11 NCAC 11C .0132. ACCOUNTING FOR SALVAGE AND SUBROGATION

Whenever any insurance company is operating in a manner that is hazardous to its policyholders, creditors, or the general public considering the standards set out in G.S. 58-30-60(b), or whenever any insurance company is "impaired", as defined in G.S. 58-30-12(a)(2), or "insolvent", as defined in G.S. 58-30-10(13), the Commissioner shall disregard any credit taken by the company in any annual or interim financial statement filed with the Department for salvage or subrogation recoveries until the recoveries have been reduced to cash or its equivalent.  Salvage or subrogation recoveries reduced to cash or its equivalent shall be accounted for as an offset to losses paid.  This Rule does not apply to title or mortgage guaranty insurers.

 

History Note:        Authority G.S. 58‑2‑40; 58‑7‑162;

Eff. April 1, 1993;

Amended Eff. February 1, 1996.