{"data":{"id":"us-nc/n.c.-gen.-stat.-97-170","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 97-170","heading":"License applications; required information.","body":"(a)\tNo employer shall self-insure its workers' compensation liabilities under the Act unless it is licensed by the Commissioner under this Article. This subsection does not apply to an employer authorized to self-insure its workers' compensation liabilities under the Act prior to December 1, 1997, whose authority to self-insure its workers' compensation liabilities under the Act has not terminated after that date.\n(b)\tAn applicant for a license as a self-insurer shall file with the Commissioner the information required by subsection (d) of this section on a form prescribed by the Commissioner at least 90 days before the proposed licensing date. No application is complete until the Commissioner has received all required information. A copy of the application shall also be filed with the North Carolina Self-Insurance Security Association at the same time the application is filed with the Commissioner.\n(c)\tOnly an applicant whose total fixed assets amount to five hundred thousand dollars ($500,000) or more may apply for a license. In judging the applicant's financial strength and liquidity relative to its ability to comply with the Act, the Commissioner shall consider all of the following relative to the applicant:\n(1)\tOrganizational structure and management.\n(2)\tFinancial strength.\n(3)\tSource and reliability of financial information.\n(4)\tRisks to be retained.\n(5)\tWorkers' compensation loss history.\n(6)\tNumber of employees.\n(7)\tClaims administration.\n(8)\tExcess insurance.\n(9)\tAccess to excess insurance.\n(d)\tThe license application shall be comprised of the following information:\n(1)\tApplicant name; organizational structure of the applicant, including any controlling entity, subsidiaries, or affiliates; location of principal office; contact person; organization date; type of operations within this State; management background; and addresses of all plants or offices in this State.\n(2)\tCertified audited financial statements prepared by a CPA or submitted by a foreign registered public accounting firm for the two most recent years. The financial statement presentation shall facilitate application of ratio and trend analysis.\n(3)\tEvidence of the insurance required by G.S. 97-190.\n(4)\tRepealed by Session Laws 1999-132, s. 13.7, effective June 4, 1999.\n(5)\tFor applicants with 20 or more full-time employees, a certificate or other evidence of safety inspection, satisfactory to the Commissioner, that certifies that all safety requirements of the Department of Labor have been met.\n(6)\tSummary of workers' compensation benefits paid for the last three calendar years and the total liability for all open claims within 30 days or some other period acceptable to the Commissioner not to exceed 90 days, before the filing of the application.\n(7)\tSummary, by risk classification, of annual payroll and number of employees within the State.\n(8)\tRepealed by Session Laws 2005-400, s. 10, effective January 1, 2006.\n(9)\tProof of compliance with the claims administration provisions of Article 47 of Chapter 58 of the General Statutes.\n(10)\tA letter of approval for membership by the North Carolina Self-Insurance Security Association.\n(e)\tEvery applicant shall execute and file with the Commissioner an agreement, as part of the application, in which the applicant agrees to participate in the Association Aggregate Security System, or if excluded from the Association Aggregate Security System, to deposit with the Commissioner pursuant to G.S. 97-185 cash, acceptable securities, an irrevocable letter of credit in a form acceptable to the Commissioner issued by a bank acceptable to the Commissioner, or a surety bond issued by a corporate surety, or a combination thereof, that will guarantee the applicant's compliance with this Article and the Act. (1997-362, s. 4; 1999-132, ss. 13.6, 13.7; 2003-212, s. 25; 2005-400, s. 10; 2009-172, s. 6; 2019-179, s. 10.)","path":["Chapter 97. Workers' Compensation Act.","Article 5. Individual Employers."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_97/GS_97-170.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:14:12Z","sha256":"232b9d26927cc62d6700ac37cb1488e22af5a0c7c4b26603201697a2a019cea9","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-97-165","next":"us-nc/n.c.-gen.-stat.-97-175"},"notice":"GroundRules: Original legal text. Not legal advice."}