COMMITTEE SUBSTITUTE

FOR

H. B. 2003

(By Delegate Amores)


(Originating in the Committee on Finance)


[February 21, 2003]


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 law to allow for one or more municipalities to self-insure together and eliminating the requirement that the insurance 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)(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) 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
(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) 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 the 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 criteria for establishing a self-insurance program for political subdivisions.