North Carolina § 58-42-5 - Purposes, contents, and operation of risk sharing plans.

§ 58-42-5. Purposes, contents, and operation of risk sharing plans.

Each plan promulgated or prepared pursuant to G.S. 58-42-1 shall: Give consideration to: The need for adequate and readily accessible coverage; Optional methods of improving the market affected; The inherent limitations of the insurance mechanism; The need for reasonable underwriting standards; and The requirement of reasonable loss prevention measures; Establish procedures that will create minimum interference with the voluntary market; Distribute the obligations imposed by the plan, and any profits or losses experienced by the plan, equitably and efficiently among the participating insurers; and Establish procedures for applicants and participants to have their grievances reviewed by an impartial body. The filing and processing of a grievance pursuant to this subdivision does not stay the requirement for participation in a plan mandated by G.S. 58-42-10. Each plan may, on behalf of its participants: Issue policies of insurance to eligible applicants; Underwrite, adjust, and pay losses on insurance issued by the plan; Appoint a service company or companies to perform the functions enumerated in this subsection; and Obtain reinsurance for any part or all of its risks. History (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)