Insurance Requirements

Insurance Requirements. 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.