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Primary Sponsor

Last Action

Ref To Com On Rules and Operations of the Senate2025-03-18

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill amends North Carolina's self-insurance laws to clarify definitions and rules for the Self-Insurance Security Association, which protects workers' compensation claims when self-insured employers become insolvent. Key changes include establishing a five-year deadline for filing claims against the Association, defining the Association Aggregate Security System that allows individual self-insurers to collectively secure their liabilities, and allowing the Association to require collateral from participating self-insurers based on their financial condition.

Arguments in Favor

• •Supporters argue this bill provides needed clarity and protection for workers' compensation claimants by establishing clear timelines and financial safeguards.
• •By requiring collateral from weaker financial participants and creating a defined claims deadline, the bill helps ensure the Association has sufficient resources to pay legitimate claims while preventing indefinite liability exposure.
• •The collateral requirement protects the system's stability and ensures only financially viable self-insurers participate.

Arguments Against

• •Opponents may be concerned that the five-year statute of repose could bar legitimate claims from workers injured by insolvent employers if claims are discovered after that deadline.
• •The collateral requirements and ability to exclude self-insurers based on financial ratings might reduce access for smaller employers or those with less-established credit histories.
• •Some may argue these provisions shift more financial burden onto participating self-insurers through assessments to cover the Association's costs.