Pursuant to Section
11-46-17(3),
Mississippi Code of 1972, as amended, the Tort Claims Board adopts the
following regulations respecting the policy or policies of insurance, the
requirements for self-insurance reserves, the requirements for pooling
agreements and contracts between and among political subdivisions, or
combinations of such insurance, reserves and pooling agreements. Approval of
the Board shall be conditioned upon fulfilling the requirements of those
regulations.
A.
Statutory
Exclusions: The insurance plan may contain any or all of the exclusions,
exemptions or defenses set forth in Section
11-46-9,
Mississippi Code of 1972, as amended, or in any other provision of state law.
If the plan intends to incorporate such exclusions, etc., it shall specifically
do so.
B.
Additional
Exclusions: The Board determines that the following additional
exclusions or limitations may be incorporated into the plan or policies of
insurance for political subdivisions:
Insofar as they are applicable to the state and political
subdivisions and are not contrary to Mississippi state statutes or case law,
the Board adopts and approves the exclusions and limitations contained in the
current version of the ISO Commercial General Liability Form (1988), and the
Business Auto Liability Policy CA0001, 11/88 Edition.
C.
Reserves and Retentions:
Self-insurance reserves and/or aggregate retentions may be approved by the
Board, but must comply with the following requirements:
1. Amount: Amount of reserve or retention
shall be established based on actuarial estimates for a self-insured or pool of
similar size and risk exposure.
2.
Trust Indenture: The political subdivision shall enter into an agreement with
the Tort Claims Board that a Trust Account shall be established with a state
depository. The agreement shall provide that only tort claim settlements or
judgments, cost of legal defense, third party administrator fees and expenses,
and the costs of regulation as determined by the Board shall be paid from the
fund. All other related expenses, including liability claims not subject to the
tort claims limitations of Section
11-46-1,
et seq. of the Mississippi Code of 1972, as amended, shall not be expended from
the trust account.
3. Audit by
Independent Certified Public Accountancy Firm: An annual compliance audit on
the operations and transactions affecting the trust account shall be required.
The audit shall be conducted by a certified public accountancy firm and the
cost paid by the self-insuring entity.
4. Actuarial Review: An annual actuarial
review of reserve adequacy, claim patterns and loss history, with
recommendations regarding the initial and annual contribution to the reserve,
must be contracted for with an insurance consulting or actuarial firm. Such
contract and the initial report and recommendations must accompany the
application for approval. Such reports must be furnished to the Tort Claims
Board annually.
5. Insurance
Policies: All insurance policies constituting all or a portion of the insurance
plan must name the Tort Claims Board as additional insured in order that the
Board receives direct notification by the carrier of any policy cancellations
or changes prior to annual renewal.
6. Annual Reapplication for Approval: The
political subdivision shall annually reapply for approval of its self-insured
plan or plan of aggregate retention. The information required shall be
submitted 60 days before the end of the fiscal year. In the event the
application is denied, the political subdivision shall be given 30 days to
reapply.
D.
Pooling Agreements: Pooling of liabilities between and among political
subdivisions is authorized by Section
11-46-17(5),
of the Mississippi Code of 1972, as amended, subject to the approval of the
Board. The Board may require a pooling agreement to provide for adequate excess
insurance coverage and umbrella insurance coverage. Pooling agreements shall
also be subject to the requirements of Section 103 above.
E. The following categories of political
subdivisions shall provide coverage for these types of tort risks:
1. Counties:
Auto, general, public officials', and law enforcement
liability,
2.
Municipalities:
Auto, general, public officials', and law enforcement
liability.
3. School
Districts:
Auto, general, public officials' or directors and officers'
(depending on whether the trustees are elected or appointed), athletic
participation, and professional liability.
4. Community Hospitals:
Auto, general, directors and officers', law enforcement, and
professional liability.
5.
Airport Authorities:
Auto, general, hangar-keeper's, and directors and officers'
liability.
6. Community
Colleges:
Auto, general, law enforcement, directors and officers',
professional, athletic participation, and student nurses' professional
liability.
7. Housing
Authorities:
Auto, general, and directors and officers' liability.
8. Library Systems:
Auto, general, and directors and officers' liability.
9. Mental Health Services:
Auto, general, directors and officers', and professional
liability.
10. Soil and
Water Conservation Districts: Auto and general liability.
11. Utility Districts. Gas Districts. and
Sewer Districts: Auto, general, and directors and officers'
liability.
12. Drainage Districts:
Auto and general liability.
13.
Economic Development Districts:
Auto, general, and directors and officers' liability.
14. Fire Protection Districts:
Auto and general liability.
15.
Miscellaneous Political Subdivisions:
Auto, general, and other liabilities depending on the
specific political subdivision's function, authority, etc.
