H. B. 2003
(By Delegate Amores)
[Introduced January 8, 2003; 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 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
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
(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:
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
(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
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 that one or more
municipalities may self-insure together. The bill also eliminates
the requirement that the Insurance 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