§ 160A‑485. Waiver of immunity throughinsurance purchase.
(a) Any city is authorized to waive its immunity from civilliability in tort by the act of purchasing liability insurance. Participationin a local government risk pool pursuant to Article 23 of General StatuteChapter 58 shall be deemed to be the purchase of insurance for the purposes ofthis section. Immunity shall be waived only to the extent that the city isindemnified by the insurance contract from tort liability. No formal actionother than the purchase of liability insurance shall be required to waive tortimmunity, and no city shall be deemed to have waived its tort immunity by anyaction other than the purchase of liability insurance. If a city uses a fundedreserve instead of purchasing insurance against liability for wrongful death,negligence, or intentional damage to personal property, or absolute liabilityfor damage to person or property caused by an act or omission of the city orany of its officers, agents, or employees acting within the scope of theirauthority and the course of their employment, the city council may adopt aresolution that deems the creation of a funded reserve to be the same as thepurchase of insurance under this section. Adoption of such a resolution waivesthe city's governmental immunity only to the extent specified in the council'sresolution, but in no event greater than funds available in the funded reservefor the payment of claims.
(b) An insurance contract purchased pursuant to this section maycover such torts and such officials, employees, and agents of the city as thegoverning board may determine. The city may purchase one or more insurancecontracts, each covering different torts or different officials, employees, oragents of the city. An insurer who issues a contract of insurance to a citypursuant to this section thereby waives any defense based upon the governmentalimmunity of the city, and any defense based upon lack of authority for the cityto enter into the contract. Each city is authorized to pay the lawful premiumsfor insurance purchased pursuant to this section.
(c) Any plaintiff may maintain a tort claim against a cityinsured under this section in any court of competent jurisdiction. As to anysuch claim, to the extent that the city is insured against such claim pursuantto this section, governmental immunity shall be no defense. Except as expresslyprovided herein, nothing in this section shall be construed to deprive any cityof any defense to any tort claim lodged against it, or to restrict, limit, orotherwise affect any defense that the city may have at common law or by virtueof any statute. Nothing in this section shall relieve a plaintiff from any dutyto give notice of his claim to the city, or to commence his action within theapplicable period of time limited by statute. No judgment may be enteredagainst a city in excess of its insurance policy limits on any tort claim forwhich it would have been immune but for the purchase of liability insurance pursuantto this section. No judgment may be entered against a city on any tort claimfor which it would have been immune but for the purchase of liability insurancepursuant to this section except a claim arising at a time when the city isinsured under an insurance contract purchased and issued pursuant to thissection. If, in the trial of any tort claim against a city for which it wouldhave been immune but for the purchase of liability insurance pursuant to thissection, a verdict is returned awarding damages to the plaintiff in excess ofthe insurance limits, the presiding judge shall reduce the award to the maximumpolicy limits before entering judgment.
(d) Except as otherwise provided in this section, tort claimsagainst a city shall be governed by the North Carolina Rules of CivilProcedure. No document or exhibit which relates to or alleges facts as to thecity's insurance against liability shall be read, exhibited, or mentioned inthe presence of the trial jury in the trial of any claim brought pursuant tothis section, nor shall the plaintiff, his counsel, or anyone testifying in hisbehalf directly or indirectly convey to the jury any inference that the city'spotential liability is covered by insurance. No judgment may be entered againstthe city unless the plaintiff waives his right to a jury trial on all issues oflaw or fact relating to insurance coverage. All issues relating to insurancecoverage shall be heard and determined by the judge without resort to a jury.The jury shall be absent during all motions, arguments, testimony, orannouncement of findings of fact or conclusions of law with respect toinsurance coverage. The city may waive its right to have issues concerninginsurance coverage determined by the judge without a jury, and may request ajury trial on these issues.
(e) Nothing in this section shall apply to any claim in tortagainst a city for which the city is not immune from liability under thestatutes or common law of this State. (1951, c. 1015, ss.1‑5; 1971, c. 698, s. 1; 1975, c. 723; 1985 (Reg. Sess., 1986), c. 1027,s. 27; 2003‑175, s. 1.)
