§58‑31‑60. Competitive selection of payroll deduction insuranceproducts paid for by State employees.
(a) Employee InsuranceCommittee. The head of each State government employee payroll unit offeringpayroll deduction insurance products to employees shall appoint an EmployeeInsurance Committee for the following purposes:
(1) To review insuranceproducts currently offered through payroll deduction to the State employees inthe Employee Insurance Committee's payroll unit to determine if those productsmeet the needs and desires of employees in the Employee Insurance Committee'spayroll unit.
(2) To select the typesof insurance products that reflect the needs and desires of employees in theEmployee Insurance Committee's payroll unit.
(3) To competitivelyselect the best insurance products of the types determined by the EmployeeInsurance Committee to reflect the needs and desires of the employees of thatpayroll unit.
As used in this section,"insurance product" includes a prepaid legal services plan registeredunder G.S. 84‑23.1.
(b) Appointment ofEmployee Insurance Committee Members. The members of the Employee InsuranceCommittee shall be appointed by the head of the payroll unit. The Committeeshall consist of not less than five or more than nine individuals a majority ofwhom have been employed in the payroll unit for at least one year. Thecommittee members shall, except where necessary initially to establish therotation herein prescribed, serve three‑year terms with approximately one‑thirdof the terms expiring annually. Committee membership make‑up shall fairlyrepresent the work force in the payroll unit and be selected without regard toany political or other affiliations. It shall be the duty of the payroll unithead to assure that the Employee Insurance Committee is completely autonomousin its selection of insurance products and insurance companies and that nomember of the Employee Insurance Committee has any conflict of interest inserving on the Committee. A committee on employee benefits elected or appointedby the faculty representative body of a constituent institution of TheUniversity of North Carolina shall be deemed constituted and functioning as anemployee insurance committee in accordance with this section. Any decisionrendered by the Employee Insurance Committee where the autonomy of theCommittee or a conflict of interest is questioned shall be subject to appealpursuant to the Administrative Procedure Act, or in the case of departments,boards and commissions which are specifically exempt from the AdministrativeProcedure Act, pursuant to the appeals procedure prescribed for suchdepartment, board or commission.
(c) Payroll DeductionSlots. Each payroll unit shall be entitled to not less than four payrolldeduction slots to be used for payment of insurance premiums for productsselected by the Employee Insurance Committee and offered to the employees ofthe payroll unit. The Employee Insurance Committee shall select only onecompany per payroll deduction slot. The Company selected by the EmployeeInsurance Committee shall be permitted to sell through payroll deduction onlythe products specifically approved by the Employee Insurance Committee. Theassignment by the Employee Insurance Committee of a payroll deduction slot shallbe for a period of not less than two years unless the insurance company shallbe in violation of the terms of the written agreement specified in thissubsection. The insurance company awarded a payroll deduction slot shall,pursuant to a written agreement setting out the rights and duties of theinsurance company, be afforded an adequate opportunity to solicit employees ofthe payroll unit by making such employees aware that a representative of thecompany will be available at a specified time and at a location convenient tothe employees.
Notwithstanding any otherprovision of the General Statutes, once an employee has selected an insuranceproduct for payroll deduction, that product may not be removed from payrolldeduction for that employee without his or her specific written consent.
When an employee retires fromState employment and payroll deduction under this section is no longeravailable, the insurance company may not terminate life insurance productspurchased under the payroll deduction plan without the retiree's specificwritten consent solely because the premium is no longer deducted from payroll.
(c1) Procedure forSelection of Insurance Product Proposals. All insurance product proposalsshall be sealed. The Committee shall open all proposals in public and recordthem in the minutes of the Committee, at which time the proposals become publicrecords open to public inspection.
After the public opening, theCommittee shall review the proposals, examining the cost and quality of theproducts, the reputation and capabilities of the insurance companies submittingthe proposals, and other appropriate criteria. The Committee shall determinewhich proposal, if any, would meet the needs and desires of the employees ofthat Committee's payroll unit and shall award a payroll deduction slot to thecompany submitting the proposal that meets those needs and desires. TheCommittee may reject any or all proposals.
