[§87D-12]  Insurance; immunity of State and
counties.  (a)  The employee organization or the trust's governing board
shall procure:



(1)  Fiduciary liability insurance and errors and
omissions coverage for members of the governing board; and



(2)  A fidelity bond of a reasonable amount for the
chairperson of the governing board and any other person authorized to handle
trust moneys.



(b)  Notwithstanding any law to the contrary,
the State and the counties, and their officers, agents, and employees, shall
not be liable for any benefits provided by a trust or which it fails to
provide, any losses suffered by a trust, and any losses, damages, or penalties
arising out of the operations of a trust or the acts or omissions of a trust's
governing board or any fiduciary of a trust. [L 2005, c 245, pt of §2]