§ 58-31-10. Payment of losses on basis of actual cost of restoration or replacement; rules; insurance and reinsurance; sprinkler leakage insurance. - North Carolina Statutes

§58‑31‑10.  Payment of losses on basis of actual cost of restorationor replacement; rules; insurance and reinsurance; sprinkler leakage insurance.

(a)        In the case oftotal or partial loss of any property of any State agency or institution, theCommissioner shall determine the amount of loss and certify that amount to theagency or institution concerned and to the Director of the Budget and Councilof State.  The Director of the Budget and Council of State may authorizetransfers from the Fund to the agency or institution that suffered the loss inamounts that are necessary to pay for the actual cost of restoration orreplacement of the property.  In the event there is not a sufficient amount inthe Fund to pay for the actual cost of restoration or replacement, the Directorof the Budget and the Council of State may supplement the Fund by transferringamounts from the Contingency and Emergency Fund.

(b)        The Commissioner,with the approval of the Council of State, is authorized to adopt rulesnecessary to carry out the purpose of this Article, which rules shall bebinding on all State agencies and institutions.  The Commissioner, with theapproval of the Director of the Budget and the Council of State, is authorizedto purchase from qualified insurers insurance or reinsurance necessary toprotect the Fund against loss on any one building and its contents in excess offifty thousand dollars ($50,000), and the premiums for this coverage shall bepaid from the Fund.

(c)        Upon the request ofany State agency or institution, sprinkler leakage insurance shall be providedon designated property of the agency or institution that is insured by theFund.  Premiums for this coverage shall be paid by the requesting agency orinstitution in accordance with rates fixed by the Commissioner.  Losses coveredby this insurance may be paid out of the Fund in the same manner as otherlosses.  The Commissioner, with the approval of the Director of the Budget andthe Council of State, is authorized to purchase from qualified insurers insuranceor reinsurance necessary to protect the Fund against loss with respect tosprinkler leakage insurance coverage. (1945, c. 1027, s. 3; 1951,c. 802; 1959, c. 182, s. 2; 1983, c. 913, s. 7; 1985, c. 786.)