North Carolina General Statutes 58-50A-25. Solvency requirements
No insurer shall deliver or issue for delivery a group health plan to a sponsoring association or an employer member of a sponsoring association unless the sponsoring association meets all of the following solvency requirements:
(1) Has been established and maintained in good faith for a period of at least three years.
(2) Has at the outset a minimum of 500 individuals eligible for coverage pursuant to N.C. Gen. Stat. § 58-50A-15(a).
(3) Requires employer members to offer group health coverage to all individuals eligible for coverage under N.C. Gen. Stat. § 58-50A-15(a) for a period of at least one year.
(4) Maintains a minimum net worth equal to at least one month‘s premium, which must be held in trust and separate from the sponsoring association’s operating assets. This amount shall be adjusted at the beginning of each policy period.
(5) Maintains at all times an adequate plan for protection against insolvency that is acceptable to the Commissioner. ?(2019-202, s. 1.)
Terms Used In North Carolina General Statutes 58-50A-25
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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
- month: shall be construed to mean a calendar month, unless otherwise expressed; and the word "year" a calendar year, unless otherwise expressed; and the word "year" alone shall be equivalent to the expression "year of our Lord. See North Carolina General Statutes 12-3