NC General Statutes

N.C. Gen. Stat. § 58-23-5 (2026)

Local government pooling of property, liability and workers' compensation coverages

✓ current as of July 2026
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(a) In addition to other authority granted to local governments under Chapters 153A and 160A of the General Statutes to jointly purchase insurance or pool retention of their risks, two or more local governments may enter into contracts or agreements under this Article for the joint purchasing of insurance or to pool retention of their risks for property losses and liability claims and to provide for the payment of such losses of or claims made against any member of the pool on a cooperative or contract basis with one another, or may enter into a trust agreement to carry out the provisions of this Article.

(b) In addition to other authority granted to local governments under Chapters 153A and 160A of the General Statutes or under G.S. 97-7 to jointly purchase insurance or pool retention of their risks, two or more local governments may enter into contracts or agreements pursuant to this Article to establish a separate workers' compensation pool to provide for the payment of workers' compensation claims under Chapter 97 of the General Statutes.

(c) In addition to other authority granted to local governments under Chapters 153A and 160A of the General Statutes to pool retention of their risks, two or more local governments may enter into contracts or agreements under this Article to establish pools providing for life or accident and health insurance for their employees on a cooperative or contract basis with one another; or may enter into a trust agreement to carry out the provisions of this Article.

(d) A workers' compensation pool established under this Article may only provide coverage for workers' compensation, employers' liability, and occupational disease claims.

(e) Local governments that intend to operate under this Article shall give the Commissioner 30 days' advance written notification, in a form prescribed by the Commissioner, that they intend to organize and operate risk pools pursuant to this Article. Local governments that jointly purchase insurance or pool retention of their risks under authority granted to them in Chapters 153A and 160A of the General Statutes or under G.S. 97-7 and that do not provide the Commissioner with the notification prescribed by this subsection shall not be subject to regulation by the Commissioner and shall not be under the jurisdiction of the Commissioner. (1985 (Reg. Sess., 1986), c. 1027, s. 26; 1987, c. 441, s. 14; 2001-334, s. 18.3.)

 

Notes of Decisions
Cited in 10 cases, 1995–2015 · leading case: Lyles v. City of Charlotte, 477 S.E.2d 150 (N.C. 1996).
Lyles v. City of Charlotte, 477 S.E.2d 150 (N.C. 1996). · cites it 42× “N.C.G.S. § 58-23-5 provides in part: In addition to other authority granted pursuant to Chapters 153A and 160A of the General Statutes, two or more local governments may enter into contracts or agreements pursuant to this Article for the joint purchasing of insurance or to pool…”
Lyles v. City of Charlotte, 461 S.E.2d 347 (N.C. Ct. App. 1995). · cites it 12× “N.C. Gen. Stat. § 58-23-5 (1994). The City reads the above-quoted section as signifying that in order for an agreement between governmental entities to be considered a “local government risk pool,” the agreement must be entered into for the specific purpose of either (1) the…”
Pettiford v. City of Greensboro, 556 F. Supp. 2d 512 (M.D.N.C. 2008). · cites it 4× “2d 590, 596 (2000), the Fund fails to meet the statutory requirements of a local government risk pool because (1) two members, the Guil-ford County Schools and Guilford Technical Community College, are not local governments, N.C. Gen.Stat. §§ 58-23-5(a), 58-23-1; (Doc.”
Clayton v. Branson, 570 S.E.2d 253 (N.C. Ct. App. 2002). · cites it 2× “G.S. 58-23-5. *491 2. The City has purchased liability insurance for liability of more than $2 million but less than $4 million and has therefore waived its governmental immunity as to liability falling within that range, but has not waived its governmental immunity for amounts…”
Schlossberg v. Goins, 540 S.E.2d 49 (N.C. Ct. App. 2000). · cites it 2× “Arnold’s unre-butted affidavit, the members of the Fund did not give thirty days advance written notice of their intention to organize and operate a risk pool as required pursuant to N.C. Gen. Stat. § 58-23-5 (1994). The members of the Fund did not enter a contract or agreement…”
Dobrowolska Ex Rel. Dobrowolska v. Wall, 530 S.E.2d 590 (N.C. Ct. App. 2000). · cites it 2× “” N.C. Gen. Stat. § 58-23-5 (1999). *7 “[T]he risks of the parties must be put in one pool for the payment of claims in order to have a local government risk pool.”
Kephart Ex Rel. Tutwiler v. Pendergraph, 507 S.E.2d 915 (N.C. Ct. App. 1998). · cites it 3× “2d at 153 ; see also N.C.G.S. § 58-23-5 (1994) (setting forth requirements of local government risk pools).”
Washington Hous. Auth. v. North Carolina Hous. Authorities Risk Retention Pool, 502 S.E.2d 626 (N.C. Ct. App. 1998). · cites it 2× “Plaintiff was a member of defendant North Carolina Housing Authorities Risk Retention Pool (NCHARRP), a local government risk pool formed pursuant to G.S. § 58-23-5 (1994), “to pool retention of their risks for property losses and liability claims and to provide for the payment…”
Simmons v. Corizon Health, Inc., 122 F. Supp. 3d 255 (M.D.N.C. 2015). “The LGELF fails to meet the statutory requirements of a local government risk pool because (1) two LGELF members, the Guilford County Board of Education and Guilford Technical Community-College, are not local governments, see N.C. Gen.Stat. §§ 58-23-1, 58-23 — 5(a); (Doc.”
Cross v. Residential Support Servs., Inc., 473 S.E.2d 676 (N.C. Ct. App. 1996). · cites it 2× “section 58-23-5(1994). G.S. section 160A-485(a), provides, in pertinent part: (a) Any city is authorized to waive its immunity from civil liability in tort by the act of purchasing liability insurance.”
N.C. Gen. Stat. § 58-23-5(1994): 1 case
Cross v. Residential Support Servs., Inc., 473 S.E.2d 676 (N.C. Ct. App. 1996). “section 58-23-5(1994). G.S. section 160A-485(a), provides, in pertinent part: (a) Any city is authorized to waive its immunity from civil liability in tort by the act of purchasing liability insurance.”
N.C. Gen. Stat. § 58-23-5(a): 1 case
Pettiford v. City of Greensboro, 556 F. Supp. 2d 512 (M.D.N.C. 2008). “2d 590, 596 (2000), the Fund fails to meet the statutory requirements of a local government risk pool because (1) two members, the Guil-ford County Schools and Guilford Technical Community College, are not local governments, N.C. Gen.Stat. §§ 58-23-5(a), 58-23-1; (Doc.”
N.C. Gen. Stat. § 58-23-5(e): 2 cases
Pettiford v. City of Greensboro, 556 F. Supp. 2d 512 (M.D.N.C. 2008). “2d 590, 596 (2000), the Fund fails to meet the statutory requirements of a local government risk pool because (1) two members, the Guil-ford County Schools and Guilford Technical Community College, are not local governments, N.C. Gen.Stat. §§ 58-23-5(a), 58-23-1; (Doc.”
Simmons v. Corizon Health, Inc., 122 F. Supp. 3d 255 (M.D.N.C. 2015). “The LGELF fails to meet the statutory requirements of a local government risk pool because (1) two LGELF members, the Guilford County Board of Education and Guilford Technical Community-College, are not local governments, see N.C. Gen.Stat. §§ 58-23-1, 58-23 — 5(a); (Doc.”
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