§ 58-42-5. Purposes, contents, and operation of risk sharing plans. - North Carolina Statutes

§ 58‑42‑5. Purposes, contents, and operation of risk sharing plans.

(a)        Each planpromulgated or prepared pursuant to G.S. 58‑42‑1 shall:

(1)        Give considerationto:

a.         The need foradequate and readily accessible coverage;

b.         Optional methods ofimproving the market affected;

c.         The inherentlimitations of the insurance mechanism;

d.         The need forreasonable underwriting standards; and

e.         The requirement ofreasonable loss prevention measures;

(2)        Establish proceduresthat will create minimum interference with the voluntary market;

(3)        Distribute theobligations imposed by the plan, and any profits or losses experienced by theplan, equitably and efficiently among the participating insurers; and

(4)        Establish proceduresfor applicants and participants to have their grievances reviewed by animpartial body. The filing and processing of a grievance pursuant to thissubdivision does not stay the requirement for participation in a plan mandatedby G.S. 58‑42‑10.

(b)        Each plan may, onbehalf of its participants:

(1)        Issue policies ofinsurance to eligible applicants;

(2)        Underwrite, adjust,and pay losses on insurance issued by the plan;

(3)        Appoint a servicecompany or companies to perform the functions enumerated in this subsection;and

(4)        Obtain reinsurancefor any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999‑114, s. 1.)