NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

CHAPTER 416

HOUSE BILL 685

AN ACT TO AUTHORIZE THE TOWN OF TARBORO TO PURCHASE LIABILITY INSURANCE COVERING ALL ITS FUNCTIONS AND TO WAIVE ITS IMMUNITY FROM LIABILITY.

The General Assembly of North Carolina do enact:

Section 1. The Town Council of the Town of Tarboro is hereby authorized and empowered, but not required, to purchase liability insurance covering all of its authorized functions, whether deemed governmental or proprietary, and all negligent acts or torts of its officers, agents, or employees committed within the scope of their authority or within the course of their employment, whether engaged in performing a governmental or a proprietary act.

Sec. 2. The Town Council of the Town of Tarboro, by securing liability insurance as provided in this Act,. is authorized and empowered, but not required, to waive its governmental immunity from liability for any damage by reason of death or injury to person or property, proximately caused by the negligent act or tort of any officer, agent, or employee of the town when acting within the scope of his authority or within the course of his employment. Such immunity is waived only to the extent of the amount of the insurance so obtained. Such immunity shall be deemed to have been waived in the absence of affirmative action by the town council.

Sec. 3. Any contract of insurance purchased pursuant to this Act must be one issued by a company or corporation duly licensed and authorized to execute insurance contracts in this State, and must by its terms adequately insure the Town of Tarboro against any and all liability for any damage by reason of death, or injury to person or property, proximately caused by a negligent act or tort of any officer, agent, or employee of the town when acting within the scope of his authority or within the course of his employment. Any company which enters into a contract of insurance pursuant to this Act with the Town of Tarboro, by such act, waives any defense based upon the governmental immunity of the town from liability.

Sec. 4. The Town Council of the Town of Tarboro is authorized and empowered to pay, as a necessary expense, the lawful premium for any insurance purchased pursuant to this Act out of the general tax revenues or other appropriate funds of the town.

Sec. 5. The provisions of G. S. 160-191.3, G. S. 160-191.4, and G. S. 160-191.5 shall be applicable to actions against the Town of Tarboro arising during any time when insurance purchased by the town pursuant to this Act is in force.

Sec. 6. All laws and clauses of laws in conflict with this Act are hereby repealed to the extent of such conflict.

Sec. 7. This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 10th day of May, 1963.