GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

S	3 

SENATE BILL 843
Pensions & Retirement and Insurance Committee Substitute Adopted 4/29/97
House Committee Substitute Favorable 8/18/97

Short Title:  Insurance Technical Changes.	(Public)

─────────────────────────────────────── 
Sponsors:

─────────────────────────────────────── 
Referred to:  

─────────────────────────────────────── 

April 15, 1997

A BILL TO BE ENTITLED
AN ACT TO REPEAL OBSOLETE LAWS AND MAKE TECHNICAL AND CLARIFYING AMENDMENTS AND CORRECTIONS IN VARIOUS INSURANCE STATUTES; AND TO EXTEND THE EXPIRATION DATE OF THE 1986 RISK SHARING PLAN LAW.
The General Assembly of North Carolina enacts:
PART I.  REPEALS OF OBSOLETE OR UNNECESSARY PROVISIONS.
Section 1.  G.S. 58-3-125, 58-6-10, 58-7-150, 58-41-35, and 58-71-90 are repealed.
Section 2.  G.S. 58-2-120 reads as rewritten:
"§ 58-2-120.  Reports of Commissioner to the Governor and General Assembly.
The Commissioner shall, from time to time, report to the Governor and the General Assembly any change that in the Commissioner's opinion should be made in the laws relating to insurance and other subjects pertaining to the Department."
Section 3. G.S. 58-87-10(e) reads as rewritten:
"(e)	Revenue Source. – Revenue is credited to the Workers' Compensation Fund from appropriations made to the Department of Insurance for this purpose. In addition, every eligible unit that elects to participate shall pay into the Fund an amount set annually by the State Fire and Rescue Commission to ensure that the Fund will be able to meet its payment obligations under this section. The amount shall be set as a per capita fixed dollar amount for each member of the roster of the eligible unit.
The payment shall be made to the State Fire and Rescue Commission on or before July 1 of each year. The Commission shall remit the payments it receives to the State Treasurer, who shall credit the payments to the Fund. "
Section 4.  G.S. 120-123(55) and (65) are repealed.
Section 5.  G.S. 58-36-15(e) reads as rewritten:
"(e)	The Commissioner may require the filing of supporting data including:
(1)	The Bureau's interpretation of any statistical data relied upon;
(2)	Descriptions of the methods employed in setting the rates;
(3)	Analysis of the incurred losses submitted on an accident year or policy year basis into their component parts; to wit, paid losses, reserves for losses and loss expenses, and reserves for losses incurred but not reported;
(4)	The total number and dollar amount of paid claims;
(5)	The total number and dollar amount of case basis reserve claims;
(6)	Earned and written premiums at current rates by rating territory;
(7)	Earned premiums and incurred losses according to classification plan categories; and
(8)	Income from investment of unearned premiums and loss and loss expense reserves generated by business within this State.
."
Section 6.  G.S. 58-3-115 reads as rewritten:
"§ 58-3-115.  Twisting with respect to insurance policies; penalties.
  No insurer shall make or issue, or cause to be issued, any written or oral statement that willfully misrepresents or willfully makes an incomplete comparison as to the terms, conditions, or benefits contained in any policy of insurance for the purpose of inducing or attempting to induce a policyholder in any way to terminate or surrender, exchange, or convert any insurance policy.  Any person who violates this section is subject to the provisions of G.S. 58-2-70 or G.S. 58-3-100."
Section 7.  G.S. 58-30-75(7) reads as rewritten:
"(7)	Without first obtaining the written consent of the Commissioner, the insurer has (i) transferred, or attempted to transfer, in a manner contrary to Article 19 of this Chapter, substantially its entire property or business, or (ii) has entered into any transaction, the effect of which is to merge, consolidate, or reinsure substantially its entire property or business in or with the property or business of any other person."
Section 8.  G.S. 58-41-40(a) reads as rewritten:
"(a)	There is no liability on the part of and no cause of action for defamation or invasion of privacy arises against any insurer or its authorized representatives, agents, or employees, or any licensed insurance agent or broker, for any communication or statement made, unless shown to have been made in bad faith with malice, in any of the following:
(1)	A written notice of cancellation under G.S. 58-41-15 or of nonrenewal under G.S. 58-41-20, specifying the reasons for cancellation.
(2)	Communications providing information pertaining to the cancellation or nonrenewal.
(3)	Evidence submitted at any court proceeding, administrative hearing, or informal inquiry in which the cancellation or nonrenewal is an issue."
PART II.  AMENDMENTS NECESSARY BECAUSE OF 1995 REWRITE OF G.S. 58-2-50.
Section 9.  G.S. 58-34-2(j) reads as rewritten:
"(j)	The Commissioner shall disapprove any such contract that:
(1)	Does not contain the required contract provisions specified in subsection (d) of this section;
(2)	Subjects the insurer to excessive charges for expenses or commission;
(3)	Vests in the MGA any control over the management of the affairs of the insurer to the exclusion of the board of directors of the insurer;
(4)	Is entered into with any person if the person or its officers and directors are of known bad character or have been affiliated directly or indirectly through ownership, control, management, reinsurance transactions, or other insurance or business relationships with any person known to have been involved in the improper manipulation of assets, accounts, or reinsurance; or
(5)	Is determined by the Commissioner to contain provisions that are not fair and reasonable to the insurer.
Failure of the Commissioner to disapprove any such contract within 30 days after the contract has been filed with the Commissioner constitutes the Commissioner's approval of the contract. An insurer may continue to accept business from the person until the Commissioner disapproves the contract. Any disapproval shall be in writing.  The Commissioner may withdraw approval of any contract the Commissioner has previously approved if the Commissioner determines that the basis of the original approval no longer exists or that the contract has, in actual operation, shown itself to be subject to disapproval on any of the grounds in this subsection.  If the Commissioner withdraws approval of a contract, the Commissioner shall give the insurer notice of, and written reasons for, the withdrawal of approval.  The Commissioner shall grant any party to the contract a hearing upon request."
Section 10.  G.S. 58-34-15(b) reads as rewritten:
"(b)	If the Commissioner disapproves any management contract, the Commissioner shall give notice of, and written reasons for, the disapproval to the insurer.  The Commissioner shall grant any party to the contract a hearing upon request."
Section 11.  G.S. 58-40-100 reads as rewritten:
"§ 58-40-100.  Request for review of rate, rating plan, rating system or underwriting rule.
