Bill Analysis — Senate Bill 237, Reinsurance Facility Board of Gov. Appointees (April 27, 2021)
Summary
Bill analysis of Senate Bill 237, Reinsurance Facility Board of Gov. Appointees, for the Senate Commerce and Insurance committee, dated April 27, 2021. It states the bill would require that one member of the Board of Governors for the North Carolina Motor Vehicle Reinsurance Facility be appointed by the Commissioner of Insurance from two nominees selected by the Alliance of Insurance Agents of North Carolina. This would be accommodated by adjusting the Commissioner's appointments of fire and casualty agents from five Board members to four, and total appointments by the Commissioner would remain at seven Board members. The bill would become effective when it becomes law.
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“Bill Analysis — Senate Bill 237, Reinsurance Facility Board of Gov. Appointees (April 27, 2021).”
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SENATE BILL 237:
Reinsurance Facility Board of Gov. Appointees.
2021-2022 General Assembly
Committee: Senate Commerce and Insurance. If favorable, Date: April 27, 2021
re-refer to Rules and Operations of the Senate
Introduced by: Sen. Johnson Prepared by: Jeremy Ray
Analysis of: First Edition Staff Attorney
OVERVIEW: Senate Bill 237 would require that one member of the Board of Governors (Board) for
the North Carolina Motor Vehicle Reinsurance Facility (Facility) be appointed by the Commissioner
of Insurance (Commissioner) from two nominees selected by the Alliance of Insurance Agents of North
Carolina.
CURRENT LAW: The Facility is a nonincorporated legal entity consisting of all insurers licensed to
write and engaged in writing motor vehicle insurance or any of its components within the State. The
purpose of the Facility is to provide a mechanism for the pooling of certain insurance risks to enable the
purchase of auto liability insurance by those who cannot obtain coverage by ordinary methods. The
Facility is administered by the Board consisting of twelve Board members having one vote a piece. Five
Board members are selected by member insurers and seven Board members are appointed by the
Commissioner. Each Board member selected by member insurers or appointed by the Commissioner must
possess specific industry background qualifications set forth under G.S. 58-37-35.
BILL ANALYSIS: Senate Bill 237 would require the Commissioner to appoint one Board member to
the Board from two nominees selected by the Alliance of Insurance Agents of North Carolina. This would
be accommodated by adjusting Board member appointments made by the Commissioner that are required
under existing law to be fire and casualty agents licensed in this State, from five Board members to four.
Total appointments made by the Commissioner would remain unchanged at seven Board members.
EFFECTIVE DATE: This bill would become effective when it becomes law, and would apply to all
appointments made on or after that date.
Legislative Analysis
Jeffrey Hudson
Division
Director S237-SMBH-20(e1)-v-2 919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
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