North Carolina § 58-20-20 - Mutual agreement for indemnification.

§ 58-20-20. Mutual agreement for indemnification.

An agreement made under this Article shall contain provisions for: A system or program of loss control; The termination of membership; The payment by the Club of all claims for which a member incurred liability during the period of his membership; The non-payment of claims where a member has individually retained the risk, or where the risk is not specifically covered, or where the amount of the claim exceeds the coverage provided by the Club; The assessment of members; The payment of contributions from members to satisfy deficiencies; The maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and Final accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled. The agreement required by this section may also include provisions authorizing the Club to: To establish offices where necessary in this State, and employ necessary staff to carry out its purposes; Retain legal counsel, actuaries, claims adjusters, auditors, engineers, private consultants, and advisors, and other persons as the board of trustees or the administrator deem to be necessary; Amend or repeal its bylaws; Purchase, lease, or rent real and personal property as it deems necessary; and Enter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name. History (1987, c. 330, s. 1.)