{"data":{"id":"us-nc/n.c.-gen.-stat.-58-20-20","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-20-20","heading":"Mutual agreement for indemnification.","body":"(a)\tAn agreement made under this Article shall contain provisions for:\n(1)\tA system or program of loss control;\n(2)\tThe termination of membership;\n(3)\tThe payment by the Club of all claims for which a member incurred liability during the period of his membership;\n(4)\tThe 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;\n(5)\tThe assessment of members;\n(6)\tThe payment of contributions from members to satisfy deficiencies;\n(7)\tThe maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and\n(8)\tFinal accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled.\n(b)\tThe agreement required by this section may also include provisions authorizing the Club to:\n(1)\tTo establish offices where necessary in this State, and employ necessary staff to carry out its purposes;\n(2)\tRetain 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;\n(3)\tAmend or repeal its bylaws;\n(4)\tPurchase, lease, or rent real and personal property as it deems necessary; and\n(5)\tEnter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name. (1987, c. 330.)","path":["Chapter 58. Insurance.","Article 20. Hull Insurance, and Protection and Indemnity Clubs."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-20-20.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"e5424a8d3625387dd4fb5fd47a49dd78f3ce42ce2d6b9a48f84a15bf7f3fc6ee","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-20-15","next":"us-nc/n.c.-gen.-stat.-58-20-25"},"notice":"GroundRules: Original legal text. Not legal advice."}