§ 58-15-1 – Scope.

58-15-1. Scope. This Article applies to all reciprocals and reciprocal insurance. (1989, c. 425, s. 1.)

§ 58-15-10 – Kinds of insurance.

58-15-10. Kinds of insurance. A reciprocal licensed in this State may write the kinds of insurance enumerated in G.S. 58-7-15, except life insurance, annuities, and title insurance. (1989, c. 425, s. 1.)

§ 58-15-100 – Declaration for license.

58-15-100. Declaration for license. (a) One hundred or more persons domiciled in this State and designated as subscribers may organize a domestic reciprocal and apply to the Commissioner for a license to transact the business of insurance. The Commissioner may authorize such a reciprocal to form with a lesser number of subscribers upon being satisfied […]

§ 58-15-105 – Attorney's bond.

58-15-105. Attorney’s bond. (a) Concurrent with the filing of the declaration provided for in G.S. 58-15-100, the attorney of a domestic reciprocal shall file with the Commissioner a fidelity bond payable to this State. The bond shall be executed by the attorney and by a licensed insurer and is subject to the approval of the […]

§ 58-15-110 – Deposit in lieu of bond.

58-15-110. Deposit in lieu of bond. Instead of filing the bond required by G.S. 58-15-105, the attorney may maintain on deposit with the Commissioner an equal amount in cash or in value of securities of the kind specified in G.S. 58-5-20 and subject to the same conditions as the bond. (1989, c. 425, s. 1.)

§ 58-15-115 – Advisory committee.

58-15-115. Advisory committee. The advisory committee exercising the subscribers’ rights in a domestic reciprocal shall be selected under rules adopted by the subscribers. At least three-fourths of the committee shall comprise subscribers or their representatives other than the attorney or any person employed by, representing, or having a financial interest in the attorney. The committee […]

§ 58-15-120 – Subscriber's agreement and power of attorney.

58-15-120. Subscriber’s agreement and power of attorney. (a) Every subscriber of a domestic reciprocal shall execute a subscriber’s agreement and power of attorney setting forth the rights, privileges, and obligations of the subscriber as an underwriter and as a policyholder, and the powers and duties of the attorney. The subscriber’s agreement and power of attorney […]

§ 58-15-125 – Modification of subscriber's agreement and power of attorney.

58-15-125. Modification of subscriber’s agreement and power of attorney. Modification of the terms of the subscriber’s agreement and the power of attorney of a domestic reciprocal shall be made jointly by the attorney and the subscriber’s advisory committee. No modification is retroactive nor does it affect any insurance contract issued prior to the modification. (1989, […]

§ 58-15-130 – Advance of funds.

58-15-130. Advance of funds. The attorney or other interested persons may advance to a domestic reciprocal any funds required for its operations. The funds advanced shall not be treated as a liability of the reciprocal and shall not be withdrawn or repaid except out of the reciprocal’s earned surplus in excess of its minimum required […]

§ 58-15-135 – Assessments.

58-15-135. Assessments. (a) Assessments may be levied upon the subscribers of a domestic reciprocal by the attorney in accordance with G.S. 58-15-60. The assessments shall be approved in advance by the subscribers’ advisory committee. (b) Each domestic reciprocal subscriber’s share of an assessment shall be computed by multiplying the premiums earned on the subscriber’s policies […]

§ 58-15-140 – Duration of liability for assessment.

58-15-140. Duration of liability for assessment. Every subscriber of a domestic reciprocal having contingent assessment liability shall be liable for and shall pay his share of any assessment computed in accordance with this Part, if, while the policy is in force or for such period after its termination as the Commissioner may establish by rule, […]

§ 58-15-145 – Distribution of assets after liquidation.

58-15-145. Distribution of assets after liquidation. Upon the liquidation of a domestic reciprocal, the assets remaining after (i) discharge of its indebtedness and policy obligations, (ii) the return of any contributions of the attorney or other person made as provided in G.S. 58-15-130, and (iii) the return of any unused deposits, savings, or credits, shall […]

§ 58-15-15 – Risk limitations.

58-15-15. Risk limitations. (a) Except for Article 11 of this Chapter and as otherwise specifically provided, all the provisions of Articles 1 through 64 of this Chapter relating to insurers generally, and those relating to insurers writing the same kinds of insurance that reciprocals are permitted to write, are applicable to reciprocals. (b) A reciprocal […]

§ 58-15-150 – Financial impairment; assessment; liquidation.

58-15-150. Financial impairment; assessment; liquidation. (a) If (i) the assets of a domestic reciprocal are at any time insufficient to settle the sum of its liabilities, except those on account of funds contributed by the attorney or other parties, and its required surplus to policyholders, and (ii) the deficiency is not cured from other sources, […]

§ 58-15-20 – Eligible contracting persons.

58-15-20. Eligible contracting persons. (a) Persons of this State may enter into reciprocal insurance contracts with each other and with persons of other states and countries. (b) For any corporation now existing or subsequently organized under the laws of this State, the authority to enter into reciprocal insurance contracts is in addition to the authority […]

§ 58-15-25 – Business name.

58-15-25. Business name. Every reciprocal shall have and use an appropriate business name that includes the word or words "reciprocal," "interinsurer," "interinsurance," or "exchange". (1989, c. 425, s. 1.)

§ 58-15-30 – License, surplus, and deposit requirements.

58-15-30. License, surplus, and deposit requirements. (a) No reciprocal shall engage in any insurance transaction in this State until it has obtained a license to do so in accordance with the applicable provisions of Articles 1 through 64 of this Chapter. The license shall continue in full force and effect, subject to timely payment of […]

§ 58-15-35 – Continuation of business under prior requirements.

58-15-35. Continuation of business under prior requirements. (a) Notwithstanding other provisions of Articles 1 through 64 of this Chapter regarding minimum required surplus, any reciprocal that was licensed to write and was writing any kind of insurance in this State on January 1, 1990 may continue to write that kind of insurance under the appropriate […]

§ 58-15-40 – Certification of foreign and alien reciprocals.

58-15-40. Certification of foreign and alien reciprocals. No foreign reciprocal shall be licensed in this State until it files with the Commissioner a certificate of the insurance regulator of the state in which it is organized. The certificate shall show that the foreign reciprocal is licensed to write and is writing actively in that state […]

§ 58-15-45 – Attorney's domicile.

58-15-45. Attorney’s domicile. Nothing in Articles 1 through 64 of this Chapter regarding the admission and licensing of foreign and alien insurers requires that the attorney of a foreign or alien reciprocal be resident or domiciled in this State, or that the principal office of the attorney be maintained in this State. The office or […]