§ 58‑42‑5. Purposes, contents, and operation of risk sharing plans.
(a) Each planpromulgated or prepared pursuant to G.S. 58‑42‑1 shall:
(1) Give considerationto:
a. The need foradequate and readily accessible coverage;
b. Optional methods ofimproving the market affected;
c. The inherentlimitations of the insurance mechanism;
d. The need forreasonable underwriting standards; and
e. The requirement ofreasonable loss prevention measures;
(2) Establish proceduresthat will create minimum interference with the voluntary market;
(3) Distribute theobligations imposed by the plan, and any profits or losses experienced by theplan, equitably and efficiently among the participating insurers; and
(4) Establish proceduresfor applicants and participants to have their grievances reviewed by animpartial body. The filing and processing of a grievance pursuant to thissubdivision does not stay the requirement for participation in a plan mandatedby G.S. 58‑42‑10.
(b) Each plan may, onbehalf of its participants:
(1) Issue policies ofinsurance to eligible applicants;
(2) Underwrite, adjust,and pay losses on insurance issued by the plan;
(3) Appoint a servicecompany or companies to perform the functions enumerated in this subsection;and
(4) Obtain reinsurancefor any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999‑114, s. 1.)
§ 58‑42‑5. Purposes, contents, and operation of risk sharing plans.
(a) Each planpromulgated or prepared pursuant to G.S. 58‑42‑1 shall:
(1) Give considerationto:
a. The need foradequate and readily accessible coverage;
b. Optional methods ofimproving the market affected;
c. The inherentlimitations of the insurance mechanism;
d. The need forreasonable underwriting standards; and
e. The requirement ofreasonable loss prevention measures;
(2) Establish proceduresthat will create minimum interference with the voluntary market;
(3) Distribute theobligations imposed by the plan, and any profits or losses experienced by theplan, equitably and efficiently among the participating insurers; and
(4) Establish proceduresfor applicants and participants to have their grievances reviewed by animpartial body. The filing and processing of a grievance pursuant to thissubdivision does not stay the requirement for participation in a plan mandatedby G.S. 58‑42‑10.
(b) Each plan may, onbehalf of its participants:
(1) Issue policies ofinsurance to eligible applicants;
(2) Underwrite, adjust,and pay losses on insurance issued by the plan;
(3) Appoint a servicecompany or companies to perform the functions enumerated in this subsection;and
(4) Obtain reinsurancefor any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999‑114, s. 1.)
§ 58‑42‑5. Purposes, contents, and operation of risk sharing plans.
(a) Each planpromulgated or prepared pursuant to G.S. 58‑42‑1 shall:
(1) Give considerationto:
a. The need foradequate and readily accessible coverage;
b. Optional methods ofimproving the market affected;
c. The inherentlimitations of the insurance mechanism;
d. The need forreasonable underwriting standards; and
e. The requirement ofreasonable loss prevention measures;
(2) Establish proceduresthat will create minimum interference with the voluntary market;
(3) Distribute theobligations imposed by the plan, and any profits or losses experienced by theplan, equitably and efficiently among the participating insurers; and
(4) Establish proceduresfor applicants and participants to have their grievances reviewed by animpartial body. The filing and processing of a grievance pursuant to thissubdivision does not stay the requirement for participation in a plan mandatedby G.S. 58‑42‑10.
(b) Each plan may, onbehalf of its participants:
(1) Issue policies ofinsurance to eligible applicants;
(2) Underwrite, adjust,and pay losses on insurance issued by the plan;
(3) Appoint a servicecompany or companies to perform the functions enumerated in this subsection;and
(4) Obtain reinsurancefor any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999‑114, s. 1.)
