{"data":{"id":"us-nc/n.c.-gen.-stat.-58-42-5","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 58-42-5","heading":"Purposes, contents, and operation of risk sharing plans.","body":"(a)\tEach plan promulgated or prepared pursuant to G.S. 58-42-1 shall:\n(1)\tGive consideration to:\na.\tThe need for adequate and readily accessible coverage;\nb.\tOptional methods of improving the market affected;\nc.\tThe inherent limitations of the insurance mechanism;\nd.\tThe need for reasonable underwriting standards; and\ne.\tThe requirement of reasonable loss prevention measures;\n(2)\tEstablish procedures that will create minimum interference with the voluntary market;\n(3)\tDistribute the obligations imposed by the plan, and any profits or losses experienced by the plan, equitably and efficiently among the participating insurers; and\n(4)\tEstablish 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.\n(b)\tEach plan may, on behalf of its participants:\n(1)\tIssue policies of insurance to eligible applicants;\n(2)\tUnderwrite, adjust, and pay losses on insurance issued by the plan;\n(3)\tAppoint a service company or companies to perform the functions enumerated in this subsection; and\n(4)\tObtain reinsurance for any part or all of its risks. (1986, Ex. Sess., c. 7, s. 1; 1999-114, s. 1.)","path":["Chapter 58. Insurance.","Article 42. Mandatory or Voluntary Risk Sharing Plans."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_58/GS_58-42-5.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:06:53Z","sha256":"517044b2db2b757ac6bcf26f370a49830ef941e58bf39e3612e6115c1ad8253c","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-58-42-1","next":"us-nc/n.c.-gen.-stat.-58-42-10"},"notice":"GroundRules: Original legal text. Not legal advice."}