GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
SESSION LAW 2005-424
HOUSE BILL 646
AN ACT to consolidate various fees into the annual license CONTINUATION FEE PAID BY LICENSED INSURANCE COMPANIES, AND TO AUTHORIZE THE DEPARTMENT OF INSURANCE TO hire a medicare lookout program coordinator with federal grant funding.
The General Assembly of North Carolina enacts:
part i. insurance fees.
SECTION 1.1. G.S. 58-6-5 reads as rewritten:
"§ 58-6-5. Schedule of fees and charges.
The Commissioner shall collect and pay into the State treasury fees and charges as follows:
(1) For filing and
examining an insurance company application for admission, a nonrefundable fee
of two hundred fifty dollars ($250.00), to be submitted with such filing;
for filing and auditing annual statement, one hundred dollars ($100.00); for
filing any other papers required by law, twenty-five dollars ($25.00); for each
certificate of examination, condition, or qualification of company or
association, fifteen dollars ($15.00); for each seal when required, ten dollars
($10.00); for a list of licensed insurance companies, ten dollars ($10.00).
the filing; for each certification or confirmation of an insurance company
deposit held by the Commissioner pursuant to this Chapter, twenty-five dollars
($25.00).
(2) Repealed by Session Laws 1977, c. 376, s. 2.
(3) The Commissioner shall
receive for copy of any record or paper in his office fifty cents (50¢) per
copy sheet and ten dollars ($10.00) for certifying same, or any fact or data
from the records of his office and for the examination and approval of charters
of companies, twenty-five dollars ($25.00). sheet.
(4) He shall collect all other fees and charges due and payable into the State treasury by any company, association, order, or individual under his Department.
(5) Repealed by Session Laws 1999-435, s. 1."
SECTION 1.2. G.S. 58-6-7 reads as rewritten:
"§ 58-6-7. Licenses; perpetual licensing; annual license continuation fees for insurance companies.
(a) In order to do
business in this State, an insurance company shall apply for and obtain a
license from the Commissioner. The license shall be perpetual and shall
continue in full force and effect, subject to timely payment of the annual
license continuation fee in accordance with this Chapter and subject to any
other applicable provision of the insurance laws of this State. Except as
provided in subsection (b) of this section, theThe insurance company
shall pay a fee for each year the license is in effect, as follows:
For each domestic farmer's mutual assessment fire
insurance company ............................................................................................. $ 25.00
For each fraternal order
............................................................................................
100.00 500.00
For each of all other insurance companies, except
mutual
burial associations taxed under G.S.105-121.1 ................................ 1,000.00
1,500.00
The fees levied in this subsection are in addition to those specified in G.S. 58-6-5.
(b) When the
paid-in capital stock or surplus, or both, of an insurance company, other than
a farmer's mutual assessment company or a fraternal order, does not exceed one
hundred thousand dollars ($100,000), the fee levied in this section shall be
one-half the amount specified.
(c) Upon payment of the
fee specified above and the fees and taxes elsewhere specified
specified, each insurance company, exchange, bureau, or agency, shall be
entitled to do the types of business specified in Chapter 58, of the General
Statutes of North Carolina as amended, to the extent authorized therein,
except that: Insurance companies authorized to do either the types of business
specified for (i) life insurance companies, or (ii) for fire and marine
companies, or (iii) for casualty and fidelity and surety companies, in
G.S. 58-7-75, which shall also do the types of business authorized in one
or both of the other of the above classifications shall in addition to the fees
above specified pay one hundred dollars ($100.00) for each such additional
classification of business done. therein. All fees and charges
collected by the Commissioner under this Chapter are nonrefundable.
(d) Any rating bureau established by action of the General Assembly of North Carolina shall be exempt from the fees in this section."
SECTION 1.3. G.S. 58-7-150(c) and G.S. 58-7-155 are repealed.
SECTION 1.4. G.S. 58-8-60(b) reads as rewritten:
"(b) The articles of
incorporation shall provide for the name of the corporation, to be approved by
the Commissioner; the kinds of insurance it proposes to transact and on what
business plan or principle; and the place of its location in the State. The
certificate of incorporation must be subscribed and sworn to by a majority of
the board of directors before an officer authorized to take acknowledgement of
deeds, who shall certify the certificate to the Commissioner. The Commissioner
shall review the certificate and articles of incorporation and file them with
the Secretary of State in accordance with G.S. 58-7-35 upon payment of
the required fees. G.S. 58-7-35."
SECTION 1.5. G.S. 58-65-55 reads as rewritten:
"§ 58-65-55. Issuance and continuation of license.
(a) Every corporation
subject to this Article shall pay to the Commissioner a fee of two hundred
fifty dollars ($250.00) for filing an application for a license. Fee payment
shall be contemporaneous with the filing. Before issuing or continuing any
such license or certificate the Commissioner may make such an examination or
investigation as the Commissioner deems expedient. The Commissioner shall issue
a license upon the payment of a fee of one thousand dollars ($1,000) one
thousand five hundred dollars ($1,500) and upon being satisfied on the
following points:
(1) The applicant is established as a bona fide nonprofit hospital service corporation as defined by this Article and Article 66 of this Chapter.
(2) The rates charged and benefits to be provided are fair and reasonable.
(3) The amounts provided as working capital of the corporation are repayable only out of earned income in excess of amounts paid and payable for operating expenses and hospital and medical and/or dental expenses and such reserve as the Department deems adequate, as provided hereinafter.
(4) That the amount of money actually available for working capital be sufficient to carry all acquisition costs and operating expenses for a reasonable period of time from the date of the issuance of the certificate.
(b) The license shall
continue in full force and effect, subject to payment of an annual license
continuation fee of one thousand dollars ($1,000), one thousand
five hundred dollars ($1,500), subject to all other provisions of
subsection (a) of this section and subject to any other applicable provisions
of the insurance laws of this State."
SECTION 1.6. G.S. 58-67-160 reads as rewritten:
"§ 58-67-160. Fees.
Every health maintenance organization subject to this Article
shall pay to the Commissioner a fee of two hundred fifty dollars ($250.00) for
filing an application for a license and an annual license continuation fee of one
thousand dollars ($1,000) one thousand five hundred dollars
($1,500) for each license. The license shall continue in full force and
effect, subject to timely payment of the annual license continuation fee in
accordance with G.S. 58-6-7 and subject to any other applicable provisions
of the insurance laws of this State."
part ii. Authorization for Medicare Lookout Program Coordinator.
SECTION 2. If the Department of Insurance receives grant funding from the Federal Administration on Aging, the Department may establish a full-time, federally funded position for a Medicare Lookout Program Coordinator for the State Health Insurance Information Program, whose purpose is to reduce fraud in the Medicare and Medicaid programs. The Department may hire an Extension Training Specialist III, pay grade level 73. This authorization is contingent upon the receipt of the federal grant that will fully fund the position.
part iII. effective dates.
SECTION 3. Part I of this act becomes effective January 1, 2006, and applies to applications filed, licenses issued, and licenses continued on or after that date. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 23rd day of August, 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 1:57 p.m. this 22nd day of September, 2005