(a)	Any person aggrieved by any rate charged, rating plan, rating system, or underwriting rule followed or adopted by an insurer or rating organization may request in writing that the insurer or rating organization review the manner in which the rate, plan, system, or rule has been applied with respect to the person's insurance.  The person's authorized representative may make the request.  If the request is not granted within 30 days after it is made, the requestor may treat it as rejected.  Any person aggrieved by the action of an insurer or rating organization in refusing the review requested or in failing or refusing to grant all or part of the relief requested, may file a written complaint and request for hearing with the Commissioner, and shall specify the grounds relied upon.  If the Commissioner has information concerning a similar complaint, the Commissioner may deny the hearing.  If the Commissioner believes that probable cause for the complaint does not exist or that the complaint is not made in good faith, the Commissioner shall deny the hearing.  If the Commissioner finds that the complaint charges a violation of this Article and that the complainant would be aggrieved if the violation is proven, the Commissioner shall proceed as provided in G.S. 58-2-70.
(b)	Repealed by Session Laws 1985 (Regular Session, 1986), c. 1027, s. 15."
Section 12.  G.S. 58-42-1 reads as rewritten:
"§ 58-42-1.  Establishment of plans.
If the Commissioner finds, after a hearing, that in all or any part of this State, any amount or kind of insurance authorized by G.S. 58-7-15(4)	through G.S. 58-7-15(22) is not readily available in the voluntary market and that the public interest requires the availability of that insurance, the Commissioner may either:
(1)	Promulgate plans to provide insurance coverage for any risks in this State that are, based on reasonable underwriting standards, entitled to obtain but are otherwise unable to obtain coverage; or
(2)	Call upon insurers to prepare plans for the Commissioner's approval."
Section 13.  G.S. 58-45-50 reads as rewritten:
"§ 58-45-50.  Appeal from acts of Association to Commissioner; appeal from Commissioner to superior court.
Any person or any insurer who may be aggrieved by an act, ruling or decision of the Association other than an act, ruling or decision relating to the cause or amount of a claimed loss, may, within 30 days after the ruling, appeal to the Commissioner. Any hearings held by the Commissioner under the appeal shall be in accordance with rules adopted by the Commissioner:  Provided, however, the Commissioner is authorized to appoint a member of the Commissioner's staff as deputy commissioner for the purpose of hearing those appeals and a ruling based upon the hearing has the same effect as if heard by the Commissioner. All persons or insureds aggrieved by any order or decision of the Commissioner may appeal as provided in G.S. 58-2-75.
No later than 20 days before each hearing, the appellant shall file with the Commissioner or his designated hearing officer and shall serve on the appellee a written statement of the appellant's case and any evidence that the appellant intends to offer at the hearing.  No later than five days before the hearing, the appellee shall file with the Commissioner or the designated hearing officer and shall serve on the appellant a written statement of the appellant's case and any evidence that the appellee intends to offer at the hearing.  The procedures governing recordings of hearings and, if necessary, transcripts of recordings, as well as the fees for copies of recordings and transcripts, shall be determined by rules adopted by the Commissioner.  Each party shall, on a date determined by the Commissioner or his designated hearing officer, but not sooner than 15 days after delivery of the completed transcript to the party, submit to the Commissioner or his designated hearing officer and serve on the other party, a proposed order.  The Commissioner or his designated hearing officer shall then issue an order."
Section 14.  G.S. 58-45-70 reads as rewritten:
"§ 58-45-70. Commissioner may examine affairs of Association. 
The Commissioner may from time to time make an examination into the affairs of the Association when the Commissioner deems it to be prudent, and as part of the examination the Commissioner may hold a public hearing.  The Association shall pay the expenses of the examination."
Section 15.  G.S. 58-46-20(c) reads as rewritten:
"(c)	The Commissioner may designate the kinds of property insurance policies on principal residences to be offered by the association, including insurance policies under Article 36 of this Chapter, and the commission rates to be paid to agents or brokers for these policies, if the Commissioner finds, after a hearing, that the public interest requires the designation. The provisions of Chapter 150B of the General Statutes do not apply to any procedure under this subsection, except that G.S. 150B-39 and G.S. 150B-41 shall apply to a hearing under this subsection. Within 30 days after the receipt of notification from the Commissioner of a change in designation under this subsection, the association shall submit a revised plan and articles of association for approval in accordance with subsection (b) of this section."
Section 16.  G.S. 58-46-30 reads as rewritten:
"§ 58-46-30.  Appeals; judicial review.
The association shall provide reasonable means, to be approved by the Commissioner, whereby any person or insurer affected by any act or decision of the administrators of the Plan or underwriting association, other than an act or decision relating to the cause or amount of a claimed loss, may be heard in person or by an authorized representative, before the governing board of the association or a designated committee.  Any person or insurer aggrieved by any decision of the governing board or designated committee, may be appealed to the Commissioner within 30 days from the date of the ruling or decision.  The Commissioner, after hearing held under rules adopted by the Commissioner, shall issue an order approving or disapproving the act or decision with respect to the matter that is the subject of appeal.  The Commissioner may appoint a member of the Commissioner's staff as deputy commissioner for the purpose of hearing the appeals and a ruling based on the hearing has the same effect as if heard by the Commissioner.  All persons or insurers or their representatives aggrieved by any order or decision of the Commissioner may appeal as provided in G.S. 58-2-75.
No later than 20 days before each hearing, the appellant shall file with the Commissioner or the designated hearing officer and shall serve on the appellee a written statement of the appellant's case and any evidence that the appellant intends to offer at the hearing.  No later than five days before the hearing, the appellee shall file with the Commissioner or the designated hearing officer and shall serve on the appellant a written statement of the appellee's case and any evidence that the appellee intends to offer at the hearing.  The procedures governing recordings of hearings and, if necessary, transcripts of recordings, as well as the fees for copies of recordings and transcripts, shall be determined by rules adopted by the Commissioner.  Each party shall, on a date determined by the Commissioner or the designated hearing officer, but not sooner than 15 days after delivery of the completed transcript to the party, submit to the Commissioner or the designated hearing officer and serve on the other party, a proposed order.  The Commissioner or the designated hearing officer shall then issue an order."
PART III.  CONTINUING CARE RETIREMENT COMMUNITY NAME CORRECTION AND RECEIVERSHIPS.
