§ 115D-58.12. Liability insurance; tort actions against boards of trustees.
§ 115D‑58.12. Liability insurance; tort actions against boards of trustees.
(a) Boards of trustees may purchase liability insurance onlyfrom companies duly licensed and authorized to sell insurance in this State orfrom other qualified companies as determined by the Department of Insurance.Each contract of insurance must, by its terms, adequately insure the board oftrustees against any and all liability for any damages by reason of death orinjury to person or property proximately caused by the negligence or torts ofthe agents and employees of such board of trustees or institution when actingwithin the scope of their authority or the course of their employment. Anycompany which enters into such a contract of insurance with a board of trusteesby such act waives any defense based upon the governmental immunity of suchboard.
(b) Any person sustaining damages, or in case of death, hispersonal representative, may sue a board of trustees insured under this sectionfor the recovery of such damages in any court of competent jurisdiction in thisState, but only in a county of the administrative area of the institutionagainst which the suit is brought; and it shall be no defense to any suchaction that the negligence or tort complained of was in pursuance of agovernmental, municipal, or discretionary function of such board of trustees,to the extent that such board is insured as provided by this section.
(c) Nothing in this section shall be construed to deprive anyboard of trustees of any defense whatsoever to any action for damages, or torestrict, limit, or otherwise affect any such defense; and nothing in thissection shall be construed to relieve any person sustaining damages or anypersonal representative of any decedent from any duty to give notice of suchclaim to the board of trustees or commence any civil action for the recovery ofdamages within the applicable period of time prescribed or limited by law.
(d) No part of the pleadings which relate to or allege facts asto a defendant's insurance against liability shall be read or mentioned in thepresence of the trial jury in any action brought pursuant to this section.Liability shall not attach unless the plaintiff shall waive the right to haveall issues of law and fact relating to insurance in such action determined by ajury, and such issues shall be heard and determined by the judge without resortto a jury, and the jury shall be absent during any motions, arguments,testimony, or announcements of findings of fact or conclusions of law withrespect thereto, unless the defendant shall request jury trial thereon.
(e) The board of trustees of all institutions in this Chapter isauthorized to pay as a necessary expense the lawful premiums of liabilityinsurance provided in this section. (1963, c. 448, s. 23; 1979, c. 462, s. 2; 1981, c. 157, s. 1; 1985, c.489.)