SUBCHAPTER 11B ‑ SPECIAL PROGRAMS
SECTION .0100 ‑ SECURITIES
11 NCAC 11B .0101 DEPOSITS OF MULTIPLE LINE INSURER
11 NCAC 11B .0102 DEPOSITS: LIFE COMPANIES FOR ADMISSION
11 NCAC 11B .0103 DEPOSIT BY INSURANCE COMPANY WAIVER OPERATIONAL GAIN
History Note: Authority G.S. 58‑9(1); 58‑150; 58‑182; 58‑182(1); 58‑182.7;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. July 1, 1986;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0104 REPLACEMENT UPON REDUCTION OF MARKET VALUE SECURITIES
History Note: Authority G.S. 58‑2‑40; 58‑5‑25;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. April 1, 1993; July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0105 PURPOSE OF DEPOSIT OF GENERAL OR SPECIAL
History Note: Authority G.S. 58‑182.4;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0106 DEPOSITS REQUIRED: REVOCATION/LICENSE: FOREIGN COMPANIES
History Note: Authority G.S. 58-2-40(1); 58-3-100; 58-5-40; 58-5-45;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0107 DEPOSITS OF DOMESTIC COMPANIES
History Note: Authority G.S. 58‑182 through 58‑182.8;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. July 1, 1986;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0108 RIGHT OF COMPANY TO RECEIVE INTEREST
11 NCAC 11B .0109 RIGHT OF THE COMMISSIONER TO RECEIVE AND HOLD INTEREST
11 NCAC 11B .0110 SALE OF DEPOSIT FOR PAYMENT OF LIABILITIES
11 NCAC 11B .0111 CONVERSION TO CASH MASTER TRUST
History Note: Authority G.S. 58‑2-40; 58‑5-1; 58‑5‑60; 58‑5‑65; 58-5-75; 58‑183;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. February 1, 1996; July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0112 RETURN OF SECURITIES ON DEPOSIT
History Note: Authority G.S. 58‑9(1); 58‑187;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. April 1, 1994.
11 NCAC 11B .0113 DEPOSIT REQUIRED UPON INITIAL LICENSING
11 NCAC 11B .0114 DEPOSITS HELD IN TRUST BY COMMISSIONER OF INSURANCE
History Note: Authority G.S. 58‑2-40; 58-5-1; 58‑5‑5; 58‑5‑10; 58-5-40; 58‑5‑50; 58-5-90; 58-5-95;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. April 1, 1993; July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0115 REGISTRATION OF BONDS DEPOSITED IN NAME OF TREASURER
History Note: Authority G.S. 58‑182.6; 58‑188.1; 58‑188.5;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. July 1, 1986.
11 NCAC 11B .0116 SURETY BOND IN LIEU OF DEPOSIT OF SECURITIES
11 NCAC 11B .0117 SURETY BOND IN LIEU OF DEPOSIT OF SECURITIES
11 NCAC 11B .0118 SURETY BOND IN LIEU OF DEPOSIT OF SECURITIES: NOT ALLOWED
History Note: Authority G.S. 58‑9(1); 58‑188.8;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. July 1, 1986;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0119 CONTINUATION OF DEPOSITS OF SECURITIES OF MERGING COMPANIES
History Note: Authority G.S. 58‑2‑40; 58‑5‑40; 58‑5‑55;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. April 1, 1993;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0120 EXPENSES OF REGISTERED MAIL
History Note: Authority G.S. 58‑9(1);
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. July 1, 1986.
11 NCAC 11B .0121 SURETY BONDS: DEPOSIT OF SECURITIES: SPECIAL REQUIREMENT
History Note: Authority G.S. 58‑188.8;
Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0122 EXCHANGE OF DEPOSIT: PROCEDURAL HANDLING
11 NCAC 11B .0123 SALE OF SECURITIES BY THE INSURANCE COMPANY PROHIBITED
History Note Authority G.S. 58-7.5; 58-9;
Eff. February 28, 1978
Repealed Eff. March 1, 2004.