Section 17.  G.S. 58-30-10(14) reads as rewritten:
"(14)	'Insurer' means any entity licensed under Articles 7, 16, 26, 49, 65, or 67 of this Chapter and any employer that has furnished to the Commissioner satisfactory proof of its financial responsibility under G.S. 97-93(a)(2). For purposes of this Article, 'insurer' also includes continuing care retirement communities licensed under Article 64 of this Chapter."
Section 18.  The title of Article 64 of Chapter 58 of the General Statutes reads as rewritten:
"ARTICLE 64.
Continuing Care Retirement Communities."
Section 19.  G.S. 58-64-1 reads as rewritten:
"§ 58-64-1.  Definitions.
As used in this Article, unless otherwise specified:
(1)	'Continuing care' means the furnishing to an individual other than an individual related by blood, marriage, or adoption to the person furnishing the care, of lodging together with nursing services, medical services, or other health related services, under an agreement effective for the life of the individual or for a period longer than one year.
(2)	'Entrance fee' means a payment that assures a resident a place in a facility for a term of years or for life.
(3)	'Facility' means the retirement community or communities in which a provider undertakes to provide continuing care to an individual.
(4)	'Health related services' means, at a minimum, nursing home admission or assistance in the activities of daily living, exclusive of the provision of meals or cleaning services.
(5)	'Living unit' means a room, apartment, cottage, or other area within a facility set aside for the exclusive use or control of one or more identified residents.
(6)	'Provider' means the promoter, developer, or owner of a facility, whether a natural person, partnership, or other unincorporated association, however organized, trust, or corporation, of an institution, building, residence, or other place, whether operated for profit or not, or any other person, that solicits or undertakes to provide continuing care under a continuing care facility contract, or that represents himself, herself, or itself as providing continuing care or 'life care.'
(7)	'Resident' means a purchaser of, a nominee of, or a subscriber to, a continuing care contract.
(8)	'Hazardous financial condition' means a provider is insolvent or in eminent danger of becoming insolvent."
Section 20.  G.S. 58-64-40(b) reads as rewritten:
"(b)	The board of directors or other governing body of a facility or its designated representative shall hold annual meetings with the residents of the facility for free discussions of subjects including, but not limited to, income, expenditures, and financial trends and problems as they apply to the facility and discussions of proposed changes in policies, programs, and services.  Residents shall be entitled to at least seven days advance notice of each meeting.  An agenda and any materials that will be distributed by the governing body at the meetings shall remain available upon request to residents."
Section 21.  G.S. 58-64-80 reads as rewritten:
"§ 58-64-80.  Advisory Committee.
There shall be a nine member Continuing Care Advisory Committee appointed by the Commissioner.  The Committee shall consist of at least two residents of facilities, two representatives of the North Carolina Association of Nonprofit Homes for the Aging, one individual who is a certified public accountant and is licensed to practice in this State, one individual skilled in the field of architecture or engineering, and one individual who is a health care professional."
Section 21.1.  Article 64 of Chapter 58 of the General Statutes is amended by adding a new section to read:
"§ 58-64-46.  Receiverships; exception for facility beds.
When the Commissioner has been appointed as a receiver under Article 30 of this Chapter for a provider or facility subject to this Article, and if it appears to the court, upon petition of the Commissioner or the provider, or on the court's own motion, that the best interests of the facility or the welfare of persons who have previously contracted with the provider or may contract with the facility may be best served by the addition of adult care home beds, the Department of Human Resources may, notwithstanding any other provision of law, accept and approve the addition of beds for that facility."
PART IV.  WORKERS' COMPENSATION LOSS COSTS CONFORMING CHANGES.
Section 22.  G.S. 58-36-1(2) reads as rewritten:
"(2)	The Bureau shall provide reasonable means to be approved by the Commissioner whereby any person affected by a rate or loss costs made by it may be heard in person or by the person's authorized representative before the governing committee or other proper executive of the Bureau."
Section 23.  G.S. 58-36-1(5)c. reads as rewritten:
"c.	Failure or refusal by any assigned employer risk to make full disclosure to the Bureau, servicing carrier, or insurer writing a policy of information regarding the employer's true ownership, change of ownership, operations, or payroll, or any other failure to disclose fully any records pertaining to workers' compensation insurance shall be sufficient grounds for the termination of the policy of that employer."
Section 24.  G.S. 58-36-10 reads as rewritten:
"§ 58-36-10.  Method of rate making; factors considered.
The following standards apply to the making and use of rates or loss costs:
(1)	Rates or loss costs shall not be excessive, inadequate or unfairly discriminatory.
(2)	Due consideration shall be given to actual loss and expense experience within this State for the most recent three-year period for which that information is available; to prospective loss and expense experience within this State; to the hazards of conflagration and catastrophe; to a reasonable margin for underwriting profit and to contingencies; to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers; to investment income earned or realized by insurers from their unearned premium, loss, and loss expense reserve funds generated from business within this State; to past and prospective expenses specially applicable to this State; and to all other relevant factors within this State: Provided, however, that countrywide expense and loss experience and other countrywide data may be considered only where credible North Carolina experience or data is not available.
(3)	In the case of fire insurance rates, as are subject to the ratemaking authority of the Bureau, consideration may be given to the experience of such fire insurance business during the most recent five-year period for which that experience is available.  In the case of fire insurance rates that are subject to the ratemaking authority of the Bureau, consideration shall be given to the insurance public protection classifications of rural fire districts based upon standards established by the Commissioner.  To the extent credits are provided for proximity to fire hydrants, the Bureau may also provide appropriate credits in public protection classifications for optional water sources, such as ponds, lakes, or other bodies of water, in accordance with standards and procedures filed with and approved by the Commissioner.
(4)	Risks may be grouped by classifications and lines of insurance for establishment of rates, loss costs, and base premiums.  Classification rates may be modified to produce rates for individual risks in accordance with rating plans that establish standards for measuring variations in hazards or expense provisions or both.  Those standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses.  The Bureau shall establish and implement a comprehensive classification rating plan for motor vehicle insurance under its jurisdiction within 90 days of September 1, 1977.  No such classification plans shall base any standard or rating plan for private passenger (nonfleet) motor vehicles, in whole or in part, directly or indirectly, upon the age or sex of the persons insured.  The Bureau shall at least once every three years make a complete review of the filed classification rates to determine whether they are proper and supported by statistical evidence, and shall at least once every 10 years make a complete review of the territories for nonfleet private passenger motor vehicle insurance to determine whether they are proper and reasonable.
(5)	In the case of workers' compensation insurance and employers' liability insurance written in connection therewith, due consideration shall be given to the past and prospective effects of changes in compensation benefits and in legal and medical fees that are provided for in General Statutes Chapter 97."