A company may seek to modifyor withdraw a proposal only after the public opening and only on the basis thatthe proposal contains an unintentional clerical error as opposed to an error injudgment. A company seeking to modify or withdraw a proposal shall submit tothe Committee a written request, with facts and evidence in support of itsposition, prior to the award of the payroll deduction slot, but not later thantwo days after the public opening of the proposals. The Committee shallpromptly review the request, examine the nature of the error, and determinewhether to permit or deny the request.
(d) Criminal Penalty. It shall be a Class 3 misdemeanor for any State employee, who has supervisoryauthority over any member of the Employee Insurance Committee, to attempt toinfluence the autonomy of any Employee Insurance Committee either in theappointment of members to such Committee or in the operation of such Committee;or for anyone to open a sealed insurance product proposal or disclose orexhibit the contents of a sealed insurance product proposal, prior to thepublic opening of the proposal. The Commissioner of Insurance shall have theauthority to investigate complaints alleging acts subject to the criminalpenalty and shall report his findings to the Attorney General of NorthCarolina. (1985, c. 213, s. 1; 1985 (Reg. Sess., 1986), c. 1013,s. 15; 1987, c. 752, s. 12; c. 864, s. 92; 1989, c. 299; 1991, c. 644, s. 3.1;1993, c. 539, s. 456; 1994, Ex. Sess., c. 24, s. 14(c); 1995, c. 193, s. 33;1998‑187, s. 1.)
§58‑31‑60. Competitive selection of payroll deduction insuranceproducts paid for by State employees.
(a) Employee InsuranceCommittee. The head of each State government employee payroll unit offeringpayroll deduction insurance products to employees shall appoint an EmployeeInsurance Committee for the following purposes:
(1) To review insuranceproducts currently offered through payroll deduction to the State employees inthe Employee Insurance Committee's payroll unit to determine if those productsmeet the needs and desires of employees in the Employee Insurance Committee'spayroll unit.
(2) To select the typesof insurance products that reflect the needs and desires of employees in theEmployee Insurance Committee's payroll unit.
(3) To competitivelyselect the best insurance products of the types determined by the EmployeeInsurance Committee to reflect the needs and desires of the employees of thatpayroll unit.
As used in this section,"insurance product" includes a prepaid legal services plan registeredunder G.S. 84‑23.1.
(b) Appointment ofEmployee Insurance Committee Members. The members of the Employee InsuranceCommittee shall be appointed by the head of the payroll unit. The Committeeshall consist of not less than five or more than nine individuals a majority ofwhom have been employed in the payroll unit for at least one year. Thecommittee members shall, except where necessary initially to establish therotation herein prescribed, serve three‑year terms with approximately one‑thirdof the terms expiring annually. Committee membership make‑up shall fairlyrepresent the work force in the payroll unit and be selected without regard toany political or other affiliations. It shall be the duty of the payroll unithead to assure that the Employee Insurance Committee is completely autonomousin its selection of insurance products and insurance companies and that nomember of the Employee Insurance Committee has any conflict of interest inserving on the Committee. A committee on employee benefits elected or appointedby the faculty representative body of a constituent institution of TheUniversity of North Carolina shall be deemed constituted and functioning as anemployee insurance committee in accordance with this section. Any decisionrendered by the Employee Insurance Committee where the autonomy of theCommittee or a conflict of interest is questioned shall be subject to appealpursuant to the Administrative Procedure Act, or in the case of departments,boards and commissions which are specifically exempt from the AdministrativeProcedure Act, pursuant to the appeals procedure prescribed for suchdepartment, board or commission.
(c) Payroll DeductionSlots. Each payroll unit shall be entitled to not less than four payrolldeduction slots to be used for payment of insurance premiums for productsselected by the Employee Insurance Committee and offered to the employees ofthe payroll unit. The Employee Insurance Committee shall select only onecompany per payroll deduction slot. The Company selected by the EmployeeInsurance Committee shall be permitted to sell through payroll deduction onlythe products specifically approved by the Employee Insurance Committee. Theassignment by the Employee Insurance Committee of a payroll deduction slot shallbe for a period of not less than two years unless the insurance company shallbe in violation of the terms of the written agreement specified in thissubsection. The insurance company awarded a payroll deduction slot shall,pursuant to a written agreement setting out the rights and duties of theinsurance company, be afforded an adequate opportunity to solicit employees ofthe payroll unit by making such employees aware that a representative of thecompany will be available at a specified time and at a location convenient tothe employees.
