{"data":{"id":"us-nc/n.c.-gen.-stat.-58-10-345","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-10-345","heading":"Licensing; authority; confidentiality.","body":"(a)\tAny business entity, when permitted by its organizational documents, may apply to the Commissioner for a license to do any insurance comprised in G.S. 58-7-15; provided, however, that:\n(1)\tNo pure captive insurance company shall insure any risks other than those of its parent and affiliated companies.\n(2)\tNo association captive insurance company shall insure any risks other than those of its association, those of the member organizations of its association, and those of a member organization's affiliated companies.\n(3)\tNo industrial insured captive insurance company shall insure any risks other than those of the industrial insureds that comprise the industrial insured group, [and] those of their affiliated companies.\n(4)\tNo risk retention group shall insure any risks other than those of its members and owners.\n(5)\tNo captive insurance company shall provide personal motor vehicle or homeowner's insurance coverage or any component of those coverages on a direct basis.\n(6)\tNo captive insurance company shall accept or cede reinsurance except as provided in G.S. 58-10-445 and G.S. 58-10-605.\n(7)\tNo captive insurance company shall provide accident and health insurance on a direct basis.\n(8)\tNo captive insurance company shall provide workers' compensation and employer's liability insurance on a direct basis.\n(9)\tNo captive insurance company shall provide life insurance or annuities on a direct basis.\n(10)\tA special purpose captive insurance company may provide insurance or reinsurance or both for risks as approved by the Commissioner.\n(11)\tNo captive insurance company shall provide fidelity and surety insurance for the purpose of becoming surety on or guaranteeing the performance of bail bonds, as defined in G.S. 58-71-1(2).\n(b)\tNo captive insurance company shall transact any insurance business in this State unless:\n(1)\tIt obtains a license from the Commissioner pursuant to subsection (c) of this section authorizing it to do insurance business in this State.\n(2)\tIts governing board holds at least one meeting each year in this State. A captive insurance company will be exempt from this board meeting requirement if the captive insurance company utilizes the services of at least two of the following North Carolina-based service providers:\na.\tLegal.\nb.\tAccounting.\nc.\tActuarial.\nd.\tInvestment advisor.\ne.\tCaptive manager.\nf.\tOther service providers acceptable to the Commissioner.\n(3)\tIt maintains its principal place of business in this State.\n(4)\tIt appoints a registered agent to accept service of process and to otherwise act on its behalf in this State, provided that whenever such registered agent cannot with reasonable diligence be found at the registered office of the captive insurance company, the Commissioner shall be an agent of such captive insurance company upon whom any process, notice, or demand may be served and such service shall be done in accordance with G.S. 58-16-30.\n(c)\tIn order to receive a license to issue policies of insurance as a captive insurance company in this State, an applicant business entity shall meet all of the following requirements:\n(1)\tThe applicant business entity shall submit its organizational documents to the Commissioner. If the Commissioner approves the organizational documents, then the Commissioner shall issue a certificate to the applicant business entity business entity certifying the Commissioner's approval. The applicant business entity shall submit the organizational documents, along with a copy of the certificate of approval issued by the Commissioner, and the required filing fees for organizational documents prescribed by North Carolina law to the Secretary of State for filing. Upon filing the organizational documents, the Secretary of State shall issue a certificate of filing to the applicant business entity. The applicant business entity shall submit a copy of the certificate of filing relative to the applicant business entity's organizational documents issued by the Secretary of State to the Commissioner.\n(2)\tThe applicant business entity shall file a statement under oath of its president and secretary showing its financial condition.\n(3)\tThe applicant business entity shall file its plan of operation.\n(4)\tThe applicant business entity shall file other documents as required by the Commissioner.\n(5)\tThe applicant business entity shall also file with the Commissioner evidence of all of the following:\na.\tThe liquidity of the captive insurance company is sufficient relative to the risks to be insured.\nb.\tThe adequacy of the expertise, experience, and character of the person or persons who will manage it.\nc.\tThe overall soundness of its plan of operation.\nd.\tThe adequacy of the loss prevention programs of its insureds.\ne.\tSuch other factors deemed relevant by the Commissioner in ascertaining whether the applicant business entity will be able to meet its policy obligations.\n(6)\tNo less than the amount required by G.S. 58-10-370, in a form acceptable to the Commissioner, shall be paid into the applicant business entity.\n(7)\tThe applicant business entity shall submit to the Commissioner for approval a description of the coverages, deductibles, coverage limits, and rates, together with such additional information as the Commissioner may require.\n(d)\tWhenever a captive insurance company desires to amend the organizational documents submitted pursuant to subdivision (c)(1) of this section, the company shall submit the amended organizational documents to the Commissioner. If the Commissioner approves the amendment, then the Commissioner shall issue a certificate to the company certifying the Commissioner's approval. The company shall submit the organizational documents, along with a copy of the certificate of approval issued by the Commissioner, and the required filing fees for organizational documents prescribed in North Carolina law to the Secretary of State for filing. Upon filing the organizational documents, the Secretary of State shall issue a certificate of filing to the company. The company shall submit a copy of the certificate of filing relative to the company's organizational documents issued by the Secretary of State to the Commissioner.\n(e)\tIf a captive insurance company makes any subsequent material change to any item in the description submitted pursuant to subdivision (c)(7) of this section, then the captive insurance company shall submit an appropriate revision to the Commissioner for approval and shall not offer any additional kinds of insurance until a revision of such description is approved by the Commissioner. The captive insurance company shall inform the Commissioner of any material change in rates within 30 days of the adoption of such change.\n(f)\tInformation submitted pursuant to this section is confidential and may be made public by the Commissioner or the Commissioner's designee only upon an order of a court of competent jurisdiction except:\n(1)\tThis subsection shall not apply to any risk retention group.\n(2)\tThe Commissioner shall have the discretion to disclose such information to a public official having jurisdiction over the regulation of insurance in another state, provided that:\na.\tThe public official agrees in writing to maintain the confidentiality of such information; and\nb.\tThe laws of the state in which the public official serves require the information to be and to remain confidential.\n(3)\tOrganizational documents filed with the Secretary of State shall continue to be nonconfidential public records in the Secretary of State's office.\n(g)\tThe Commissioner is authorized to retain legal, financial, and audit services from outside the Department, the costs of which shall be reimbursed by the business entity. G.S. 58-2-160 shall apply to audits and processing conducted under the authority of this section.\n(h)\tIf the Commissioner is satisfied that the documents and statements filed by an applicant business entity comply with this section, then the Commissioner shall grant a license authorizing it to do insurance business in this State.\n(i)\tA business entity incorporated, formed, or organized under the laws of another jurisdiction that is licensed as a captive insurance company under the provisions of this Part shall have the privileges and be subject to the provisions of the laws of this State or the laws of such other jurisdiction, as applicable, under which such business entity is incorporated, formed, or organized. In the event of a conflict between the provisions of the laws of this State and the laws of such other jurisdiction under which such business entity is incorporated, formed, or organized, the provisions of this Part shall control. (2013-116, s. 1; 2014-65, s. 2; 2015-99, s. 1; 2016-78, s. 4.1(b); 2018-120, s. 5.1(a); 2022-7, ss. 4(b), 8.)","path":["Chapter 58. Insurance.","Article 10. Miscellaneous Insurer Financial Provisions.","Part 9. Captive Insurance Companies."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-10-345.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"330d373a8d045f3762402806f944dd23fde9b4dd5f0be35b3e085573e1d47199","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-10-340","next":"us-nc/n.c.-gen.-stat.-58-10-347"},"notice":"GroundRules: Original legal text. Not legal advice."}