Section 25.  G.S. 58-36-15(a) reads as rewritten:
"(a)	The Bureau shall file with the Commissioner copies of the rates, loss costs, classification plans, rating plans and rating systems used by its members. Each rate or loss costs filing shall become effective on the date specified in the filing, but not earlier than 105 days after the date the filing is received by the Commissioner: Provided that (1) rate or loss costs filings for workers' compensation insurance and employers' liability insurance written in connection therewith shall not become effective earlier than 120 days from the date the filing is received by the Commissioner or on the date provided in G.S. 58-36-100, whichever is earlier; and (2) any filing may become effective on a date earlier than that specified in this subsection upon agreement between the Commissioner and the Bureau."
Section 26.  G.S. 58-36-15(f) reads as rewritten:
"(f)	On or before September 1 of each calendar year the Bureau shall submit to the Commissioner the experience, data, statistics, and information referred to in subsection (c) of this section and required under G.S. 58-36-100 and a residual market rate and prospective loss costs review based on those data for workers' compensation insurance and employers' liability insurance written in connection therewith. Any rate or loss costs increase for that insurance that is implemented under this Article shall become effective solely to insurance with an inception date on or after the effective date of the rate or loss costs increase."
Section 27.  G.S. 58-36-15(g) reads as rewritten:
"(g)	The following information must be included in policy form, rule, and rate or loss costs filings under this Article and under Article 37 of this Chapter:
(1)	A detailed list of the rates, loss costs, rules, and policy forms filed, accompanied by a list of those superseded; and
(2)	A detailed description, properly referenced, of all changes in policy forms, rules, prospective loss costs, and rates, including the effect of each change."
Section 28.  G.S. 58-36-30(a) reads as rewritten:
"(a)	Except as permitted by G.S. 58-36-100 for workers' compensation loss costs filings, no insurer and no officer, agent, or representative of an insurer shall knowingly issue or deliver or knowingly permit the issuance or delivery of any policy of insurance in this State that does not conform to the rates, rating plans, classifications, schedules, rules and standards made and filed by the Bureau. An insurer may deviate from the rates adopted by the Bureau if the insurer has filed the proposed deviation with the Bureau and the Commissioner, if the proposed deviation is based on sound actuarial principles, and if the proposed deviation is approved by the Commissioner. Amendments to deviations are subject to the same requirements as initial filings. An insurer may terminate a deviation only if the deviation has been in effect for a period of six months before the effective date of the termination and the insurer notifies the Commissioner of the termination no later than 15 days before the effective date of the termination."
Section 29.  G.S. 58-36-30(c) reads as rewritten:
"(c)	Any approved rate under subsection (b) of this section with respect to workers' compensation and employers' liability insurance written in connection therewith shall be furnished to the Bureau."
Section 30.  Effective September 1, 1997, G.S. 58-36-100(a) reads as rewritten:
"(a)	Except as provided in subsections (k) and (m) of this section, the Bureau shall no longer develop or file any minimum premiums, minimum premium formulas, or expense constants. If an insurer wishes to amend minimum premium formulas or expense constants, it must file the minimum premium rules, formulas, or amounts it proposes to use.  A copy of each filing submitted to the Commissioner under subsections (e) and (g) of this section shall also be sent to the Bureau."
Section 31. Effective September 1, 1997, G.S. 58-36-100(b)(1) reads as rewritten:
"(1)	'Expenses'. – That portion of a rate attributable to acquisition, field supervision, collection expenses, any tax levied by the State or by any political subdivision of the State, licensing costs, fees, and general expenses, as determined by the insurer."
Section 32.  Effective September 1, 1997,  G.S. 58-36-100(c) reads as rewritten:
"(c)	Except as provided in subsection (m) of this section, for workers' compensation and employers' liability insurance written in connection with workers' compensation insurance, the Bureau shall no longer develop or file advisory final rates that contain provisions for expenses (other than loss adjustment expenses) and profit. The Bureau shall instead develop and file for approval with the Commissioner, in accordance with this section, reference filings containing advisory prospective loss costs and the underlying loss data and other supporting statistical and actuarial information for any calculations or assumptions underlying these loss costs. Loss-based assessments will be included in prospective loss costs."
Section 32.1.  Effective September 1, 1997, G.S. 58-36-100(k) reads as rewritten:
"(k)	The Bureau shall file with the Commissioner, for approval, filings containing a revision of rules and supplementary rating information. This includes policy-writing rules, rating plans, classification codes and descriptions, and rules that include factors or relativities, such as increased limits factors and related minimum premiums, classification relativities, or similar factors.  The Bureau may print and distribute manuals of rules and supplementary rating information."
PART V. INSURANCE COMPANY FINANCIAL OPERATIONS.
Section 33.  G.S. 58-5-63(a) reads as rewritten:
"(a)	All insurance companies making deposits under this Article are entitled to interest on those deposits. The right to interest is subject to a company paying its insurance policy liabilities. If any company fails to pay those liabilities, interest accruing after the failure is payable to the Commissioner for the payment of those liabilities under subsection (b) of this section."
Section 34.  G.S. 58-7-21(a) reads as rewritten:
"(a)	As used in this section and in G.S. 58-7-26 and G.S. 58-7-30:
(1)	'Reinsurance' means a transfer of insurance risk from a ceding insurer to an assuming insurer.
(2)	'Insurance risk' means an uncertainty regarding the ultimate amount of any claim payment (underwriting risk) or an uncertainty regarding the timing of the payments (timing risk), or both."
Section 35.  G.S. 58-7-31(b)(3) reads as rewritten:
"(3)	The ceding insurer is required to reimburse the reinsurer for negative experience under the reinsurance agreement; except that neither offsetting experience refunds against current and prior years' losses under the reinsurance agreement nor payment by the ceding insurer of an amount equal to the current and prior years' losses under the reinsurance agreement upon voluntary termination of in-force reinsurance by the ceding insurer are a reimbursement to the reinsurer for negative experience. Voluntary termination does not include situations where termination occurs because of unreasonable provisions that allow the reinsurer to reduce its risk or increase its risk charge under the reinsurance agreement."
