North Carolina Administrative Code

11 NCAC 11C .0117 CONFLICT OF INTEREST STATEMENTS MUST BE EXECUTED ANNUALLY Conflict of interest statements shall be executed annually by the officers, directors, trustees, attorneys-in-fact, and administrative personnel of every domestic insurer subject to G.S. 58, Articles 1 th…

11 NCAC 11C .0118 COLLECTION PROCEDURES FOR EXAMINATION EXPENSE History Note: Authority G.S. 58-2-40; 58-2-133(c); Eff. February 1, 1976; Readopted Eff. February 28, 1978; Amended Eff. April 1, 1993; January 14, 1980; Repealed Eff. February 1, 1996.

11 NCAC 11C .0119 MORTGAGE LOANS TO BE SOLD WITHOUT RECOURSE First mortgage loans on unencumbered fee simple real estate, whether permanent term loans or construction loans, may not be sold to a third party unless the evidence of debt and the mortgage or deed of trust is physical…

11 NCAC 11C .0120 VALUATION OF INVESTMENTS: VALUATIONS OF SECURITIES MANUAL History Note: Authority G.S. 58-9; 58-79; 58-79.1; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. April 1, 1994.

11 NCAC 11C .0121 STOCK OPTIONS: GENERAL History Note: Authority G.S. 58-79; 58-79.1; Eff. February 28, 1978; Repealed Eff. April 1, 1993.

11 NCAC 11C .0122 SALE OF EXCHANGE: TRADED CALL OPTIONS History Note: Authority G.S. 58-79; 58-79.1; Eff. February 28, 1978; Repealed Eff. March 1, 2004.

11 NCAC 11C .0123 PURCHASE OF EXCHANGE: TRADED CALL OPTIONS History Note: Authority G.S. 58-79; 58-79.1; Eff. February 28, 1978; Repealed Eff. April 1, 1993.

11 NCAC 11C .0129 FORM OF REPORTS OF EXAMINATION: FOREIGN COMPANIES The reports on examination prepared by the domiciliary insurance department of a foreign company as a result of a triennial examination, special examination or any other type of examination of a foreign insurance…

11 NCAC 11C .0130 CREDIT FOR REINSURANCE History Note: Filed as a Temporary Adoption Eff. September 12, 1991, for a period of 180 days to expire on March 10, 1992; Authority G.S. 58-2-40(1); 58-7-1; Expired March 10, 1992.

11 NCAC 11C .0131 VALUATION OF DEBT SECURITIES History Note: Authority G.S. 58-2-40; 58-7-190; Temporary Adoption Eff. January 1, 1992 for a period of 180 days to expire on June 29, 1992; Eff. May 1, 1992; Repealed Eff. March 1, 2004.

11 NCAC 11C .0132 ACCOUNTING FOR SALVAGE AND SUBROGATION History Note: Authority G.S. 58-2-40; 58-7-162; Eff. April 1, 1993; Amended Eff. February 1, 1996; Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

11 NCAC 11C .0133 ACCOUNTING FOR LIFE AND HEALTH REINSURANCE AGREEMENTS History Note: Authority G.S. 58-2-40; 58-7-31; Temporary Adoption Eff. January 21, 1994 for a period of 180 days or until the permanent rule becomes effective, whichever is sooner; Eff. April 1, 1994; Expired…

SECTION .0200 - INVESTMENTS 11 NCAC 11C .0201 GENERAL NATURE History Note: Authority G.S. 58-9; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

11 NCAC 11C .0205 ACCOUNTING FOR SALVAGE AND SUBROGATION History Note: Authority G.S. 58-16; 58-9; Eff. February 28, 1978; Repealed Eff. April 1, 1993.

11 NCAC 11C .0206 ACCOUNTING FOR PREMIUM OVER 90 DAYS PAST DUE History Note: Authority G.S. 58-2-40; 58-7-162(5); Eff. April 1, 1993; Repealed Eff. March 1, 2004.

SECTION .0300 - HEALTH MAINTENANCE ORGANIZATIONS 11 NCAC 11C .0301 GENERAL NATURE History Note: Authority G.S. 58-9; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

11 NCAC 11C .0307 FINANCIAL CERTIFICATION: HMO After the applicant has performed, or caused to be performed, a feasibility study on the proposed operations of the HMO and has developed a specific plan of operation, this information shall be submitted to the applicant's staff actu…

11 NCAC 11C .0308 FOREIGN HMO: SUCCESSFUL OPERATION History Note: Authority G.S. 58-2-40; 58-67-10; Eff. April 1, 1993; Amended Eff. April 1, 1994; Repealed Eff. February 1, 2010.

