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Financial Evaluation Division |
| COMPANY ADMISSIONS |
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| Foreign Insurance Companies |
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| Foreign insurance companies are domiciled and incorporated in a state other than North Carolina. These companies must apply to and be approved by the Department before they are allowed to write business in North Carolina. Foreign insurers must comply with all the laws and regulations stated under North Carolina General Statutes 58-16 and 58-7-198. |
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| Foreign insurers wishing to be licensed in North Carolina must complete an application using the NAIC UCAA forms and guidelines. We are now accepting electronic submissions through the NAIC in lieu of hard copy submissions. In addition, the Company must file with the Department a Power of Attorney to Sell and Transfer Securities and submit a filing fee. |
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| North Carolina General Statute 58-16-5(2) requires a foreign company to show that it has been successful in the conduct of its business. Successful insurance operations are defined by 11 NCAC 14.0504 as having recorded net income for the three consecutive years immediately preceding the date of application for admission. The Company must also continue to reflect net income throughout the admissions process. The Department may waive the three year income requirement if certain conditions are met. Please refer to 11 NCAC 14.0505 for waiver requirements. |
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| North Carolina General Statute 58-7-75 specifies the amount of capital and/or surplus required of a foreign insurer. Please refer to the following table to see specific requirements by type of insurance company. |
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| TYPE OF COMPANY |
PAID-IN CAPITAL |
PAID-IN INITIAL SURPLUS |
| Stock life insurance company |
$600,000 |
$900,000 |
| Stock accident and health insurance company |
$400,000 |
$600,000 |
| Stock fire and marine company |
$800,000 |
$1,200,000 |
| Stock casualty, fidelity and surety company |
$1,000,000 |
$1,500,000 |
| Mutual fire and marine company (Limited assessment) |
$500,000 |
$300,000 |
| Mutual fire and marine company (Assessable) * |
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| Mutual fire and marine company (Nonassessable)* |
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| Town or county mutual* |
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| Mutual life, accident and health company* |
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| Mutual casualty, fidelity and surety Company* |
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| *Please see the statute for specific amounts needed for the various types of mutual insurance companies. |
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| In addition, a foreign insurer will be required to post a minimum deposit in North Carolina for the benefit of all policyholders. The minimum for a deposit for a foreign life insurer is $400,000 and the minimum deposit for a foreign property and casualty insurer is $200,000. Instructions on how to file this deposit will be submitted to the company when it has attained licensure. |
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| Every licensed foreign insurance company must pay a nonrefundable renewal fee each year in order to retain licensure. |
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