Section 36.  G.S. 58-7-31(d)(1) reads as rewritten:
"(1)	Reinsurance agreements entered into after October 1, 1993, that involve the reinsurance of business issued before the effective date of the reinsurance agreements, along with any subsequent amendments thereto, shall be filed by the ceding company with the Commissioner within 30 days after its date of execution. Each filing shall include data detailing the financial effect of the transaction. The ceding insurer's actuary who signs the financial statement actuarial opinion with respect to valuation of reserves shall consider this section and any applicable actuarial standards of practice when determining the proper credit in financial statements filed with the Commissioner. The actuary shall maintain adequate documentation and be prepared upon request to describe the actuarial work performed for inclusion in the financial statements and to demonstrate that that work conforms to this section."
Section 37.  G.S. 58-7-173(12) reads as rewritten:
"(12)	Secured obligations of duly constituted churches and of church-holding companies; and the cost of investments made under this subdivision shall not exceed the lesser of one percent (1%) of the insurer's admitted assets or five percent (5%) of the insurer's capital and surplus."
Section 38.  The catchline of G.S. 58-7-177 reads as rewritten:
"§ 58-7-177.  Investments in subsidiaries."
Section 39.  G.S. 58-8-5(a)(3) reads as rewritten:
"(3)	If the meeting at which the proposed amendment is to be considered is a special meeting, rather than a regular annual meeting of policyholders, that meeting can be called only after the Commissioner has given approval in writing;"
Section 40.  G.S. 58-8-25 reads as rewritten:
"§ 58-8-25. Dividends to policyholders. 
(a)	Any participating or dividend-paying company, stock or mutual or foreign or domestic, that writes other than life insurance or workers' compensation insurance and employers' liability insurance in connection therewith, may declare and pay a dividend to policyholders from its unassigned surplus as reflected in the company's most recent annual or quarterly statement filed with the Commissioner, which shall include only its surplus in excess of any required minimum surplus. No such dividend shall be paid unless it is fair and equitable and for the best interest of the company and its policyholders. In declaring any dividend to its policyholders, any such company may make reasonable classifications of policies expiring during a fixed period, upon the basis of each general kind of insurance covered by those policies and by territorial divisions of the location of risks by states, except that in fixing the amount of dividends to be paid on each general kind of insurance, the dividends shall be uniform in rate and applicable to the majority of risks within that general kind of insurance, and exceptions may be made as to any class or classes of risk and a different rate or amount of dividends paid on the class or classes if the conditions applicable to the class or classes differ substantially from the condition applicable to the kind of insurance as a whole. Every such company shall have an equal rate of dividend for the same term on all policies insuring risks in the same classification. The payment of dividends to policyholders shall not be contingent upon the maintenance or renewal of the policy. All dividends shall be paid to the policyholder unless a written assignment of those dividends is executed. Neither the payment of dividends nor the rate of the dividends may be guaranteed by any company, or its agent, before the declaration of the dividend by the board of directors of the company. The holders of policies of insurance issued by a company in compliance with the orders of any public official, bureau or committee, in conformity with any statutory requirement or voluntary arrangement, for the issuance of insurance to risks not otherwise acceptable to the company, may be established as a separate class of risks.
(b)	Any participating or dividend-paying company, stock or mutual or foreign or domestic, that writes workers' compensation insurance and employers' liability insurance in connection therewith may declare and pay a dividend to policyholders from its unassigned surplus as reflected in the company's most recent statement filed with the Commissioner under G.S. 58-2-165, which shall include only its surplus in excess of any required minimum surplus. No such dividend shall be paid unless it is fair and equitable and for the best interest of the company and its policyholders. In declaring any dividend to its policyholders, any such company may make reasonable classifications of policies expiring during a fixed period. The payment of dividends to policyholders shall not be contingent upon the maintenance or renewal of the policy. All dividends shall be paid to the policyholder unless a written assignment of those dividends is executed. Neither the payment of dividends nor the rate of the dividends may be guaranteed by any company, or its agent, before the declaration of the dividend by the board of directors of the company. The holders of policies of insurance issued by a company in compliance with the orders of any public official, bureau, or committee, in conformity with any statutory requirement or voluntary arrangement, for the issuance of insurance to risks not otherwise acceptable to the company, may be established as a separate class of risks."
Section 41.  G.S. 58-9-6(a) reads as rewritten:
"(a)	The Commissioner shall issue an intermediary license or an exemption from the license, subject to G.S. 58-9-2(b)(2) or G.S. 58-9-2(c)(3), to any person who has complied with the requirements of this Article.  A license issued to a noncorporate entity authorizes all of the members of the entity and any designated employees to act as intermediaries under the license, and those persons shall be named in the application and any supplements.  A license issued to a corporation authorizes all of the officers and any designated employees and directors of the corporation to act as intermediaries on behalf of the corporation, and those persons shall be named in the application and any supplements."
Section 42.  G.S. 58-9-11(b) reads as rewritten:
"(b)	An insurer shall not engage the services of any person to act as a broker on its behalf unless the person is licensed or exempted under this Article.  An insurer shall not employ an individual who is employed by a broker with which it transacts business, unless the broker is under common control with the insurer under Article 19 of this Chapter."
Section 43.  G.S. 58-9-21(a) reads as rewritten:
"(a)	A reinsurer shall not engage the services of any person to act as a manager on its behalf unless the person is licensed or exempted under this Article."
Section 44.  G.S. 58-12-2(3) reads as rewritten:
"(3)	Domestic insurer. – Any insurance company organized in this State under Article 7 or Article 15 of this Chapter."
Section 45.  G.S. 58-13-10 reads as rewritten:
"§ 58-13-10.  Scope.
(a)	This Article applies to all domestic insurers and to all kinds of insurance written by those insurers of this Chapter. Foreign insurers shall comply in substance with the requirements and limitations of this section. 
(b)	This Article does not apply to:
(1)	Variable contracts for which separate accounts are required to be maintained.
(2)	Statutory deposits that are required to be maintained by insurance regulatory agencies as a requirement for doing business.
(3)	Real estate authorized under G.S. 58-7-187 and encumbered by a mortgage loan with a first lien."
Section 46.  G.S. 58-13-15 reads as rewritten:
"§ 58-13-15.  Definitions.
As used in this Article:
(1)	'Assets' means all property, real or personal, tangible or intangible, legal or equitable, owned by an insurer.
(2)	'Claimants' means any owners, beneficiaries, assignees, certificate holders, or third-party beneficiaries of any insurance benefit or right arising out of and within the coverage of an insurance policy covered by this Article.
(3)	'Reserve assets' means those assets of an insurer that are authorized investments for policy reserves in accordance with this Chapter.
