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

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

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

(b)  Notwithstanding any law to the contrary,the State and the counties, and their officers, agents, and employees, shallnot be liable for any benefits provided by a trust or which it fails toprovide, any losses suffered by a trust, and any losses, damages, or penaltiesarising out of the operations of a trust or the acts or omissions of a trust'sgoverning board or any fiduciary of a trust. [L 2005, c 245, pt of §2]