A BILL TO BE ENTITLED
AN ACT TO REVISE STATUTES RELATED TO CAPTIVE INSURANCE, TO ESTABLISH A PROCEDURE FOR REMOTE BIDDING AT A FORECLOSURE SALE, AND TO PERMIT HEALTH BENEFIT PLAN SPONSORS TO OBTAIN CONSENT TO ELECTRONIC MAILING OF REQUIRED COMMUNICATIONS.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 58‑22‑15 is amended by adding a new subsection to read:
"(c1)	Examination Regarding Financial Condition. – The Commissioner may examine any risk retention group whenever the Commissioner deems it prudent and reasonable. The examination shall be (i) coordinated with other examining bodies in a manner that avoids unnecessarily repetitious examinations, (ii) conducted in an expeditious manner, and (iii) conducted in accordance with the Examiner Handbook of the NAIC. The costs associated with an examination pursuant to this subsection shall be the responsibility of the examined risk retention group."
SECTION 2.  G.S. 58‑22‑20 reads as rewritten:
"§ 58‑22‑20.  Risk retention groups not chartered in this State.
Risk retention groups that have been chartered in states other than this State and that seek to do business as risk retention groups in this state must observe and abide by the laws of this State as follows:
…
(3)	Taxation. –
a.	All premiums paid for coverages within this State to risk retention groups shall be subject to taxation at the rate of one and eighty‑five hundredths percent (1.85%) and subject to the same payment procedures and to the same interest, fines, and penalties for nonpayment as those applicable to surplus lines insurance under Article 21 of this Chapter. Premiums paid by purchasing groups are, however, taxed as provided in G.S. 58‑22‑35(b).
…."
SECTION 3.(a)  G.S. 105‑228.4A(g) reads as rewritten:
"(g)	A captive insurance company formed and licensed under the laws of a jurisdiction other than North Carolina that (i) obtains the approval of the North Carolina Commissioner of Insurance to redomesticate to North Carolina pursuant to G.S. 58‑10‑380(g) to operate as a North Carolina–domiciled captive insurance company and (ii) redomesticates to North Carolina is exempted from premium taxes imposed by this section for the year in which the redomestication occurs and the premium taxes imposed by this section for the calendar year following the redomestication. This subsection expires for taxable years beginning on or after January 1, 2026."
SECTION 3.(b)  This section is effective when it becomes law.
SECTION 4.(a)  G.S. 45‑21.4 reads as rewritten:
"§ 45‑21.4.  Place of sale of real property.
(a)	Every sale of real property shall be held in the county where the property is situated unless the property consists of a single tract situated in two or more counties.
(b)	A sale of a single tract of real property situated in two or more counties may be held in any one of the counties in which any part of the tract is situated. As used in this section, a "single tract" means any tract which has a continuous boundary, regardless of whether parts thereof may have been acquired at different times or from different persons, or whether it may have been subdivided into other units or lots, or whether it is sold as a whole or in parts.
(c)	When a mortgage or deed of trust with power of sale of real property designates the place of sale within the county, the sale shall be held at the place so designated.
(d)	When a mortgage or deed of trust with power of sale of real property confers upon the mortgagee or trustee the right to designate the place of sale, the sale shall be held at the place designated by the notice of sale, which place shall be either on the premises to be sold or as follows:
(1)	Property situated wholly within a single county shall be sold at the courthouse door of the county in which the land is situated or at another public location within the county where the land is situated as designated by the mortgagee or trustee.
(2)	A single tract of property situated in two or more counties may be sold at the courthouse door of any one of the counties in which some part of the real property is situated or at another public location within any one of the counties in which some part of the real property is situated as designated by the mortgagee or trustee.
(e)	When a mortgage or deed of trust with power of sale of real property does not designate, or confer upon the mortgagee or trustee the right to designate, the place of sale, or when it designates as the place of sale some county in which no part of the property is situated, such real property shall be sold as follows:
(1)	Property situated wholly within a single county shall be sold at the courthouse door of the county in which the land is situated or at another public location within the county where the land is situated as designated by the clerk of the superior court of the county where the land is situated.
(2)	A single tract of property situated in two or more counties may be sold at the courthouse door of any one of the counties in which some part of the real property is situated or another public location within one of the counties in which some part of the real property is situated as designated by the clerk of the superior court of one of the counties in which some part of the real property is situated."
SECTION 4.(b)  G.S. 45‑21.23 reads as rewritten:
"§ 45‑21.23.  Time of sale.
A sale shall begin at the time designated in the notice of sale or as soon thereafter as practicable, but not later than three hours after the time fixed therefor unless it is delayed by other sales held at the same place. The sale shall be held between the hours of 10:00 A.M. and 4:00 P.M. on any day when the clerk's office is normally open for transactions."
