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DocuSign Envelope ID: 3FD37DED-3EFC-49BB-BD08-D6EFCA4FEB76 <br /> C. Immunity <br /> The parties to this Contract intend for no coverage to exist under Section V (Public Officials Liability is <br /> Coverage) as to any claim for which the Covered Person is protected by sovereign immunity and/or <br /> governmental immunity under North Carolina law. It is the express intention of the parties to this <br /> Contract that none of the coverage set out herein be construed as waiving in any respect the <br /> entitlement of the Covered Person to sovereign immunity and/or governmental immunity. <br /> D. Defense Costs and Expenses <br /> 1. Except as stated in Section V(B)(3), for any claim or Suit the Pool defends for which coverage is <br /> afforded under this Section V of the Contract, the Pool will pay at its expense, in addition to the <br /> limits of liability stated in the Contract Declarations and Section V(G), and the sub-limits of liability <br /> stated in Section V(13)(4): <br /> a. Expenses incurred in the investigation, adjustment, defense, and settlement of covered <br /> claims or Stilts; <br /> b. Other reasonable expenses, except salaries of a Covered Person, incurred by a Covered <br /> Person at the Pool's request; and <br /> c. Court costs required by law, including pre-judgment interest. <br /> 2. However, if the Pool defends any claim or Suit for which coverage is not afforded under this <br /> Section V of the Contract, the Pool shall have the right to seek reimbursement from the <br /> Participant for any costs and expenses the Pool incurs in defending any uncovered claim or Suit. <br /> E. Covered Persons <br /> The following are Covered Persons, as the term is used in this Section V of the Contract: <br /> 1. The Participant; <br /> 2. Lawfully elected or appointed officials of the Participant while acting under the jurisdiction of the <br /> Participant and within the course and scope of his or her authority as a lawfully elected or <br /> appointed official under the jurisdiction of the Participant; <br /> 3. Employees of the Participant or employees of lawfully elected or appointed officials of the <br /> Participant working at the direction or control of a lawfully elected or appointed official of the <br /> Participant, but only while working within the course and scope of their employment, and provided <br /> the employee is not a Covered Person under any other Section of the Contract; and <br /> 4. Members of a commission, board, or other unit operating under the jurisdiction of the Participant, <br /> within apportionment of its total operating budget. Coverage shall not apply to any of the following <br /> boards, commissioners, or units, unless specifically endorsed hereon or specifically included on <br /> the Application: schools, airports, transit authorities, hospitals and health clinics, municipally- <br /> owned gas or electric companies, housing authorities, or fire stations. However, coverage shall <br /> apply to transit authorities and health clinics owned by a health department, which have paid a <br /> premium to the Pool to be included as a named Participant under the Contract. <br /> NCACC RMP PUBLIC OFFICIALS LIABILITY SECTION Page 2 of 9 <br /> EDITION 7/9/2038 <br />