§ 160A‑485. Waiver of immunity throughinsurance purchase.
(a) Any city is authorized to waive its immunity from civilliability in tort by the act of purchasing liability insurance. Participationin a local government risk pool pursuant to Article 23 of General StatuteChapter 58 shall be deemed to be the purchase of insurance for the purposes ofthis section. Immunity shall be waived only to the extent that the city isindemnified by the insurance contract from tort liability. No formal actionother than the purchase of liability insurance shall be required to waive tortimmunity, and no city shall be deemed to have waived its tort immunity by anyaction other than the purchase of liability insurance. If a city uses a fundedreserve instead of purchasing insurance against liability for wrongful death,negligence, or intentional damage to personal property, or absolute liabilityfor damage to person or property caused by an act or omission of the city orany of its officers, agents, or employees acting within the scope of theirauthority and the course of their employment, the city council may adopt aresolution that deems the creation of a funded reserve to be the same as thepurchase of insurance under this section. Adoption of such a resolution waivesthe city's governmental immunity only to the extent specified in the council'sresolution, but in no event greater than funds available in the funded reservefor the payment of claims.
(b) An insurance contract purchased pursuant to this section maycover such torts and such officials, employees, and agents of the city as thegoverning board may determine. The city may purchase one or more insurancecontracts, each covering different torts or different officials, employees, oragents of the city. An insurer who issues a contract of insurance to a citypursuant to this section thereby waives any defense based upon the governmentalimmunity of the city, and any defense based upon lack of authority for the cityto enter into the contract. Each city is authorized to pay the lawful premiumsfor insurance purchased pursuant to this section.
(c) Any plaintiff may maintain a tort claim against a cityinsured under this section in any court of competent jurisdiction. As to anysuch claim, to the extent that the city is insured against such claim pursuantto this section, governmental immunity shall be no defense. Except as expresslyprovided herein, nothing in this section shall be construed to deprive any cityof any defense to any tort claim lodged against it, or to restrict, limit, orotherwise affect any defense that the city may have at common law or by virtueof any statute. Nothing in this section shall relieve a plaintiff from any dutyto give notice of his claim to the city, or to commence his action within theapplicable period of time limited by statute. No judgment may be enteredagainst a city in excess of its insurance policy limits on any tort claim forwhich it would have been immune but for the purchase of liability insurance pursuantto this section. No judgment may be entered against a city on any tort claimfor which it would have been immune but for the purchase of liability insurancepursuant to this section except a claim arising at a time when the city isinsured under an insurance contract purchased and issued pursuant to thissection. If, in the trial of any tort claim against a city for which it wouldhave been immune but for the purchase of liability insurance pursuant to thissection, a verdict is returned awarding damages to the plaintiff in excess ofthe insurance limits, the presiding judge shall reduce the award to the maximumpolicy limits before entering judgment.
(d) Except as otherwise provided in this section, tort claimsagainst a city shall be governed by the North Carolina Rules of CivilProcedure. No document or exhibit which relates to or alleges facts as to thecity's insurance against liability shall be read, exhibited, or mentioned inthe presence of the trial jury in the trial of any claim brought pursuant tothis section, nor shall the plaintiff, his counsel, or anyone testifying in hisbehalf directly or indirectly convey to the jury any inference that the city'spotential liability is covered by insurance. No judgment may be entered againstthe city unless the plaintiff waives his right to a jury trial on all issues oflaw or fact relating to insurance coverage. All issues relating to insurancecoverage shall be heard and determined by the judge without resort to a jury.The jury shall be absent during all motions, arguments, testimony, orannouncement of findings of fact or conclusions of law with respect toinsurance coverage. The city may waive its right to have issues concerninginsurance coverage determined by the judge without a jury, and may request ajury trial on these issues.
(e) Nothing in this section shall apply to any claim in tortagainst a city for which the city is not immune from liability under thestatutes or common law of this State. (1951, c. 1015, ss.1‑5; 1971, c. 698, s. 1; 1975, c. 723; 1985 (Reg. Sess., 1986), c. 1027,s. 27; 2003‑175, s. 1.)
