Mississippi Administrative Code › Title 21 - Law And Justice › Part 301 - Mississippi Tort Claims Board Rules › Chapter 8 - Regulations for Political Subdivisions › Rule 21-301-8.1 - Insurance Requirements

Current through June 25, 2024
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
				Exclusion
s: 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.