58-10-445. Reinsurance.
(a) Any captive insurance company may provide reinsurance as authorized by this Chapter on risks ceded by any other insurer.
(b) Any captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to reinsurers complying with this Chapter. If the reinsurer is licensed as a risk retention group, then the ceding risk retention group or its members must qualify for membership with the reinsurer. The Commissioner shall have the discretion to allow a captive insurance company to take credit for the reinsurance of risks or portions of risks ceded to an unauthorized reinsurer, after review, on a case-by-case basis. The Commissioner may require any documents, financial information, or other evidence that will allow an unauthorized reinsurer to demonstrate adequate security for its financial obligations.
(c) In addition to reinsurers authorized by this Chapter, a captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to a pool, exchange, or association to the extent authorized by the Commissioner. The Commissioner may require any documents, financial information, or other evidence that such a pool, exchange, or association will be able to provide adequate security for its financial obligations. The Commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange, or association that in the Commissioner's judgment are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and benefit of the public at large.
(d) Insurance by a captive insurance company of any workers' compensation or accident and health-qualified self-insured plan shall only be in the form of reinsurance.
(e) No credit shall be allowed for reinsurance where the reinsurance contract does not result in the complete transfer of the risk or liability to the reinsurer.
(f) No credit shall be allowed, as an asset or a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer under the contract reinsured without diminution because of the insolvency of the ceding insurer.
(g) Reinsurance under this section shall be effected through a written agreement of reinsurance setting forth the terms, provisions, and conditions governing such reinsurance. The Commissioner may require that complete copies of all reinsurance treaties and contracts be filed and approved by the Commissioner. (2013-116, s. 1; 2014-65, s. 14.)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 10 - Miscellaneous Insurer Financial Provisions.
§ 58-10-1 - Stock to mutual insurer conversion.
§ 58-10-10 - Mutual to stock insurer conversion.
§ 58-10-12 - Conversion plan requirements.
§ 58-10-30 - Notice requirements.
§ 58-10-35 - Policyholder rights.
§ 58-10-40 - Effect of consent.
§ 58-10-45 - Commissioner's discretion.
§ 58-10-60 - Acquisitions and dispositions of assets.
§ 58-10-65 - Nonrenewals, cancellations, or revisions of ceded reinsurance agreements.
§ 58-10-75 - Purpose and legislative intent.
§ 58-10-85 - Establishment of protected cells.
§ 58-10-90 - Use and operation of protected cells.
§ 58-10-95 - Reach of creditors and other claimants.
§ 58-10-100 - Conservation, rehabilitation, or liquidation of protected cell companies.
§ 58-10-105 - No transaction of an insurance business.
§ 58-10-110 - Authority to adopt rules.
§ 58-10-125 - Policyholders position and capital and surplus requirements.
§ 58-10-130 - Unearned premium reserve.
§ 58-10-135 - Contingency reserve for mortgage guaranty insurers.
§ 58-10-140 - Report of policyholder's position.
§ 58-10-145 - Monoline requirement for mortgage guaranty insurers.
§ 58-10-150 - Statement of actuarial opinion.
§ 58-10-155 - Actuarial opinion summary.
§ 58-10-160 - Actuarial report and work papers.
§ 58-10-165 - Monetary penalties for failure to provide documents.
§ 58-10-170 - Qualified immunity of appointed actuary.
§ 58-10-175 - Confidentiality.
§ 58-10-185 - Purpose and scope.
§ 58-10-200 - Contents of annual audited financial report.
§ 58-10-205 - Designation of independent certified public accountant.
§ 58-10-210 - Qualifications of independent certified public accountant.
§ 58-10-215 - Consolidated or combined audits.
§ 58-10-220 - Scope of audit and report of independent certified public accountant.
§ 58-10-225 - Notification of adverse financial condition.
§ 58-10-230 - Communication of internal control related matters noted in an audit.
§ 58-10-235 - Accountant's letter of qualifications.
§ 58-10-245 - Requirements for audit committees.
§ 58-10-246 - Internal audit function requirements.
§ 58-10-255 - Management's report of internal control over financial reporting.
§ 58-10-260 - Exemptions and effective dates.
§ 58-10-265 - Canadian and British companies.
§ 58-10-280 - General provisions.
§ 58-10-285 - Application; contents; process.
