§ 58-7-15. Amount of capital and/or surplus required; impairment of capital or surplus.
§ 58‑7‑15. Amountof capital and/or surplus required; impairment of capital or surplus.
The kinds of insurance thatmay be authorized in this State, subject to the other provisions of Articles 1through 64 of this Chapter, are set forth in this section. Except to the extentan insurer participates in a risk sharing plan under Article 42 of thisChapter, nothing in this section requires any insurer to insure every kind ofrisk that it is authorized to insure. Except to the extent an insurerparticipates in a risk sharing plan under Article 42 of this Chapter, noinsurer may transact any other business than that specified in its charter andarticles of association or incorporation. The power to do any kind of insuranceagainst loss of or damage to property includes the power to insure all lawfulinterests in the property and to insure against loss of use and occupancy andrents and profits resulting therefrom; but no kind of insurance includes lifeinsurance or insurance against legal liability for personal injury or deathunless specified in this section. In addition to any power to engage in anyother kind of business than an insurance business that is specificallyconferred by the provisions of Articles 1 through 64 of this Chapter, anyinsurer authorized to do business in this State may engage in such other kindsof business to the extent necessarily or properly incidental to the kinds ofinsurance business that it is authorized to do in this State. Each of thefollowing indicates the scope of the kind of insurance business specified:
(1) "Lifeinsurance", meaning every insurance upon the lives of human beings andevery insurance appertaining thereto. The business of life insurance includesthe granting of endowment benefits; additional benefits in the event of deathby accident or accidental means; additional benefits operating to safeguard thecontract from lapse, or to provide a special surrender value, in the event oftotal and permanent disability of the insured, including industrial sickbenefit; and optional modes of settlement of proceeds.
(2) "Annuities",meaning all agreements to make periodical payments, whether in fixed orvariable dollar amounts, or both, at specified intervals.
(3) "Accident andhealth insurance", meaning:
a. Insurance againstdeath or personal injury by accident or by any specified kinds of accident andinsurance against sickness, ailment or bodily injury except as specified inparagraph b following; and
b. "Noncancelabledisability insurance," meaning insurance against disability resulting fromsickness, ailment or bodily injury (but not including insurance solely againstaccidental injury), under any contract that does not give the insurer theoption to cancel or otherwise terminate the contract at or after one year fromits effective date or renewal date.
(4) "Fireinsurance", meaning insurance against loss of or damage to any propertyresulting from fire, including loss or damage incident to the extinguishment ofa fire or to the salvaging of property in connection therewith.
(5) "Miscellaneousproperty insurance", meaning loss of or damage to property resulting from:
a. Lightning, smoke orsmudge, windstorm, tornado, cyclone, earthquake, volcanic eruption, rain, hail,frost and freeze, weather or climatic conditions, excess or deficiency ofmoisture, flood, the rising of the waters of the ocean or its tributaries, or
b. Insects, or blights,or from disease of such property other than animals, or
c. Electricaldisturbance causing or concomitant with a fire or an explosion in publicservice or public utility property, or
d. Bombardment,invasion, insurrection, riot, civil war or commotion, military or usurpedpower, any order of a civil authority made to prevent the spread of aconflagration, epidemic or catastrophe, vandalism or malicious mischief, strikeor lockout, or explosion; but not including any kind of insurance specified insubdivision (9), except insurance against loss or damage to property resultingfrom:
1. Explosion ofpressure vessels (except steam boilers of more than 15 pounds pressure) inbuildings designed and used solely for residential purposes by not more thanfour families,
2. Explosion of anykind originating outside of the insured building or outside of the buildingcontaining the property insured,
3. Explosion ofpressure vessels that do not contain steam or that are not operated with steamcoils or steam jackets,
4. Electricaldisturbance causing or concomitant with an explosion in public service orpublic utility property.
(6) "Water damageinsurance," meaning insurance against loss or damage by water or otherfluid or substance to any property resulting from the breakage or leakage ofsprinklers, pumps, or other apparatus erected for extinguishing fires or ofwater pipes or other conduits or containers; or resulting from casual waterentering through leaks or openings in buildings or by seepage through buildingwalls; but not including loss or damage resulting from flood or the rising ofthe waters of the ocean or its tributaries; and including insurance againstaccidental injury of such sprinklers, pumps, fire apparatus, conduits, orcontainers.
