§ 58-47-155. TPAs and service companies; authority; qualifications. - North Carolina Statutes

§58‑47‑155.  TPAs and service companies; authority; qualifications.

(a)        No person shall actas, offer to act as, or hold himself or herself out as a TPA or a servicecompany with respect to risks located in this State for a self‑insurerunless that person complies with this Article.

(b)        A TPA or servicecompany shall post with the self‑insurer a fidelity bond or otherappropriate coverage, issued by an authorized insurer, in a form acceptable tothe Commissioner, in an amount commensurate with the risk, and with thegoverning board of the self‑insurer as obligee or beneficiary.

(c)        A TPA or servicecompany shall maintain errors and omissions coverage or other appropriateliability insurance in a form acceptable to the Commissioner and in an amountcommensurate with the risk. The governing body of the self‑insurer shallbe obligee or beneficiary of the coverage or insurance.

(d)        If the Commissionerdetermines that a TPA or service company or any other person has not materiallycomplied with this Article or with any rule adopted or order issued under thisArticle, after notice and opportunity to be heard, the Commissioner may orderfor each separate violation a civil penalty under G.S. 58‑2‑70(d).

(e)        If the Commissionerfinds that because of a material noncompliance that a self‑insurer hassuffered any loss or damage, the Commissioner may maintain a civil actionbrought by or on behalf of the self‑insurer and its covered members orpersons and creditors for recovery of compensatory damages for the benefit ofthe self‑insurer and its covered members or persons and creditors, or forother appropriate relief.

(f)         Nothing in thisArticle affects the Commissioner's right to impose any other penalties providedfor in this Chapter or limits or restricts the rights of covered members orpersons, claimants, and creditors.

(g)        If an order ofrehabilitation or liquidation of the self‑insurer has been entered underArticle 30 of this Chapter, and the receiver appointed under that orderdetermines that the TPA or service company or any other person has notmaterially complied with this Article or any rule adopted or order issued underthis Article, and the self‑insurer suffered any loss or damage from thenoncompliance, the receiver may maintain a civil action for recovery of damagesor other appropriate sanctions for the benefit of the self‑insurer. (1997‑362,s. 3.)