{"data":{"id":"us-nc/n.c.-gen.-stat.-58-12-40","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-12-40","heading":"Supplemental provisions; rules; exemptions.","body":"(a)\tThe provisions of this Article are supplemental to any other provisions of the laws of this State, and do not preclude or limit any other powers or duties of the Commissioner under those laws, including Article 30 of this Chapter.\n(b)\tRisk-based capital instructions, risk-based capital reports, adjusted risk-based capital reports, risk-based capital plans, and revised risk-based capital plans are solely for use by the Commissioner in monitoring the solvency of insurers and the need for possible corrective action with respect to insurers. The Commissioner shall not use any of these reports or plans for rate making nor consider or introduce them as evidence in any rate proceeding. The Commissioner shall not use these reports or plans to calculate or derive any elements of an appropriate premium level or rate of return for any kind of insurance that an insurer or any affiliate is authorized to write.\n(c)\tThe Commissioner may exempt from the application of this Article any domestic property or casualty insurer that:\n(1)\tWrites direct business only in this State.\n(2)\tWrites direct annual premiums of two million dollars ($2,000,000) or less.\n(3)\tAssumes no reinsurance in excess of five percent (5%) of direct written premiums.\n(d)\tThe Commissioner may, in the Commissioner's discretion, exempt from the application of this Article:\n(1)\tAny domestic town or county mutual insurance company organized under G.S. 58-7-75(5)d.\n(2)\tAny domestic life or health insurer that:\na.\tHas no direct or assumed annual premiums; and\nb.\tHas no direct or assumed policyholder obligations.\n(3)\tAny domestic health maintenance organization that:\na.\tWrites only direct business in this State;\nb.\tAssumes no reinsurance in excess of five percent (5%) of direct written premiums; and\nc.\tWrites direct annual premiums for a comprehensive medical business of two million dollars ($2,000,000) or less, or is a single service health maintenance organization that covers less than 2,000 lives. (1993 (Reg. Sess., 1994), c. 678, s. 1; 1995, c. 318, s. 6; 2005-215, s. 22.)","path":["Chapter 58. Insurance.","Article 12. Risk-Based Capital Requirements."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-12-40.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"f6d133bd8076c860099bc3d3e24aa8ec4b26f23b29321da7d4139d0c68d0d6e3","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-12-35","next":"us-nc/n.c.-gen.-stat.-58-12-45"},"notice":"GroundRules: Original legal text. Not legal advice."}