Introduced Version
Senate Bill 644 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 644
(By Senators Minard and Williams)
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[Introduced February 22, 2010; referred to the Committee on
Banking and Insurance; and then to the Committee on Finance.]
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A BILL to amend and reenact §29-12A-16 of the Code of West
Virginia, 1931, as amended, relating to authorizing political
subdivisions to establish risk pools to insure their workers'
compensation risks; permitting Insurance Commissioner to
disapprove such risk pools if rules have not been made
effective; and authorizing the Insurance Commissioner to
promulgate emergency rules.
Be it enacted by the Legislature of West Virginia:
That §29-12A-16 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 12A. GOVERNMENTAL TORT CLAIMS AND INSURANCE REFORM ACT.
§29-12A-16. Procurement of liability insurance and self-insurance.
(a) A political subdivision may use public funds to secure
insurance with respect to its potential liability and that of its employees for damages in civil actions for injury, death or loss to
persons or property allegedly caused by an act or omission of the
political subdivision or any of its employees, including insurance
coverage procured through the State Board of Risk and Insurance
Management. The insurance may be at the limits for the
circumstances, and subject to the terms and conditions that are
determined by the political subdivision in its discretion.
The insurance may be for the period that is set forth in
specifications for competitive bids or, when competitive bidding is
not required, for the period that is mutually agreed upon by the
political subdivision and insurance company. The period does not
have to be, but can be, limited to the fiscal cycle under which the
political subdivision is funded and operates.
(b)(1) Regardless of whether a political subdivision procures
a policy or policies of liability insurance pursuant to subsection
(a) of this section or otherwise:
(A) Any political subdivision may establish and maintain a
self-insurance program relative to its potential liability and that
of its employees for damages in civil actions for injury, death, or
loss to persons or property allegedly caused by an act or omission
of the political subdivision or any of its employees; or
(B) Any group of two or more political subdivisions may
establish and maintain a self-insurance pool relative to their
collective potential liability and that of their collective employees for damages in civil actions for injury, death or loss to
persons or property allegedly caused by an act or omission of the
political subdivision or any of its employees.
(2) Any group of two or more political subdivisions may, upon
approval of the Insurance Commissioner, establish and maintain a
self-insurance pool to insure their workers' compensation risks:
Provided, That the commissioner may disapprove any application to
operate such a risk pool until rules regulating such programs have
been made effective.
(2) (3) If it so chooses, the political subdivision or group
of political subdivisions may contract with any person, any
licensed West Virginia insurance agent, other political
subdivision, municipal association, county association or regional
council of governments for purposes of the administration of the
program or pool.
(c) Political subdivisions that have established self-
insurance programs relative to their potential liability and that
of their employees, as described in subdivision paragraph (A),
subdivision (1), subsection (b)(1) of this section, may mutually
agree that their self-insurance programs may be jointly
administered in a specified manner.
(d) The purchase of liability insurance, or the establishment
and maintenance of a self-insurance program, by a political
subdivision does not constitute a waiver of any immunity it may have pursuant to this article or any defense of the political
subdivision or its employees.
(e) The authorization for political subdivisions to secure
insurance and to establish and maintain self-insurance programs and
pools, as set out in subsections (a) and (b) in this section, are
in addition to any other authority to secure insurance or to
establish and maintain self-insurance that is granted pursuant to
this code or the Constitution of this state, and they are not in
derogation of any other authorization.
(f) An insurance agent licensed in West Virginia is authorized
to establish or write policies for a self-insurance program or pool
for political subdivisions, pursuant to the provisions of this
section.
(g) The commissioner of Insurance Commissioner shall propose
rules for legislative approval, pursuant to the provisions of
chapter twenty-nine-a of this code, setting forth the criteria for
establishing and maintaining self-insurance programs and pools for
political subdivisions, and may promulgate emergency rules pursuant
to the provisions of section fifteen, article three, chapter
twenty-nine-a of this code.
NOTE: The purpose of this bill is to authorize political
subdivisions to establish risk pools to insure their workers'
compensation risks, permit the Insurance Commissioner to disapprove
such risk pools if rules have not been made effective and authorize the Insurance Commissioner to promulgate emergency rules.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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