Excess Liability Coverage

Excess Liability Coverage. 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.