Chapter 58

When the Commissioner has been appointed as a receiver under Article 30 of this Chapter for a provider or a continuing care retirement community subject to this Article, the Department of Health and Human Services may, notwithstanding any other provision of law, accept and approv…

(a) In the event of liquidation of a provider, all continuing care and continuing care at home contracts executed by the provider shall be deemed preferred claims against all assets owned by the provider. (b) Notwithstanding subsection (a) of this section, the claims of all conti…

The Commissioner may waive or modify any provision of this Article if the Commissioner determines a waiver or modification is justified based on any of the following: (1) A state of emergency or disaster being proclaimed in this State or for an area within this State under G.S. 1…

As used is this Part, "residents' council" means a group duly elected by residents at a continuing care retirement community to advocate for residents' rights and to serve as a liaison between residents and the provider with respect to resident welfare and interests. (2025-58, s.…

A resident living in a continuing care retirement community operated by a provider licensed under this Article has the right of self-organization, the right to be represented by an individual of the resident's own choosing, and the right to engage in concerted activities to keep …

(a) The board of directors or other governing body of a provider or its designated representative shall hold in-person semiannual meetings with the residents of each continuing care retirement community operated by the provider in this State for free discussions of subjects, incl…

No act, agreement, or statement of any resident, or of an individual purchasing continuing care for a resident under any continuing care or continuing care at home contract shall constitute a valid waiver of any provision of this Article intended for the benefit or protection of …

(a) There shall be a 12-member Continuing Care Advisory Committee comprised of providers, residents, and professionals involved in the continuing care retirement community industry. The members shall be appointed as follows: (1) Six members appointed by the Commissioner as follow…

(a) Nothing in this Article affects the authority of the Department of Health and Human Services or any successor agency otherwise provided by law to license or regulate any long-term care facility. (b) Continuing care retirement communities and providers licensed under this Arti…

(a) The Commissioner or the Commissioner's designee may, in the Commissioner's discretion, visit a provider offering continuing care in this State to examine its books and records. Expenses incurred by the Commissioner in conducting examinations under this section shall be paid b…

(a) All of the following shall be confidential and privileged, shall not be considered a public record under either G.S. 58-2-100 or Chapter 132 of the General Statutes, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any priva…

A provider may not engage in any type of advertisement for a continuing care retirement community if the advertisement contains a statement or representation which materially conflicts with the disclosures required under this Article or materially conflicts with any continuing ca…

The following definitions apply to this Article: (1) Accepted actuarial standards of practice. - Standards of practice that conform with Actuarial Standards of Practice No. 3 for Continuing Care Retirement Communities, Revised Edition, effective June 1, 2022, including subsequent…

(a) No person shall market a proposed continuing care retirement community without a permit from the Commissioner. A person may apply for a permit by paying an application fee of two hundred dollars ($200.00) and filing an application on a form prescribed by the Commissioner. The…

(a) A person may apply for a start-up certificate by paying an application fee of two thousand dollars ($2,000) and submitting all of the following to the Commissioner for review: (1) A statement signed by the applicant, under penalty of perjury, certifying that to the best of th…

(a) A person may apply for a preliminary certificate by submitting all of the following to the Commissioner for review: (1) A statement signed by the applicant, under penalty of perjury, certifying that to the best of the applicant's knowledge and belief, the items submitted in t…

(a) A person may apply for a permanent license by submitting all of the following to the Commissioner for review: (1) A statement signed by the applicant, under penalty of perjury, certifying that to the best of the applicant's knowledge and belief, the items submitted in the app…

The Commissioner shall comply with the following schedule in response to an application for (i) a permit to accept deposits, (ii) a start-up certificate, (iii) a preliminary certificate, (iv) a permanent license, (v) an expansion, (vi) a continuing care at home license, (vii) an …

(a) A permit to accept deposits and a start-up certificate issued pursuant to this Article expires 36 months after issuance. (b) A provider issued a permit to accept deposits or a start-up certificate may request an extension of the permit or certificate. The request for extensio…

(a) If the Commissioner denies an application, notification, or any other request for approval pursuant to this Article, the Commissioner shall notify the applicant in writing of the denial. The notification shall state the grounds for the denial. To obtain a review of the Commis…

(a) Prior to marketing and collecting deposits for a proposed expansion of a continuing care retirement community that is twenty percent (20%) or more of existing independent living units, a provider shall do both of the following: (1) Notify and obtain written approval from the …

(a) Prior to commencing construction of an expansion of a continuing care retirement community that is twenty percent (20%) or more of existing independent living units, a provider shall do both of the following: (1) Receive Commissioner approval of an expansion notification purs…

All entrance fees and deposits collected for independent living units in an expansion requiring Commissioner approval under this Part shall be placed in an escrow account in accordance with Part 4 of this Article unless otherwise exempted by the Commissioner. (2025-58, s. 2.) Par…

(a) Any corporation organized under the general corporation laws of the State of North Carolina for the purpose of maintaining and operating a nonprofit dental, health care, medical, or vision service plan whereby dental, health care, medical, or vision care or services may be pr…

The following definitions apply in this Article: (1) Dental service plan. - A contract for the provision of, or the payment of fees for, dental care or dental services, including any other professional services authorized or permitted to be provided by a duly licensed dentist. (2…

(a) Any premium or dues charged by a corporation regulated under the provisions of this Article and Article 66 of this Chapter may be paid by the employer, employee, principal, or agent. The term "employer" as used in this section includes counties, municipal corporations, and al…

Every service corporation subject to this Article is subject to G.S. 58-2-165. (1941, c. 338, s. 9; 1999-244, s. 11.)

