GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

S	1 

SENATE BILL 562

Short Title:  Ins. Fee Repeals and Increases.	(Public)

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Sponsors: Senator Miller.

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Referred to:  Finance.

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March 29, 1999

A BILL TO BE ENTITLED
AN ACT TO REPEAL FILING FEES, MISCELLANEOUS FEES, AND HMO ANNUAL REPORT FEES COLLECTED BY THE DEPARTMENT OF INSURANCE; TO INCREASE CERTAIN INSURANCE COMPANY LICENSE RENEWAL FEES COLLECTED BY THE DEPARTMENT OF INSURANCE; TO ALLOW MONEY CREDITED TO THE INSURANCE CONSUMER PROTECTION FUND TO BE USED TO RETAIN EXPERTS FOR HEARINGS; TO REQUIRE THAT MONEY RECOVERED FROM DELINQUENCY PROCEEDINGS OR CIVIL ACTIONS AGAINST THE COMMISSIONER OF INSURANCE BE CREDITED TO THE INSURANCE CONSUMER PROTECTION FUND; AND TO MOVE THE EFFECTIVE DATE FROM 2000 TO 2001 FOR THE LAW REQUIRING THE LICENSING OF THIRD PARTY ADMINISTRATORS FOR EMPLOYERS THAT SELF-INSURE THEIR WORKERS' COMPENSATION LIABILITIES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 58-6-5 reads as rewritten:
"§ 58-6-5.  Schedule of fees and charges.
(a)	The Commissioner shall collect and pay into the General Fund fees and charges as follows:
(1)	For filing and examining an insurance company application for licensing or for filing and examining a workers' compensation self-insurer's application for licensing, a fee of two hundred fifty dollars ($250.00), to be submitted with the filing.
(2)	Repealed by Session Laws 1977, c. 376, s. 2.
(3)	A charge of fifty cents (50¢) per sheet for a copy of any record or pages in the Commissioner's office.
(4)	All other fees and charges due and payable into the General Fund by any company, association, order, or individual under this Chapter.
	""(b)	All fees and charges collected by the Commissioner under this Chapter are nonrefundable."
Section 2.  G.S. 58-6-7 reads as rewritten:
"§ 58-6-7.  Annual license 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 by March 1 of each year. The license shall become effective the following July 1 and shall remain in effect for one year. Except as provided in subsection (b) of this section, the insurance company shall pay an annual fee for the license as follows: 
For each domestic farmer's mutual assessment fire
     insurance company 	$ 25.00
For each fraternal order 	100.00
For each of all other insurance companies, except
     mutual burial associations taxed under G.S.
     105-121.1 	1,000.00
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.
	(d)	Any rating bureau established by action of the General Assembly of North Carolina shall be exempt from the fees in this section."
Section 3.  G.S. 58-22-70 reads as rewritten:
"§ 58-22-70.  Registration and renewal fees.
Every risk retention group and purchasing group that registers with the Commissioner under this Article shall pay the following fees:
Risk retention group registration	 $250.00
Purchasing group registration	 50.00
Risk retention group renewal	1,000.00
Purchasing group renewal	50.00
Registration fees shall not be prorated and must be submitted with the application for registration.  Renewal fees shall not be prorated and shall be paid on or before January 1 of each year."
Section 4.  G.S. 58-27-10 reads as rewritten:
"§ 58-27-10.  Licenses.
Any domestic land mortgage company, or title insurance company, wishing to do business under the provisions of this Article upon making written application and submitting proof satisfactory to the Commissioner that its business, capital and other qualifications comply with the provisions of this Article, upon paying to the Commissioner, the sum of five hundred dollars ($500.00) as a license fee and all other fees assessed against such company may be licensed to do business in this State under the provisions of this Article until the first day of the following July, and may have its license renewed for each year thereafter so long as it complies with the provisions of this Article and such rules adopted by the Commissioner.  For each such renewal such company shall pay to the Commissioner the sum of one thousand dollars ($1,000), and all other fees assessed against such company and such renewal shall continue in force and effect until a new license be issued or specifically refused, unless revoked for good cause.  The Commissioner, or any person appointed by him, shall have the power and authority to make such rules and regulations and examinations not inconsistent with the provisions of this Article, as may be in his discretion necessary or proper to enforce the provisions hereof and secure compliance with the terms of this Article.  For any examination made hereunder the Commissioner shall charge the land mortgage companies or title insurance companies examined with the actual expense of such examination."