SECTION 4.(c)  Part 2 of Article 2A of Chapter 45 of the General Statutes is amended by adding a new section to read:
"§ 45‑21.25A.  Bids placed remotely.
(a)	The person exercising the power of sale of real property, or that person's agent, may accept remote bids from bidders not physically present at the place of sale, as designated pursuant to G.S. 45‑21.4. All bids accepted at the sale must be clearly announced to all participating bidders, whether physically present or not.
(b)	Prior to accepting a remote bid, the person exercising the power of sale of real property, or that person's agent, shall collect all funds required to be paid by the winning bidder in accordance with G.S. 45‑21.10.
(c)	Any charges incurred by the person exercising the power of sale of real property, or that person's agent, in connection with remote bidding authorized under this section shall not be chargeable to the mortgagor or otherwise recoverable as costs and expenses of the foreclosure."
SECTION 5.  G.S. 58‑2‑255 reads as rewritten:
"§ 58‑2‑255.  Electronic insurance communications and records.
(a)	Definitions. – The following definitions apply in this section:
(1)	Communications. – Notices, offers, disclosures, documents, forms, information, and correspondence, including an identification card, required or permitted to be provided to a party in writing under the insurance laws of this State or that are otherwise provided by an insurer, including, but not limited to, notices pertaining to the cancellation, termination, or nonrenewal of insurance.
(2)	Delivered by electronic means. – Any of the following:
a.	Delivery to an electronic mail address or an electronic account at which a party has consented to receive electronic communications.
b.	Displaying information, or a link to information, as an essential step to completing the transaction to which such information relates.
c.	Providing notice to a party at the electronic mail address or an electronic account at which the party has consented to receive notice of the posting of a communication on an electronic network or site.
(2a)	Health benefit plan. – As defined in G.S. 58‑3‑167.
(2b)	Health benefit plan sponsor. – A person, other than a regulated entity, who establishes, adopts, or maintains a health benefit plan that covers residents of this State, including a plan established, adopted, or maintained by an employer or jointly by an employer and one or more employee organizations, an association, a committee, a joint board of trustees, or any similar group of representatives who establish, adopt, or maintain a health benefit plan.
(3)	Insurer. – As defined in G.S. 58‑1‑5(3).
(4)	Party. – A recipient of any communications defined in this section. "Party" includes an applicant, policyholder, insured, claimant, member, provider, or beneficiary.
(b)	When any insurance law of this State requires a communication to be provided to a party in writing, signed by a party, provided by means of a specific delivery method, or retained by an insurer, those requirements are satisfied if the insurer complies with Article 40 of Chapter 66 of the General Statutes.
(c)	Verification of communications delivered by electronic means shall constitute proof of mailing in civil and administrative proceedings and under the insurance laws of this State.
(d)	Nothing in this section affects requirements related to the content or timing of any communication required under the insurance laws of this State.
(e)	A recording of an oral communication between an insurer and a party that is reliably stored and reproduced by an insurer shall constitute an electronic communication or record. When a communication is required under the insurance laws of this State to be provided in writing, the communication provided in accordance with this subsection shall satisfy the requirement that the communication be in writing. When a communication is required under the insurance laws of this State to be signed, a recorded oral communication in which a party agrees to the terms stated in the oral communication shall satisfy the requirement.
(f)	To the extent permitted by the Employee Retirement and Income Security Act of 1974 (ERISA) and its amendments, a health benefit plan sponsor may, on behalf of any individual enrolled in the plan, provide consent for all communications related to the plan to be delivered by electronic means.
(g)	Before consenting on behalf of an individual covered by a plan, as described in subsection (f) of this section, the health benefit plan sponsor shall confirm that the covered individual routinely uses electronic communications during the normal course of employment.
(h)	Before delivering communications by electronic means, an insurer must:
(1)	Give the covered individual the opportunity to opt out of delivery by electronic means.
(2)	Send the communications by U.S. Mail if the insurer becomes aware the electronic mail address at which the covered individual consented to receive communications is no longer valid.
(3)	Maintain a record of the communications delivered by electronic means.
(4)	Comply with all applicable provisions of Article 40 of Chapter 66 of the General Statutes.
(i)	Covered individuals may withdraw their consent to receive communications by electronic means at any time.
(j)	No insurer shall cancel, refuse to issue, or refuse to renew any policy because an individual refuses to agree to receive communications delivered by electronic means."
SECTION 6.  Sections 1 and 2 of this act become effective October 1, 2024, and apply to contracts issued, renewed, or amended on or after that date. Section 4 of this act becomes effective October 1, 2024, and applies to notices of foreclosure sale filed with the clerk of superior court on or after that date. Section 5 of this act becomes effective October 1, 2024, and applies to contracts entered into on or after that date. The remainder of this act is effective when it becomes law.