Section
11-46-17(4),
Mississippi Code of 1972, as amended, provides: "Any governmental entity of the
state may purchase liability insurance to cover claims in excess of the amounts
provided for in Section
11-46-15
and may be sued by anyone in excess of the amounts provided for in Section
11-46-15
to the extent of such excess insurance carried; provided, however, that the
immunity from suit above the amounts provided for in Section
11-46-15
shall be waived only to the extent of such excess liability insurance
carried."
A. Every state agency is
protected to the extent of the limitations of liability as provided in the Tort
Claims Act. The decision to purchase excess coverage above the statutory
limitations of liability is a policy decision of each individual agency.
Approval of the Tort Claims Board is not required for purchase of excess
coverage; however, the Tort Claims Board does suggest the following guidelines
in purchasing any such excess coverage:
1.
The statutory limitations of liability as provided in the Tort constitute
primary coverage and are mandatory for every state agency.
2. The purchase of any excess coverage should
be from an insurance company with a minimum Best rating of B+.
3. A copy of the declaration page of any
excess policy should be provided to the Tort Claims Board as the Board must
notify the Third Party Administrator of such excess coverage. The Third Party
Administrator will notify any excess carrier of any claim that may exceed the
statutory limitations of liability.
4. Each agency electing to purchase excess
coverage shall submit to the Tort Claims Board, in writing, the reasons the
agency believes it is necessary to have a greater amount of protection than
that provided in the Tort Claims Act. All such reasons are to be submitted to
the legislature annually.
