§ 58-20-20. Mutual agreement for indemnification. - North Carolina Statutes

§58‑20‑20.  Mutual agreement for indemnification.

(a)        An agreement madeunder this Article shall contain provisions for:

(1)        A system or programof loss control;

(2)        The termination ofmembership;

(3)        The payment by theClub of all claims for which a member incurred liability during the period ofhis membership;

(4)        The non‑paymentof claims where a member has individually retained the risk, or where the riskis not specifically covered, or where the amount of the claim exceeds thecoverage provided by the Club;

(5)        The assessment ofmembers;

(6)        The payment ofcontributions from members to satisfy deficiencies;

(7)        The maintenance ofclaim reserves equal to known incurred losses and loss adjustment expenses andto an estimate of incurred but not reported losses; and

(8)        Final accounting andsettlement of the obligations or refunds to a terminating member when allincurred claims are settled.

(b)        The agreementrequired by this section may also include provisions authorizing the Club to:

(1)        To establish officeswhere necessary in this State, and employ necessary staff to carry out itspurposes;

(2)        Retain legalcounsel, actuaries, claims adjusters, auditors, engineers, private consultants,and advisors, and other persons as the board of trustees or the administratordeem to be necessary;

(3)        Amend or repeal itsbylaws;

(4)        Purchase, lease, orrent real and personal property as it deems necessary; and

(5)        Enter intoagreements with financial institutions that permit it to issue checks or othernegotiable instruments in its own name. (1987, c. 330.)