H. B. 2009
(By Delegates Amores and Hunt)
[Introduced
January 13, 1999; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend and reenact section sixteen, article twelve-a,
chapter twenty-nine of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
clarifying the current law to allow for one or more
municipalities to self-insure together and eliminating the
requirement that the commissioner promulgate rules relating
to self-insurance programs for political subdivisions.
Be it enacted by the Legislature of West Virginia:
That section sixteen, article twelve-a, 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 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 in 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 of time that is set
forth in specifications for competitive bids or, when competitive
bidding is not required, for the period of time that is mutually
agreed upon by the political subdivision and insurance company.
The period of time does not have to be, but can be, limited to
the fiscal cycle under which the political subdivision is funded
and operates.
(b) Regardless of whether a political subdivision procures
a policy or policies of liability insurance pursuant to
subsection (a) of this section or otherwise:
(1) the Any political subdivision may establish and maintain
a self-insurance program relative to its potential liability and
that of its employees in 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
(2) 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.
If it so chooses, the political subdivision or group of
political subdivisions may contract with any person, other
political subdivision, municipal association or regional council
of governments for purposes of the administration of such a
program.
(c) Political subdivisions that have established group or
pooled self-insurance programs relative to their potential
liability and that of their employees as described in subsection
(b) of this section may mutually agree that their self-insurance
programs will 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
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) The commissioner of insurance shall promulgate
legislative rules or regulations pursuant to chapter
twenty-nine-a of this code, setting forth guidelines relating
to self-insurance programs for political subdivisions.
NOTE: The purpose of this bill is to clarify the current
law to allow for one or more municipalities to self-insure
together and eliminating the requirement that the commissioner
promulgate rules relating to self-insurance programs for
political subdivisions.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.