§ 116‑220. Establishment and administration of self‑insurance trust funds; rules andregulations; defense of actions against covered persons; application of § 143‑300.6.
(a) In the event theBoard elects to act as self‑insurer of a program of liability insurance,it may establish one or more insurance trust accounts to be used only for thepurposes authorized by this Article: Provided, however, said program ofliability insurance shall not be subject to regulation by the Commissioner ofInsurance. The Board is authorized to receive and accept any gift, donation,appropriation or transfer of funds made for the purposes of this section and todeposit such funds in the insurance trust accounts. All expenses incurred incollecting, receiving, and maintaining such funds and in otherwiseadministering the self‑insured program of liability insurance shall bepaid from such insurance trust accounts.
(b) Subject to allrequirements and limitations of this Article, the Board is authorized to adoptrules and regulations for the establishment and administration of the self‑insuredprogram of liability insurance, including, but not limited to, rules andregulations concerning the eligibility for and terms and conditions ofparticipation in the program, the assessment of charges against participants,the management of the insurance trust accounts, and the negotiation,settlement, litigation, and payment of claims.
(c) The Board isauthorized to create a Liability Insurance Trust Fund Council composed of notmore than 13 members; one member each shall be appointed by the State AttorneyGeneral, the State Insurance Commissioner, the Director of the Office of StateBudget and Management, and the State Treasurer; the remaining members shall beappointed by the Board. Subject to all requirements and limitations of thisArticle and to any rules and regulations adopted by the Board under the termsof subsection (b) of this section, the Board may delegate to the LiabilityInsurance Trust Fund Council responsibility and authority for theadministration of the self‑insured liability insurance program and of theinsurance trust accounts established pursuant to such program.
(d) Defense of allsuits or actions against an individual health‑care practitioner who iscovered by a self‑insured program of liability insurance established bythe Board under the provisions of this Article may be provided by the AttorneyGeneral in accordance with the provisions of G.S. 143‑300.3 of Article31A of Chapter 143; provided, that in the event it should be determinedpursuant to G.S. 143‑300.4 that defense of such a claim should not beprovided by the State, or if it should be determined pursuant to G.S. 143‑300.5and G.S. 147‑17 that counsel other than the Attorney General should beemployed, or if the individual health‑care practitioner is not anemployee of the State as defined in G.S. 143‑300.2, then private legalcounsel may be employed by the Liability Insurance Trust Fund Council and paidfor from funds in the insurance trust accounts.
(e) For purposes of therequirements of G.S. 143‑300.6, the coverage provided State employees byany self‑insured program of liability insurance established by the Boardpursuant to the provisions of this Article shall be deemed to be commercialliability insurance coverage within the meaning of G.S. 143‑300.6(c).
(f) By rules orregulations adopted by the Board in accordance with G.S. 116‑220(b) ofthis Article, the Board may provide that funds maintained in insurance trustaccounts under such a self‑insured program of liability insurance may beused to pay any expenses, including damages ordered to be paid, which may beincurred by the University of North Carolina, a constituent institution of theUniversity of North Carolina, or the University of North Carolina Hospitals atChapel Hill with respect to any tort claim, based on alleged negligent acts inthe provision of health‑care services, which may be prosecuted under theprovisions of Article 31 of Chapter 143 of the General Statutes. (1975, 2nd Sess., c. 976;1987, c. 263, s. 1; 1989, c. 141, s. 7; 2000‑140, s. 93.1(a); 2001‑424,s. 12.2(b); 2009‑136, s. 4.)
§ 116‑220. Establishment and administration of self‑insurance trust funds; rules andregulations; defense of actions against covered persons; application of § 143‑300.6.
(a) In the event theBoard elects to act as self‑insurer of a program of liability insurance,it may establish one or more insurance trust accounts to be used only for thepurposes authorized by this Article: Provided, however, said program ofliability insurance shall not be subject to regulation by the Commissioner ofInsurance. The Board is authorized to receive and accept any gift, donation,appropriation or transfer of funds made for the purposes of this section and todeposit such funds in the insurance trust accounts. All expenses incurred incollecting, receiving, and maintaining such funds and in otherwiseadministering the self‑insured program of liability insurance shall bepaid from such insurance trust accounts.
(b) Subject to allrequirements and limitations of this Article, the Board is authorized to adoptrules and regulations for the establishment and administration of the self‑insuredprogram of liability insurance, including, but not limited to, rules andregulations concerning the eligibility for and terms and conditions ofparticipation in the program, the assessment of charges against participants,the management of the insurance trust accounts, and the negotiation,settlement, litigation, and payment of claims.
(c) The Board isauthorized to create a Liability Insurance Trust Fund Council composed of notmore than 13 members; one member each shall be appointed by the State AttorneyGeneral, the State Insurance Commissioner, the Director of the Office of StateBudget and Management, and the State Treasurer; the remaining members shall beappointed by the Board. Subject to all requirements and limitations of thisArticle and to any rules and regulations adopted by the Board under the termsof subsection (b) of this section, the Board may delegate to the LiabilityInsurance Trust Fund Council responsibility and authority for theadministration of the self‑insured liability insurance program and of theinsurance trust accounts established pursuant to such program.
