14 .0702 - PURCHASING GROUP FILING REQUIREMENTS

14 .0702. PURCHASING GROUP FILING REQUIREMENTS

(a) A purchasing group seeking to do business in North Carolina shall request an application for registration as a purchasing group before soliciting any member in North Carolina. The purchasing group shall then furnish notice to the Commissioner of its intent to do business in North Carolina on the form described in 11 NCAC 14 .0427.

(b) A purchasing group seeking to do business in North Carolina shall purchase insurance from a company licensed to do business in North Carolina or comply with the provisions of the North Carolina Surplus Lines Act.

(c) Each purchasing group shall specify the method by which, and the person or persons through whom, insurance will be offered to its members whose risks are resident or located in North Carolina.

(d) A purchasing group seeking to do business in North Carolina by complying with the provisions of the North Carolina Surplus Lines Act shall, before effecting coverage, designate the name and address of the surplus lines licensee.

(e) All policy forms and rates for use by purchasing groups soliciting in North Carolina with respect to insurance procured from companies licensed in North Carolina shall be filed with and approved by the Commissioner, pursuant to G.S. 58, prior to their use in North Carolina.

(Authority G.S. 58-2-40; 58-22-40; 58-22-45; 58-22-70; Eff. April 1, 1990; Amended Eff. July 1, 2004.)

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