(7) "Burglary andtheft insurance," meaning:
a. Insurance againstloss of or damage to any property resulting from burglary, theft, larceny,robbery, forgery, fraud, vandalism, malicious mischief, confiscation, orwrongful conversion, disposal or concealment by any person or persons, or fromany attempt at any of the foregoing, and
b. Insurance againstloss of or damage to moneys, coins, bullion, securities, notes, drafts,acceptances, or any other valuable papers or documents, resulting from anycause, except while in the custody or possession of and being transported byany carrier for hire or in the mail.
(8) "Glassinsurance," meaning insurance against loss of or damage to glass and itsappurtenances resulting from any cause.
(9) "Boiler andmachinery insurance," meaning insurance against loss of or damage to anyproperty of the insured, resulting from the explosion of or injury to:
a. Any boiler, heateror other fired pressure vessel;
b. Any unfired pressurevessel;
c. Pipes or containersconnected with any of said boilers or vessels;
d. Any engine, turbine,compressor, pump or wheel;
e. Any apparatusgenerating, transmitting or using electricity;
f. Any other machineryor apparatus connected with or operated by any of the previously named boilers,vessels or machines;
andincluding the incidental power to make inspections of and to issue certificatesof inspection upon, any such boilers, apparatus, and machinery, whether insuredor otherwise.
(10) "Elevatorinsurance," meaning insurance against loss of or damage to any property ofthe insured, resulting from the ownership, maintenance or use of elevators,except loss or damage by fire.
(11) "Animalinsurance," meaning insurance against loss of or damage to anydomesticated or wild animal resulting from any cause.
(12) "Collisioninsurance," meaning insurance against loss of or damage to any property ofthe insured resulting from collision of any other object with the property, butnot including collision to or by elevators or to or by vessels, craft, piers orother instrumentalities of ocean or inland navigation.
(13) "Personal injuryliability insurance," meaning insurance against legal liability of theinsured, and against loss, damage, or expense incident to a claim of suchliability; including personal excess liability or personal "umbrella"insurance; and including an obligation of the insurer to pay medical, hospital,surgical, or funeral benefits; and in the case of motor vehicle liabilityinsurance including also disability and death benefits to injured persons,irrespective of legal liability of the insured, arising out of the death orinjury of any person, or arising out of injury to the economic interests of anyperson as a result of negligence in rendering expert, fiduciary, orprofessional service; but not including any kind of insurance specified insubdivision (15) of this section.
(14) "Property damageliability insurance," meaning insurance against legal liability of theinsured, and against loss, damage or expense incident to a claim of suchliability, arising out of the loss or destruction of, or damage to, theproperty of any other person, but not including any kind of insurance specifiedin subdivision (13) or (15).
(15) "Workers'compensation and employer's liability insurance," meaning insuranceagainst the legal liability, whether imposed by common law or by statute orassumed by contract, of any employer for the death or disablement of, or injuryto, the employer's employee.
(16) "Fidelity andsurety insurance," meaning:
a. Guaranteeing thefidelity of persons holding positions of public or private trust;
b. Becoming surety on,or guaranteeing the performance of, any lawful contract except the following:
1. A contract ofindebtedness secured by title to, or mortgage upon, or interest in, real orpersonal property;
2. Any insurancecontract except reinsurance;
c. Becoming surety on,or guaranteeing the performance of, bonds and undertakings required or permittedin all judicial proceedings or otherwise by law allowed, including surety bondsaccepted by states and municipal authorities in lieu of deposits as securityfor the performance of insurance contracts;
d. Guaranteeingcontracts of indebtedness secured by any title to, or interest in, realproperty, only to the extent required for the purpose of refunding, extending,refinancing, liquidating or salvaging obligations heretofore lawfully made andguaranteed;
e. Indemnifying banks,bankers, brokers, financial or moneyed corporations or associations againstloss resulting from any cause of bills of exchange, notes, bonds, securities,evidences of debts, deeds, mortgages, warehouse receipts, or other valuablepapers, documents, money, precious metals and articles made therefrom, jewelry,watches, necklaces, bracelets, gems, precious and semiprecious stones,including any loss while the same are being transported in armored motorvehicles, or by messenger; but not including any other risks of transportationor navigation; also against loss or damage to such an insured's premises, or tothe insured's furnishings, fixtures, equipment, safes and vaults therein,caused by burglary, robbery, theft, vandalism or malicious mischief, or anyattempt thereat.
