Section 58-20-20 - Mutual agreement for indemnification(a) An agreement made under this Article shall contain provisions for: (1) A system or program of loss control;(2) The termination of membership;(3) The payment by the Club of all claims for which a member incurred liability during the period of his membership;(4) The non-payment of claims where a member has individually retained the risk, or where the risk is not specifically covered, or where the amount of the claim exceeds the coverage provided by the Club;(5) The assessment of members;(6) The payment of contributions from members to satisfy deficiencies;(7) The maintenance of claim reserves equal to known incurred losses and loss adjustment expenses and to an estimate of incurred but not reported losses; and(8) Final accounting and settlement of the obligations or refunds to a terminating member when all incurred claims are settled.(b) The agreement required by this section may also include provisions authorizing the Club to: (1) To establish offices where necessary in this State, and employ necessary staff to carry out its purposes;(2) Retain legal counsel, actuaries, claims adjusters, auditors, engineers, private consultants, and advisors, and other persons as the board of trustees or the administrator deem to be necessary;(3) Amend or repeal its bylaws;(4) Purchase, lease, or rent real and personal property as it deems necessary; and(5) Enter into agreements with financial institutions that permit it to issue checks or other negotiable instruments in its own name.N.C. Gen. Stat. § 58-20-20