NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

CHAPTER 1067

HOUSE BILL 1231

AN ACT TO AMEND ARTICLE 18A AND ARTICLE 18B OF CHAPTER 58 OF THE GENERAL STATUTES OF NORTH CAROLINA TO EXEMPT INSURERS OF CHARITABLE PROPERTY FROM PARTICIPATION IN BEACH AND FAIR PLANS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 58-173.19 is hereby amended by rewriting this section to read as follows:

"§ 58-173.19.  Participation in association. — Every insurer authorized to write basic property insurance in this State except town and county mutual insurance associations and assessable mutual companies as authorized by G.S. 58-77(5)b., G.S. 58-77(5)d. and G.S. 58-77(7)b. and except an insurer who only writes insurance on property exempted from taxation by the provisions of G.S. 105-296 and G.S. 105-297 shall be required to become and remain a member of the Plan and underwriting association and comply with the requirements thereof as a condition of its authority to transact basic property insurance business in the State of North Carolina. The premiums paid by insurers of North Carolina property to the National Insurance Development Fund for reinsurance, shall be used for the payment of losses occurring in this State and shall, to the extent not so used, be credited to the participation of such insurers in the reinsurance facility provided by this Article and the federal act."

Sec. 2.  G.S. 58-173.3 is hereby amended by rewriting this section to read as follows:

"§ 58-173.3.  North Carolina Insurance Underwriting Association created. — There is hereby created the North Carolina Insurance Underwriting Association, consisting of all insurers authorized to write and engage in writing within this State, on a direct basis, property insurance, except town and county mutual insurance associations and assessable mutual companies as authorized by G.S. 58-77(5)b., G.S. 58-77(5)d., and G.S. 58-77(7)b. and except an insurer who only writes insurance in this State on property exempted from taxation by the provisions of G.S. 105-296 and G.S. 105-297. Every such insurer shall be a member of the Association and shall remain a member of the Association so long as the Association is in existence as a condition of its authority to continue to transact the business of insurance in this State."

Sec. 3.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 21st day of July, 1971.