745 ILCS 10/9-103
2021 Illinois Compiled Statutes|Chapter 745 - CIVIL IMMUNITIES|745 ILCS 10/ - Local Governmental and Governmental Employees Tort Immunity Act.|Article IX - Payment Of Claims And Judgment

 (from Ch. 85, par. 9-103)Sec. 9-103. (a) A local public entity may protect itself against any property damage or against any liability or loss which may  be imposed upon it or one  of its employees for a tortious act under Federal or State common or statutory  law, or imposed upon it under the Workers' Compensation Act, the Workers'  Occupational Diseases Act, or the Unemployment Insurance Act by means  including, but not limited to, insurance, individual or joint self-insurance,  including all operating and administrative costs and expenses directly  associated therewith, claims services and risk management directly attributable  to loss prevention and loss reduction, legal services directly  attributable to the  insurance, self-insurance, or joint self-insurance program,  educational, inspectional, and supervisory services directly relating  to  loss  prevention and loss reduction, or participation in a reciprocal insurer as  provided in  Sections 72, 76 and 81 of the Illinois Insurance Code. Insurance shall be  carried with a company authorized by the Department of Insurance to write  such insurance coverage in Illinois.(a-5) A local public entity may  individually or jointly self-insure provided it complies with any other  statutory requirements specifically related to individual or joint  self-insurance by local public entities.  Whenever the terms "self-insure"  or "self-insurance" are utilized within this Act, such term shall apply to  both individual and joint self-insurance. The expenditure of funds of a  local public entity to protect itself or its employees against liability is  proper for any local public entity.  A local public entity that has individually self-insured may establish  reserves for  expected losses for any liability or loss for which the local public entity is  authorized to purchase insurance under this Act.  The decision of the local  public entity to establish a reserve and the amount of the reserve shall be  based on reasonable actuarial or insurance underwriting evidence. Property  taxes shall not be levied or extended if the effect is  to increase the reserve beyond 125% of the actuary's or insurance underwriter's  estimated ultimate losses at the 95% confidence level.  Certification of the  amount of the reserve shall be made by the independent auditor, actuary, or  insurance underwriter and  included in an annual report.  The annual report shall also list all expenditures from the reserve  or from property taxes levied or extended for tort immunity purposes.  Total  claims payments and total reserves must be listed in aggregate amounts.  All  other expenditures must be identified individually.  A local public entity  that maintains a self-insurance reserve or that levies and extends a property  tax for tort immunity purposes must include in its audit or annual report any  expenditures made  from  the property tax levy or self-insurance reserve within the scope of the  audit or annual report.(b) A local public entity may contract for or purchase any of the  guaranteed fund certificates or shares of guaranteed capital as provided  for in Section 56 of the Illinois Insurance Code.  The expenditure of  funds of the local public entity for said contract or purchase is proper  for any local public entity.(c) Any insurance company that provides insurance coverage to a local  public entity shall utilize any immunities or may assert any defenses to  which the insured local public entity or its employees are entitled.  Public entities which are individually or jointly self-insured shall be  entitled to assert all of the immunities provided by this Act or by common  law or statute on behalf of themselves or their employees unless the local  public entities shall elect by action of their corporate authorities or  specifically contract to waive in whole or in part such immunities.(d) Within 30 days after January 1, 1991, and within 30 days after  each January 1 thereafter, local public entities that are individually or  jointly self-insured to protect against liability under the Workers'  Compensation Act and the Workers' Occupational Diseases Act shall file with  the Illinois Workers' Compensation Commission a report indicating an election to self-insure.       (Source: P.A. 93-721, eff. 1-1-05.)