House Bill 127 Summary

• Clarifies definitions and procedures in North Carolina's Surplus Lines Act, including terms for admitted insurers, nonadmitted insurers, affiliated entities, and surplus lines insurance eligibility.

• Lowers mandatory colorectal cancer screening coverage age from 50 to 45 years for health benefit plans, effective October 1, 2023.

• Updates references to drug compendia in cancer treatment coverage provisions from "ThomsonMicromedex DrugDex" to "Micromedex DrugDex System" across insurance certificate and health plan statutes.

• Increases the Insurance Guaranty Association's claim payment limit from $300,000 to $500,000 for covered claims under insolvent insurers, effective October 1, 2023.

• Establishes standards for affiliate agreements in insurance holding company systems, requiring records segregation, receiver access provisions, and continuation of essential services during receivership proceedings.

• Adds new procedures for administering workers' compensation large deductible policies and insured collateral in liquidation proceedings, including collateral utilization and reimbursement obligations effective October 1, 2023.