§ 160A‑485. Waiver of immunity throughinsurance purchase.
(a) Any city is authorized to waive its immunity from civilliability in tort by the act of purchasing liability insurance. Participationin a local government risk pool pursuant to Article 23 of General StatuteChapter 58 shall be deemed to be the purchase of insurance for the purposes ofthis section. Immunity shall be waived only to the extent that the city isindemnified by the insurance contract from tort liability. No formal actionother than the purchase of liability insurance shall be required to waive tortimmunity, and no city shall be deemed to have waived its tort immunity by anyaction other than the purchase of liability insurance. If a city uses a fundedreserve instead of purchasing insurance against liability for wrongful death,negligence, or intentional damage to personal property, or absolute liabilityfor damage to person or property caused by an act or omission of the city orany of its officers, agents, or employees acting within the scope of theirauthority and the course of their employment, the city council may adopt aresolution that deems the creation of a funded reserve to be the same as thepurchase of insurance under this section. Adoption of such a resolution waivesthe city's governmental immunity only to the extent specified in the council'sresolution, but in no event greater than funds available in the funded reservefor the payment of claims.
(b) An insurance contract purchased pursuant to this section maycover such torts and such officials, employees, and agents of the city as thegoverning board may determine. The city may purchase one or more insurancecontracts, each covering different torts or different officials, employees, oragents of the city. An insurer who issues a contract of insurance to a citypursuant to this section thereby waives any defense based upon the governmentalimmunity of the city, and any defense based upon lack of authority for the cityto enter into the contract. Each city is authorized to pay the lawful premiumsfor insurance purchased pursuant to this section.
(c) Any plaintiff may maintain a tort claim against a cityinsured under this section in any court of competent jurisdiction. As to anysuch claim, to the extent that the city is insured against such claim pursuantto this section, governmental immunity shall be no defense. Except as expresslyprovided herein, nothing in this section shall be construed to deprive any cityof any defense to any tort claim lodged against it, or to restrict, limit, orotherwise affect any defense that the city may have at common law or by virtueof any statute. Nothing in this section shall relieve a plaintiff from any dutyto give notice of his claim to the city, or to commence his action within theapplicable period of time limited by statute. No judgment may be enteredagainst a city in excess of its insurance policy limits on any tort claim forwhich it would have been immune but for the purchase of liability insurance pursuantto this section. No judgment may be entered against a city on any tort claimfor which it would have been immune but for the purchase of liability insurancepursuant to this section except a claim arising at a time when the city isinsured under an insurance contract purchased and issued pursuant to thissection. If, in the trial of any tort claim against a city for which it wouldhave been immune but for the purchase of liability insurance pursuant to thissection, a verdict is returned awarding damages to the plaintiff in excess ofthe insurance limits, the presiding judge shall reduce the award to the maximumpolicy limits before entering judgment.
(d) Except as otherwise provided in this section, tort claimsagainst a city shall be governed by the North Carolina Rules of CivilProcedure. No document or exhibit which relates to or alleges facts as to thecity's insurance against liability shall be read, exhibited, or mentioned inthe presence of the trial jury in the trial of any claim brought pursuant tothis section, nor shall the plaintiff, his counsel, or anyone testifying in hisbehalf directly or indirectly convey to the jury any inference that the city'spotential liability is covered by insurance. No judgment may be entered againstthe city unless the plaintiff waives his right to a jury trial on all issues oflaw or fact relating to insurance coverage. All issues relating to insurancecoverage shall be heard and determined by the judge without resort to a jury.The jury shall be absent during all motions, arguments, testimony, orannouncement of findings of fact or conclusions of law with respect toinsurance coverage. The city may waive its right to have issues concerninginsurance coverage determined by the judge without a jury, and may request ajury trial on these issues.
(e) Nothing in this section shall apply to any claim in tortagainst a city for which the city is not immune from liability under thestatutes or common law of this State. (1951, c. 1015, ss.1‑5; 1971, c. 698, s. 1; 1975, c. 723; 1985 (Reg. Sess., 1986), c. 1027,s. 27; 2003‑175, s. 1.)
