§ 58-37-50. Termination of insurance.
§ 58‑37‑50. Termination of insurance.
No member may terminateinsurance to the extent that cession of a particular type of coverage andlimits is available under the provisions of this Article except for thefollowing reasons:
(1) Nonpayment ofpremium when due to the insurer or producing agent.
(2) The named insuredhas become a nonresident of this State and would not otherwise be entitled toinsurance on submission of new application under this Article.
(3) A member company hasterminated an agency contract for reasons other than the quality of the agent'sinsureds or the agent has terminated the contract and such agent representedthe company in taking the original application for insurance.
(4) When the insurancecontract has been cancelled pursuant to a power of attorney given a companylicensed pursuant to the provisions of G.S. 58‑35‑5.
(5) The named insured,at the time of renewal, fails to meet the requirements contained in thecorporate charter, articles of incorporation, and/or bylaws of the insurer,when the insurer is a company organized for the sole purpose of providingmembers of an organization with insurance policies in North Carolina.
(6) The named insured isno longer an eligible risk under G.S. 58‑37‑1. (1973, c. 818, s. 1; 1979, c.497; 2007‑443, s. 2.)