§ 58-30-12. Duty to report insurer impairment; violations; penalties.
§58‑30‑12. Duty to report insurer impairment; violations;penalties.
(a) As used in thissection:
(1) "Chiefexecutive officer", as used in subsection (b) of this section, means theperson, irrespective of title, designated by the board of directors or trusteesof an insurer as the person charged with administering and implementing aninsurer's policies and procedures.
(2) "Impaired",as used in subsections (b) and (c) of this section, means a financial conditionin which the assets of an insurer are less than the sum of the insurer'sminimum required capital, minimum required surplus, and all liabilities asdetermined in accordance with the requirements for the preparation and filingof a financial statement under G.S. 58‑2‑165 and under otherprovisions of this Chapter.
(3) "Insolvent",as used in subsection (c) of this section, has the same meaning as set forth inG.S. 58‑30‑10(13).
(b) Whenever an insureris impaired, its chief executive officer shall, as soon as is reasonablypossible, notify the Commissioner in writing of the impairment and shall at thesame time notify in writing all of the members of the board of directors ortrustees of the insurer, if the chief executive officer knows or has reason toknow of the impairment. An officer, director, or trustee of an insurer shallnotify the chief executive officer of the impairment of the insurer if theofficer, director, or trustee knows or has reason to know that the insurer isimpaired. Any person who knowingly violates this subsection shall, uponconviction, be guilty of a Class 1 misdemeanor.
(c) Any person whowillfully:
(1) Conceals anyproperty belonging to an insurer; or
(2) Transfers orconceals in contemplation of a delinquency proceeding the person's own propertyor property belonging to an insurer; or
(3) Conceals, destroys,mutilates, alters, or makes a false entry in any document that affects orrelates to the property of an insurer or withholds any such document from areceiver, trustee, or other officer of a court entitled to its possession; or
(4) Gives, obtains, orreceives a thing of value for acting or forbearing to act in any courtproceedings;
and any such act results in orcontributes to an insurer becoming impaired or insolvent; shall be guilty of aClass H felony. (1991, c. 681, s. 40; 1993, c. 539, s. 455; 1994, Ex.Sess., c. 24, s. 14(c).)