Notwithstanding any otherprovision of the General Statutes, once an employee has selected an insuranceproduct for payroll deduction, that product may not be removed from payrolldeduction for that employee without his or her specific written consent.
When an employee retires fromState employment and payroll deduction under this section is no longeravailable, the insurance company may not terminate life insurance productspurchased under the payroll deduction plan without the retiree's specificwritten consent solely because the premium is no longer deducted from payroll.
(c1) Procedure forSelection of Insurance Product Proposals. All insurance product proposalsshall be sealed. The Committee shall open all proposals in public and recordthem in the minutes of the Committee, at which time the proposals become publicrecords open to public inspection.
After the public opening, theCommittee shall review the proposals, examining the cost and quality of theproducts, the reputation and capabilities of the insurance companies submittingthe proposals, and other appropriate criteria. The Committee shall determinewhich proposal, if any, would meet the needs and desires of the employees ofthat Committee's payroll unit and shall award a payroll deduction slot to thecompany submitting the proposal that meets those needs and desires. TheCommittee may reject any or all proposals.
A company may seek to modifyor withdraw a proposal only after the public opening and only on the basis thatthe proposal contains an unintentional clerical error as opposed to an error injudgment. A company seeking to modify or withdraw a proposal shall submit tothe Committee a written request, with facts and evidence in support of itsposition, prior to the award of the payroll deduction slot, but not later thantwo days after the public opening of the proposals. The Committee shallpromptly review the request, examine the nature of the error, and determinewhether to permit or deny the request.
(d) Criminal Penalty. It shall be a Class 3 misdemeanor for any State employee, who has supervisoryauthority over any member of the Employee Insurance Committee, to attempt toinfluence the autonomy of any Employee Insurance Committee either in theappointment of members to such Committee or in the operation of such Committee;or for anyone to open a sealed insurance product proposal or disclose orexhibit the contents of a sealed insurance product proposal, prior to thepublic opening of the proposal. The Commissioner of Insurance shall have theauthority to investigate complaints alleging acts subject to the criminalpenalty and shall report his findings to the Attorney General of NorthCarolina. (1985, c. 213, s. 1; 1985 (Reg. Sess., 1986), c. 1013,s. 15; 1987, c. 752, s. 12; c. 864, s. 92; 1989, c. 299; 1991, c. 644, s. 3.1;1993, c. 539, s. 456; 1994, Ex. Sess., c. 24, s. 14(c); 1995, c. 193, s. 33;1998‑187, s. 1.)
§58‑31‑60. Competitive selection of payroll deduction insuranceproducts paid for by State employees.
(a) Employee InsuranceCommittee. The head of each State government employee payroll unit offeringpayroll deduction insurance products to employees shall appoint an EmployeeInsurance Committee for the following purposes:
(1) To review insuranceproducts currently offered through payroll deduction to the State employees inthe Employee Insurance Committee's payroll unit to determine if those productsmeet the needs and desires of employees in the Employee Insurance Committee'spayroll unit.
(2) To select the typesof insurance products that reflect the needs and desires of employees in theEmployee Insurance Committee's payroll unit.
(3) To competitivelyselect the best insurance products of the types determined by the EmployeeInsurance Committee to reflect the needs and desires of the employees of thatpayroll unit.
As used in this section,"insurance product" includes a prepaid legal services plan registeredunder G.S. 84‑23.1.
