§ 97-177. License covering applicant and any subsidiary or applicant relying on a guarantor; procedure; requirements.
§ 97‑177. Licensecovering applicant and any subsidiary or applicant relying on a guarantor;procedure; requirements.
(a) The Commissionermay, in the Commissioner's discretion, upon request by an applicant, issue alicense to an applicant or to an applicant and one or more of its subsidiariesif all of the following requirements are satisfied:
(1) The applicant or aguarantor of the applicant executes a guaranty agreement, in a form prescribedby the Commissioner, for the payment of all workers' compensation liabilitiescovered under the Act. For any applicant or guarantor that is a corporation,there shall be submitted, along with the guaranty agreement, a board ofdirectors' resolution from the respective corporation authorizing the guarantyof the liabilities of the subsidiary company or companies and grantingsignature authority to each person or officer executing the agreement.
(2) The applicant orguarantor files a statement with the Commissioner that lists the percentage ofownership of voting securities or proxies representing voting securities ownedor held by the applicant or guarantor for each subsidiary, or in the case of anot‑for‑profit entity, documentation acceptable to the Commissionerevidencing control.
(3) The applicant andits guarantor or the applicant and its subsidiaries, whichever applies, satisfythe requirements of G.S. 97‑170(c).
(4) All other applicablerequirements for licensure under the Act are satisfied.
(b) A license issued bythe Commissioner pursuant to this section shall include the name of theapplicant, the name of each licensed subsidiary, and the date of issuance foreach licensed subsidiary.
(c) If a self‑insurerrequests to add a subsidiary to its license, the Commissioner shall review therequest in accordance with this section. Upon approval, the Commissioner shallissue to the self‑insurer a new license that includes the newly licensedsubsidiary and the date of license issuance for the newly licensed subsidiary,and the self‑insurer shall return the original license to theCommissioner.
(d) A self‑insurershall neither include nor delete a subsidiary from its license without theCommissioner's prior written approval.
(e) If a controllingrelationship or guaranty agreement terminates, the self‑insurer shallretain all liabilities under the Act that were incurred by the self‑insurerduring the period of self‑insurance and shall account for all suchliabilities until discharged, as evidenced by reports filed with theCommissioner. Termination of a guaranty agreement does not affect theguarantor's liability for payment of liabilities arising prior to terminationof the agreement. (2005‑400,s. 11.)