(4)	'Policyholder-related liabilities' means those liabilities that are required to be established by an insurer for all of its outstanding insurance policies in accordance with this Chapter."
Section 47.  G.S. 58-13-20(b) reads as rewritten:
"(b)	The Commissioner may examine any of these assets, reinsurance agreements, or deposit arrangements at any time in accordance with the Commissioner's authority to make examinations of insurers as conferred by other provisions of this Chapter."
Section 48.  G.S. 58-19-5(5) reads as rewritten:
"(5)	'Person' means an individual, corporation, partnership, limited liability company, association, joint stock company, trust, unincorporated organization, or any similar entity or any combination of the foregoing acting in concert."
Section 49.  G.S. 58-19-10(b)(1) reads as rewritten:
"(1)	Invest, in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts that do not exceed the lesser of ten percent (10%) of the insurer's admitted assets or fifty percent (50%) of the insurer's surplus as regards policyholders, provided that after those investments, the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.  In calculating the amount of the investments, investments in domestic or foreign insurance subsidiaries and health maintenance organizations shall be excluded, and there shall be included:  (i) total net monies or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities; and (ii) all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities, and all contributions to the capital or surplus, of a subsidiary subsequent to its acquisition or formation;".
PART VI. HANDICAPPED PERSONS.
Section 50.  G.S. 168-10 reads as rewritten:
"§ 168-10.  Eliminate discrimination in treatment of handicapped and disabled.
Each handicapped person shall have the same consideration as any other person for individual accident and health insurance coverage, and no insurer, service corporation, multiple employer welfare arrangement, or health maintenance organization subject to Chapter 58 of the General Statutes solely on the basis of the person's handicap, shall deny coverage or benefits.  The availability of coverage or benefits shall not be denied solely because of the handicap; however, any such insurer may charge the appropriate premiums or fees for the risk insured on the same basis and conditions as insurance issued to other persons, in accordance with actuarial and underwriting principles prescribed in Chapter 58 of the General Statutes.  "
Section 51.  G.S. 168-22(b) reads as rewritten:
"(b)	A family care home is deemed a residential use of property for the purposes of determining charges or assessments imposed by political subdivisions or businesses for water, sewer, power, telephone service, cable television, garbage and trash collection, repairs or improvements to roads, streets, and sidewalks, and other services, utilities, and improvements."
PART VII.  AUTOMOBILE INSURANCE.
Section 52.  G.S. 58-36-75(c) is repealed.
Section 53.  G.S. 58-36-5(c) reads as rewritten:
"(c)	The Bureau shall adopt rules for its orderly procedure that are necessary for its maintenance and operation.  No rules shall discriminate against any type of insurer because of its plan of operation, nor shall any insurer be prevented from returning any unused or unabsorbed premium, deposit, savings or earnings to its policyholders or subscribers.  The necessary expense of the Bureau shall be advanced by the members in accordance with rules established and adopted by the governing committee.  The Bureau may subscribe for or purchase any necessary service, employ and fix the salaries of such personnel and assistants as are necessary, charge reasonable fees for its products and services, and engage in any lawful activities related to the objects, functions, duties, responsibilities, or authority of the Bureau."
Section 53.1.  G.S. 58-37-1(7) reads as rewritten:
"(7)	'Motor vehicle insurance' means direct insurance against liability arising out of the ownership, operation, maintenance or use of a motor vehicle for bodily injury including death and property damage and includes medical payments and uninsured and underinsured motorist coverages.
	   With respect to motor carriers who are subject to the financial responsibility requirements established under the Motor Carrier Act of 1980, the term, 'motor vehicle insurance' includes coverage with respect to environmental restoration. As used in this subsection the term, 'environmental restoration' means restitution for the loss, damage, or destruction of natural resources arising out of the accidental discharge, dispersal, release, or escape into or upon the land, atmosphere, water course, or body of water of any commodity transported by a motor carrier. Environmental restoration includes the cost of removal and the cost of necessary measures taken to minimize or mitigate damage to human health, the natural environment, fish, shellfish, and wildlife."
Section 53.2.  G.S. 58-37-35(b)(2) reads as rewritten:
"(2)	Additional ceding privileges for motor vehicle insurance shall be provided by the Board of Governors if there is a substantial public demand for a coverage or coverage limit of any component of motor vehicle insurance up to the following:
	Bodily injury liability: one hundred thousand dollars ($100,000) each person, three hundred thousand dollars ($300,000) each accident;
	Property damage liability: fifty thousand dollars ($50,000) each accident;
	Medical payments: two thousand dollars ($2,000) each person;
	Underinsured motorist: one million dollars ($1,000,000) each person and each accident for bodily injury liability;
	Uninsured motorist: one million dollars ($1,000,000) each person and each accident for bodily injury and fifty thousand dollars ($50,000) for property damage (one hundred dollars ($100.00) deductible)."
Section 53.3.  G.S. 58-37-35(e) reads as rewritten:
"(e)	The Commissioner and member companies shall provide for a Board of Governors.  The Board of Governors shall elect from its membership a chairman and shall meet at the call of the chairman or at the request of four members of the Board of Governors.  The chairman shall retain the right to vote on all issues.  Seven members of the Board of Governors shall constitute a quorum.  The same member may not serve as chairman for more than two consecutive years; provided, however, that a member may continue to serve as chairman until a successor chairman is elected and qualified."
Section 53.4.  G.S. 58-37-40(e) reads as rewritten:
"(e)	Upon approval of the Commissioner of the plan so submitted or promulgation of a plan deemed approved by the Commissioner, all insurance companies licensed to write motor vehicle insurance in this State or any component thereof as a prerequisite to further engaging in writing the insurance shall formally subscribe to and participate in the plan so approved.
The plan of operation shall provide for, among other matters, (i)	the establishment of necessary facilities; (ii) the management of the Facility; (iii) the preliminary assessment of all members for initial expenses necessary to commence operations; (iv) the assessment of members if necessary to defray losses and expenses; (v) the distribution of gains to defray losses incurred since September 1, 1977; (vi) the distribution of gains by credit or reduction of recoupment surcharges to policies subject to recoupment surcharges pursuant to this Article (the Facility may apportion the distribution of gains among the coverages eligible for cession pursuant to this Article); (vii) the recoupment of losses sustained by the Facility since September 1, 1977, pursuant to this Article, which losses may be recouped by equitable pro rata assessment of member companies or by way of a surcharge on motor vehicle policies issued by member companies or through the Facility; (viii) the standard amount (one hundred percent (100%) or any equitable lesser amount) of coverage afforded on eligible risks which a member company may cede to the Facility; and (ix) the procedure by which reinsurance shall be accepted by the Facility. The plan shall further provide that:
(1)	Members of the Board of Governors shall receive reimbursement from the Facility for their actual and necessary expenses incurred on Facility business, en route to perform Facility business, and while returning from Facility business plus a per diem allowance of twenty-five dollars ($25.00) a day which may be waived.
