§ 97-190. Excess insurance.

§ 97‑190.  Excessinsurance.

(a)        Every self‑insurer,as a prerequisite for licensure under this Article, shall maintain specific andaggregate excess loss coverage through an insurance policy. A self‑insurershall maintain limits and retentions commensurate with its risk. A self‑insurer'sretention shall be the lowest retention suitable for the self‑insurer'sexposures and level of annual premium. The Commissioner may require differentlevels, or waive the requirement, of specific and aggregate excess loss coverageconsistent with the market availability of excess loss coverage, the self‑insurer'sclaims experience, and the self‑insurer's or guarantor's financialcondition.

(b)        An excess insurancepolicy required by this section shall be issued by either an insurance companylicensed in this State or an eligible surplus lines insurer as defined in G.S.58‑21‑10 and shall:

(1)        Provide for at least30 days' written notice of cancellation by registered or certified mail, returnreceipt requested, to the self‑insurer and to the Commissioner.

(2)        Be renewableautomatically at its expiration, except upon 30 days' written notice ofnonrenewal by certified mail, return receipt requested, to the self‑insurerand to the Commissioner.

(c)        Every self‑insurershall provide to the Commissioner evidence of coverage and any amendmentswithin 30 days after their effective dates. Every self‑insurer shall, atthe request of the Commissioner, furnish copies of its excess insurancepolicies and amendments. (1997‑362, s. 4; 2005‑400, s. 14.)