11 NCAC 11C .0309 ADMITTED ASSETS: HMO History Note: Authority G.S. 58-2-40; 58-2-40(1); 58-67-20; 58-67-110(b); Eff. April 1, 1993; Repealed Eff. March 1, 2004.

11 NCAC 11C .0310 REINSURANCE AGREEMENTS: HMO Reinsurance Agreements entered into in accordance with G.S. 58-67-110(e) shall be issued by insurance carriers licensed to do business in North Carolina. History Note: Authority G.S. 58-2-40; 58-67-110(e); Eff. April 1, 1993; Pursuant…

11 NCAC 11C .0311 EXPANSION OF SERVICE AREA: HMO (a) Applications for expansion of service area shall provide current data stated in G.S. 58-67-10(c)(1) along with a feasibility study and market survey of the proposed area as stated in 11 NCAC 11C .0307. (b) Applications for expa…

11 NCAC 11C .0312 FINANCIAL STATEMENTS: HMO History Note: Authority G.S. 58-2-40; 58-67-55; Eff. April 1, 1993; Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

11 NCAC 11C .0313 NET EARNED INCOME DEFINITION: HMO History Note: Authority G.S. 58-2-40; 58-67-5(i); Eff. February 1, 1996; Expired Eff. January 1, 2016 pursuant to G.S. 150B-21.3A.

11 NCAC 11C .0403 ACCOUNTING FOR MORTGAGE GUARANTY INSURANCE History Note: Authority G.S. 58-2-40; 58-2-165; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Amended Eff. April 1, 1993; Repealed Eff. June 1, 2007.

11 NCAC 11C .0404 CONTINGENCY RESERVE: MORTGAGE GUARANTY INSURANCE History Note: Authority G.S. 58-2-40(1); Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. June 1, 2007.

11 NCAC 11C .0405 POLICY FORMS: MORTGAGE GUARANTY INSURANCE All policy forms and endorsements of mortgage guaranty insurance companies shall be filed with and be subject to approval of the Commissioner of Insurance. History Note: Authority G.S. 58-2-40(1); Eff. February 1, 1976; …

11 NCAC 11C .0406 APPRAISAL REVIEW FEES ARE PART OF PREMIUM CHARGE Appraisal review fees, as charged by mortgage guaranty insurance companies, are considered to be a part of the premium charge for all purposes, including unearned premium reserve, and are to be included as part of…

11 NCAC 11C .0407 REPORT OF POLICYHOLDERS POSITION – MORTGAGE GUARANTY INSURERS Each mortgage guaranty insurance company doing business in this State shall file with the Commissioner a Mortgage Guaranty Insurers Report of Policyholders Position form, which is available at www.ncd…

11 NCAC 11C .0504 TRUST AGREEMENTS QUALIFIED UNDER G.S. 58-7-26 (a) As used in this Rule: (1) "Beneficiary" means the entity for whose sole benefit the trust has been established and any successor of the beneficiary by operation of law. If a court of law appoints a receiver as su…

11 NCAC 11C .0505 LETTERS OF CREDIT (a) As used in this Rule: (1) "Beneficiary" means the entity for whose benefit the letter of credit has been established and any successor of the beneficiary by operation of law. If a court of law appoints a receiver as successor in interest to…

SECTION .0600 - PREMIUMS IN THE COURSE OF COLLECTION 11 NCAC 11C .0601 DEFINITIONS The definitions contained in G.S. 58-19-5 are incorporated into this Section by reference. History Note: Authority G.S. 58-2-40; 58-7-162; Eff. April 1, 1993; Pursuant to G.S. 150B-21.3A, rule is n…

11 NCAC 11C .0602 APPLICABILITY G.S. 58-7-162(6) applies when a person solely or in combination with the person's affiliates owes, in any two of three consecutive months, an insurer an amount that exceeds five percent of the insurer's total premiums in course of collection. Histo…

11 NCAC 11C .0603 COMPLIANCE-TRUST ACCOUNT (a) When G.S. 58-7-162(6) applies under 11 NCAC 11C .0602, the premiums collected by the person or the person and its affiliates and not remitted to the insurer may be held in a trust account with a bank so that those premiums will quali…

