§ 115C-540. Determination and adjustment of premium rates; certificate as to insurance carried; no lapse; notice as to premiums required, and payment thereof.
§ 115C‑540. Determination and adjustment of premium rates; certificate as to insurancecarried; no lapse; notice as to premiums required, and payment thereof.
The State Board of Education shall determine the annual premium rate tobe charged for insurance of school properties as herein provided, which saidrate shall not, however, be in excess of the rates fixed by law for insuranceof such properties in effect on May 31, 1948, and such rates shall be adjustedfrom time to time so as to provide insurance against damage or loss resultingfrom fires, lightning, windstorm, hail or explosions resulting from defects inequipment in public school buildings and properties for the local schooladministrative units at the lowest cost possible in keeping with the payment ofcost of administration of G.S. 115C‑535 to 115C‑542, and thecreation of adequate reserves to pay losses which may be incurred. The StateBoard of Education shall furnish to each local school administrative unitannually and, at such times as changes may require, a certificate showing theamount of insurance carried on each item of insurable property. The saidinsurance shall not lapse but shall remain in force until the local board ofeducation requests that said insurance be canceled or until such propertybecomes uninsurable in the manner set out in G.S. 115C‑542. From time totime the local board of education shall be notified as to the amount of thepremiums required to be paid for said insurance and the amounts thereof shallbe provided for in the annual budget of such schools. The tax‑levyingauthorities shall provide by taxation or otherwise a sum sufficient to pay therequired premiums thereon.
The local board of education shall within 30 days from notice thereofpay to the State Board of Education the premiums on such insurance, and in theevent that there are no funds on hand at such time with which to make saidpayment, the same shall be paid out of the first funds available to such schoolboard. Delayed payments shall bear interest at the rate of six percent (6%) perannum. (1955, c. 1372, art. 16,s. 6; 1981, c. 423, s. 1.)