11 NCAC 11B .0124 MASTER TRUST CREATION THEREOF
11 NCAC 11B .0125 MASTER TRUST USE PROCEDURAL HANDLING STEP 1
11 NCAC 11B .0126 MASTER TRUST USE PROCEDURAL HANDLING STEP 2
11 NCAC 11B .0127 MASTER TRUST USE PROCEDURAL HANDLING STEP 3
11 NCAC 11B .0128 MASTER TRUST USE PROCEDURAL HANDLING STEP 4
11 NCAC 11B .0129 MASTER TRUST USE PROCEDURAL HANDLING STEP 5
11 NCAC 11B .0130 MASTER TRUST SOLVENT COMPANIES
11 NCAC 11B .0131 MASTER TRUST INSOLVENT COMPANIES
History Note: Authority G.S. 58-7.5; 58-9; 58-2-40; 58-5-1; 58-5-5; 58-5-10; 5-5-50;
Eff. July 1, 1986;
Amended Eff. July 1, 1986;
Amended Eff. April 1, 1993;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0132 DEPOSIT REQUIRED AMOUNT FOREIGN LIFE INSURERS
History Note: Authority G.S. 58-7.5; 58-9;
Eff. July 1, 1986;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0133 DEPOSIT/AMOUNT FOREIGN FIRE AND/OR CASUALTY INSURERS
11 NCAC 11B .0134 DEPOSIT REQUIRED AMOUNT DOMESTIC LIFE INSURERS
11 NCAC 11B .0135 DEPOSIT/AMOUNT DOMESTIC FIRE AND/OR CASUALTY INSURERS
11 NCAC 11B .0136 FOREIGN DEPOSIT REQUIRED AMOUNT FOREIGN MISC INSURERS
11 NCAC 11B .0137 DEPOSIT REQUIRED AMOUNT DOMESTIC MISCELLANEOUS INSURERS
History Note: Authority G.S. 58-7.5; 58-9;
Eff. July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0138 TYPES OF SECURITIES ELIGIBLE FOR DEPOSIT
History Note: Authority G.S. 58‑7.5; 58‑9;
Eff. July 1, 1986;
Repealed Eff. April 1, 1994.
11 NCAC 11B .0139 DEPOSIT USE OF MASTER TRUST ALL NEW COMPANIES
History Note: Authority G.S. 58-7.5; 58-9;
Eff. July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0140 USE OF MASTER TRUST ALL EXISTING COMPANIES TRANSFERRED
History Note: Authority G.S. 58‑7.5; 58‑9;
Eff. July 1, 1986;
Repealed Eff. February 1, 1996.
11 NCAC 11B .0141 USE OF MASTER TRUST INCREASE DEPOSIT EXISTING COMPANIES
History Note: Authority G.S. 58‑7.5; 58‑9;
Eff. July 1, 1986;
Repealed Eff. April 1, 1996.
11 NCAC 11B .0142 CONVERSION FROM STATE TREASURER TO MASTER TRUST BANK
History Note: Authority G.S. 58‑7.5; 58‑9;
Eff. July 1, 1986;
Repealed Eff. February 1, 1996.
11 NCAC 11B .0143 MASTER TRUST PURPOSE OF DEPOSIT
History Note: Authority G.S. 58‑7.5; 58‑9; 58‑82.4;
Eff. July 1, 1986;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0144 MASTER TRUST DK TRANSACTION
11 NCAC 11B .0145 MASTER TRUST CHARGES
11 NCAC 11B .0146 MASTER TRUST BANK ABILITY TO REGISTER SECURITIES
11 NCAC 11B .0147 USE OF FEDERAL BOOK ENTRY/DEPOSITORY TRUST CORP/SHIPPING
History Note: Authority G.S. 58-2-40; 58-5-1; 58-7.5; 58-9; 58-9(1); 58-5-30; 58-5-63;
Eff. July 1, 1986;
Amended Eff. February 1, 1996;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0148 MASTER TRUST CONVERSION TO CASH
History Note: Authority G.S. 58‑7.5; 58‑9;
Eff. July 1, 1986;
Repealed Eff. February 1, 1996.
11 NCAC 11B .0149 MASTER TRUST USE OF DTC
11 NCAC 11B .0150 MASTER TRUST‑RELEASE OF SECURITIES
11 NCAC 11B .0151 MASTER TRUST ‑ PAYMENT OF INTEREST
History Note: Authority G.S. 58-7.5; 58-9;
Eff. July 1, 1986;
Repealed Eff. March 1, 2004.
