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Page 5 <br /> NC SERVICE AGREEMENT * <br /> 2. The county agency will assign participating households for <br /> either mail-pickup at the DSS (or issuance office) or for <br /> certified mail issuance upon the event of one replacement loss. <br /> The agency may elect to use mail-pickup or certified issuance <br /> for reasons other than replacement losses. <br /> 3. The county agency agrees to log such households at risk as a <br /> code 3 or code 7 respectively, on the State Computer (PSIS). <br /> 4. When losses for any quarter exceed the USDA tolerance level <br /> (now .5% of total quarterly issuance), beginning with the next <br /> quarter, all issuances of $200.00 and over will be sent either <br /> certified mail or to the agency for recipient pickup. <br /> 5. The county agency agrees that the contractor will not be <br /> obligated to insure or share in the replacement losses of those <br /> households at risk when conditions 1,2,3 & 4 listed above have not <br /> been met by the county agency. <br /> • <br /> 6. Claims will be accepted by the Contractor at the time the loss <br /> is established by the state based on written notice to the county <br /> agency. To file a claim, the county agency will forward to the <br /> Contractor copies of the letter of notice from the state and <br /> form FNS-259 for the appropriate period. Losses are not to be <br /> deducted from the service invoice. The county agency is <br /> protected against losses by private insurance, paid by <br /> Contractor. Losses will be filed with the insurance carrier . <br /> and reimbursement will be sent to the county agency when <br /> received by CCI, usually within 90 days. <br /> VII. AUTHORITY OF COUNT : The official executing this agreement covenants that <br /> he or she has authority to execute this agreement on behalf of the County <br /> of Orange , and approves the proprosal submitted by the • <br /> • Contractor for the services to be rendered as set forth in Section II of <br /> this agreement. <br /> VIII. INDEPENDENT CONTRACTOR: Conformity with The Laws <br /> (a) For all purposes of this agreement, the Contractor shall be deemed an <br /> • . independent Contractor, and neither the Contractor nor its agents or <br /> employees are or shall be deemed to be agents or employees of the <br /> County Agency or the State of North Carolina; and the Contractor <br /> shall hold and save harmless the County and the State of North <br /> Carolina from the claims of third parties arising out of any act <br /> or omission of the Contractor, its agents or employees, in <br /> performance of this agreement. <br /> • <br /> , • <br /> • <br /> • <br /> • <br /> • <br /> • <br />