(17) "Creditinsurance," meaning indemnifying merchants or other persons extendingcredit against loss or damage resulting from the nonpayment of debts owed tothem; and including the incidental power to acquire and dispose of debts soinsured, and to collect any debts owed to the insurer or to any person soinsured by the insurer; and also including insurance where the debt is securedby either (a) a junior lien on real estate or (b) a first lien on real estateas long as (i) the purpose of the debt being insured is not for the purchase ofthe real estate and the insurance is limited to twenty‑five percent (25%)of the insurer's aggregate insured risk outstanding, before reinsurance cededor assumed or (ii) the insurance is not included within the definition of mortgageguaranty insurance.
(18) "Titleinsurance," meaning insuring the owners of real property and chattels realand other persons lawfully interested therein against loss by reason ofdefective titles and encumbrances thereon and insuring the correctness ofsearches for all instruments, liens or charges affecting the title to thatproperty, including the power to procure and furnish information relativethereto, and other incidental powers that are specifically granted in Articles1 through 64 of this Chapter.
(19) "Motor vehicleor aircraft insurance," meaning insurance against loss of or damageresulting from any cause to motor vehicles or aircraft and their equipment, andagainst legal liability of the insured for loss or damage to another's propertyresulting from the ownership, maintenance or use of motor vehicles or aircraftand against loss, damage or expense incident to a claim of such liability. Thissubdivision does not apply to commercial aircraft as defined in G.S. 58‑1‑5.
(20) "Marineinsurance," meaning insurance against any and all kinds of loss or damageto:
a. Vessels, craft,aircraft, cars, automobiles and vehicles of every kind, as well as all goods,freights, cargoes, merchandise, effects, disbursements, profits, moneys,bullion, precious stones, securities, choses in action, evidences of debt,valuable papers, bottomry and respondentia interests and all other kinds ofproperty and interests therein, in respect to, appertaining to or in connectionwith any and all risks or perils of navigation, transit, or transportation,including war risks, on or under any seas or other waters, on land or in theair, or while being assembled, packed, crated, baled, compressed or similarlyprepared for shipment or while awaiting the same or during any delays, storage,transshipment, or reshipment incident thereto, including marine builder's risksand all personal property floater risks, and
b. Person or toproperty in connection with or appertaining to a marine, inland marine, transitor transportation insurance, including liability for loss of or damage toeither, arising out of or in connection with the construction, repair,operation, maintenance or use of the subject matter of the insurance (but notincluding life insurance or surety bonds nor insurance against loss because ofbodily injury to the person arising out of the ownership, maintenance or use ofautomobiles), and
c. Precious stones,jewels, jewelry, gold, silver and other precious metals, whether used inbusiness or trade or otherwise and whether the same be in course oftransportation or otherwise, and
d. Bridges, tunnels andother instrumentalities of transportation and communication (excludingbuildings, their furniture and furnishings, fixed contents and supplies held instorage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake,riot and/or civil commotion are the only hazards to be covered; piers, wharves,docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail,explosion, earthquake, riot and/or civil commotion; other aids to navigationand transportation, including dry docks and marine railways against all risks.
(21) "Marineprotection and indemnity insurance," meaning insurance against, or againstlegal liability of the insured for, loss, damage or expense arising out of, orincident to, the 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 ordeath or for loss of or damage to the property of another person.
(22) "Miscellaneousinsurance," meaning insurance against any other casualty authorized by thecharter of the company, not included in this section, which is a proper subjectof insurance.
(23) "Mortgageguaranty insurance," meaning insurance against financial loss by reason ofnonpayment of principal, interest, or other sums agreed to be paid under theterms of any note or bond or other evidence of indebtedness which constitutes,or is equivalent to, a first lien or charge on the real estate, provided theimprovement on the real estate is a residential building or a condominium unitor buildings designed for occupancy by not more than four families. (1899, c. 54, ss. 24, 26;1903, c. 438, s. 1; Rev., s. 4726; 1911, c. 111, s. 1; C.S., s. 6327; 1945, c.386; 1947, c. 721; 1953, c. 992; 1967, c. 624, s. 1; 1969, c. 616, s. 1; 1979,c. 714, s. 2; 1986, Ex. Sess., c. 7, ss. 2, 3; 1987, c. 731, s. 1, c. 864, ss.39, 40; 1991, c. 644, s. 7; 1999‑219, s. 5.1; 2001‑236, s. 3; 2001‑423,s. 3; 2007‑127, ss. 1‑3; 2008‑124, s. 2.3.)