11 NCAC 11C .0604 COMPLIANCE: LETTER OF CREDIT (a) When G.S. 58-7-162(6) applies under 11 NCAC 11C .0602, the premiums collected by the person or the person and its affiliates and not remitted to the insurer may be secured by an unexpired, clean, irrevocable letter of credit, pay…

11 NCAC 11C .0605 COMPLIANCE: FINANCIAL GUARANTY BOND (a) When G.S. 58-7-162(6) applies under 11 NCAC 11C .0602, the premiums collected by the person or the person and its affiliates and not remitted to the insurer may be secured by a financial guaranty bond acceptable to the Dep…

SUBCHAPTER 11d – PROXY: LIQUIDATION AND MERGER SECTION .0100 – GENERAL PROVISIONS 11 NCAC 11D .0101 GENERAL PROVISIONS History Note: Authority G.S. 58-9; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

11 NCAC 11D .0104 APPLICABILITY OF LAWS AFTER REVOCATION OR SUSPENSION If the Commissioner of Insurance of this state revokes or suspends the license of a foreign insurance company to do any new business in this state, said company shall remain subject to the provisions of Chapte…

11 NCAC 11D .0107 BUSINESS IN OWN NAME: EMBLEMS: INSIGNIAS: ETC Every insurance company must conduct its business in the state in its proper or corporate name which must be prominently displayed, together with any emblem, insignia or anything other than the true and corporate nam…

11 NCAC 11D .0110 SIZE OF TYPE OF ALL NOTICES REQUIRED TO BE PUBLISHED Any notices required by the insurance laws of North Carolina to be published in newspapers within this state shall be printed in type which shall not be smaller than six point type and may be published under t…

11 NCAC 11D .0111 CERTIFICATE OF INCORPORATION AND AMENDMENTS: APPROVAL To insure compliance with the provisions of Article 26 of Chapter 58, the certificate of incorporation of a proposed domestic title insurance company must be approved by the Commissioner before filing with th…

11 NCAC 11D .0112 DOMESTIC STOCK TITLE INS COMPANIES: CAPITAL REQUIREMENTS In order that the corporate files of the Department of Insurance will properly reflect all capital stock changes, domestic stock title insurance companies must comply with the provisions of G.S. 58-7-105 t…

11 NCAC 11D .0165 EXEMPTION FROM SUBSECTION (c): DISTRIBUTION Any security shall be exempt from the operation of subsection (c) of the act to the extent necessary to render lawful under such section any sale made by or on behalf of a dealer in connection with a distribution of a …

11 NCAC 11D .0168 GUARANTY CAPITAL CERTIFICATES: WHEN PERMITTED History Note: Authority G.S. 58-2-40; 58-8-20; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Amended Eff. April 1, 1993; Repealed Eff. June 1, 2007.

11 NCAC 11D .0169 NOTICE OF HEARING ON REVOCATION OR SUSPENSION OF LICENSE (a) If the Commissioner of Insurance is of the opinion, upon examination or receipt of evidence from other sources, that a foreign insurance company is in an unsound condition, or, if a life insurance comp…

11 NCAC 11D .0170 WRITTEN ORDER: HEARING ON REVOCATION OR SUSPENSION (a) If after concluding the hearing on the revocation or suspension of a foreign company's license as required by 11 NCAC 11D .0169, the company has not satisfied the Commissioner that the conditions which promp…

SECTION .0200 - LIQUIDATION: GENERAL NATURE 11 NCAC 11D .0201 GENERAL NATURE History Note: Authority G.S. 58-9 Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

11 NCAC 11D .0202 REPLACEMENT POLICIES History Note: Authority G.S. 58-9.1; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. April 1, 1993.

SECTION .0300 - MERGER: GENERAL NATURE 11 NCAC 11D .0301 GENERAL NATURE History Note: Authority G.S. 58-9; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

SUBCHAPTER 11E - TAX AND MISCELLANEOUS SECTION .0100 - GENERAL PROVISIONS 11 NCAC 11E .0101 GENERAL PROVISIONS History Note: Authority G.S. 58-9; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. July 1, 1988.

11 NCAC 11E .0106 MICROFILMING OF COMPANY RECORDS History Note: Authority G.S. 58-9.1; Eff. February 1, 1976; Readopted Eff. February 28, 1978; Repealed Eff. March 1, 1993.