FILED SENATE
Mar 30, 2023
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 452
SESSION 2023 PRINCIPAL CLERK
S D
SENATE BILL DRS15190-NE-90B
Short Title: NC Department of Insurance Omnibus .-AB (Public)
Sponsors: Senators Johnson, Craven, and Britt (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO MAKE VARIOUS CHANGES TO THE INSURANCE LAWS OF NORTH
3 CAROLINA, AS RECOMMENDED BY THE DEPARTMENT OF INSURANCE.
4 The General Assembly of North Carolina enacts:
5
6 PART I. SURPLUS LINES ACT CLARIFYING CHANGES
7 SECTION 1.(a) G.S. 58-21-10 reads as rewritten:
8 "§ 58-21-10. Definitions.
9 As used in this Article:
10 (1) "Admitted insurer" means an Admitted insurer. – An insurer licensed to
11 engage in the business of insurance in this State.
12 (1a) "Affiliate" means, with Affiliate. – With respect to an insured, includes any
13 entity that controls, is controlled by, or is under common control with the
14 insured.
15 (1b) "Affiliated group" means any Affiliated group. – Any group of entities that
16 are all affiliated.
17 (2) "Capital", as Capital. – As used in the financial requirements of
18 G.S. 58-21-20, means includes funds paid in for stock or other evidence of
19 ownership.
20 (2a) "Control" means an Control. – An entity that has 'control' control over another
21 entity if either of the following occurs:
22 a. The entity directly or indirectly or acting through one or more other
23 persons owns, controls, or has the power to vote twenty-five percent
24 (25%) or more of any class of voting securities of the other entity.
25 b. The entity controls in any manner the election of a majority of the
26 directors or trustees of the other entity.
27 (3) "Eligible surplus lines insurer" means an Eligible surplus lines insurer. – An
28 alien insurer as defined in G.S. 58-21-17, a nonadmitted domestic surplus
29 lines insurer, or a nonadmitted insurer with which a surplus lines licensee may
30 place surplus lines insurance under G.S. 58-21-20.
31 (4) "Export" means to Export. – To place surplus lines insurance with a
32 nonadmitted domestic surplus lines insurer or a nonadmitted insurer.
33 (4a) "Nonadmitted domestic surplus lines insurer" means an Nonadmitted
34 domestic surplus lines insurer. – An insurer that is domiciled in and authorized
35 pursuant to G.S. 58-21-21 to transact surplus lines insurance in this State.
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1 (5) "Nonadmitted insurer" means an Nonadmitted insurer. – An insurer not
2 licensed to do an insurance business in this State. "Nonadmitted insurer"
3 includes insurance exchanges authorized under the laws of various states.
4 "Nonadmitted insurer" does not include a risk retention group, as defined in
5 G.S. 58-22-10(10).
6 (6) "Producing broker" means an Producing broker. – An insurance producer
7 licensed under Article 33 of this Chapter who deals directly with the party
8 seeking insurance and who may also be a surplus lines licensee.
9 (6a) "Salary protection insurance" means insurance Salary protection insurance. –
10 Insurance against financial loss caused by the cessation of earned income
11 because of disability from sickness, ailment, or bodily injury.
12 (7) "Surplus", as Surplus. – As used in the financial requirements of
13 G.S. 58-21-20, means includes funds over and above liabilities and capital of
14 the company for the protection of policyholders.
15 (8) "Surplus lines insurance" means any Surplus lines insurance. – Any insurance
16 in this State of risks resident, located, or to be performed in this State,
17 permitted to be placed through a surplus lines licensee with a nonadmitted
18 domestic surplus lines insurer or a nonadmitted insurer eligible to accept such
19 that insurance, including salary protection insurance. The term does not
20 include reinsurance, commercial aircraft insurance, wet marine and
21 transportation insurance, insurance independently procured pursuant to
22 G.S. 58-28-5, life and accident or health insurance, and annuities.any of the
23 following:
24 a. Reinsurance.
25 b. Commercial aircraft insurance.
26 c. Insurance of property and operations of railroads engaged in interstate
27 or foreign commerce.
28 d. Wet marine and transportation insurance.
29 e. Insurance independently procured pursuant to G.S. 58-28-5.
30 f. Life and accident or health insurance, and annuities.
31 g. Personal and commercial automobile liability insurance required to be
32 written by licensed insurers pursuant to G.S. 58-37-5, excluding
33 excess automobile liability insurance.
