North Carolina SB 306: Conner’s Law.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 306

Short Title: WC/Self-Insurance Association Amendments. (Public)
Sponsors: Senator Johnson (Primary Sponsor).
Referred to: Rules and Operations of the Senate
March 18, 2025
*S306-v-1*
A BILL TO BE ENTITLED 1
AN ACT AMENDING LAWS CONCERNING THE NORTH CAROLINA 2
SELF-INSURANCE ASSOCIATION. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 97-130 reads as rewritten: 5
"§ 97-130. Definitions. 6
As used The following definitions apply in this Article: 7
(1) "Association" means the Association. – The North Carolina Self-Insurance 8
Security Association established by G.S. 97-131. 9
(1a) "Association Aggregate Security System" means the Association Aggregate 10
Security System. – The security system established by the Association under 11
G.S. 97-133 whereby individual self-insurers collectively secure their 12
aggregate self-insured workers' compensation liabilities incurred while a 13
member through the North Carolina Self-Insurance Security Association. 14
(2) "Board" means the Board. – The Board of Directors of the Association 15
established by G.S. 97-132. 16
(2a) Collateral. – Cash, certificates of deposits, surety bonds, or irrevocable letters 17
of credit provided or pledged to the Association under G.S. 97-133(a)(2a)g. 18
(3) "Commissioner" means the Commissioner. – The North Carolina 19
Commissioner of Insurance. 20
(4) "Covered claim" means an Covered claim. – An unpaid claim against an 21
insolvent individual self-insurer or group self-insurer that which relates to an 22
injury that occurs while the individual self-insurer or group self-insurer is a 23
member of the Association and that is compensable under this Chapter. 24
Notwithstanding the foregoing, no workers' compensation claim filed against 25
the Association more than five years after the applicable claims bar date 26
established by a court of competent jurisdiction in the insolvency proceeding 27
of a former member self-insurer shall be considered a covered claim against 28
the Association. 29
(5) "Fund" means the Fund. – The North Carolina Self-Insurance Security Fund 30
established by G.S. 97-133. 31
(5a) "Group" or "Group self-insurer" means a Group or group self-insurer. – A 32
group self-insurer licensed by the Commissioner under Part 1, Article 47 of 33
Chapter 58 of the General Statutes. 34
(5b) "Individual self-insurer" means an Individual self-insurer. – An individual 35
employer licensed by the Commissioner under Article 5 of this Chapter. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 306-First Edition
(6) "Member self-insurer" or "member" means an Member self-insurer or 1
member. – An individual self-insurer or group self-insurer that is required to 2
be a member of the Association under this Article or Part 1, Article 47 of 3
Chapter 58 of the General Statutes. 4
(7) "Plan" means the Plan. – The Plan of Operation authorized by G.S. 97-134. 5
(8) Repealed by Session Laws 2005-400, s. 1.2, effective January 1, 2006. 6
(9) "Servicing facility" means those Servicing facility. – Those persons delegated 7
by the Board to settle or compromise claims and to expend Fund assets to pay 8
claims." 9
SECTION 2. G.S. 97-133(a)(2a) reads as rewritten: 10
"(2a) Establish and operate the Association Aggregate Security System as defined 11
in G.S. 97-130 and G.S. 97-165 as follows: 12
a. The Association shall annually operate and provide an Association 13
Aggregate Security System through a combination of cash on deposit 14
in the Fund, securities, surety bonds, irrevocable letters of credit, 15
insurance, reinsurance, or other financial instruments or guarantees 16
owned or entered into by the Association. The Association shall assess 17
the individual self-insurers that participate in the Association 18
Aggregate Security System pursuant to subdivision (3a) of this 19
subsection. 20
b. through d. Repealed by Session Laws 2011-196, s. 10, effective July 21
1, 2011. 22
e. If the Association determines it is not feasible or practical to operate 23
the Association Aggregate Security System in any given year, it may 24
terminate or suspend the Association Aggregate Security System and 25
shall notify the Commissioner at least 90 days prior to the termination 26
or suspension of the Association Aggregate Security System for that 27
particular year. During any period that the Associate Aggregate 28
Security System is terminated or suspended, every self-insurer shall 29
deposit with the Commissioner, or continue to deposit, the amount 30
required by G.S. 97-185(b3) in the manner prescribed by 31
G.S. 97-185(c). 32
f. Group self-insurers shall not participate in the Association Aggregate 33
Security System. 34
g. As a precondition to continued participation in the Association 35
Aggregate Security System, the Association may require participating 36
self-insurers as provided in G.S. 97-185(a1) to provide collateral as 37
defined in G.S. 97-165(3a)