The North Carolina Self-Insurance Security Association, successor to the North Carolina Self-Insurance Guaranty Association (the “Association”) is a non-profit, unincorporated association, created by the North Carolina General Assembly through the 1986 enactment of N.C.G.S §97-130, et seq. (the “Security Act”).
Pursuant to the Security Act, the Association’s Members are all individual companies (“individual self-insurers”) and groups of companies (“group self-insurers”) that have been approved to self-insure their workers’ compensation claims liabilities by the North Carolina Department of Insurance. All approved individual self-insurers and group self-insurers are required, by statute, to be Members of the Association.
The Association has the statutory power to assess Members to create a Security Fund and to pay claims against insolvent members.
The Association is governed by an eleven (11)-member Board of Directors. Each year three (3) or four (4) Directors are elected by the Members during the Association’s Annual Meeting. Directors elected at the Annual Meeting are subject to approval by the North Carolina Commissioner of Insurance.
The Association operates pursuant to a Plan of Operation adopted by the Board of Directors and approved by the Commissioner of Insurance.
Upon the insolvency of a Member, the Association is authorized to pay compensable but unpaid workers’ compensation claims, incurred while the insolvent individual self-insurer or group self-insurer was a Member of the Association.