North Carolina
Summary
The exemptions and definitions have had a checkered past in North Carolina between the insurance department and other agencies.
The current status is a simple $100,000 bond in favor of the state administered by the Secretary of State pursuant to 58-1-20(b). [SEE BOLD TEXT FAR BELOW] The statute is not definitive and some members report simply obtaining the bond and filing in their own files. NHSCA has requested clarification of the procedure in early 2015, but NC seems little concerned to reply.
NCGS 66-371 to 373 is administered by the Secretary of Commerce. It appears home service contracts are partially defined under 371 and requires certain limited and basic disclosures under 372. No apparent filing proof of financial assurance is required under 373 [SEE BELOW] as long as a company has (a) CLIP (b) meets the $ 100M net worth rules or "in lieu of" maintain the reserves of 40% of gross, less claims paid. Practical advice would be to comply, document in your files and be prepared to prove compliance if requested.
Statutes
Service Agreements. SEE NCGS § 66-371-373
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Chapter 58. Insurance. Article 1. Title and Definitions.
SEE: NCGS 58-1-20(b) for bond info requirement
REGULATIONS
None at this time
