The Vermont Statutes Online

Title 29: Public Property and Supplies

Chapter 055: State Insurance

• § 1401. Purchase of insurance

  The Secretary of Administration shall secure insurance coverage for the benefit of the State and its employees while performing official duties, in fire and casualty companies authorized to do business in this State in such amounts and such coverages as deemed for the best interests of the State. Insurance policies covering the State shall provide that loss, if any, shall be payable to the State. All policies shall be filed and kept in the office of the Secretary of Administration. The cost of all insurance purchased and the cost of managing such purchases shall be borne by the department or board for whose benefit it is purchased. (Added 1959, No. 328 (Adj. Sess.), § 14; amended 1985, No. 242 (Adj. Sess.), § 306; 1995, No. 148 (Adj. Sess.), § 4(a), eff. May 6, 1996; 2013, No. 50, § E.101.)

• § 1402. Repealed. 2013, No. 50, § E.101.1.

• § 1403. Waiver of immunity by municipal corporations and counties

  Notwithstanding the provisions of 12 V.S.A. § 5602 or any other statute, when a municipal corporation purchases a policy of liability insurance under 24 V.S.A. § 1092, and when a county purchases a policy of liability insurance under the provisions of 24 V.S.A. § 131, it waives its sovereign immunity from liability to the extent of the coverage of the policy and consents to be sued. (Added 1959, No. 328 (Adj. Sess.), § 14; amended 1981, No. 213 (Adj. Sess.), § 1; 1989, No. 114, § 7, eff. June 20, 1989.)

• § 1404. Judgments, maximum liability of municipal corporations and counties

  Upon trial of any action in which sovereign immunity has been waived, as provided in section 1403 of this title, a judgment shall not be rendered against a municipal corporation or county for more than the maximum amount of liability insurance carried by it and applicable to the subject matter of the action. (Added 1959, No. 328 (Adj. Sess.), § 14; amended 1989, No. 114, § 8, eff. June 20, 1989.)

• § 1405. Inventories of State property

  State departments, institutions, and agencies having property belonging to the State or in their charge on or before February 1 in each even-numbered year shall render an inventory to the Secretary of Administration of all such property, and its value, on hand on January 1 preceding, on such forms and in such detail as the Secretary of Administration may require. (Added 1959, No. 328 (Adj. Sess.), § 14; amended 1963, No. 215, § 4; 1995, No. 148 (Adj. Sess.), § 4(a), eff. May 6, 1996; 2013, No. 50, § E.101.2.)

• § 1406. Liability insurance

  (a) The Secretary of Administration, on behalf of the State, may contract or enter into agreements with any insurance company or companies or insurance corporation or corporations licensed to do business within the State for the purpose of insuring the State against liability or may self-insure against liability.

  (b) The Secretary of Administration is directed to charge back against individual departmental appropriations in all funds the proper amounts necessary to pay the cost of the insurance or self-insurance referred to in subsection (a) of this section.

  (c) The State Liability Self-Insurance Fund is created to provide a program of self-insuring liability coverages for all State agencies, Legislature, departments, State colleges, Judiciary, quasi-State agencies, boards, commissions, and employees, as defined in 3 V.S.A. § 1101. All covered entities shall participate in the program and shall contribute to the Fund. The Fund shall be administered by the Secretary of Administration to adjust claims, to pay judgments, and to reimburse contractors and State agencies for services rendered.

  (1) All balances remaining in the Fund at the end of the fiscal year shall be carried forward to remain in the Fund. Interest earned by the Fund shall be deposited in the Fund.

  (2) The Commissioner of Finance and Management may anticipate receipts to this Fund and issue warrants based thereon.

  (3) Losses shall be fully reserved and funded and provision shall be made for losses incurred but not reported. The Fund shall be actuarially reviewed annually. (Added 1959, No. 328 (Adj. Sess.), § 14; amended 1981, No. 213 (Adj. Sess.), § 2; 1983, No. 195 (Adj. Sess.), § 5(b); 1987, No. 243 (Adj. Sess.), § 46, eff. June 13, 1988; 1989, No. 114, § 9, eff. June 20, 1989; 1989, No. 163 (Adj. Sess.), § 1; 1995, No. 148 (Adj. Sess.), § 4(a), eff. May 6, 1996; 2013, No. 50, § E.101.3.)

• § 1407. Definition

  For purposes of this chapter only, natural resources conservation districts shall be considered agencies of the State, and their employees shall be considered State employees. (Added 1983, No. 142 (Adj. Sess.), § 1, eff. April 6, 1984.)

• § 1408. Workers’ compensation insurance

  (a) The State Employees’ Workers’ Compensation Fund is created to provide a program for self-insurance coverage for all officers and State employees, as defined in 3 V.S.A. § 1101, of all State agencies, departments, boards, and commissions, as well as any other person defined as an employee pursuant to 21 V.S.A. chapter 9. All State agencies, departments, boards, and commissions shall participate in the program and contribute to the Fund. The Fund shall be administered by the Secretary of Administration, who:

  (1) shall authorize payments from the Fund in accordance with the provisions of this section and 21 V.S.A. chapter 9;

  (2) shall make final decisions regarding voluntary acceptance of claim and case management;

  (3) may contract with independent adjustment companies for claims adjustment services;

  (4) may conduct actuarial reviews and loss prevention programs;

  (5) may provide no more than six percent of the total annual assessment for that fiscal year for loss prevention programs and actuarial reviews.

  (b) All balances remaining in the Fund at the end of the fiscal year shall be carried forward to remain in the Fund. Interest earned by the Fund shall be deposited in the Fund.

  (c) [Repealed.]

  (d) The Secretary shall annually assess each program participant an amount to be deposited in the State Employees’ Workers’ Compensation Fund. The Secretary may adjust the annual assessment to ensure that the debts and obligations of the program are adequately funded.

  (e) The Commissioner of Finance and Management may anticipate receipts to this Fund and issue warrants based thereon.

  (f) Losses shall be fully reserved and funded in accordance with common insurance industry practices and in accordance with the principle of accuracy rather than adequacy whenever possible. The Fund shall be actuarially reviewed annually. (Added 1989, No. 104, § 1, eff. Feb. 1, 1990; amended 1995, No. 148 (Adj. Sess.), § 4(a), eff. May 6, 1996; 2003, No. 122 (Adj. Sess.), § 33, eff. June 10, 2004; 2005, No. 209 (Adj. Sess.), § 34; 2013, No. 50, § E.101.4; 2015, No. 172 (Adj. Sess.), § E.102.)