Section 5.  G.S. 58-65-55 reads as rewritten:
"§ 58-65-55.  Issuance of certificate.
Before issuing any such license or certificate the Commissioner may make such an examination or investigation as the Commissioner deems expedient.  The Commissioner shall issue a certificate of authority or license upon the payment of an annual fee of one thousand dollars ($1,000) 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."
Section 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 a fee of one thousand dollars ($1,000) for each license renewal.
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Section 7.  G.S. 58-2-215 reads as rewritten:
"§ 58-2-215.  Consumer Protection Fund.
(a)	A special fund is created in the Office of the State Treasurer, to be known as the Department of Insurance Consumer Protection Fund. The Fund shall be placed in an interest bearing account and any interest or other income derived from the Fund shall be credited to the Fund. Moneys in the Fund shall only be spent pursuant to warrants drawn by the Commissioner on the Fund through the State Treasurer. The Fund shall be subject to the provisions of the Executive Budget Act; except that the provisions of Article 3C of Chapter 143 of the General Statutes do not apply to subdivision (b)(1) of this section.
(b)	All moneys credited to the Fund shall be used only to pay the following expenses incurred by the Department:
(1)	For the purpose of retaining outside actuarial and economic consultants, legal counsel, and court reporting services in the review and analysis of rate filings, in conducting all hearings, and through any final adjudication.
(1a)	For the purpose of retaining meteorologists, statisticians, and other kinds of professionals and experts needed to analyze or respond to averments, testimony, allegations, or other statements made by other experts or professionals in a rate-making matter or to analyze evidence or exhibits filed or offered by an opposing party in a rate-making matter.
(2)	In connection with any delinquency proceeding under Article 30 of this Chapter, for the purpose of locating and recovering the assets of or any other obligations or liabilities owed to or due an insurer that has been placed under such proceeding.
(3)	In connection with any civil litigation, other than under Chapter 150B of the General Statutes or any appeal from an order of the Commissioner or his deputies, that is commenced against the Commissioner or his deputies and that arises out of the performance of their official duties, for the purpose of retaining outside consultants, legal counsel, and court reporting services to defend such litigation.
(c)	Moneys appropriated by the General Assembly shall be deposited in the Fund and shall become a part of the continuation budget of the Department of Insurance. Such continuation budget amount shall equal the actual expenditures drawn from the Fund during the prior fiscal year plus the official inflation rate designated by the Director of the Budget in the preparation of the State Budget for each ensuing fiscal year; provided that if interest income on the Fund exceeds the amount yielded by the application of the official inflation rate, such continuation budget amount shall be the actual expenditures drawn from the Fund, except that the appropriation for the 1995-96 fiscal year shall not exceed the sum of seven hundred fifty thousand dollars ($750,000) and for the 1996-97 fiscal year shall not exceed the sum of two hundred fifty thousand dollars ($250,000). In the event the amount in the Fund exceeds two hundred fifty thousand dollars ($250,000) at the end of any fiscal year, beginning with the 1995-96 fiscal year, such excess shall revert to the General Fund.
(d)	Repealed by Session Laws 1995, c. 507, s. 11A(b).
(e)	From any moneys received as recoveries by the estate of an insurer that is the subject of a delinquency proceeding as to which expenses have been incurred under subdivision (2) of subsection (b) of this section, there shall be credited to the Fund from the estate any amounts drawn from the Fund to pay the expenses incurred under subdivision (2) of subsection (b) of this section in connection with that estate.  From any moneys received as recoveries of counterclaims, cross-claims, or any other action in connection with litigation under subdivision (3) of subsection (b) of this section, there shall be credited to the Fund any amounts drawn from the Fund to pay the expenses incurred under subdivision (3) of subsection (b) of this section."
Section 8.  Section 58(b) of S.L. 1998-217 reads as rewritten:
"(b)	This section becomes effective January 1, 2002."
Section 9.  This act becomes effective July 1, 1999.