(b) Appointment ofEmployee Insurance Committee Members. The members of the Employee InsuranceCommittee shall be appointed by the head of the payroll unit. The Committeeshall consist of not less than five or more than nine individuals a majority ofwhom have been employed in the payroll unit for at least one year. Thecommittee members shall, except where necessary initially to establish therotation herein prescribed, serve three‑year terms with approximately one‑thirdof the terms expiring annually. Committee membership make‑up shall fairlyrepresent the work force in the payroll unit and be selected without regard toany political or other affiliations. It shall be the duty of the payroll unithead to assure that the Employee Insurance Committee is completely autonomousin its selection of insurance products and insurance companies and that nomember of the Employee Insurance Committee has any conflict of interest inserving on the Committee. A committee on employee benefits elected or appointedby the faculty representative body of a constituent institution of TheUniversity of North Carolina shall be deemed constituted and functioning as anemployee insurance committee in accordance with this section. Any decisionrendered by the Employee Insurance Committee where the autonomy of theCommittee or a conflict of interest is questioned shall be subject to appealpursuant to the Administrative Procedure Act, or in the case of departments,boards and commissions which are specifically exempt from the AdministrativeProcedure Act, pursuant to the appeals procedure prescribed for suchdepartment, board or commission.
(c) Payroll DeductionSlots. Each payroll unit shall be entitled to not less than four payrolldeduction slots to be used for payment of insurance premiums for productsselected by the Employee Insurance Committee and offered to the employees ofthe payroll unit. The Employee Insurance Committee shall select only onecompany per payroll deduction slot. The Company selected by the EmployeeInsurance Committee shall be permitted to sell through payroll deduction onlythe products specifically approved by the Employee Insurance Committee. Theassignment by the Employee Insurance Committee of a payroll deduction slot shallbe for a period of not less than two years unless the insurance company shallbe in violation of the terms of the written agreement specified in thissubsection. The insurance company awarded a payroll deduction slot shall,pursuant to a written agreement setting out the rights and duties of theinsurance company, be afforded an adequate opportunity to solicit employees ofthe payroll unit by making such employees aware that a representative of thecompany will be available at a specified time and at a location convenient tothe employees.
Notwithstanding any otherprovision of the General Statutes, once an employee has selected an insuranceproduct for payroll deduction, that product may not be removed from payrolldeduction for that employee without his or her specific written consent.
When an employee retires fromState employment and payroll deduction under this section is no longeravailable, the insurance company may not terminate life insurance productspurchased under the payroll deduction plan without the retiree's specificwritten consent solely because the premium is no longer deducted from payroll.
(c1) Procedure forSelection of Insurance Product Proposals. All insurance product proposalsshall be sealed. The Committee shall open all proposals in public and recordthem in the minutes of the Committee, at which time the proposals become publicrecords open to public inspection.
After the public opening, theCommittee shall review the proposals, examining the cost and quality of theproducts, the reputation and capabilities of the insurance companies submittingthe proposals, and other appropriate criteria. The Committee shall determinewhich proposal, if any, would meet the needs and desires of the employees ofthat Committee's payroll unit and shall award a payroll deduction slot to thecompany submitting the proposal that meets those needs and desires. TheCommittee may reject any or all proposals.
A company may seek to modifyor withdraw a proposal only after the public opening and only on the basis thatthe proposal contains an unintentional clerical error as opposed to an error injudgment. A company seeking to modify or withdraw a proposal shall submit tothe Committee a written request, with facts and evidence in support of itsposition, prior to the award of the payroll deduction slot, but not later thantwo days after the public opening of the proposals. The Committee shallpromptly review the request, examine the nature of the error, and determinewhether to permit or deny the request.
(d) Criminal Penalty. It shall be a Class 3 misdemeanor for any State employee, who has supervisoryauthority over any member of the Employee Insurance Committee, to attempt toinfluence the autonomy of any Employee Insurance Committee either in theappointment of members to such Committee or in the operation of such Committee;or for anyone to open a sealed insurance product proposal or disclose orexhibit the contents of a sealed insurance product proposal, prior to thepublic opening of the proposal. The Commissioner of Insurance shall have theauthority to investigate complaints alleging acts subject to the criminalpenalty and shall report his findings to the Attorney General of NorthCarolina. (1985, c. 213, s. 1; 1985 (Reg. Sess., 1986), c. 1013,s. 15; 1987, c. 752, s. 12; c. 864, s. 92; 1989, c. 299; 1991, c. 644, s. 3.1;1993, c. 539, s. 456; 1994, Ex. Sess., c. 24, s. 14(c); 1995, c. 193, s. 33;1998‑187, s. 1.)
