North Carolina General Statutes 58-48-120. Creation of Mutual Fund Account; maintenance of Mutual Fund Account
Terms Used In North Carolina General Statutes 58-48-120
- Account: means any one of the three accounts created by N. See North Carolina General Statutes 58-48-20
- Association: means the North Carolina Insurance Guaranty Association created under N. See North Carolina General Statutes 58-48-20
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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
(a) The moneys received by the Association pursuant to N.C. Gen. Stat. § 58-48-105(b) shall be deposited in a separate reserve account to be maintained by the Association which shall be designated as the Mutual Reserve Account. The amount in this account shall be equivalent to one and one-half times the contingent liabilities of the Mutual Workers’ Compensation Security Fund created pursuant to former N.C. Gen. Stat. § 97-114 existing on December 31, 1992. The amount of this Fund’s contingent liabilities and the amount to be deposited into this Mutual Reserve Account shall be determined and approved by the Department.
(b) If the amount received by the Association from the former Mutual Workers’ Compensation Security Fund created pursuant to N.C. Gen. Stat. § 97-114 and received by the Association pursuant to N.C. Gen. Stat. § 58-48-105(b) is insufficient to equal one and one-half times the contingent liabilities of the Fund existing on December 31, 1992, the Association shall, over the five years following January 1, 1993, assess the member insurers that are mutual carriers writing workers’ compensation insurance in this State at the time of the assessment in the amount it determines necessary to make up the difference between the money received by the Association pursuant to N.C. Gen. Stat. § 58-48-105(b) and one and one-half times the contingent liabilities of the Fund as determined by the Department of Insurance pursuant to N.C. Gen. Stat. § 58-48-120(a). The assessment under this subsection shall be made in accordance with the provisions of N.C. Gen. Stat. § 58-48-35(a)(3).
(c) After December 31, 1997, should the balance of the moneys in the Mutual Reserve Account be reduced to less than one and one-half times the contingent liabilities of the account, the Association shall assess all member insurers that are mutual carriers writing workers’ compensation insurance in this State at the time of the assessment in an amount necessary to raise the account to an amount equivalent to one and one-half times the contingent liabilities of said account. The assessment under this subsection shall be made in accordance with the provisions of N.C. Gen. Stat. § 58-48-35(a)(3). (1991 (Reg. Sess., 1992), c. 802, s. 9.)