2006 Code of Virginia § 2.2-1839 - (Effective until July 1, 2008 - see Editor\'s note) Risk management plans administered by the Depar...

2.2-1839. (Effective until July 1, 2008 - see Editor's note) Riskmanagement plans administered by the Department of the Treasury's RiskManagement 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;any local chapter or program of the Meals on Wheels Association of America orany area agency on aging, providing meal and nutritional services to personswho are elderly, homebound, or disabled; any individual serving as a guardianor limited guardian as defined in 37.2-1000 for any consumer of a communityservices board or behavioral health authority or any patient or resident of astate facility operated by the Department of Mental Health, MentalRetardation and Substance Abuse Services; or the officers, agents oremployees of any of the foregoing for acts or omissions of any nature whilein an authorized governmental or proprietary capacity and in the course andscope of employment or authorization.

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.

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 Mental Health, Mental Retardation and Substance AbuseServices for any individual serving as a guardian or limited guardian for anypatient or resident of a state facility operated by such Department or by theexecutive director of a community services board or behavioral healthauthority for any individual serving as a guardian or limited guardian for aconsumer of such board or authority, and by the Division. Upon suchapproval, the Division shall assume sole responsibility for plan management,compliance, or removal. The Virginia Supreme Court shall pay the cost forcoverage of eligible persons performing services in approved programs of theVirginia Supreme Court or the Virginia State Bar. The Department of MentalHealth, Mental Retardation and Substance Abuse Services shall be responsiblefor paying the cost of coverage for eligible persons performing services as aguardian or limited guardian for any patient or resident of a state facilityoperated by the Department. The applicable community services board orbehavioral health authority shall be responsible for paying the cost ofcoverage for eligible persons performing services as a guardian or limitedguardian for consumers of such board 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.

(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.)

2.2-1839. (Contingently effective July 1, 2008 - see Editor's note) Riskmanagement plans administered by the Department of the Treasury's RiskManagement 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;any local chapter or program of the Meals on Wheels Association of America orany area agency on aging, providing meal and nutritional services to personswho are elderly, homebound, or disabled; any individual serving as a guardianor limited guardian as defined in 37.2-1000 for any consumer of a communityservices board or behavioral health authority or any patient or resident of astate facility operated by the Department of Mental Health, MentalRetardation and Substance Abuse Services; any participant who satisfies therequirements of 2.2-1839.1; or the officers, agents or employees of any ofthe foregoing for acts or omissions of any nature while in an authorizedgovernmental or proprietary capacity and in the course and scope ofemployment or authorization.

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.

B. Participation in the risk management plans shall be voluntary and shall beapproved by both 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 Mental Health, Mental Retardation and Substance AbuseServices for any individual serving as a guardian or limited guardian for anypatient or resident of a state facility operated by such Department or by theexecutive director of a community services board or behavioral healthauthority for any individual serving as a guardian or limited guardian for aconsumer of such board or authority, and by the Division. Those participantsunder 2.2-1839.1 shall not be required to obtain approval from any entityother than the Division. Upon such approval, the Division shall assume soleresponsibility for plan management, compliance, or removal. The VirginiaSupreme Court shall pay the cost for coverage of eligible persons performingservices in approved programs of the Virginia Supreme Court or the VirginiaState Bar. The Department of Mental Health, Mental Retardation and SubstanceAbuse Services shall be responsible for paying the cost of coverage foreligible persons performing services as a guardian or limited guardian forany patient or resident of a state facility operated by the Department. Theapplicable community services board or behavioral health authority shall beresponsible for paying the cost of coverage for eligible persons performingservices as a guardian or limited guardian for consumers of such board orauthority.

C. The Division shall provide for the legal defense of participants and shallreserve the right to settle or defend claims presented under the plan. Allprejudgment settlements shall be approved in advance by the Division.

D. The risk management plans established pursuant to this section shallprovide for the establishment of trust funds for the payment of claimscovered under such plans. The funds shall be invested in the manner providedin 2.2-1806 and interest shall be added to the fund as earned.

Trust funds shall also provide for payment of legal defense costs, actuarialcosts, administrative costs, contractual costs and all other expenses relatedto the administration of such plans.

E. The Division shall, in its sole discretion, set the premium, deductible,and administrative cost to be paid to it for providing risk management plansestablished 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 premiums,deductibles, and administrative costs need not be uniform among participants,but shall be set so as to best ensure the financial stability of the plans.

(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, 822; 2005,cc. 184, 212; 2006, c. 713.)