47-5-1115 - Prerequisites for contracting for correctional services.
§ 47-5-1115. Prerequisites for contracting for correctional services.
A contract for correctional services shall not be entered into unless the following requirements are met:
(a) The contractor provides an adequate plan of insurance, specifically including insurance for civil rights claims, as determined by an independent risk management/actuarial firm with demonstrated experience in public liability for state governments. In determining the adequacy of the plan, such firm shall determine whether:
(i) The insurance is adequate to protect the state from any and all actions by a third party against the contractor or the state as a result of the contract;
(ii) The insurance is adequate to protect the state against any and all claims arising as a result of any occurrence during the term of the contract; that is, the insurance is adequate on an occurrence basis, not on a claims-made basis;
(iii) The insurance is adequate to assure the contractor's ability to fulfill its contract with the state in all respects, and to assure that the contractor is not limited in this ability because of financial liability which results from judgments; and
(iv) The insurance is adequate to satisfy such other requirements specified by the independent risk management/actuarial firm.
(b) The sovereign immunity of the state shall not apply to the contractor. Neither the contractor nor the insurer of the contractor may plead the defense of sovereign immunity in any action arising out of the performance of the contract.
Sources: Laws, 1994, ch. 450, § 8, eff from and after July 1, 1994; reenacted without change, Laws, 1999, ch. 540, § 8; reenacted without change, Laws, 2001, ch. 480, § 8; reenacted without change, Laws, 2002, ch. 617, § 8; reenacted without change, Laws, 2003, ch. 372, § 8; reenacted without change, Laws, 2004, ch. 471, § 8; reenacted without change, Laws, 2006, ch. 385, § 8, eff from and after July 1, 2006.