[HISTORY: Adopted by the City Council of the City of Orange
Township 2-17-87 by Ord. No. 14-87. Amendments noted where applicable.]
The Municipal Council has recognized that there is an insurance
crisis within the State of New Jersey with respect to municipal liability
insurance coverage. Such coverage can either not be obtained at all
or only obtained at prohibitive premium rates. In order to respond
to the aforesaid crisis, the City of Orange Township desires to create
a municipal insurance fund pursuant to authority granted it by the
laws of New Jersey.
As used in this chapter, the following terms shall have the
meanings indicated:
The duly elected chairperson of the City of Orange Township
Municipal Insurance Fund Commission.
The City of Orange Township Insurance Fund Commission.
Any properly chosen member of the City of Orange Township
Municipal Insurance Fund Commission.
The duly elected members of the Municipal Council of the
City of Orange Township.
The City of Orange Township Municipal Insurance Fund.
The duly elected Mayor of the City of Orange Township.
Any department head employed by the City of Orange Township,
and the Mayor and members of the Municipal Council.
The duly appointed Secretary to the City of Orange Township
Municipal Insurance Fund Commission.
There is hereby created a Municipal Insurance Fund Commission
within the township, consisting of three (3) members who shall be
called "Commissioners." Nonvoting members shall be a Secretary and
the township's insurance broker.
Commissioners of the fund shall be appointed as follows:
A.
Three (3) Commissioners shall be appointed by the Mayor with the
advice and consent of the Council.
B.
The first Commissioner shall hold office for a term of one (1) year;
the second Commissioner for two (2) years and the third Commissioner
for three (3) years. Thereafter, all terms shall be for periods of
three (3) years. A calendar year shall be used to determine the terms
of office for the Commissioners.
C.
Vacancies in the office of Commissioner caused by any reason other
than the expiration of term shall be filled for the unexpired term.
D.
Commissioner shall serve without compensation.
A.
The Council shall establish within the municipal budget a fund or
funds for the payment of judgments or settlements and the payment
of the reasonable and necessary expenses of defending claims against
the township. The amounts of these funds shall be established yearly
in each municipal budget. All unused amounts in said funds from previous
budgets shall be carried over into the current municipal budget.
B.
These funds shall be used for the following purposes:
(1)
To self-insure against loss or damage caused to any property, motor
vehicles, equipment or apparatus owned by the township or owned by
or under the control of any township department, board, agency or
commission where no insurance coverage is in effect.
(2)
To self-insure against liability resulting from the use or operation
of motor vehicles, equipment or apparatus owned by or controlled by
the township or any township department, board, agency or commission
where no insurance coverage is in effect.
(3)
To self-insure against liability for the township's negligence
or that of its officers, employees and servants, whether full- or
part-time, who are acting within the scope of their authority, but
not including an independent contractor, within the limitations of
the New Jersey Tort Claims Act, where no insurance coverage is in
effect. (N.J.S.A. 59:1-1 et seq.).
A.
The Insurance Commission shall appoint a Secretary who will serve
as Secretary to the Commission.
[Amended 12-29-88 by Ord. No. 45-88]
B.
The Secretary shall be entrusted with the daily operations of the
fund and shall submit a report to the Commissioners at least once
a month.
C.
The township's insurance broker shall serve as an advisor to
the Commission.
Immediately upon their appointment, the Commissioners shall
organize for the ensuing year and elect a chairperson from their membership,
who shall serve for a term of one (1) 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 to maintain the integrity of the
fund.
B.
To adopt rules and regulations for the control and investment of
the fund.
C.
To keep on hand in the fund sufficient cash or securities which can
immediately be converted to cash for the payment of losses.
