[HISTORY: Adopted by the Township Committee of the Township
of Delaware 5-12-1997 by Ord. No. 1997-15. Amendments noted
where applicable.]
There is hereby established, pursuant to N.J.S.A. 40A:10-6 et
seq., a Township insurance fund for the following purposes:
A.
To self-insure against any loss or damage, however caused, to any
property, motor vehicles, equipment or apparatus owned by it or owned
by or under the control of any of its departments, boards, agencies
or commissions where no insurance coverage is in effect.
B.
To self-insure against liability resulting from the use or operation
of motor vehicles, equipment or apparatus owned by it or controlled
by it or owned by or under the control of any of its departments,
boards, agencies or commissions where no insurance coverage is in
effect.
C.
To self-insure against liability for its negligence and that of its
officers, employees and servants, whether full-time or part-time,
who are authorized to perform any act or services, but not including
an independent contractor within New Jersey Tort Claims Act (N.J.S.A.
59:1-1 et seq.) where no insurance coverage is in effect.
The Township Committee shall establish with the municipal budget
a fund for the payment of judgments or settlements and the payment
of reasonable and necessary expenses of defending claims against the
Township not otherwise covered by insurance. All unused amounts in
said fund from previous budgets shall be carried over to the current
municipal budget. The Township Committee may designate the maximum
or minimum amount of funds and from time to time provide for the disposition
of any excess over and above the maximum amount fixed, or of the interest
or profits arising therefrom when the fund shall have reached the
maximum limit.
The insurance fund shall be operated and supervised by three
Commissioners, who shall be members of the Township Committee. The
Commissioners shall be appointed by the Mayor with the advice and
consent of the Committee and shall serve for a period of two years
or for the remainder of their terms of office as Committee members,
whichever is less, and until their successors shall have been appointed
and qualified. Vacancies caused by any reason other than expiration
of term as an official shall be filled for the unexpired term. The
Commissioners shall serve without compensation.
The Commissioners shall appoint a person to serve as Secretary
to the Insurance Fund Commission, who shall serve at the pleasure
of the Commission. The Secretary shall be paid a salary as may be
set by ordinance of the Township Committee.
The Commissioners shall, forthwith after their appointment,
organize for the ensuing year by the election from their membership
of a Chairman, who shall serve for one year.
The Commissioners shall have the following powers and authority:
A.
To invest the fund, and all additions and accretions thereto, in
such securities as they shall deem best suited for the purposes of
this chapter.
B.
To adopt rules and regulations for the control and investment of
the fund.
C.
To keep on hand at all times sufficient money, or have the same invested
in such securities as can be immediately sold for cash, for the payment
of losses to any buildings or property of the local unit or liabilities
resulting from the acts of officials, employees and servants and operation
of publicly owned motor vehicles, equipment or apparatus not otherwise
covered by insurance.
D.
To choose to insure any portion of the fund's risks with any
insurance company or companies authorized to do business in this state.
