(a)        Concurrent with the filing of the declaration provided for in N.C. Gen. Stat. § 58-15-100, the attorney of a domestic reciprocal shall file with the Commissioner a fidelity bond payable to this State.? The bond shall be executed by the attorney and by a licensed insurer and is subject to the approval of the Commissioner.

(b)        The bond shall be in an amount established in the discretion of the Commissioner, which amount shall be at least fifty thousand dollars ($50,000).? The bond shall be on the condition that the attorney faithfully accounts for all moneys and other property of the reciprocal coming into the attorney’s control and that the attorney does not withdraw or appropriate for his own use from the funds of the reciprocal any moneys or property to which he is not entitled under the power of attorney.

(c)        The bond is not subject to cancellation unless 30-days’ written notice of intent to cancel is given to the attorney and the Commissioner. (1989, c. 425, s. 1.)

Terms Used In North Carolina General Statutes 58-15-105

  • Attorney: means the person designated and authorized by subscribers as the attorney-in-fact having authority to obligate them on reciprocal and other insurance contracts. See North Carolina General Statutes 58-15-5
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
  • property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
  • Reciprocal: means an aggregation of subscribers under a common name. See North Carolina General Statutes 58-15-5
  • state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
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