(2)	In order to obtain a transfer of business to the Facility effective when the binder or policy or renewal thereof first becomes effective, the company must within 30 days of the binding or policy effective date notify the Facility of the identification of the insured, the coverage and limits afforded, classification data, and premium. The Facility shall accept risks at other times on receipt of necessary information, but acceptance shall not be retroactive. The Facility shall accept renewal business after the member on underwriting review elects to again cede the business."
Section 54.  G.S. 58-37-40(f) reads as rewritten:
"(f)	The plan of operation shall provide that every member shall, following payment of any pro rata assessment, begin recoupment of that assessment by way of a surcharge on motor vehicle insurance policies issued by the member or through the Facility until the assessment has been recouped. Any surcharge under this subsection or under subsection (e) of this section shall be a percentage of premium adopted by the Board of Governors of the Facility; and the charges determined on the basis of the surcharge shall be combined with and displayed as a part of the applicable premium charges. Recoupment of losses sustained by the Facility with respect to nonfleet private passenger motor vehicles may be made only by surcharging nonfleet private passenger motor vehicle insurance policies. If the amount collected during the period of surcharge exceeds assessments paid by the member to the Facility, the member shall pay over the excess to the Facility on a date specified by the Board of Governors. If the amount collected during the period of surcharge is less than the assessments paid by the member to the Facility, the Facility shall pay the difference to the member. Except as otherwise provided in this Article, the amount of recoupment shall not be considered or treated as a rate or premium for any purpose. The Board of Governors shall adopt and implement a plan for compensation of agents of Facility members when recoupment surcharges are imposed; that compensation shall not exceed the compensation or commission rate normally paid to the agent for the issuance or renewal of the automobile liability policy issued through the North Carolina Reinsurance Facility affected by the surcharge.  However, the surcharge shall include an amount necessary to recover the amount of the assessment to member companies and the compensation paid by each member, under this section, to agents."
Section 55.  G.S. 58-37-35(g)(8) reads as rewritten:
"(8)	To establish fair and reasonable procedures for the sharing among members of any loss on Facility business that cannot be recouped under G.S. 58-37-40 (e) and other costs, charges, expenses, liabilities, income, property and other assets of the Facility and for assessing or distributing to members their appropriate shares. The shares may be based on the member's premiums for voluntary business for the appropriate category of motor vehicle insurance or by any other fair and reasonable method."
Section 56.  G.S. 58-37-35(l) reads as rewritten:
"(l)	The classifications, rules, rates, rating plans and policy forms used on motor vehicle insurance policies reinsured by the Facility may be made by the Facility or by any licensed or statutory rating organization or bureau on its behalf and shall be filed with the Commissioner.  The Board of Governors shall establish a separate subclassification within the Facility for 'clean risks'.  For the purpose of this Article, a 'clean risk' is any owner of a nonfleet private passenger motor vehicle as defined in G.S. 58-40-10, if the owner, principal operator, and each licensed operator in the owner's household have two years' driving experience as licensed drivers and if none of the persons has been assigned any Safe Driver Incentive Plan points under Article 36 of this Chapter during the three-year period immediately preceding either (i) the date of application for a motor vehicle insurance policy or (ii) the date of preparation of a renewal of a motor vehicle insurance policy.  The filings may incorporate by reference any other material on file with the Commissioner.  Rates shall be neither excessive, inadequate nor unfairly discriminatory.  If the Commissioner finds, after a hearing, that a rate is either excessive, inadequate or unfairly discriminatory, the Commissioner shall issue an order specifying in what respect it is deficient and stating when, within a reasonable period thereafter, the rate is no longer effective.  The order is subject to judicial review as set out in Article 2 of this Chapter.  Pending judicial review of the order, the filed classification plan and the filed rates may be used, charged and collected in the same manner as set out in G.S. 58-40-45 of this Chapter.  The order shall not affect any contract or policy made or issued before the expiration of the period set forth in the order.  All rates shall be on an actuarially sound basis and shall be calculated, insofar as is possible, to produce neither a profit nor a loss.  However, the rates made by or on behalf of the Facility with respect to 'clean risks' shall not exceed the rates charged 'clean risks' who are not reinsured in the Facility.  The difference between the actual rate charged and the actuarially sound and self-supporting rates for 'clean risks' reinsured in the Facility may be recouped in similar manner as assessments under G.S. 58-37-40(f). Rates shall not include any factor for underwriting profit on Facility business, but shall provide an allowance for contingencies.  There shall be a strong presumption that the rates and premiums for the business of the Facility are neither unreasonable nor excessive."
Section 57.  G.S. 58-37-75 is repealed.
PART VIII. WORKERS' COMPENSATION SELF-INSURANCE.
Section 58.  G.S. 58-50-60 reads as rewritten:
"§ 58-50-60.  Rules for precertification practices.
(a)	This section applies to all accident and health insurers under Articles 1 through 64 of this Chapter, all third-party administrators and preferred provider arrangements, all entities subject to Articles 65 through 67 of this Chapter, and all self-funded workers' compensation insurance plans.
(b)	The Commissioner shall adopt reasonable rules governing utilization review and utilization review organizations that do business with the entities subject to this section."
Section 59.  G.S. 58-50-65(a) reads as rewritten:
"(a)	Except as provided in this subsection, nothing in Articles 50 through 55 of this Chapter applies to any liability or workers' compensation insurance policy.  Except for G.S. 58-50-55(a), the provisions of this Article and Articles 65 and 67 of this Chapter and any administrative rules adopted under those Articles relating to preferred providers and utilization review apply to workers' compensation insurance policies and to individual and group self-funded workers' compensation insurance plans.  If there is any conflict between managed care rules adopted by the Commissioner under this Chapter and managed care rules adopted by the Industrial Commission under G.S. 97-25.2, the Industrial Commission's rules govern.  If there is any conflict between managed care provisions in this Chapter and in Chapter 97 of the General Statutes with respect to workers' compensation, the provisions in Chapter 97 govern."