11 NCAC 11B .0152 CUSTODY AGREEMENT FOR SECURITIES AND OTHER ASSETS DEPOSITED WITH THE COMMISSIONER
The agreement between the Commissioner and the master trustee shall provide for the deposit of securities and other assets required by the Commissioner, pursuant to G.S. 58 and G.S. 97-185, to be transferred to and held by the master trustee. The securities and other assets held in the respective accounts of the companies shall be pledged and held on behalf of the Commissioner for the protection of the companies' policyholders in accordance with the North Carolina General Statutes. The agreement shall set forth procedures and policies that shall be followed by the master trustee to safeguard the interests of policyholders of the companies in the safekeeping of the securities and other assets received and held on behalf of the Commissioner.
History Note: Authority G.S. 58-2-40; 58-5-1;
Eff. July 1, 2004;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.
SECTION .0200 ‑ INSURANCE HOLDING COMPANY SYSTEMS
11 NCAC 11B .0201 HOLDING COMPANIES: GENERAL NATURE
History Note: Authority G.S. 58‑9;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. July 1, 1988.
11 NCAC 11B .0202 REGISTRATION: STATEMENT OF APPLICABILITY OR EXEMPTION
11 NCAC 11B .0203 DIVIDENDS: DISTRIBUTIONS IN VIOLATION OF G.S. 58‑124.3(C)
11 NCAC 11B .0204 MATERIALITY
11 NCAC 11B .0205 REGISTRATION: REQUIREMENT AND FORM
11 NCAC 11B .0206 COPIES: SIZE AND FORM OF FORM HC
11 NCAC 11B .0207 AMENDMENTS TO FORM HC
11 NCAC 11B .0208 EXEMPTIONS FROM FILING FORM HC
11 NCAC 11B .0209 ALTERNATIVE AND CONSOLIDATED REGISTRATIONS: FORM HC
11 NCAC 11B .0210 DISCLAIMERS AND TERMINATION OF REGISTRATION UNDER FORM HC
History Note: Authority G.S. 58‑124.1; 58‑124.2; 58‑124.3(c); 58‑124.6;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0211 WHO MUST FILE THE INITIAL STATEMENT FORM HC
11 NCAC 11B .0212 FOREIGN COMPANIES EXEMPT IF APPLICABLE
11 NCAC 11B .0213 WHEN TO FILE THE HC STATEMENT INITIAL
11 NCAC 11B .0214 WHEN TO FILE AMENDMENTS TO THE INITIAL STATEMENT FORM HC
History Note: Authority G.S. 58‑124.1 to 58‑124.11;
Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0215 DEFINITIONS
11 NCAC 11B .0216 FORMS ‑ GENERAL REQUIREMENTS
11 NCAC 11B .0217 ACQUISITION OF CONTROL ‑ STATEMENT FILING
11 NCAC 11B .0218 ACQUISITION OF CONTROL ‑ SOURCE OF CONSIDERATION
11 NCAC 11B .0219 ANNUAL REGISTRATION OF INSURERS ‑ STATEMENT FILING
11 NCAC 11B .0220 ALTERNATIVE AND CONSOLIDATED REGISTRATIONS
11 NCAC 11B .0221 DISCLAIMERS AND TERMINATION OF REGISTRATION
11 NCAC 11B .0222 TRANSACTIONS SUBJECT TO PRIOR NOTICE ‑ NOTICE FILING
11 NCAC 11B .0223 aDEQUACY OF SURPLUS
History Note: Authority G.S. 58‑2‑40; 58‑19‑15; 58‑19‑25; 58‑19‑30;
Eff. April 1, 1993;
Amended Eff. June 1, 2007;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015;
Expired Eff. January 1, 2026 pursuant G.S. 150B-21.3A.
SECTION .0300 ‑ VARIABLE ANNUITIES
11 NCAC 11B .0301 VARIABLE ANNUITIES: GENERAL NATURE
History Note: Authority G.S. 58‑4; 58‑9; 58‑79(2);
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. July 1, 1988.
11 NCAC 11B .0302 QUALIFICATION TO ISSUE VARIABLE ANNUITIES
History Note: Authority G.S. 58‑79.2;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. February 1, 1996.