34 (9) "Surplus lines licensee" means a Surplus lines licensee. – A person licensed
35 under G.S. 58-21-65 to place insurance on risks resident, located, or to be
36 performed in this State with a nonadmitted domestic surplus lines insurer or
37 with nonadmitted insurers eligible to accept such that insurance.
38 (10) "Wet marine and transportation insurance" means any Wet marine and
39 transportation insurance. – Includes any of the following:
40 …
41 e. Ocean marine insurance, as defined in G.S. 58-48-20."
42 SECTION 1.(b) G.S. 58-21-40 reads as rewritten:
43 "§ 58-21-40. Surplus lines regulatory support organization.
44 (a) The North Carolina Surplus Lines Association (NCSLA) shall serve as the regulatory
45 support organization of surplus lines licensees and shall carry out the following functions:
46 …
47 (5) Provide other services to its members that are incidental or related to the
48 purposes of the association.
49 …."
50 SECTION 1.(c) G.S. 58-21-85 reads as rewritten:
51 "§ 58-21-85. Surplus lines tax.
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1 …
2 (b) At the same time that he files his quarterly report as set forth in G.S. 58-21-80, each
3 surplus lines licensee shall pay the premium receipts tax due for the period covered by the
4 report.Payment of the premium receipts tax shall be due:
5 (1) For risk purchasing groups, at the same time the licensee files a quarterly
6 report with the Commissioner.
7 (2) For surplus lines insurers receiving invoices issued by the North Carolina
8 Surplus Lines Stamping Office SLIP system, 30 days after the end of each
9 quarter.
10 …."
11
12 PART II. ADJUSTMENT TO AGE REQUIREMENT FOR MANDATORY
13 COLORECTAL CANCER SCREENING COVERAGE
14 SECTION 2.(a) G.S. 58-3-179 reads as rewritten:
15 "§ 58-3-179. Coverage for colorectal cancer screening.
16 (a) Every health benefit plan, as defined in G.S. 58-3-167, shall provide coverage for
17 colorectal cancer examinations and laboratory tests for cancer, in accordance with the most
18 recently published American Cancer Society guidelines or guidelines adopted by the North
19 Carolina Advisory Committee on Cancer Coordination and Control for colorectal cancer
20 screening, for any nonsymptomatic covered individual who is:
21 (1) At least 50 45 years of age, or
22 (2) Less than 50 45 years of age and at high risk for colorectal cancer according
23 to the most recently published colorectal cancer screening guidelines of the
24 American Cancer Society or guidelines adopted by the North Carolina
25 Advisory Committee on Cancer Coordination and Control.
26 The same deductibles, coinsurance, and other limitations as apply to similar services covered
27 under the plan apply to coverage for colorectal examinations and laboratory tests required to be
28 covered under this section.
29 …."
30 SECTION 2.(b) This section becomes effective October 1, 2023, and applies to
31 insurance contracts issued, renewed, or amended on or after that date.
32
33 PART III. TECHNICAL CORRECTION TO REFLECT COMPENDIUM NAME
34 CHANGE
35 SECTION 3.(a) G.S. 58-51-59 reads as rewritten:
36 "§ 58-51-59. Coverage of certain prescribed drugs for cancer treatment.
37 (a) No policy or contract of accident or health insurance, and no preferred provider
38 benefit plan under G.S. 58-50-56, that is issued, renewed, or amended on or after January 1, 1994,
39 and that provides coverage for prescribed drugs approved by the federal Food and Drug
40 Administration for the treatment of certain types of cancer shall exclude coverage of any drug on
41 the basis that the drug has been prescribed for the treatment of a type of cancer for which the
42 drug has not been approved by the federal Food and Drug Administration. The drug, however,
43 must be approved by the federal Food and Drug Administration and must have been proven
44 effective and accepted for the treatment of the specific type of cancer for which the drug has been
45 prescribed in any one of the following established reference compendia:
46 …
47 (2) The ThomsonMicromedex DrugDex;Micromedex DrugDex System;
48 …."
49 SECTION 3.(b) G.S. 58-65-94 reads as rewritten:
50 "§ 58-65-94. Coverage of certain prescribed drugs for cancer treatment.
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1 (a) No insurance certificate or subscriber contract under any hospital service plan or
2 medical service plan governed by this Article and Article 66 of this Chapter, and no preferred
3 provider benefit plan under G.S. 58-50-56, that is issued, renewed, or amended on or after
4 January 1, 1994, and that provides coverage for prescribed drugs approved by the federal Food
5 and Drug Administration for the treatment of certain types of cancer shall exclude coverage of
6 any drug on the basis that the drug has been prescribed for the treatment of a type of cancer for
7 which the drug has not been approved by the federal Food and Drug Administration. The drug,
8 however, must be approved by the federal Food and Drug Administration and must have been
9 proven effective and accepted for the treatment of the specific type of cancer for which the drug
10 has been prescribed in any one of the following established reference compendia:
11 …
12 (2) The ThomsonMicromedex DrugDex;Micromedex DrugDex System;
13 …."