Service corporations subject to this Article shall be examined under G.S. 58-2-131, 58-2-132, 58-2-133, and 58-2-134. (1941, c. 338, s. 10; 1995, c. 360, s. 2(l); 1999-244, s. 5.)

All acquisition expenses in connection with the solicitation of subscribers to a dental, health care, medical, or vision service plan and administration costs including salaries paid to officers of the corporations, if any, shall at all times be subject to inspection by the Commi…

Every agent of any service corporation authorized to do business in this State under this Article is subject to the licensing provisions of Article 33 of this Chapter and all other provisions in this Chapter applicable to life and accident and health or sickness insurance produce…

No dental, health care, medical, or vision service association, nor any agent of the association, shall on behalf of the association or agent knowingly permit any person not licensed as an insurance producer as required by law, to solicit, negotiate for, collect or transmit a pre…

(a) The Commissioner may revoke or suspend the license of any service corporation if: (1) The service corporation fails or refuses to comply with any law, order, or rule applicable to the service corporation. (2) The service corporation's financial condition is unsound. (3) The s…

Any corporation subject to the provisions of this Article and Article 66 of this Chapter may hereafter amend its charter in the following manner only: (1) a. A meeting of the board of directors, trustees or other governing authority shall be called in accordance with the bylaws s…

(a) Intent and Findings. - It is the intent of the General Assembly by the enactment of this section, G.S. 58-65-132, and G.S. 58-65-133 to create a procedure for a hospital service corporation to convert to a stock accident and health insurance company or stock life insurance co…

(a) Approval of Plan of Conversion. - The Commissioner shall approve the plan of conversion and issue a certificate of authority to the new corporation to transact business in this State only if the Commissioner finds all of the following: (1) The plan of conversion meets the req…

(a) Creation. - A Foundation shall be created to receive the fair market value of the corporation as provided in G.S. 58-65-132(a)(7) when the corporation converts. (b) Purpose. - The charitable purpose of the Foundation shall be to promote the health of the people of North Carol…

(a) Any corporation organized under the provisions of this Article and Article 66 of this Chapter shall be authorized as agent of any other corporation, firm, group, partnership, or association, or any subsidiary or subsidiaries thereof, municipal corporation, State, federal gove…

No corporations organized under the laws of this State prior to the ratification of this Article and Article 66 of this Chapter, for the purposes herein provided, shall be required to reincorporate as provided for herein, and the provisions of this Article and Article 66 of this …

Any number of persons not less than seven, desiring to form a nonprofit hospital service corporation, shall incorporate under the provisions of the general laws of the State of North Carolina governing corporations, but subject to the following provisions: (1) The certificate of …

(a) Nothing in this Article and Article 66 of this Chapter shall be construed to affect or apply to dental, health care, medical, or vision service plans which limit their membership to employees and the immediate members of the families of the employees of a single employer or h…

(a) Mergers and Consolidations Allowed. - Any two or more hospital service corporations organized under or subject to the provisions of this Article and Article 66 of this Chapter, as determined by the Commissioner of Insurance may be (i) merged into one of the constituent corpor…

The Commissioner of Insurance may require from any corporation writing dental, health care, medical, or vision service contracts or any or all of them, any information that will enable the Commissioner to determine whether the corporation is subject to the provisions of this Arti…

(a) It is the public policy of this State to enable corporations organized under this Chapter to attract and maintain responsible, qualified directors, officers, employees, and agents, and, to that end, to permit corporations organized under this Chapter to allocate the risk of p…

(a) Except as provided in subsection (d), a corporation may indemnify an individual made a party to a proceeding because he is or was a director against liability incurred in the proceeding if: (1) He conducted himself in good faith; and (2) He reasonably believed (i) in the case…

Unless limited by its articles of incorporation, a corporation shall indemnify a director who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which he was a party because he is or was a director of the corporation against reasonable expenses…

Expenses incurred by a director in defending a proceeding may be paid by the corporation in advance of the final disposition of such proceeding as authorized by the board of directors in the specific case or as authorized or required under any provision in the articles of incorpo…

Unless a corporation's articles of incorporation provide otherwise, a director of the corporation who is a party to a proceeding may apply for indemnification to the court conducting the proceeding or to another court of competent jurisdiction. On receipt of an application, the c…

(a) A corporation may not indemnify a director under G.S. 58-65-167 unless authorized in the specific case after a determination has been made that indemnification of the director is permissible in the circumstances because he has met the standard of conduct set forth in G.S. 58-…

Unless a corporation's articles of incorporation provide otherwise: (1) An officer of the corporation is entitled to mandatory indemnification under G.S. 58-65-168 and is entitled to apply for court-ordered indemnification under G.S. 58-65-170, in each case to the same extent as …

(a) In addition to and separate and apart from the indemnification provided for in G.S. 58-65-167, 58-65-168, 58-65-170, 58-65-171, and 58-65-172, a corporation may in its articles of incorporation or bylaws or by contract or resolution indemnify or agree to indemnify any one or …