State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_74E > GS_74E-3

§74E‑3.  Liability insurance policy or certificate of self‑insurancerequired; suspension of company police agency certification for failure tocomply.

(a)        An applicant forcertification as a company police agency must file with the Attorney Generaleither a copy of a liability insurance policy that meets the requirements ofthis section or a certificate of self‑insurance designating assetssufficient to satisfy the coverage requirements of this section if theapplicant is a nonpublic entity. The policy or certificate of self‑insurancemust provide not less than one million dollars ($1,000,000) of coverage perincident for personal injury or property damage resulting from a negligent actof the applicant or an agent or employee of the applicant operating in thecourse and scope of employment or under color of law. The form, execution, andterms of a liability insurance policy must meet the requirements of theAttorney General.

(b)        An insurancecarrier that issues a liability insurance policy required by this section maycancel the policy upon giving 30 days' written notice to both the companypolice agency and the Attorney General. The written notice must be given bycertified mail, return receipt requested. Cancellation of a liability insurancepolicy does not affect any liability on the policy that accrued prior to theeffective cancellation date.

(c)        A company policeagency that is a nonpublic entity must maintain the liability insurance policyor certificate of self‑insurance required by this section in effect atall times. The Attorney General shall suspend the certification of a companypolice agency that fails to maintain a liability insurance policy orcertificate of self‑insurance when required to do so by this section. Acertification suspended for this reason may not be reinstated until the personwhose certification was suspended files with the Attorney General anapplication for reinstatement and either the required liability insurancepolicy or certificate of self‑insurance. (1991 (Reg. Sess., 1992), c.1043, s. 1.)