§ 58-47-180. Premium collection and payment of claims. - North Carolina Statutes

§58‑47‑180.  Premium collection and payment of claims.

(a)        The TPA or servicecompany, at a minimum, shall:

(1)        Periodically renderan accounting to the self‑insurer detailing all transactions performed bythe TPA or service company pertaining to the business underwritten, premium orother charges collected, and claims paid by the self‑insurer, whenapplicable.

(2)        Deposit all receiptsdirectly into an account maintained in the name of the self‑insurer.

(3)        Pay claims on draftsor checks of and authorized by the self‑insurer.

(4)        Not withdraw fromthe self‑insurer's account except for authority limited to pay claims andrefund premiums.

(5)        Remit returnpremium, directly from the self‑insurer's account, to the person entitledto the return premium.

(b)        Any checkdisbursement authority granted to the TPA or service company may be terminatedupon the self‑insurer's written notice to the TPA or service company orupon termination of the agreement. The self‑insurer may suspend the checkdisbursement authority during the pendency of any dispute regarding the causefor termination. (1997‑362, s. 3.)