\n(a) The TPA or service company, at a minimum, shall:\n(1) Periodically render an accounting to the self-insurer detailing all transactions performed by the TPA or service company pertaining to the business underwritten, premium or other charges collected, and claims paid by the self-insurer, when applicable.\n(2) Deposit all receipts directly into an account maintained in the name of the self-insurer.\n(3) Pay claims on drafts or checks of and authorized by the self-insurer.\n(4) Not withdraw from the self-insurer's account except for authority limited to pay claims and refund premiums.\n(5) Remit return premium, directly from the self-insurer's account, to the person entitled to the return premium.\n(b) Any check disbursement authority granted to the TPA or service company may be terminated upon the self-insurer's written notice to the TPA or service company or upon termination of the agreement. The self-insurer may suspend the check disbursement authority during the pendency of any dispute regarding the cause for termination. (1997-362, s. 3.)
North Carolina Legal Code