Domestic Insurance Companies
Domestic Insurance Companies
Filing an Application
To apply for licensure as a domestic insurance company, applicants must submit:
- A nonrefundable application fee. (Schedule of Fees)
- A copy of the proposed Articles of Incorporation.
- A copy of the proposed Bylaws.
- A detailed plan of operations describing the lines of insurance to be written, marketing, underwriting, claims handling, the reinsurance program, the management structure/compensation, and any other relevant functions.
- A proforma financial forecast for the longer of the first 5 years of operations or until profitability, which includes a balance sheet; income statement; cash flow statement; statement of direct, assumed, and ceded premiums written and earned by line of business; and risk-based capital forecast. A qualified individual must prepare the proforma financial forecast, and documentation of all assumptions used in preparing the proforma financial forecast should be provided.
- A plan for initial capitalization, including the amount and source of the initial capital. Capital and surplus should meet the requirements outlined in NCGS § 58-7-75 based on the type of insurance company.
- If the applicant will be a member of a holding company system, an organizational chart, applicable holding company forms (i.e. Form B, Form C, Form F), and financial statements for the ultimate controlling person.
- A summary of the proposed corporate governance for the applicant that includes substantially all of the requirements for the Corporate Governance Annual Disclosure as outlined in NCSG § 58-10-755 through 58-10-790, which will be a required filing for the applicant after licensure.
- Name and contact information for appointed actuary and accountant.
- Draft copies of management, administrative, or custodial agreements entered into pursuant to NCGS § 58-19-30(b)(4) and NCGS § 58-34-10. Such contracts should clearly outline the obligations of both parties, including the services to be provided to the applicant and the fee to be paid for these services.
- The proposed reinsurance program, as well as how the applicant will comply with NCGS § 58-3-105.
- The proposed investment policy.
- A Biographical Affidavit for the ultimate controlling person, all incorporators, and all proposed officers and directors. All questions on the affidavits must be answered, and if a question is not applicable or the answer is none, please indicate as such.
- Fingerprint cards for all key personnel as defined by NCGS § 58-7-37. (Information regarding fingerprint cards can be obtained from a local sheriff’s department.)
- The location of the office to be established in North Carolina, as well as the city and state where financial, corporate, reinsurance, accounting, and claims records will be located.
- A Power of Attorney for Sale or Transfer of Securities
- A Power of Attorney for Service of Legal Process
- A President's Sworn Statement
For details regarding the redomestication process, please contact the following: