North Carolina General Statutes 58-93-40. Management and exclusive agreements; custodial agreements
(a) No PHP shall enter into an exclusive management or custodial agreement unless the agreement is first filed with the Commissioner and approved under this section within (i) 45 days after filing or (ii) a reasonable extended period as specified by notice from the Commissioner given within a 45-day period after filing.
(b) The Commissioner shall disapprove an agreement submitted under subsection (a) of this section if the Commissioner determines that the agreement does any of the following:
(1) Subjects the PHP to excessive charges.
Terms Used In North Carolina General Statutes 58-93-40
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
(2) Extends for an unreasonable period of time.
(3) Does not contain fair and adequate standards of performance.
(4) Enables persons under the contract to manage the PHP who are not sufficiently trustworthy, competent, experienced, and free from conflict of interest to manage the PHP with due regard for the interests of its enrollees, creditors, or the public.
(5) Contains provisions that impair the interests of the PHP’s enrollees, creditors, or the public. (2018-49, s. 1(a).)