Financial Analysis & Receivership - Financial Analysis - Company Admissions

Domestic Insurance Companies

Domestic insurance companies are those incorporated in and abide by the laws of North Carolina. The company also designates its principal office of business in North Carolina and obtains the approval of the Commissioner to conduct business.

North Carolina General Statute 58-7-75 specifies the amount of capital and surplus required for incorporation and licensure as a domestic insurer. Please refer to the following table to see specific requirements by type of insurance company.

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) *    
Mutual fire and marine company (Nonassessable)*    
Town or county mutual*    
Mutual life, accident and health company*    
Mutual casualty, fidelity and surety Company*    

*Please see the statute for specific amounts needed for the various types of mutual insurance companies.

A domestic insurer applicant must submit the following:

  • Biographical information on each promoter, incorporator, director, trustee and proposed management personnel. Biographical information must be submitted on the Department’s Biographical Affidavit Form and completed in its entirety
  • A nonrefundable filing fee to the Department
  • A detailed and complete plan of operations describing the lines of insurance to be written by the proposed company and the method by which the Company will perform its various functions
  • Financial projections of the anticipated operations results for a five-year period. A qualified individual must prepare the projections and they must be in sufficient detail in order for the Department to perform a complete analysis and must be accompanied by a list of the assumptions used.
  • A description of the source of the initial capitalization of the proposed company
  • Evidence that adequate technical expertise (accounting, marketing, actuarial, underwriting, etc.) is available either within the company or evidence that the company has retained the necessary expertise
  • An original and two copies of the proposed Articles of Incorporation
  • A copy of the proposed Bylaws
  • Fingerprint cards on all key personnel
    • As defined by North Carolina General Statute 58-7-37. Please contact your local sheriff’s department to obtain information on securing fingerprint cards and where to have fingerprinting done in your area.

All domestic insurance companies are incorporated through the Office of the Secretary of State. North Carolina General Statute 58-7-35 describes the procedure for organizing such corporations. A filing fee will be charged by the Secretary of State’s office.

Once a company is incorporated, it must conduct an organizational meeting and the bylaws must be adopted. The minutes of this organizational meeting and a copy of the adopted bylaws must be sent to the Department, along with certain other forms. The forms to be completed are listed below:

Once these items have been forwarded, the Company can be recommended for licensure.

Every licensed domestic insurance company must pay a nonrefundable renewal fee each year in order to retain licensure.