Pro Tempore of the Senate

	s/	 Tim Moore
	 Speaker of the House of Representatives

	s/	 Roy Cooper
	 Governor

Approved 9:23 a.m. this 22nd day of June, 2018