CHAPTER 3.45: PROPERTY AND CASUALTY SELF-INSURANCE FUND

Section

3.45.010 ESTABLISHED; PURPOSE.

There is created the property and casualty self-insurance fund for the purpose of accounting for deposits made to the fund by the borough and school district, and disbursements made from the fund.

(Ord. 96-037AM, § 2 (part), 1996)

3.45.020 REQUIREMENTS.

(A) The borough and school district shall:

(1) account for property and casualty insurance deposits and disbursements within the fund for the borough and school district;

(2) credit the fund for interest earned on the investments based on the equity of the fund;

(3) maintain a minimum fund balance of a minimum of $1,000,000 not to exceed $1,500,000; and

(4) include in their respective operating budgets the annual contribution.

(B) Property and casualty. The annual contribution to the property and casualty self-insurance fund shall be computed as follows:

(1) less than $900,000: If the self-insurance fund has less than the minimum criteria as described in MSB 3.45.020(A)(3), each entity shall contribute an amount equal to their percentage of the property and casualty insurance premium of the deficit;

(2) more than $900,000 but less than $1,000,000: If the self-insurance fund has less than the minimum criteria as described in MSB 3.45.020(A)(3), each entity shall contribute an amount equal to their percentage of the property and casualty insurance premium of the deficit and (B)(3).

(3) more than $1,000,000 but less than $1,500,000: If the self-insurance fund has more than the minimum criteria but less than the maximum criteria as described in MSB 3.45.020(A)(3), each entity shall contribute an amount equal to their percentage of the property and casualty insurance premium up to an amount not to exceed $100,000;

(4) more than $1,500,000: If the self-insurance fund has more than the maximum criteria as described in MSB 3.45.020(A)(3), each entity shall subsidize their annual insurance premium with excess funds equal to their percentage of the property and casualty insurance premium.

(C) Claim expenses. Both the borough and the school district will contribute an amount equal to the amount of their individual claim expenses of the preceding fiscal year.

(Ord. 96-037AM, § 2 (part), 1996)

3.45.030 UTILIZATION.

(A) The borough and school district shall individually assume that portion of the deductible or self-insured retention utilizing the following criteria:

(1) for property and casualty, the first $1,000 of each and every loss;

(2) all claim expenses including fees.

(B) In this fund property shall be inclusive of all claims for both real and personal property, portable equipment, boiler and machinery and electronic data processing equipment. In this fund casualty shall be inclusive of all claims for bodily injury, property damage, personal injury, advertising injury.

(C) These funds shall only be utilized for property and claim expenses purposes. These funds shall not be utilized for workers’ compensation or automobile physical damage claims or associated expenses.

(Ord. 96-037AM, § 2 (part), 1996)

3.45.040 DISTRIBUTION OF FUNDS.

(A) The borough and school district shall then distribute the self-insurance funds to pay for losses incurred subject to the following criteria:

(1) Property. Pay the amount in excess of the borough’s or the school district’s individual retention up to the amount of the occurrence deductible or self-insured retention of a covered loss.

(2) Casualty. Pay the amount in excess of the borough’s or the school district’s individual retention up to an amount not to exceed the occurrence deductible or self-insured retention of a covered loss.

(3) Claim expenses. Pay the amount(s) of the borough’s or the school district’s adjusters, investigators, attorneys and associated legal fees of a covered loss.

(B) Covered losses shall be determined by the property and casualty policies purchased by the borough and school district at the time of the loss.

(Ord. 96-037AM, § 2 (part), 1996)