H. B. 3171
(By Delegates White, Kominar and Perry)
[Introduced March 17, 2009; referred to the
Committee on Political Subdivisions then the Judiciary.]
A BILL to amend and reenact §29-12A-16 of the Code of West
Virginia, 1931, as amended, relating to if any group of two or
more political subdivisions establish and maintain a self-
insurance pool the operation of such a pool will constitute
doing insurance business and will be governed by the insurance
laws of the State of West Virginia.
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.
In addition, if any
group of two or more political subdivisions establish and maintain
a self-insurance pool the operation of such a pool will constitute
doing insurance business and will be governed by the insurance laws
of the State of West Virginia.
(2) 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 (A), 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 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.
NOTE: This bill shall define that if any group of two or more
political subdivisions establish and maintain a self-insurance
pool, the operation of such a pool will constitute an insurance
business and will be governed by the insurance laws of the State of
West Virginia.
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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