2.2-1839 - Risk management plans administered by the Department of the Treasury's Risk Management Division for political subdivisions, constitutional officers, etc.
§ 2.2-1839. Risk management plans administered by the Department of theTreasury's Risk Management Division for political subdivisions,constitutional officers, etc.
A. The Division shall establish one or more risk management plans specifyingthe terms and conditions for coverage, subject to the approval of theGovernor, and which plans may be purchased insurance, self-insurance or acombination of self-insurance and purchased insurance to provide protectionagainst liability imposed by law for damages and against incidental medicalpayments resulting from any claim made against any county, city or town;authority, board, or commission; sanitation, soil and water, planning orother district; public service corporation owned, operated or controlled by alocality or local government authority; constitutional officer; statecourt-appointed attorney; any attorney for any claim arising out of theprovision of pro bono legal services for custody and visitation to aneligible indigent person under a program approved by the Supreme Court ofVirginia or the Virginia State Bar; any receiver for an attorney's practiceappointed under § 54.1-3900.01 or 54.1-3936; affiliate or foundation of astate department, agency or institution; any clinic that is organized inwhole or primarily for the delivery of health care services without charge;volunteer drivers for any nonprofit organization providing transportation forpersons who are elderly, disabled, or indigent to medical treatment andservices, provided the volunteer driver has successfully completed trainingapproved by the Division; any local chapter or program of the Meals on WheelsAssociation of America or any area agency on aging, providing meal andnutritional services to persons who are elderly, homebound, or disabled, andvolunteer drivers for such entities who have successfully completed trainingapproved by the Division; any individual serving as a guardian or limitedguardian as defined in § 37.2-1000 for any consumer of a community servicesboard or behavioral health authority or any patient or resident of a statefacility operated by the Department of Behavioral Health and DevelopmentalServices; or the officers, agents or employees of any of the foregoing foracts or omissions of any nature while in an authorized governmental orproprietary capacity and in the course and scope of employment orauthorization.
For the purposes of this section, "delivery of health care services withoutcharge" shall be deemed to include the delivery of dental, medical or otherhealth services when a reasonable minimum fee is charged to coveradministrative costs.
For purposes of this section, a sheriff or deputy sheriff shall be consideredto be acting in the scope of employment or authorization when performing anylaw-enforcement-related services authorized by the sheriff, and coverage forsuch service by the Division shall not be subject to any prior notificationto or authorization by the Division.
B. Participation in the risk management plan shall be voluntary and shall beapproved by the participant's respective governing body or by the StateCompensation Board in the case of constitutional officers, by the office ofthe Executive Secretary of the Virginia Supreme Court in the case of statecourt-appointed attorneys, including attorneys appointed to serve asreceivers under § 54.1-3900.01 or 54.1-3936, or attorneys under VirginiaSupreme Court or Virginia State Bar approved programs, by the Commissioner ofthe Department of Behavioral Health and Developmental Services for anyindividual serving as a guardian or limited guardian for any patient orresident of a state facility operated by such Department or by the executivedirector of a community services board or behavioral health authority for anyindividual serving as a guardian or limited guardian for a consumer of suchboard or authority, and by the Division. Upon such approval, the Divisionshall assume sole responsibility for plan management, compliance, or removal.The Virginia Supreme Court shall pay the cost for coverage of eligiblepersons performing services in approved programs of the Virginia SupremeCourt or the Virginia State Bar. The Department of Behavioral Health andDevelopmental Services shall be responsible for paying the cost of coveragefor eligible persons performing services as a guardian or limited guardianfor any patient or resident of a state facility operated by the Department.The applicable community services board or behavioral health authority shallbe responsible for paying the cost of coverage for eligible personsperforming services as a guardian or limited guardian for consumers of suchboard or authority.
C. The Division shall provide for the legal defense of participating entitiesand shall reserve the right to settle or defend claims presented under theplan. All prejudgment settlements shall be approved in advance by theDivision.
D. The risk management plan established pursuant to this section shallprovide for the establishment of a trust fund for the payment of claimscovered under such plan. The funds shall be invested in the manner providedin § 2.2-1806 and interest shall be added to the fund as earned.
The trust fund shall also provide for payment of legal defense costs,actuarial costs, administrative costs, contractual costs and all otherexpenses related to the administration of such plan.
E. The Division shall, in its sole discretion, set the premium andadministrative cost to be paid to it for providing a risk management planestablished pursuant to this section. The premiums and administrative costsset by the Division shall be payable in the amounts at the time and in themanner that the Division in its sole discretion shall require. The premiumsand administrative costs need not be uniform among participants, but shall beset so as to best ensure the financial stability of the plan.
F. Notwithstanding any provision to the contrary, a sheriff's department ofany city or county, or a regional jail shall not be precluded from securingexcess liability insurance coverage beyond the coverage provided by theDivision pursuant to this section.
(1986, c. 82, § 2.1-526.8:1; 1988, c. 848; 1995, c. 30; 2000, cc. 618, 632, §2.1-191.12; 2001, c. 844; 2003, cc. 23, 49; 2004, cc. 121, 529; 2005, cc.184, 212; 2006, c. 713; 2007, c. 773; 2009, cc. 265, 568, 813, 840.)