PART IX.  CERTIFICATE OF AUTHORITY CONFORMING NAME CHANGE.
Section 60.  The phrase "certificate of authority" is deleted and replaced by the word "license" wherever it occurs in each of the following sections of the General Statutes:
G.S. 58-4-15.	Revocation of certificate of authority.
G.S. 58-7-55.	Exceptions to requirements of G.S. 58-7-50.
G.S. 58-7-70.	Effects of redomestication.
G.S. 58-15-5.	Definitions.
G.S. 58-16-35.	Unauthorized Insurers Process Act.
G.S. 58-24-45.	Organization.
G.S. 58-24-145.	Injunction – Liquidation – Receivership of domestic society.
G.S. 58-28-5.	Transacting business without certificate of authority prohibited; exceptions.
G.S. 58-28-15.	Validity of acts or contracts of unauthorized company shall not impair obligation of contract as to the company; maintenance of suits; right to defend.
G.S. 58-28-45.	Uniform Unauthorized Insurers Act.
G.S. 58-30-10.	Definitions.
G.S. 58-30-55.	Condition on release from delinquency proceedings.
G.S. 58-30-260.	Conservation of property of foreign or alien insurers found in this State.
G.S. 58-33-132.	Qualifications of instructors.
G.S. 58-41-55.	Penalties; restitution.
G.S. 58-48-35.	Powers and duties of the Association.
G.S. 58-48-45.	Duties and powers of the Commissioner.
G.S. 58-57-80.	Penalties.
PART X.  RISK SHARING PLAN SUNSET EXTENSION.
Section 61.  G.S. 58-42-55 reads as rewritten:
"§ 58-42-55.  Expiration.
This Article expires on July 1, 1999."
PART XI.  HEALTH INSURANCE CLARIFYING CHANGES.
Section 62.  G.S. 58-50-130(a), as amended by S.L. 1997-259, is amended by adding the following new subdivision:
"(4b)	Late enrollees may only be excluded from coverage for the greater of 18 months or an 18-month preexisting-condition exclusion; however, if both a period of exclusion from coverage and a preexisting-condition exclusion are applicable to a late enrollee, the combined period shall not exceed 18 months. If a period of exclusion from coverage is applied, a late enrollee shall be enrolled at the end of such period in the health benefit plan currently held by the small employer."
Section 63.1.  G.S. 58-51-55(d), as amended by S.L. 1997-259, reads as rewritten:
"(d)	Applicability. – Subsection (b1) of this section applies only to group health insurance contracts, other than excepted benefits as defined in G.S. 58-68-25, covering more than 50 employees.  The remainder of this section applies only to group health insurance contracts covering 20 or more employees.  For purposes of this section, 'group health insurance contracts' include MEWAs, as defined in G.S. 58-49-30(a)."
Section 63.2.  G.S. 58-65-90(d), as amended by S.L. 1997-259, reads as rewritten:
"(d)	Applicability. – Subsection (b1) of this section applies only to subscriber contracts, other than excepted benefits as defined in G.S. 58-68-25, covering more than 50 employees.  The remainder of this section applies only to group contracts covering 20 or more employees."
Section 63.3.  G.S. 58-67-75(d), as amended by S.L. 1997-259, reads as rewritten:
"(d)	Applicability. – Subsection (b1) of this section applies only to group contracts, other than excepted benefits as defined in G.S. 58-68-25, covering more than 50 employees.  The remainder of this section applies only to group contracts covering 20 or more employees."
Section 63.4.  G.S. 58-51-15(h), as enacted by S.L. 1997-259, reads as rewritten:
"(h)	Preexisting Condition Exclusion Clarification. – Sub-subdivision (a)(2)b. of this section does not apply to:
(1)	Policies issued to eligible individuals under G.S. 58-68-60.
(2)	Excepted benefits as described in G.S. 58-68-25(b)(1)."
Section 63.5.  G.S. 58-68-40(e), as enacted by S.L. 1997-259, reads as rewritten:
"(e)	Exception for Coverage. – Subsection (a) of this section does not apply to:
(1)	Health insurance coverage offered by a health insurer if the coverage is made available in the small group market only through one or more bona fide associations.
(2)	A self-employed individual as defined in G.S. 58-50-110(21a), except as otherwise provided for the basic and standard health care plans under the North Carolina Small Employer Group Health Coverage Reform Act."
Section 63.6.  G.S. 58-68-60(b)(2), as enacted by S.L. 1997-259, reads as rewritten:
"(2)	 Who is not eligible for coverage under (i) a group health plan, (ii) part A or part B of title XVIII of the Social Security Act, or (iii) a State plan under title XIX of the Act (or any successor program), and does not have other health insurance coverage;".
Section 63.7.  G.S. 58-50-65(d) reads as rewritten:
"(d)	The provisions of G.S. 58-51-5(a)(5) and G.S. 58-51-15(a)(1), (4), and (10) may be omitted from railroad ticket policies sold only at railroad stations or at railroad ticket offices by railroad employees."
PART XII.  COMMERCIAL INSURANCE FORM DOCUMENT RETENTION.
Section 64.  G.S. 58-41-50(g) reads as rewritten:
"(g)	An insurer subject to this Article may develop and use an individual form or rate as a result of the uniqueness of a particular risk. The form or rate shall be developed, filed, and used in accordance with rules adopted by the Commissioner.  Rules adopted by the Commissioner under this section may provide for retention of certain documents and data by insurers instead of insurers filing those records with the Commissioner."
PART XIII.  BAIL BONDS.
Section 65.  G.S. 58-71-82 reads as rewritten:
"§ 58-71-82.  Dual license holding.
If an individual holds a professional bondsman's license or a runner's license and a surety bondsman's license simultaneously, they are considered one license for the purpose of disciplinary actions involving suspension, revocation, or nonrenewal under this Article. Separate renewal fees must be paid for each license, however."
PART XIV.  EFFECT OF HEADINGS.
Section 66.  The headings to the parts of this act are a convenience to the reader and are for reference only.  The headings do not expand, limit, or define the text of this act.
PART XV.  EFFECTIVE DATE.
Section 67.  Sections 30 through 32.1 of this act become effective September 1, 1997.  Section 61 of this act becomes effective June 30, 1997.  Sections 62, 63.4, 63.5, and 63.6 of this act become effective July 1, 1997.  Sections 63.1, 63.2, and 63.3 become effective January 1, 1998.  The remainder of this act is effective when it becomes law.