[HISTORY: Adopted by the Board of Supervisors of the Township
of Newtown 8-11-1986 by Ord. No. 1986-14. Amendments noted where applicable.]
The purpose of this chapter is to establish a uniform procedure
for the handling of the Township of Newtown's liability, property,
fidelity and fiduciary risk exposure.
[Amended 4-24-1995 by Ord. No. 1995-2]
Annually, the budget of the Township may allow for payment for
property, casualty, fiduciary and fidelity insurance premiums. Damage
assessed to the Township which is not covered by insurance which falls
within the deductible amount may be financed by charging the first
$500 of any cost to the appropriate department. Any amount in excess
of $500 is to be charged to the Risk Management Reserve of the general
fund. The Risk Management Reserve of the general fund may be funded
up to 2% of the Township's annual budget for all funds and may be
used for payment of damage claims not covered by insurance.
[Amended 4-24-1995 by Ord. No. 1995-2]
It shall be the Township policy to insure with outside insurance
carriers utilizing appropriate deductible limits for each class of
insurance and in certain cases to self-insure. The amount of the deductible
may change from time to time. Fiduciary liability and public officials
liability insurance deductibles shall be as negotiated with insurance
carriers. The Risk Management Reserve, if established, shall pay the
deductibles as they apply to the Township and/or each Township official
in the absence of actual fraud by such officials.
