NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

 

 

CHAPTER 325

SENATE BILL 56

 

 

AN ACT TO PROVIDE EFFECTIVE LIABILITY INSURANCE PROTECTION FOR LAW ENFORCEMENT OFFICERS AND PUBLIC OFFICERS AND EMPLOYEES OF MUNICIPALITIES AND COUNTIES IN NORTH CAROLINA.

 

The General Assembly of North Carolina enacts:

 

Section 1.  Chapter 143B of the General Statutes is hereby amended by adding to Article 9 thereof a new Part 20 to read as follows:

"Part 20.

"Public Officers and Employees Liability Insurance Commission.

"§ 143B-422.  Commission created; membership. — There is hereby created within the Department of Administration a Public Officers and Employees Liability Insurance Commission. The commission shall consist of 10 members who shall be appointed as follows: The Governor shall appoint six members as follows: two members who are members of the insurance industry who may be chosen from a list of three nominees submitted to the Governor by the Independent Insurance Agents of North Carolina, Inc., and a list of three nominees submitted by the Carolinas Association of Professional Insurance Agents, North Carolina Division; one member who is employed by a police department who may be chosen from a list of three nominees submitted to the Governor jointly by the North Carolina Police Chiefs Association and North Carolina Police Executives Association, and one member who is employed by a sheriff's department who may be chosen from a list of three nominees submitted to the Governor by the North Carolina Sheriffs' Association; one member representing city government who may be chosen from a list of three nominees submitted to the Governor by the North Carolina League of Municipalities; and one member representing county government who may be chosen from a list of three nominees submitted to the Governor by the North Carolina Association of County Commissioners; the Lieutenant Governor shall appoint one member who shall be a member of the North Carolina Senate; the Speaker of the House of Representatives shall appoint one member who shall be a member of the North Carolina House of Representatives. The Secretary of the Department of Crime Control and Public Safety or his designate shall be an ex officio member. The Attorney General or his designate shall be an ex officio member. One insurance industry member appointed by the Governor shall be appointed to a term of two years and one insurance industry member shall be appointed to a term of four years. The police department member shall be appointed to a term of two years and the sheriff's department member shall be appointed to a term of four years. The representative of county government shall be appointed to a term of two years and the representative of city government to a term of four years. The member appointed by the Lieutenant Governor shall be appointed to a term of four years. The member appointed by the Speaker of the House shall be appointed to a term of two years. If any vacancy occurs in the membership of the commission, the appointing authority shall appoint another person to fill the unexpired term of the vacating member. After the initial terms established herein have expired, all appointees to the commission shall be appointed to terms of four years.

The commission members shall elect the chairman and vice-chairman of the commission. The commission may, by majority vote, remove any member of the commission for chronic absenteeism, misfeasance, malfeasance or other good cause.

"§ 143B-423.  Meetings of commission; compensation. — The commission shall meet at least four times per year, on or about January 15, April 15, July 15, October 15 and upon call of the chairman. The members shall receive no compensation for attendance at meetings, except a per diem expense reimbursement. Legislative members of the commission shall be reimbursed for subsistence and travel expenses at the rates set out in G.S. 120-3.1 from funds made available to the commission. Members of the commission who are not officers or employees of the State shall receive reimbursement for subsistence and travel expenses at rates set out in G.S. 138-5 from funds made available to the commission. Members of the commission who are officers or employees of the State shall be reimbursed for travel and subsistence at the rates set out in G.S. 138-6 from funds made available to the commission.

"§ 143B-424.  Powers and duties of commission. —- The commission may acquire from an insurance company or insurance companies a group plan of professional liability insurance covering the law enforcement officers and/or public officers and employees of any county or municipality of the State. The commission shall have full authority to negotiate with insurance companies submitting bids or proposals and shall award its group plan master contract on the basis of the company or companies found by it to offer maximum coverage at the most reasonable premium. The commission is authorized to enter into a master policy contract of such term as it finds to be in the best interests of the law enforcement officers and/or public officers and employees of the counties and municipalities of the State, not to exceed five years. The commission, in negotiating for such contract, is not authorized to pledge or offer the credit of the State of North Carolina. The insurance premiums shall be paid by the counties or municipalities whose employees are covered by the professional liability insurance. Any municipality or county may elect coverage for any or all of its employees on a departmental basis; provided all employees in a department must be covered if coverage is elected for that department. Nothing contained herein shall be construed to require any county or municipality to participate in any group plan of professional liability insurance.

The commission may, in its discretion, employ professional and clerical staff whose salaries shall be as established by the State Personnel Commission.

Should the commission determine that reasonable coverage is not available at a reasonable cost, the commission may undertake such studies and inquiries into the situation and alternatives, including self insurance and State administered funds, as the commission deems appropriate. The commission shall then bring before the General Assembly such recommendations as it deems appropriate.

The commission may acquire information regarding loss ratios, loss factors, loss experience and other such facts and figures from any company issuing professional liability insurance covering public officers, employees or law enforcement officers in the State of North Carolina. Such information shall not be deemed a public record within the meaning of Chapter 132 of the General Statutes where it names the company divulging such information, but the commission may make public such information to show aggregate statistics in respect to the experience of the State as a whole. The information shall be provided to the commission upon its written demand and shall be submitted to the commission by such company or companies upon sworn affidavit. If any company shall fail or refuse to supply such information to the commission within a reasonable time following receipt of the demand, the commission may apply to the Superior Court sitting in Wake County for appropriate orders to enforce the demand.

"§ 143B-425.  Meetings of commission. — The commission shall act as liaison between the insurance company or companies with which it contracts, their servicing agent and the insureds. The commission shall give notice of its meetings to the company or companies and to all insureds. The commission shall attempt to resolve such difficulties as arise in the servicing and administration of the program of insurance between the company and insureds.

"§ 143B-426.  Contract conditions. — The commission, in procuring and negotiating for the contract of insurance herein described shall include in any procurement document the following conditions, which are not subject to negotiation and which are deemed a part of the said contract when entered into:

1.         The master policy shall be issued in the name of the commission and shall include all governmental entities for which coverage was requested in the procurement document.

2.         The company or companies selected must name a servicing agent resident in North Carolina who shall issue all certificates, collect all premiums, process all claims, and be responsible for all processing, service and administration of the program of insurance provided.

"§ 143B-427.  Payment a public purpose. —- The payment by any county or municipality of funds as premiums for professional liability insurance through the plan provided herein, covering the law enforcement officers or public officials or employees of such subdivision of government, is declared to be for a public purpose."

Sec. 2.  No additional appropriations will be required.

Sec. 3.  This act is effective upon ratification.

In the General Assembly read three times and ratified, this the 10th day of April, 1979.