§ 58-56-6. Written agreement necessary. - North Carolina Statutes

§58‑56‑6.  Written agreement necessary.

(a)        No TPA may act as aTPA without a written agreement between the TPA and the insurer.  The writtenagreement shall be retained as part of the official records of both the insurerand the TPA for the duration of the agreement and for five years thereafter. The agreement shall contain all provisions required by this Article, to theextent those requirements apply to the functions performed by the TPA.

(b)        The agreement shallinclude a statement of duties that the TPA is expected to perform on behalf ofthe insurer and the kinds of insurance the TPA is to be authorized toadminister.  The agreement shall provide for underwriting or other standardspertaining to the business underwritten by the insurer.

(c)        The insurer or TPAmay, with written notice, terminate the agreement for cause as provided in theagreement.  The insurer may suspend the underwriting authority of the TPAduring the pendency of any dispute regarding the cause for termination of theagreement.  The insurer must fulfill any lawful obligations with respect topolicies affected by the agreement, regardless of any dispute between theinsurer and the TPA. (1991, c. 627, s. 1.)