§ 58-48-20. Definitions.
§ 58‑48‑20. Definitions.
As used in this Article:
(1) "Account"means any one of the three accounts created by G.S. 58‑48‑25.
(1a) "Affiliate"means a person who directly, or indirectly, through one or more intermediaries,controls, is controlled by, or is under common control with an insolventinsurer on December 31 of the year next preceding the date the insurer becomesan insolvent insurer.
(2) "Association"means the North Carolina Insurance Guaranty Association created under G.S. 58‑48‑25.
(2a) "Claimant"means any insured making a first party claim or any person instituting aliability claim; provided that no person who is an affiliate of the insolventinsurer may be a claimant.
(3) Repealed by SessionLaws 1991, c. 720, s. 6.
(3a) "Control"means the possession, direct or indirect, of the power to direct or cause thedirection of the management and policies of a person, whether through theownership of voting securities, by contract, other than a commercial contractfor goods or nonmanagement services, or otherwise, unless the power is theresult of an official position with or corporate office held by the person.Control shall be presumed to exist if any person, directly or indirectly owns,controls, holds with the power to vote, or holds proxies representing tenpercent (10%) or more of the voting securities of any other person. Thispresumption may be rebutted by a showing that control does not exist in fact.
(4) "Coveredclaim" means an unpaid claim, including one of unearned premiums, which isin excess of fifty dollars ($50.00) and arises out of and is within thecoverage and not in excess of the applicable limits of an insurance policy towhich this Article applies as issued by an insurer, if such insurer becomes aninsolvent insurer after the effective date of this Article and (i) the claimantor insured is a resident of this State at the time of the insured event; or(ii) the property from which the claim arises is permanently located in thisState. "Covered claim" shall not include any amount awarded (i) aspunitive or exemplary damages; (ii) sought as a return of premium under anyretrospective rating plan; or (iii) due any reinsurer, insurer, insurance pool,or underwriting association, as subrogation or contribution recoveries orotherwise. "Covered claim" also shall not include fines or penalties,including attorneys fees, imposed against an insolvent insurer or its insuredor claims of any claimant whose net worth exceeds fifty million dollars($50,000,000) on December 31 of the year preceding the date the insurer becomesinsolvent.
(5) "Insolventinsurer" means (i) an insurer licensed and authorized to transactinsurance in this State either at the time the policy was issued or when theinsured event occurred and (ii) against whom an order of liquidation with afinding of insolvency has been entered after the effective date of this Articleby a court of competent jurisdiction in the insurer's state of domicile or ofthis State under the provisions of Article 30 of this Chapter, and which orderof liquidation has not been stayed or been the subject of a writ of supersedeasor other comparable order.
(6) "Memberinsurer" means any person who (i) writes any kind of insurance to whichthis Article applies under G.S. 58‑48‑10, including the exchange ofreciprocal or interinsurance contracts, and (ii) is licensed and authorized totransact insurance in this State.
(7) "Net directwritten premiums" means direct gross premiums written in this State oninsurance policies to which this Article applies, less return premiums thereonand dividends paid or credited to policyholders on such direct business."Net direct written premiums" does not include premiums on contractsbetween insurers or reinsurers.
(7a) "Ocean marineinsurance" includes (i) marine insurance as defined in G.S. 58‑7‑15(20)a.,except for inland marine, (ii) marine protection and indemnity insurance asdefined in G.S. 58‑7‑15(21), and (iii) any other form of insurance,regardless of the name, label, or marketing designation of the insurance policy,which insures against maritime perils or risks and other related perils orrisks, which are usually insured by traditional marine insurance such as hulland machinery, marine builders' risks, and marine protection and indemnity. Theperils and risks insured against include loss, damage, or expense, or legalliability of the insured for loss, damage, or expense, arising out of, orincident to, ownership, operation, chartering, maintenance, use, repair, orconstruction of any vessel, craft, or instrumentality in use in ocean or inlandwaterways, including liability of the insured for personal injury, illness,death, or for loss or damage to the property of the insured or another person."Ocean marine insurance" does not include insurance on vessels or vehiclesunder five tons gross weight.
(8) "Person"means any individual, corporation, partnership, association or voluntaryorganization.
(9) "Policyholder"means the person to whom an insurance policy to which this Article applies wasissued by an insurer which has become an insolvent insurer.
(10) "Resident"means:
a. An individualdomiciled in this State;
b. An individualformerly domiciled in this State at the time the applicable policy was issuedor renewed and the term of the policy had not expired at the time of theinsured event, and who at the time of the insured event had complied with thelaws of the current domicile necessary to allow maintenance in force and effectof the applicable policy; or
c. In the case of acorporation or other entity that is not a natural person, a corporation orentity whose principal place of business is located in this State at the timeof the insured event. (1971, c. 670, s. 1; 1985, c. 613, ss. 1‑3; 1989, c. 206, s. 2;c. 770, s. 72; 1991, c. 720, s. 6; 1991 (Reg. Sess., 1992), c. 802, s. 2; 1993,c. 452, s. 51; 2003‑167, s. 1.)