(d) Defense of allsuits or actions against an individual health‑care practitioner who iscovered by a self‑insured program of liability insurance established bythe Board under the provisions of this Article may be provided by the AttorneyGeneral in accordance with the provisions of G.S. 143‑300.3 of Article31A of Chapter 143; provided, that in the event it should be determinedpursuant to G.S. 143‑300.4 that defense of such a claim should not beprovided by the State, or if it should be determined pursuant to G.S. 143‑300.5and G.S. 147‑17 that counsel other than the Attorney General should beemployed, or if the individual health‑care practitioner is not anemployee of the State as defined in G.S. 143‑300.2, then private legalcounsel may be employed by the Liability Insurance Trust Fund Council and paidfor from funds in the insurance trust accounts.
(e) For purposes of therequirements of G.S. 143‑300.6, the coverage provided State employees byany self‑insured program of liability insurance established by the Boardpursuant to the provisions of this Article shall be deemed to be commercialliability insurance coverage within the meaning of G.S. 143‑300.6(c).
(f) By rules orregulations adopted by the Board in accordance with G.S. 116‑220(b) ofthis Article, the Board may provide that funds maintained in insurance trustaccounts under such a self‑insured program of liability insurance may beused to pay any expenses, including damages ordered to be paid, which may beincurred by the University of North Carolina, a constituent institution of theUniversity of North Carolina, or the University of North Carolina Hospitals atChapel Hill with respect to any tort claim, based on alleged negligent acts inthe provision of health‑care services, which may be prosecuted under theprovisions of Article 31 of Chapter 143 of the General Statutes. (1975, 2nd Sess., c. 976;1987, c. 263, s. 1; 1989, c. 141, s. 7; 2000‑140, s. 93.1(a); 2001‑424,s. 12.2(b); 2009‑136, s. 4.)
§ 116‑220. Establishment and administration of self‑insurance trust funds; rules andregulations; defense of actions against covered persons; application of § 143‑300.6.
(a) In the event theBoard elects to act as self‑insurer of a program of liability insurance,it may establish one or more insurance trust accounts to be used only for thepurposes authorized by this Article: Provided, however, said program ofliability insurance shall not be subject to regulation by the Commissioner ofInsurance. The Board is authorized to receive and accept any gift, donation,appropriation or transfer of funds made for the purposes of this section and todeposit such funds in the insurance trust accounts. All expenses incurred incollecting, receiving, and maintaining such funds and in otherwiseadministering the self‑insured program of liability insurance shall bepaid from such insurance trust accounts.
(b) Subject to allrequirements and limitations of this Article, the Board is authorized to adoptrules and regulations for the establishment and administration of the self‑insuredprogram of liability insurance, including, but not limited to, rules andregulations concerning the eligibility for and terms and conditions ofparticipation in the program, the assessment of charges against participants,the management of the insurance trust accounts, and the negotiation,settlement, litigation, and payment of claims.
(c) The Board isauthorized to create a Liability Insurance Trust Fund Council composed of notmore than 13 members; one member each shall be appointed by the State AttorneyGeneral, the State Insurance Commissioner, the Director of the Office of StateBudget and Management, and the State Treasurer; the remaining members shall beappointed by the Board. Subject to all requirements and limitations of thisArticle and to any rules and regulations adopted by the Board under the termsof subsection (b) of this section, the Board may delegate to the LiabilityInsurance Trust Fund Council responsibility and authority for theadministration of the self‑insured liability insurance program and of theinsurance trust accounts established pursuant to such program.
(d) Defense of allsuits or actions against an individual health‑care practitioner who iscovered by a self‑insured program of liability insurance established bythe Board under the provisions of this Article may be provided by the AttorneyGeneral in accordance with the provisions of G.S. 143‑300.3 of Article31A of Chapter 143; provided, that in the event it should be determinedpursuant to G.S. 143‑300.4 that defense of such a claim should not beprovided by the State, or if it should be determined pursuant to G.S. 143‑300.5and G.S. 147‑17 that counsel other than the Attorney General should beemployed, or if the individual health‑care practitioner is not anemployee of the State as defined in G.S. 143‑300.2, then private legalcounsel may be employed by the Liability Insurance Trust Fund Council and paidfor from funds in the insurance trust accounts.
(e) For purposes of therequirements of G.S. 143‑300.6, the coverage provided State employees byany self‑insured program of liability insurance established by the Boardpursuant to the provisions of this Article shall be deemed to be commercialliability insurance coverage within the meaning of G.S. 143‑300.6(c).
(f) By rules orregulations adopted by the Board in accordance with G.S. 116‑220(b) ofthis Article, the Board may provide that funds maintained in insurance trustaccounts under such a self‑insured program of liability insurance may beused to pay any expenses, including damages ordered to be paid, which may beincurred by the University of North Carolina, a constituent institution of theUniversity of North Carolina, or the University of North Carolina Hospitals atChapel Hill with respect to any tort claim, based on alleged negligent acts inthe provision of health‑care services, which may be prosecuted under theprovisions of Article 31 of Chapter 143 of the General Statutes. (1975, 2nd Sess., c. 976;1987, c. 263, s. 1; 1989, c. 141, s. 7; 2000‑140, s. 93.1(a); 2001‑424,s. 12.2(b); 2009‑136, s. 4.)
