North Carolina General Statutes § 58-7-188 Time limit for disposal of ineligible property and securities; effect of failure to dispose

(a) Any property or securities lawfully acquired by an insurer that it could not otherwise have invested in or lent its funds upon at the time of the acquisition shall be disposed of within three years from the date of acquisition, unless within that period the security has attained to the standard of eligibility; except that any security or property acquired under any agreement of bulk reinsurance, merger, or consolidation may be retained for a longer period if so provided in the plan for the reinsurance, merger, or consolidation as approved by the Commissioner under this Chapter. Upon application by the insurer and proof that forced sale of any such property or security would materially injure the insurer's interests, the Commissioner may extend the disposal period for an additional reasonable time.

(b) Any property or securities lawfully acquired and held by an insurer after expiration of the period for their disposal or any extension of the period granted by the Commissioner shall not be allowed as an asset of the insurer. (1991, c. 681, s. 29.)

Sections:  Previous  58-7-178  58-7-179  58-7-180  58-7-182  58-7-183  58-7-185  58-7-187  58-7-188  58-7-192  58-7-193  58-7-197  58-7-198  58-7-200  58-7-205  58-8-1  Next

Last modified: March 23, 2014