11 NCAC 11B .0303 INFORMATION REQUIRED PRIOR TO APPROVAL
Any licensed life insurance company desiring permission to amend its license to include the authority to write variable contracts shall file the following with the Commissioner:
(1) copies of all laws and regulations under which the company is authorized in its state of domicile to issue variable contracts;
(2) a description of the method of operations of the company in its state of domicile as regarding variable contracts, the description to include, method or methods of marketing the variable contracts and the number of years the company has issued such contracts;
(3) a description of the company's proposed method of operation in the State of North Carolina; which description shall include the method or methods of marketing the variable contracts, the types of contracts to be issued, and the criteria followed by the company in the selection of agents to sell the variable contracts;
(4) copies of all pertinent documents, including;
(a) corporate resolutions that indicate that one or more separate accounts have been established and funded by the company for the purpose of issuing variable contracts;
(b) the prospectus or offering memorandum filed with and declared effective by the Securities and Exchange Commission.
(5) certified copies of the separate accounts annual statements as filed with domiciliary state for the three years prior to the request for such authority in the State of North Carolina;
(6) a statement from the company indicating the other states in which the company has applied for permission to write variable contracts and further indicating if the state has approved or disapproved the application; and if disapproved, the reason or reasons for disapproval.
The Commissioner may deny permission to any company failing to submit the information in this Rule; however, companies who cannot comply with Item (5) of this Rule will be considered on a case by case basis if all other information is satisfactory.
History Note: Authority G.S. 58-2-40; 58‑7-95;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. February 1, 1996;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. December 20, 2015.
11 NCAC 11B .0304 FOREIGN COMPANIES: VARIABLE ANNUITY LAWS
11 NCAC 11B .0305 SEPARATE ACCOUNTS OF DOMESTIC LIFE INSURANCE COMPANY
History Note: Authority G.S. 58‑2‑40; 58‑7‑95;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Amended Eff. April 1, 1993;
Repealed Eff. February 1, 1996.
SECTION .0400 ‑ WORKMEN'S COMPENSATION FUND
11 NCAC 11B .0401 WORKMEN'S COMPENSATION: GENERAL NATURE
History Note: Authority G.S. 58‑9;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. July 1, 1988.
11 NCAC 11B .0402 STOCK WORKMEN'S COMPENSATION SECURITY FUND CREATED
11 NCAC 11B .0403 MUTUAL WORKMENS' COMPENSATION SECURITY FUND CREATED
11 NCAC 11B .0404 INVESTMENTS OF FUNDS TO BE IN COUPON FORM
11 NCAC 11B .0405 VERIFIED REPORTS OF PREMIUMS TO BE FILED
11 NCAC 11B .0406 CONTRIBUTIONS: STOCK AND MUTUAL CARRIERS
11 NCAC 11B .0407 CALL FOR ONE PERCENT ASSESSMENT STOCK AND MUTUAL
History Note: Authority G.S. 97‑107; 97‑108; 97‑109; 97‑111; 97‑112; 97‑114; 97‑115; 97‑116;
Eff. February 1, 1976;
Readopted Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
SECTION .0500 ‑ PROMOTING AND HOLDING COMPANIES
11 NCAC 11B .0501 PROMOTING AND HOLDING COMPANIES: GENERAL NATURE
History Note: Authority G.S. 58‑120 to 58‑124;
Eff. February 28, 1978;
Repealed Eff. April 1, 1993.
11 NCAC 11B .0502 FOREIGN PROMOTING: HOLDING COMPANIES LICENSED SUBSIDIARIES
11 NCAC 11B .0503 FOREIGN AND HOLDING COMPANIES: UNLICENSED SUBSIDIARIES
11 NCAC 11B .0504 SALE OF SECURITIES BY FOREIGN CORPORATION
11 NCAC 11B .0505 FOREIGN PROMOTING AND HOLDING COMPANIES DEFINITIONS
History Note: Authority G.S. 58-2-40; 58-18-1 to 58-18-25; 58‑120 to 58‑124;
Eff. February 28, 1978;
Amended Eff. April 1, 1993;
Repealed Eff. September 1, 2002.
