Legislation Regarding Insurance Business Entity Licensing

Rules and Regulations

North Carolina General Statues - Corporations, Partnerships, Self-Service Storage, and Auto Rental Limited Lines
North Carolina Administrative Code
North Carolina General Statues - Public Adjuster Business Entities

Legislative Change Resources

2015 Legislative Updates

Session Law 2015-101 - An act to modernize the Surplus Lines Act by including alien insurers in the definition of an eligible surplus lines insurer, by repealing countersigning requirements, and by providing greater flexibility for the manner of collection and refund of the surplus line tax.

S.L. 2015-101 was signed by the Governor and became effective June 19, 2015 however S.L. 2015-281, Part V. TECHNICAL CORRECTIONS , Section 13 and Section 14 , amended the effective date of Sections 4, 5, and 6 of S. L. 2015 -101 to be effective January 1, 2017.

Section 1 of S.L. 2015-101 amends G.S. 58-21-10(3) by adding "an alien insurer as defined in G.S. 58-21-17".

Section 2 of S.L. 2015- 101 amends G.S. 58-21-35(a) by adding "or the stamping office, as appropriate".

Section 3 of S.L. 2015 -101 amends G.S. 58-21-40 Surplus lines regulatory support organization (a) by deleting "to" and adding "to carry out the following functions:",(a) (4) by deleting "Countersign nonresident produced surplus lines coverages and remit premium taxes for those coverages under G.S. 58-21-70 by means satisfactory to the Commissioner; and charge the nonresident surplus lines licensee a fee for the certification and countersignature as approved by the Commissioner." substituting "establishes a stamping office to process all surplus lines insurance and remit premium taxes for those coverages under G.S. 58-21-85 by means satisfactory to the Commissioner, and charge surplus lines licensees a fee for such processing." Also amended G.S. 58-21-40(d) by deleting the word "resident".

Section 4. of S. L. 2015- 101 amends G.S. 58-21-65 Licensing of surplus lines licensee (c) by deleting "resident" and (e) by deleting "Nonresident surplus lines licensees shall be licensed in accordance with Article 33 of this Chapter"

Section 5. of S.L. 2015-101 rewrites G.S. 58-21-70 Surplus lines licensees may accept business from other agents or brokers by deleting "countersignatures required; remittance of premium tax" from the title of G.S. 58-21-70 and by deleting both sections (b) "Every report filed by a nonresident licensee under G.S. 58-21-35(a) shall, before being filed with the Commissioner, be countersigned by a resident licensee or by a regulatory support organization. The resident licensee or regulatory support organization may charge the nonresident licensee a countersignature fee." and (c) "Every resident licensee and regulatory support organization that countersigns a report under subsection (b) of this section is responsible for remitting the premium tax for the coverage, as specified in G.S. 58-21-85, to the Commissioner.".

Section 6. of S.L. 2015-101 amends G.S. 58-21-85 Surplus lines tax (a) deleting "by the surplus lines licensee as specified" substituting " a in a manner approved by the Commissioner" and deleting "directly by the surplus lines licensee or through the producing broker, if any" substituting "directly" and (b) is deleted "At the same time that he files his quarterly report as set forth in G.S. 58-21-80, each surplus lines licensee shall pay the premium receipts tax due for the period covered by the report.".

Session Law 2015-101