H. B. 4318
(By Delegate Walters, By Request)
[Introduced February 9, 1998; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section five, article twelve, chapter
twenty-nine of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to deleting the
requirement that the attorney general have knowledge of and
give consent to all settlements and releases negotiated by
the state board of insurance.
Be it enacted by the Legislature of West Virginia:
That section five, article twelve, chapter twenty-nine of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 12. STATE INSURANCE.
§29-12-5. Powers and duties of board.
(a) The board shall have general supervision and control
over the insurance of all state property, activities and
responsibilities, including the acquisition and cancellation
thereof; determination of amount and kind of coverage, including, but not limited to, deductible forms of insurance coverage,
inspections or examinations relating thereto, reinsurance, and
any and all matters, factors and considerations entering into
negotiations for advantageous rates on and coverage of all such
state property, activities and responsibilities. Any policy of
insurance purchased or contracted for by the board shall provide
that the insurer shall be barred and estopped from relying upon
the constitutional immunity of the state of West Virginia against
claims or suits: Provided, That nothing herein shall bar the
insurer of political subdivisions from relying upon any statutory
immunity granted such political subdivisions against claims or
suits. The board may enter into any contracts necessary to the
execution of the powers granted to it by this article. It shall
endeavor to secure the maximum of protection against loss, damage
or liability to state property and on account of state activities
and responsibilities by proper and adequate insurance coverage
through the introduction and employment of sound and accepted
methods of protection and principles of insurance. It is
empowered and directed to make a complete survey of all presently
owned and subsequently acquired state property subject to
insurance coverage by any form of insurance, which survey shall
include and reflect inspections, appraisals, exposures, fire
hazards, construction, and any other objectives or factors
affecting or which might affect the insurance protection and
coverage required. It shall keep itself currently informed on new and continuing state activities and responsibilities within
the insurance coverage herein contemplated. The board shall work
closely in cooperation with the state fire marshal's office in
applying the rules of that office insofar as the appropriations
and other factors peculiar to state property will permit. The
board is given power and authority to make rules governing its
functions and operations and the procurement of state insurance,
but shall not make or promulgate any rules in contravention of or
inconsistent with the laws or rules governing the office of
insurance commissioner of West Virginia.
The board is hereby authorized and empowered to negotiate
and effect settlement of any and all insurance claims arising on
or incident to losses of and damages to state properties,
activities and responsibilities hereunder and shall have
authority to execute and deliver proper releases of all such
claims when settled. The board may adopt rules and procedures
for handling, negotiating and settlement of all such claims. All
such settlements and releases shall be effected with the
knowledge and consent of the attorney general.
(b) If requested by a political subdivision or by a
charitable or public service organization, the board is
authorized to provide property and liability insurance to the
political subdivisions or such organizations to insure their
property, activities and responsibilities. Such board is
authorized to enter into any necessary contract of insurance to further the intent of this subsection.
The property insurance provided by the board, pursuant to
this subsection, may also include insurance on property leased to
or loaned to the political subdivision or such organization which
is required to be insured under a written agreement.
The cost of this insurance, as determined by the board,
shall be paid by the political subdivision or the organization
and may include administrative expenses. All funds received by
the board, (including, but not limited to, state agency premiums,
mine subsidence premiums, and political subdivision premiums)
shall be deposited with the West Virginia investment management
board with the interest income a proper credit to such property
insurance trust fund or liability insurance trust fund, as
applicable.
Political subdivision as used in this subsection shall have
the same meaning as in section three, article twelve-a of this
chapter.
Charitable or public service organization as used in this
subsection means a bona fide, not for profit, tax-exempt,
benevolent, educational, philanthropic, humane, patriotic, civic,
religious, eleemosynary, incorporated or unincorporated
association or organization or a rescue unit or other similar
volunteer community service organization or association, but does
not include any nonprofit association or organization, whether
incorporated or not, which is organized primarily for the purposes of influencing legislation or supporting or promoting
the campaign of any candidate for public office.
NOTE: The purpose of this bill is to delete the requirement
that the attorney general have knowledge of and give consent to
all settlements and releases negotiated by the state board of
insurance.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.