§ 58-10-290 - Plan of reorganization.
§ 58-10-295 - Powers of the Commissioner.
§ 58-10-300 - Special financial requirements.
§ 58-10-305 - Reorganization of domestic mutual insurer with mutual insurance holding company.
§ 58-10-310 - Mergers of mutual insurance holding companies.
§ 58-10-315 - Stock offerings.
§ 58-10-320 - Regulation of holding company system.
§ 58-10-325 - Reporting of stock ownership and transactions.
§ 58-10-345 - Licensing; authority; confidentiality.
§ 58-10-347 - Provisional approval for a license.
§ 58-10-350 - Commissioner use of consultants and other professionals.
§ 58-10-355 - Organizational audit.
§ 58-10-360 - Designation of captive manager.
§ 58-10-365 - Names of companies.
§ 58-10-370 - Capital and surplus requirements.
§ 58-10-375 - Dividends and distributions.
§ 58-10-380 - Formation of captive insurance companies.
§ 58-10-385 - Governing board members, officers, and employees.
§ 58-10-390 - Conflict of interest.
§ 58-10-395 - Plan of operation change.
§ 58-10-400 - Insurance manager and intermediaries.
§ 58-10-415 - Annual audit and statement of actuarial opinion.
§ 58-10-420 - Independent certified public accountants.
§ 58-10-425 - Deposit requirement.
§ 58-10-430 - Audits and Financial Analysis.
§ 58-10-435 - License suspension or revocation.
§ 58-10-440 - Investment requirements.
§ 58-10-450 - Membership in rating organizations; exemption from compulsory associations.
§ 58-10-460 - Adoption and amendment of rules by Commissioner.
§ 58-10-465 - Applicable provisions.
§ 58-10-475 - Supervision; rehabilitation; liquidation.
§ 58-10-480 - Authority for expenditure of public funds.
§ 58-10-485 - Violations and penalties.
§ 58-10-490 - Inactive captive insurance companies.
§ 58-10-495 - Captive insurance companies reinsuring life insurance policies.
§ 58-10-496 - Waiver or modification.
§ 58-10-500 - Forming a protected cell captive insurance company.
§ 58-10-510 - Establishment of protected cells.
§ 58-10-512 - Incorporated protected cells.
§ 58-10-513 - Cell shares and cell dividends.
§ 58-10-515 - Participants in a protected cell captive insurance company.
§ 58-10-520 - Combining assets of protected cells.
§ 58-10-530 - Establishment of branch captive insurance companies.
§ 58-10-535 - Security for payment of branch captive insurance company liabilities.
§ 58-10-545 - Filing of reports and statements.
§ 58-10-550 - Audit of a branch captive insurance company.
§ 58-10-555 - Creation of special purpose financial captives.
§ 58-10-560 - Controlling provisions when conflict exists; exemptions.
§ 58-10-565 - Application requirements.
§ 58-10-570 - Organization of an SPFC.
§ 58-10-575 - Minimum capital.
§ 58-10-580 - Authorized activities.
§ 58-10-585 - Establishment of protected cell accounts.
§ 58-10-590 - Protected cell accounts.
§ 58-10-595 - Issuing securities.
§ 58-10-600 - Asset management agreements.
§ 58-10-610 - No securities considered to be insurance or reinsurance contracts.
§ 58-10-615 - Disposition of assets; investment limitations.
§ 58-10-625 - Changes in plan of operation; filing of audit and statement of operation; audits.
§ 58-10-630 - Cessation of business.
§ 58-10-635 - Supervision, rehabilitation, or liquidation of SPFC.
§ 58-10-650 - Other laws applicable to captive insurance companies.
§ 58-10-655 - Commissioner to share information with Department of Revenue.
§ 58-10-700 - Purpose and scope.
§ 58-10-710 - Risk management framework.
§ 58-10-715 - ORSA requirement.
§ 58-10-720 - ORSA Summary Report.
§ 58-10-730 - Contents of ORSA Summary Report.
§ 58-10-735 - Confidentiality.
§ 58-10-745 - Severability clause.
§ 58-10-755 - Purpose and scope.
§ 58-10-765 - Disclosure requirement and filing procedures.
§ 58-10-770 - Rules and regulations.
§ 58-10-775 - Contents of corporate governance annual disclosure.
§ 58-10-780 - Confidentiality.