11 NCAC 11B .0506 FOREIGN COMPANY SECURITIES SALE: "POSITION LETTER"
11 NCAC 11B .0507 FOREIGN COMPANY SECURITIES: PRIVATE PLACEMENT
11 NCAC 11B .0508 FOREIGN COMPANY SECURITIES: VERIFIABLE CAPITAL/SURPLUS
11 NCAC 11B .0509 FOREIGN COMPANY SECURITIES: INCONSEQUENTIAL INSURANCE RATIOS
11 NCAC 11B .0510 FOREIGN COMPANY SECURITIES: CONFIDENTIALITY OF MATERIAL
11 NCAC 11B .0511 FOREIGN COMPANY SECURITIES: SHELF REGISTRATION
11 NCAC 11B .0512 FOREIGN COMPANY SECURITIES: DISCLAIMER OFFSHORE
11 NCAC 11B .0513 FOREIGN COMPANY SECURITIES: DISCLAIMER GENERAL
11 NCAC 11B .0514 FORMATION OF DOMESTIC COMPANIES: PROCEDURAL HANDLING STEP 1
11 NCAC 11B .0515 FOREIGN COMPANY SECURITIES: INSTITUTIONAL INVESTORS
11 NCAC 11B .0516 DOMESTIC COMPANY: PROJECTION
11 NCAC 11B .0517 DOMESTIC COMPANY: BACKGROUND INVESTIGATION REPORT
11 NCAC 11B .0518 DOMESTIC COMPANY: ESCROW AGREEMENT
History Note: Authority G.S. 58-2-40; 58-2-100; 58-2-133; 58-18-1 to 58-18-25; 78A-17-(8);
Eff. April 1, 1993;
Repealed Eff. September 1, 2002.
SECTION .0600 ‑ WORKERS' COMPENSATION SELF‑INSURANCE
11 NCAC 11B .0601 DEFINITIONS
11 NCAC 11B .0602 ADMINISTRATION ‑ ALL SELF‑INSURERS
11 NCAC 11B .0603 EXCESS INSURANCE POLICIES ‑ ALL SELF‑INSURERS
11 NCAC 11B .0604 REPORTS - ALL SELF-INSURERS
11 NCAC 11B .0605 DEPOSITS OR SURETY BONDS ‑ ALL SELF‑INSURERS
11 NCAC 11B .0606 SECURITIES WITHDRAWAL OR EXCHANGE ‑ ALL SELF‑INSURERS
History Note: Authority G.S. 58‑2‑40; 58-2-131; 58-2-132; 58-2-133; 58‑2‑145; 58-2-171; 58-2-205; 97‑93; 97-136;
105-228.9;
Eff. October 1, 1990;
Amended Eff. April 1, 1996; February 1, 1996; April 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0607 APPLICATION - EMPLOYERS
History Note: Authority G.S. 58‑2‑40; 97‑93;
ARRC Objection Lodged August 16, 1990;
Eff. January 1, 1991;
Amended Eff. February 1, 1996; May 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0608 DEPOSITS: BONDS: EXCESS INSURANCE ‑ EMPLOYERS
11 NCAC 11B .0609 REPORTS ‑ EMPLOYERS
History Note: Authority G.S. 58‑2‑40; 58‑2‑145; 97‑93;
Eff. October 1, 1990;
Amended Eff. April 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0610 APPLICATION ‑ GROUPS
History Note: Authority G.S. 58‑2‑40; 58‑2‑145; 97‑93;
ARRC Objection Lodged August 16, 1990;
Eff. January 1, 1991;
Amended Eff. February 1, 1996; May 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0611 DEPOSITS: BONDS: EXCESS INSURANCE ‑ GROUPS
11 NCAC 11B .0612 REPORTS ‑ GROUPS
11 NCAC 11B .0613 GROUP RESPONSIBILITIES
11 NCAC 11B .0614 ADMISSION AND TERMINATION OF GROUP MEMBERS
History Note: Authority G.S. 58‑2‑40; 58‑2‑145; 58-2-165; 58-2-171; 97‑93;
Eff. October 1, 1990;
Amended Eff. February 1, 1996; January 1, 1994; April 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0615 PAYMENT OF DIVIDENDS BY GROUP FUNDS OR ASSOCIATIONS
History Note: Authority G.S. 58‑2‑40; 97‑93(b);
Eff. April 1, 1993;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0616 INSOLVENCY OR HAZARDOUS FINANCIAL CONDITION
History Note: Authority G.S. 58-2-40; 58-2-145; 58-30-60; 97-93; 97-136;
Eff. February 1, 1996;
Repealed Eff. August 1, 1998.
11 NCAC 11B .0617 GROUP ASSESSMENTS, DISCLOSURE, DEVIATIONS, AND DIVIDENDS
History Note: Authority G.S. 58-2-40; 58-2-145; 58-8-35; 58-30-60; 58--36-30; 97-93; 97-136;
Eff. April 1, 1996;
Repealed Eff. August 1, 1998.