143-300.4. Grounds for refusal of defense.
(a) The State shall refuse to provide for the defense of a civil or criminal action or proceeding brought against an employee or former employee if the State determines that:
(1) The act or omission was not within the scope and course of his employment as a State employee; or
(2) The employee or former employee acted or failed to act because of actual fraud, corruption, or actual malice on his part; or
(3) Defense of the action or proceeding by the State would create a conflict of interest between the State and the employee or former employee; or
(4) Defense of the action or proceeding would not be in the best interests of the State.
(b) The determinations required by subsection (a) of this section shall be made by the Attorney General. The Attorney General may delegate his authority to make these determinations to the chief administrative authority of any agency, institution, board, or commission whose employees are to be defended as provided by subdivision (3) or (4) of G.S. 143-300.5. Approval of the request by an employee or former employee for provision of defense shall raise a presumption that the determination required by this section had been made and that no grounds for refusal to defend were discovered. (1967, c. 1092, s. 1.)