You must promptly notify us of any claim, even if you believe that it is unfounded or that you could resolve it. We may agree to your plan of resolution, if it is consistent with applicable law and rules . Contract means any purported agreement or promise which is asserted to impose upon you a legal duty to perform or refrain from some action. The contract need not meet all the contractual tests of legal enforceability. It may be created by operation of law or by federal or state administrative regulations which define benefits or procedures you have chosen to administer.
Damages means judgment awards, settlements, penalties and awards of plaintiff's costs.
Employment claim means a tort claim based on a state employee's legally protected employment rights and interests. It does not include claims based on rights or interests arising out of collective bargaining agreements or other contracts. Losses means our costs of defense, damages and related costs for claims against you or your staff. If a claim names multiple defendants or an incorrect defendant, we will determine to whom losses will be charged for premium allocation purposes. Losses, for premium allocation purposes, also include your costs of defending or paying any claim which, contrary to this policy manual, you do not report to us, even though those costs are not reimbursed from the Insurance Fund.