14 SECTION 3.(c) G.S. 58-67-78 reads as rewritten:
15 "§ 58-67-78. Coverage of certain prescribed drugs for cancer treatment.
16 (a) No health care plan written by a health maintenance organization and in force, issued,
17 renewed, or amended on or after January 1, 1994, and that provides coverage for prescribed drugs
18 approved by the federal Food and Drug Administration for the treatment of certain types of
19 cancer shall exclude coverage of any drug on the basis that the drug has been prescribed for the
20 treatment of a type of cancer for which the drug has not been approved by the federal Food and
21 Drug Administration. The drug, however, must be approved by the federal Food and Drug
22 Administration and must have been proven effective and accepted for the treatment of the specific
23 type of cancer for which the drug has been prescribed in any one of the following established
24 reference compendia:
25 …
26 (2) The ThomsonMicromedex DrugDex;Micromedex DrugDex System;
27 …."
28
29 PART IV. CHANGES RELATED TO THE INSURANCE GUARANTY ACT
30 SECTION 4.(a) G.S. 58-48-20 reads as rewritten:
31 "§ 58-48-20. Definitions.
32 As used in this Article:
33 (1) "Account" means any Account. – Any one of the three accounts created by
34 G.S. 58-48-25.
35 (1a) "Affiliate" means a Affiliate. – A person who directly, or indirectly, through
36 one or more intermediaries, controls, is controlled by, or is under common
37 control with an insolvent insurer on December 31 of the year next preceding
38 the date the insurer becomes an insolvent insurer.
39 (2) "Association" means the Association. – The North Carolina Insurance
40 Guaranty Association created under G.S. 58-48-25.
41 (2a) "Claimant" means any Claimant. – Any insured making a first party claim or
42 any person instituting a liability claim; provided that no person who is an
43 affiliate of the insolvent insurer may be a claimant.
44 (3) Repealed by Session Laws 1991, c. 720, s. 6.
45 (3a) "Control" means the Control. – The possession, direct or indirect, of the power
46 to direct or cause the direction of the management and policies of a person,
47 whether through the ownership of voting securities, by contract, other than a
48 commercial contract for goods or nonmanagement services, or otherwise,
49 unless the power is the result of an official position with or corporate office
50 held by the person. Control shall be presumed to exist if any person, directly
51 or indirectly owns, controls, holds with the power to vote, or holds proxies
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1 representing ten percent (10%) or more of the voting securities of any other
2 person. This presumption may be rebutted by a showing that control does not
3 exist in fact.
4 (4) "Covered claim" means an Covered claim. – An unpaid claim, including one
5 of unearned premiums, which is in excess of fifty dollars ($50.00) and arises
6 out of and is within the coverage and not in excess of the applicable limits of
7 an insurance policy to which this Article applies as issued by an insurer, if
8 such that insurer becomes an insolvent insurer after the effective date of this
9 Article and (i) the claimant or insured is a resident of this State at the time of
10 the insured event; or (ii) the property from which the claim arises is
11 permanently located in this State. "Covered claim" shall not include any
12 amount awarded (i) as punitive or exemplary damages; (ii) sought as a return
13 of premium under any retrospective rating plan; or (iii) due any reinsurer,
14 insurer, insurance pool, or underwriting association, as subrogation or
15 contribution recoveries or otherwise. "Covered claim" also shall not include
16 fines or penalties, including attorneys attorneys' fees, imposed against an
17 insolvent insurer or its insured or claims of any claimant whose net worth
18 exceeds fifty million dollars ($50,000,000) on December 31 of the year
19 preceding the date the insurer becomes insolvent.
20 (5) "Insolvent insurer" means Insolvent insurer. – An insurer: (i) an insurer
21 licensed and authorized to transact insurance in this State either at the time the
22 policy was issued or when the insured event occurred and (ii) against whom
23 an order of liquidation with a finding of insolvency has been entered after the
24 effective date of this Article by a court of competent jurisdiction in the
25 insurer's state of domicile or of this State under the provisions of Article 30 of
26 this Chapter, and which order of liquidation has not been stayed or been the
27 subject of a writ of supersedeas or other comparable order.
28 (6) "Member insurer" means any Member insurer. –