2006 Code of Virginia § 2.2-1837 - Risk management plan for public liability

2.2-1837. Risk management plan for public liability.

A. Subject to the approval of the Governor, the Division shall establish arisk management plan, which may be purchased insurance, self-insurance or acombination of self-insurance and purchased insurance to provide:

1. Protection against liability imposed by law for damages resulting from anyclaim:

a. Made against any state department, agency, institution, board, commission,officer, agent, or employee for acts or omissions of any nature while actingin an authorized governmental or proprietary capacity and in the course andscope of employment or authorization;

b. Made against participants, other than professional counsel, in studentdisciplinary proceedings at public institutions of higher education fornonmalicious acts or omissions of any nature in the course and scope ofparticipation in the proceedings; or

c. Resulting from an authorized indemnification agreement entered into by aVirginia public institution of higher education, which agreements theinstitutions may execute if the Governor (i) considers in advance ofexecution (a) the institution's analysis of the relevant public benefit andrisk of liability, (b) the Division's charge to be assessed against theinstitution for providing insurance or self-insurance coverage for the claimsresulting from the indemnification agreement, and (c) the Office of theAttorney General's comments, and (ii) determines that execution is necessaryto further the public's best interests. The indemnification agreement shalllimit the institution's total liability to a stated dollar amount and shallnotify the contractor that the full faith and credit of the Commonwealth arenot pledged or committed to payment of the institution's obligation under theagreement;

2. Protection against tort liability and incidental medical payments arisingout of the ownership, maintenance or use of buildings, grounds or propertiesowned or leased by the Commonwealth or used by state employees or otherauthorized persons in the course of their employment;

3. For the payment of attorneys' fees and expenses incurred in defending suchpersons and entities concerning any claim that (i) arises from theirgovernmental employment or authorization, that (ii) arises from theirparticipation in such student disciplinary proceedings, or (iii) is describedin any such indemnification agreement, where the Division is informed by theAttorney General's office that it will not provide a defense due to aconflict or other appropriate reason; and

4. For the payment of attorney's fees and expenses awarded to any individualor entity against the Commonwealth, or any department, agency, institution,board, commission, officer, agent, or employee of the Commonwealth for actsor omissions of any nature while acting in an authorized governmental orproprietary capacity, or in reliance upon any constitutional provision, orlaw of the Commonwealth. It is the obligation of the Division to provide forsuch indemnification regardless of whether there is a request for or an awardof damages associated with the award of such fees and expenses.

a. As a condition of coverage for the payment of attorney's fees andexpenses, the department, agency, institution, board, commission, officer,agent, or employee of the Commonwealth shall (i) promptly notify the Divisionof the commencement of any claim, suit, action or other proceeding prior toits settlement, (ii) provide the Division with full nonprivileged informationon the matter as requested, and (iii) permit the Division to participate inthe investigation of such claim, suit, action or other proceeding. Failure topromptly notify the Division or to reasonably cooperate may, at theDivision's discretion, result in no payment or a reduced payment being made.

b. The Division shall set the premium and administrative costs to be paid toit for providing payment of attorney fees and expenses awarded pursuant tothis section. The premiums and administrative costs set by the Division shallbe payable in the amounts, at the time and in the manner that the Division inits sole discretion requires. Premiums and administrative costs shall be setto best ensure the financial stability of the plan.

B. Any risk management plan established pursuant to this section shallprovide for the establishment of a trust fund or contribution to the StateInsurance Reserve Trust Fund for the payment of claims covered under theplan. The funds shall be invested as provided in 2.2-1806 and interestshall be added to the fund as earned. The trust fund shall also provide forpayment of administrative costs, contractual costs, and other expensesrelated to the administration of such plan.

C. The risk management plan for public liability shall be submitted to theGovernor for approval prior to implementation.

D. The risk management plan established pursuant to this section shallprovide protection against professional liability imposed by law as providedin 24.2-121, resulting from any claim made against a local electoral board,any of its members, any general registrar, or any employee of or paidassistant to a registrar for acts or omissions of any nature while acting inan authorized governmental or proprietary capacity and in the course andscope of employment or authorization, regardless of whether or not the civilaction requests monetary damages, subject to the limitations of the riskmanagement plan.

E. The risk management plan established pursuant to this section shallprovide protection against any claim made against any soil and waterconservation district, director, officer, agent or employee thereof, (i)arising out of the ownership, maintenance or use of buildings, grounds orproperties owned, leased or maintained by any such district or used bydistrict employees or other authorized persons in the course of theiremployment, or (ii) arising out of acts or omissions of any nature whileacting in an authorized governmental or proprietary capacity and in thecourse and scope of employment or authorization.

F. The risk management plan established pursuant to this section shallprovide protection against professional liability imposed by law for damagesresulting from any claim made against a local school board selectioncommission or local school board selection commission members for acts oromissions of any nature while acting in an authorized governmental orproprietary capacity and in the course and scope of authorization, subject tothe limitations of the risk management plan.

G. The risk management plan established pursuant to this section shallprovide coverage for any matter that involves or could involve an action orproceeding against a judge, the nature of which is designed to determinewhether discipline or other sanction of the judge for malfeasance ormisfeasance is appropriate or to otherwise determine the fitness of the judgeto hold office or to continue his employment. No coverage or indemnificationshall be made pursuant to this subsection when the Supreme Court of Virginiafinds that the judge should be censured or removed from office pursuant toSection 10 of Article VI of the Constitution of Virginia or statutes enactedpursuant thereto.

H. The risk management plan established pursuant to this section shallprovide protection against claims made against chaplains by personsincarcerated in a state correctional facility, a juvenile correctionalcenter, or a facility operated pursuant to the Corrections Private ManagementAct ( 53.1-261 et seq.) arising out of volunteer services provided by thechaplains to such incarcerated persons. For the purposes of this subsection,chaplains shall include only those persons, who, at the time any claim mayarise, were acting pursuant to, and in compliance with, an agreement betweenthe chaplain or an organization to which the chaplain belongs, and theDepartment of Corrections, the Department of Juvenile Justice, or an operatorof a facility operated pursuant to the Corrections Private Management Act.

(1980, c. 488, 2.1-526.8; 1982, c. 318; 1986, cc. 554, 558; 1988, cc. 763,780, 848; 1990, c. 484; 1995, c. 794; 2000, cc. 618, 632, 2.1-191.11; 2001,c. 844; 2002, c. 765; 2003, c. 828; 2005, cc. 492, 548.)