The Mississippi Tort Claims Board (the Board) was
established pursuant to HB 417, Regular Session 1993, and Section
11-46-1 et
seq. of the Mississippi Code of 1972, as amended. Section
11-46-17(3)
requires that "All political subdivisions shall, from and after October 1,
1993, obtain such policy or policies of insurance, establish such self
insurance reserves, or provide a combination of such insurance and reserves as
necessary to cover all risks of claims and suits for which political
subdivisions may be liable under this chapter; provided, except any political
subdivision shall not be required to obtain pollution liability insurance.
However, this shall not limit any cause if action against such political
subdivision relative to limits of liability under the Tort Claims Act. Such
policy or policies of insurance or such self insurance may contain any
reasonable limitations or exclusions not contrary to Mississippi state statutes
or case law as are normally included in commercial liability insurance policies
generally available to political subdivisions. All such plans of insurance
and/or reserves shall be submitted for approval to the Board. The Board shall
issue a Certificate of Coverage to each political subdivision whose plan of
insurance and/or reserves it approves in the same manner as provided in
subsection (2) of this section. Whenever any political subdivision fails to
obtain the Board's approval of any plan of insurance and/or reserves, the
political subdivision shall act in accordance with the rules and regulations of
the Board and obtain a satisfactory plan of insurance and/or reserves to be
approved by the board."
A.
Purchase of Liability Insurance:
1.
Any political subdivision purchasing a liability policy or policies shall
purchase such policy only from an insurance company with a minimum Best rating
of B+, or with a certification from the Department of Insurance, or a
determination by the Tort Claims Board, that such insurance company has a sound
financial condition. This paragraph shall not be construed as a delegation of
authority by the Tort Claims Board to any person or entity, and the Tort Claims
Board specifically reserves unto itself the authority to approve or disapprove
such insurance company based on other appropriate criteria.
2. Minimum limits of such liability policies
must meet or exceed the statutory limitations of liability as established by
the Tort Claims Act.
3. All such
policies must be presented to the board in the form of a copy of the
declaration page of such policy or policies.
4. Each subdivision shall purchase such
insurance and shall present same to the board for approval and issuance of a
Certificate of Coverage.
B.
Pooling of Two (2) or More
Political Subdivisions:
1. For the
purpose of purchasing one or more liability policies of insurance, all
purchases shall be made only from an insurance company with a minimum Best
rating of B+ or with a certification from the Department of Insurance that such
insurance company has the financial condition equivalent to a minimum Best
rating of B+. This paragraph shall not be construed as a delegation of
authority by the Tort Claims Board to any person or entity, and the Tort Claims
Board specifically reserves unto itself the authority to approve or disapprove
such insurance company based on other appropriate criteria.
2. Minimum limits of liability purchased must
meet or exceed the limitations of liability as established in the Tort Claims
Act.
3. Any two (2) or more
political subdivisions agreeing to form a pool and self-insure must submit to
the Board plans for establishing adequate amounts to be reserved for payment of
claims, amounts reserved to be allocated toward any expenses of the pool, and
what funds shall be used to establish said reserves. Each political subdivision
participating in said pool shall reveal any and all funds it plans to use to
participate in the pool.
4. The
Board must be furnished with an executed copy of the pooling agreement
supported by appropriate resolutions or orders of the participating political
subdivisions. The pooling agreement shall reflect the rights and
responsibilities of the participants. The agreement shall provide for insurance
over and above the aggregate of the pool assets to minimize further risk to
pool participants for additional contributions during the plan year. The first
layer of coverage above the pool aggregate shall extend from the pool amount to
Five Million Dollars ($5,000,000). If an umbrella coverage is deemed necessary
by the Board, an additional amount of such coverage may be required.
C.
A Political Subdivision
Self-Insuring Alone:
1. A political
subdivision choosing to self-insure must submit to the Board a plan to
establish adequate amounts to be reserved for payment of claims against the
political subdivision. Such plan shall reveal those funds to be used to
establish reserves, how the self-insurance program shall be administered and
how claims against the self-insured shall be paid, as well as expenses for
administration, investigation, defense, etc., shall be paid. Any and all funds
to be used to establish reserves for payment of claims and expenses must be
revealed.
2. In addition to the
reserves identified by the applicant, the self-insuring political subdivisions
shall be required to obtain a first layer of insurance coverage above the
aggregate amount of the reserve. Additional umbrella coverage may also be
required in some cases. The amounts and types of such coverages shall be
determined by the Board upon submission of application by the political
subdivision on a case by case determination.
D.
Submission of Plans for
Approval:
1. All plans for purchasing
insurance, formation of a pool by two (2) or more political subdivisions or a
political subdivision choosing to self-insure must be submitted to "the Board
for approval or rejection. If approved, a Certificate of Coverage shall be
issued for the political subdivisions.
2. If a plan is rejected by the Board, or if
any political subdivision fails to obtain approval of the Board of any plan of
insurance and/or reserves, the political subdivision shall act in accordance
with the rules and regulations of the Board and obtain a satisfactory plan of
insurance and/or reserves to be approved by the Board.
3. The Board shall have the authority to
pursue judicial enforcement of the requirements of Section
11-46-1 et
seq. of the Mississippi Code of 1972, as amended and these regulations in any
court of competent jurisdiction; and, take all other reasonable and necessary
actions to carry out the powers and duties of the Board under Section
11-46-1 et
seq. of the Mississippi Code of 1972, as amended and these
regulations.
E.
Combinations of Insurance Policies and Reserves: Any pool or
self-insurance plan may contain a combination of insurance policies purchased
and adequate reserves established for payment of claims. The plan must be
submitted to the Board for approval and any such plan must comply with
applicable of Sections 100 through 104 above.
F.
Subrogation Rights: The
Department of Finance and Administration shall have such subrogation rights as
prescribed by the Act and Amendments thereof against third parties.
G.
Address: All applications
and communications should be submitted to:
Lee Ann McElroy, Administrator
Mississippi Tort Claims Board
P. O. Box 267
Jackson, MS 39205
