State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_115C > GS_115C-536

§ 115C‑536.  PublicSchool Insurance Fund; decrease of premiums when fund reaches five percent oftotal insurance in force.

There shall be set up in the books of the State Treasurer a fund to beknown and designated as the "Public School Insurance Fund," whichfund hereafter in G.S. 115C‑535 to 115C‑542 is referred to as"the Fund." In order to provide adequate reserves against losseswhich may be incurred on account of the risks insured against as provided inG.S. 115C‑535 to 115C‑542 and to provide payment for such losses asmay be incurred therein, there is hereby appropriated to the Fund the sum oftwo million dollars ($2,000,000), which shall be paid from and charged to theState Literary Fund as set up and defined in this Chapter. When the reserves inthe Fund shall be increased by the payment of premiums by the governing boardsof local school administrative school units, or otherwise, to the extent of onemillion dollars ($1,000,000), there shall be transferred from the Fund back tothe State Literary Fund the sum of one million dollars ($1,000,000) and whenthe Fund shall again be increased to the extent of another one million dollars($1,000,000), there shall be transferred therefrom back to the State LiteraryFund an additional sum of one million dollars ($1,000,000) in fullreimbursement of the sum of two million dollars ($2,000,000), which isauthorized to be transferred from the State Literary Fund by the provisionshereof. All funds paid over to the State Treasurer for premiums on insurance bythe governing boards of local school administrative units and all moneyreceived from interest or from loans and deposits and from any other sourceconnected with the insurance of the property hereinafter referred to shall beheld by the State Treasurer in the Fund for the purpose of paying all fire,lightning, windstorm, hail and explosion losses for which the said Fund shallbe liable and the expenses necessary for the proper conduct of the insurance ofsaid property, together with such premiums for reinsurance of such part of saidinsurance as the State Board of Education may deem necessary to reinsure, asprovided for in G.S. 115C‑535 to 115C‑542. The State Treasurershall be the custodian of the Fund and shall invest its assets in accordancewith the provisions of G.S. 147‑69.2 and 147‑69.3.

When the Fund herein provided for reaches the sum of five percent (5%)of the total insurance in force, then annually thereafter the State Board ofEducation shall proportionately decrease the premiums on insurance to an amountwhich will be sufficient to maintain the Fund at five percent (5%) of the totalinsurance in force, and in the event in the judgment of the State Board ofEducation the income from the investments of the Fund are sufficient tomaintain the same at five percent (5%) of the total insurance in force, nopremium shall be charged for the ensuing year: Provided, that no building orproperty insured shall cease to pay premiums until five annual payments ofpremiums have been made whether or not through such payments the Fund shall beincreased beyond five percent (5%) of the total insurance in force, unless suchbuilding or property shall cease to be insurable within the meaning of G.S.115C‑535 to 115C‑542 within such five‑year period. (1955, c. 1372, art. 16, s. 2; 1981, c. 423, s. 1.)