GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2005

 

 

SESSION LAW 2005-217

SENATE BILL 552

 

 

AN ACT to provide an unauthorized insurer against which aN EMERGENCY cease and desist order has been issued to petition the Department of Insurance for a hearing on the matter and to appeal that decision to the superior Court of Wake County.

 

The General Assembly of North Carolina enacts:

 

SECTION 1.  G.S. 58-28-20 reads as rewritten:

"§ 58-28-20.  Cease and desist orders.orders; judicial review.

(a)       Whenever the Commissioner, from evidence satisfactory to him, Commissioner has reasonable grounds to believe that any person is violating or is about to violate G.S. 58-28-5, he the Commissioner may, after notice and opportunity for hearing, reduce his findings to writing make written findings and issue and cause to be served upon such the person an order to cease and desist from violating G.S. 58-28-5.

(b)       Until the expiration of the time allowed under G.S. 58 28 25(a)G.S.  58-2-75 for filing a petition for review, if no such petition has been duly filed within such time; or if a petition for review has been filed within such time, then until the transcript of the record in the proceeding has been filed in the Court, the Commissioner may at any time, upon such notice and in such a manner as hethe Commissioner considers proper, modify or set aside in whole or in part any order issued by him the Commissioner under this section.section as follows:

(1)       Any time before the expiration of the time allowed for seeking judicial review, if no petition for review has been filed; or

(2)       If a petition for review has been timely filed, until the transcript of the record in the proceeding has been filed with the Court.

(c)       After the expiration of the time allowed for filing a petition for review, if no such petition has been duly filed within such time, If no petition for judicial review has been filed within the time provided under G.S. 58-2-75, the Commissioner may at any time, after notice and opportunity for hearing, reopen and alter, modify, or set aside, in whole or in part, any order issued by him the Commissioner under this section, whenever in his the Commissioner's opinion conditions of fact or of law have so changed as to require such action or if the public interest requires.

(d)       Whenever the Commissioner has evidence that any person has or is violating G.S. 58-28-5, or has or is violating any order or requirement of the Commissioner issued or promulgated by the Commissioner under this Article, and that the interests of policyholders, creditors, or the public may be irreparably harmed by delay, the Commissioner may issue a an emergency cease and desist order. Notice of the cease and desist order and notice of hearing shall be delivered by first-class mail. order that shall become effective on the date specified in the order or upon service of a certified copy of the order upon the person ordered to cease and desist, whichever is later. The emergency cease and desist order shall also include a notice of hearing, which shall be conducted as provided under Article 3A of Chapter 150B of the General Statutes. However, the person ordered to cease and desist under this subsection may request and shall be granted an expedited review of the order. The emergency order shall remain in effect prior to and during the proceedings, unless modified by the Commissioner as provided under subsection (b) of this section.

(e)       Any person required to cease and desist violating G.S. 58-28-5 by an order issued after notice and a hearing under subsection (a) or (d) of this section may seek judicial review of that order under G.S. 58-2-75."

SECTION 2.  G.S. 58-28-25 is repealed.

SECTION 3.  This act becomes effective October 1, 2005, and applies to orders issued on or after that date.

In the General Assembly read three times and ratified this the 13th day of July, 2005.

 

 

                                                                    s/ Beverly E. Perdue

                                                                         President of the Senate

 

 

                                                                    s/ James B. Black

                                                                         Speaker of the House of Representatives

 

 

                                                                    s/ Michael F. Easley

                                                                         Governor

 

 

Approved 2:04 p.m. this 20th day of July, 2005