AN ACT TO PROVIDE FOR THE CREATION OF MUTUAL INSURANCE HOLDING COMPANIES AND TO CHANGE THE TIME PERIOD FOR FIRE CODE INSPECTIONS OF PUBLIC BUILDINGS. Summarized in Daily Bulletin 4/18/11, 6/8/11, 6/19/12, and 6/27/12. Enacted July 12, 2012. Effective July 12, 2012.
Bill Summaries: S647 (2011-2012 Session)
Tracking:
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Summary date: Jul 17 2012 - View summary
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Bill S 647 (2011-2012)Summary date: Jun 27 2012 - View summary
Conference report recommends the following changes to 3rd edition to reconcile matters in controversy. Amends proposed GS 58-10-300(a) by adding the requirement that mutual insurance holding companies’ investments in subsidiaries, including intermediate holding companies, are not subject to any of the restrictions on investment activities established under GS 58-19-10.
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Bill S 647 (2011-2012)Summary date: Jun 19 2012 - View summary
House committee substitute makes the following changes to 2nd edition.
Deletes provision in proposed GS 58-10-300 (special financial requirements) that exempted mutual insurance holding companies’ investments in subsidiaries from the restrictions on investment activities in GS 59-19-10. Adds a section, amending GS 58-31-40, to direct the Commissioner of Insurance to examine every state property for fire safety as often as required by NC Building Code Council fire code (previously required examination at least once a year). Makes a conforming change to the bill title.
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Bill S 647 (2011-2012)Summary date: Jun 8 2011 - View summary
Senate committee substitute, reported in on 6/7/11, makes the following changes to the 1st edition. Rewrites proposed GS 58-10-280 to require an applicant’s articles of incorporation or bylaws have a two-thirds majority (previously just a majority) of policy holder votes for reorganization. Creates new subsection (f) to proposed GS 58-10-285 to provide for an application fee of $250 for applicants filing a limited application, and a fee of $500 for applicants filing a standard application. Makes conforming change to proposed GS 58-10-285(b). Makes clarifying change to proposed GS 58-10-300(b). Makes other technical changes.
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Bill S 647 (2011-2012)Summary date: Apr 18 2011 - View summary
Adds new Part 8, Mutual Insurance Holding Companies, to Article 10 of GS Chapter 58 as the title indicates. Provides definitions for terms as they apply in new Part 8. Provides general provisions regarding the reorganization of a domestic mutual insurance company, upon approval by the Commissioner of Insurance (Commissioner), into a mutual insurance holding company (holding company) and concerning the functional, organizational, and operational structure of an insurance holding company. Requires that an application for reorganization be designated as either a limited application, or a standard application. Directs that applications be filed in triplicate with the Commissioner and prescribes the information to be contained in the application. Provides additional specifications regarding the application process.
Details the required provisions for a limited application plan of reorganization and for a standard application plan of reorganization. Specifies the powers of the Commissioner with regards to the mutual insurance holding company, directing that the Commissioner is to retain jurisdiction at all times over the mutual insurance holding company, its intermediate holding company subsidiaries with stock insurance subsidiaries, and its stock insurance company subsidiaries. Authorizes the Commissioner to approve, conditionally approve, or deny an application following any public comment period or hearing under GS 58-10-285.
Provides guidelines and criteria regarding (1) specific financial requirements applicable to a holding company, (2) the reorganization of a domestic mutual insurer with a holding company, and (3) mergers of holding companies. Prohibits any stock offering by a holding company, an insurance company subsidiary of a holding company, an intermediate holding company subsidiary of a holding company, or an insurance company subsidiary of an intermediate holding company subsidiary to a holding company without the prior approval of the Commissioner. Provides additional specifications regarding the content of applications for stock offerings and additional requirements regarding a planned stock offering. Provides for the regulation of the holding company, requiring all material transactions as defined in Part 3 of Article 10 of GS Chapter 58 to be approved by a majority of the board of directors of the holding company as being fair and reasonable. Also provides for the reporting of stock ownership and transactions.