§ 58-48-120. Creation of Mutual Fund Account; maintenance of Mutual Fund Account.
§58‑48‑120. Creation of Mutual Fund Account; maintenance of MutualFund Account.
(a) The moneys receivedby the Association pursuant to G.S. 58‑48‑105(b) shall be depositedin a separate reserve account to be maintained by the Association which shallbe designated as the Mutual Reserve Account. The amount in this account shallbe equivalent to one and one‑half times the contingent liabilities of theMutual Workers' Compensation Security Fund created pursuant to former G.S. 97‑114existing on December 31, 1992. The amount of this Fund's contingent liabilitiesand the amount to be deposited into this Mutual Reserve Account shall bedetermined and approved by the Department.
(b) If the amountreceived by the Association from the former Mutual Workers' CompensationSecurity Fund created pursuant to G.S. 97‑114 and received by theAssociation pursuant to G.S. 58‑48‑105(b) is insufficient to equalone and one‑half times the contingent liabilities of the Fund existing onDecember 31, 1992, the Association shall, over the five years following January1, 1993, assess the member insurers that are mutual carriers writing workers'compensation insurance in this State at the time of the assessment in theamount it determines necessary to make up the difference between the moneyreceived by the Association pursuant to G.S. 58‑48‑105(b) and oneand one‑half times the contingent liabilities of the Fund as determinedby the Department of Insurance pursuant to G.S. 58‑48‑120(a). Theassessment under this subsection shall be made in accordance with theprovisions of G.S. 58‑48‑35(a)(3).
(c) After December 31,1997, should the balance of the moneys in the Mutual Reserve Account be reducedto less than one and one‑half times the contingent liabilities of theaccount, the Association shall assess all member insurers that are mutualcarriers writing workers' compensation insurance in this State at the time ofthe assessment in an amount necessary to raise the account to an amountequivalent to one and one‑half times the contingent liabilities of saidaccount. The assessment under this subsection shall be made in accordance withthe provisions of G.S. 58‑48‑35(a)(3). (1991 (Reg. Sess., 1992), c.802, s. 9.)