§ 58-7-37. Background of incorporators and proposed management personnel.
§ 58‑7‑37. Background of incorporators and proposed management personnel.
(a) Before a license isissued to a new domestic insurance company, each key person must furnish theCommissioner a complete set of the applicant's fingerprints and a recentpassport size full‑face photograph of the applicant. The applicant'sfingerprints shall be certified by an authorized law enforcement officer. Thefingerprints of every applicant shall be forwarded to the State Bureau ofInvestigation for a search of the applicant's criminal history record file, ifany. If warranted, the State Bureau of Investigation shall forward a set of thefingerprints to the Federal Bureau of Investigation for a national criminalhistory record check. An applicant shall pay the cost of the State and anynational criminal history record check of the applicant.
(b) As used in thissection, "key person' means a proposed officer, director, or any otherindividual who will be in a position to influence the operating decisions of adomestic insurance company.
(c) The Commissionermay refuse to approve the formation or initial license of a new domesticinsurance company under this Article if, after notice to the applicant and anopportunity for a hearing, the Commissioner finds as to the incorporators orother key person any one or more of the following conditions:
(1) Any untrue materialstatement regarding the background or experience of any incorporator or otherkey person;
(2) Violation of, ornoncompliance with, any insurance laws, or of any rule or order of theCommissioner or of a commissioner of another state by any incorporator or otherkey person;
(3) Obtaining orattempting to obtain the license through misrepresentation or fraud;
(4) An incorporator orother key person has been convicted of a felony;
(5) An incorporator orother key person has been found to have committed any unfair trade practice orfraud;
(6) An incorporator orother key person has used fraudulent, coercive, or dishonest practices, or hasacted in a manner that is incompetent, untrustworthy, or financiallyirresponsible; or
(7) An incorporator orother key person has held such a position in another insurance company that hashad its license suspended or revoked by any state.
(d) If the Commissionerdisapproves of the formation or initial license, the Commissioner shall notifythe applicant and advise the applicant in writing of the reasons for thedisapproval. Within 30 days after receipt of notification, the applicant maymake written demand upon the Commissioner for a hearing to determine thereasonableness of the Commissioner's action. The hearing shall be scheduledwithin 30 days after the date of receipt of the written demand.
(e) For the purposes ofinvestigation under this section, the Commissioner shall have all the powerconferred by G.S. 58‑2‑50 and other applicable provisions of thisChapter.
(f) The Commissionermay adopt rules to set standards for obtaining background information on eachincorporator or other key person of a proposed new domestic insurance company. (2001‑223, s. 4.1.)