North Carolina § 58-31A-20 - (Effective July 1, 2020) State Public Education Property Insurance Fund; decrease of premiums when fund reaches five percent of total insurance in force.

§ 58-31A-20. (Effective July 1, 2020) State Public Education Property Insurance Fund; decrease of premiums when fund reaches five percent of total insurance in force.

There is established a State Public Education Property Insurance Fund (Fund) as a special fund in the State treasury for the purpose of providing a reserve against property loss of public education boards. The State Treasurer shall be the custodian of the Fund and shall invest its assets in accordance with the provisions of G.S. 147-69.2 and G.S. 147-69.3. All funds paid over to the State Treasurer by the Commissioner for premiums on insurance by public education boards and all money received from interest or from loans and deposits and from any other source connected with the insurance of the property shall be held by the State Treasurer in the Fund for the purpose of paying all insurable hazards for which the Fund shall be liable and the expenses necessary for the proper conduct of the insurance of such property, together with such premiums for reinsurance that the Commissioner may deem necessary to reinsure as provided by this Article. When the balance of the Fund reaches the sum of five percent (5%) of the total insurance in force, then annually thereafter the Commissioner shall proportionately decrease the premiums on insurance to an amount which will be sufficient to maintain the Fund at five percent (5%) of the total insurance in force, and in the event in the judgment of the Commissioner the income from the investments of the Fund are sufficient to maintain the same at five percent (5%) of the total insurance in force, no premium shall be charged for the ensuing year. However, no public education board shall cease to pay premiums until five annual payments of premiums have been made on a building or property insured whether or not through such payments the Fund shall be increased beyond five percent (5%) of the total insurance in force, unless such building or property shall cease to be insurable under this Article within such five-year period. History (2019-176, s. 3(b).) Editor's Note. - Session Laws 2019-176, s. 3(a), provides: "All functions, powers, duties, obligations, resources, and appropriations vested in the State Board of Education, the Superintendent of Public Instruction, and the School Insurance Fund Section of the Department of Public Instruction for management and operation of a system of insurance for public education property are transferred to, vested in, and consolidated into the Department of Insurance and the Commissioner of Insurance as a Type I transfer, as defined in G.S. 143A-6 . The Commissioner of Insurance, the Department of Insurance, and the Office of State Budget and Management are authorized to take all other steps necessary to consolidate the system of insurance for public education property into the Department of Insurance. To effectuate this Type I transfer and ensure continuation of other benefit services in the Department of Public Instruction, the following shall occur: "(1) The State Treasurer shall transfer the balance of the Public School Insurance Fund to the State Public Education Property Insurance Fund, established pursuant to G.S. 58-31A-20, as enacted by this act. "(2) The following positions shall be transferred from the Department of Public Instruction to the Department of Insurance as part of the Type I transfer, and the Department of Insurance may eliminate these positions as needed for the efficient operation of the Department: " Position number Title "a. 60009670 School Insurance Consultant. "b. 60009672 Fire Safety Inspector. "c. 60009673 Fire Safety Inspector. "d. 60009674 Fire Safety Inspector. "e. 60009675 Administrative Specialist II. "f. 60009677 Accounting Technician II. "g. 60009668 Administrative Specialist I. "(3) The Department of Public Instruction shall retain the following position to continue administration of non-property insurance benefit services formerly handled by the School Insurance Fund Section, and shall use funds appropriated to Fund Code 1870 for costs associated with that position: " Position number Title "a. 60009669 Education Program Administrator II." Session Laws 2019-176, s. 4, made this Article effective July 1, 2020.