City of Passaic, NJ Chapter 25 Insurance

[HISTORY: Adopted by the City Council of the City of Passaic: Art. I, 1-23-1986 as Ord. No. 904-86; Art. II, 9-7-1989 as Ord. No. 1080-89. Amendments noted where applicable.]

Article I Insurance Fund

[Adopted 1-23-1986 as Ord. No. 904-86]

§ 25-1 Establishment.

There is hereby established an insurance fund to insure against:

A. Liability resulting from the use or operation of motor vehicles, equipment or apparatus owned by or controlled by the City of Passaic or under the control of any of its departments, boards, agencies or commissions.

B. Liability resulting from negligence by the City of Passaic and that of its officers, employees and servants, whether or not compensated or part-time, who are authorized to perform any act or services, but not including an independent contractor within the limitations of the New Jersey Tort Claims Act (N.J.S.A. 59:1-1 et seq.)

§ 25-2 Annual appropriation.

[Amended 1-21-1993 by Ord. No. 1204-93]

The City Council shall annually appropriate the funds necessary for the purposes of the insurance fund, which shall incorporate the provisions of Ordinance No. 827-85.[1]

[1] Editor's Note: Said Ord. No. 827-85, adopted 2-7-1985, originally established the insurance fund and provided for an annual appropriation thereto.

§ 25-3 Insurance Fund Commission members.

[Amended 1-21-1993 by Ord. No. 1204-93]

There shall be established an Insurance Fund Commission whose members shall be the City Attorney, who shall serve as Chairman, the Business Administrator and the Finance Director. The Insurance Fund Commissioners shall serve without compensation.

§ 25-4 Power and authority of Commission.

[Amended 1-21-1993 by Ord. No. 1204-93] [1]

A. The Commission herein established shall have the following powers and authority, to:

(1) Invest the fund and all additions and accretions thereto in such securities as it shall deem best suited for the purposes of this article.

(2) Adopt rules and regulations for the control and investment of the fund.

(3) 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 liability resulting from the operation of publicly owned motor vehicles, equipment or apparatus.

(4) Fix reasonable rates of premium for all insurance carried by the insurance fund and effect all insurance in the insurance fund or with any insurance company or companies authorized to do business in this state.

(5) Delegate settlement authority up to $5,000 to the designated third party administrator of the city's self-insurance program.

(6) Delegate settlement authority between $5,001 and $15,000 to the Chairman of the Commission.

(7) Approve settlements of claims against the city from $15,001 up to and including the sum of $25,000.

(8) Shall recommend to the City Council for its approval all claims in excess of $25,000.

[Amended 12-4-1997 by Ord. No. 1428-97]

B. Premiums for insurance, whether carried in the insurance fund or placed with the insurance companies, shall be paid to the Commission by the board, commission, department, committee or officer having charge or control of the property insured.

C. All insurance upon property owned or controlled by a local unit or any of its departments, boards, agencies or commissioners shall be placed and effected by the Commissioners.

[1] Editor's Note: Former § 25-4, Secretary to Commission, was repealed 1-21-1993 by Ord. No. 1204-93.

§ 25-5 Claim forms; examinations and inspections.

[Added 1-21-1993 by Ord. No. 1204-93[1]]

A. Any claim filed against the City of Passaic or any subdivision thereof shall comply with the requirements of the New Jersey Tort Claims Act, N.J.S.A. 59:8-1 et seq. The claim form shall include as a minimum the requirements of N.J.S.A. 59:8-4 and such additional information or evidence as:

(1) Written reports of a claimant's attending physicians or dentists setting forth the nature and extent of injury and treatment, any degree of temporary or permanent disability, the prognosis, period of hospitalization and any diminished earning capacity.

(2) A list of a claimant's expert witnesses and any of their reports or statements relating to the claim.

(3) Itemized bills for medical, dental and hospital expenses incurred or itemized receipts of payment for such expenses.

(4) Documentary evidence showing amounts of income lost.

(5) If future treatment is necessary, a statement of anticipated expenses for each treatment.

B. In addition, if requested by the City of Passaic, the claimant will be required to submit to a physical or mental examination by a physician employed by the City of Passaic, and the claimant will be required to permit the City of Passaic to inspect all appropriate records relating to his claim for liability and damages, including but not limited to income tax returns, hospital records, medical records and employment records.

C. The official form is attached hereto and incorporated by reference.

[1] Editor's Note: This ordinance also repealed former § 25-5, Chairman.

§ 25-6 (Reserved) [1]

[1] Editor's Note: Former § 25-6, Power and authority of Commissioners, was amended 1-21-1993 by Ord. 1204-93 and moved to § 25-4.

Article II Self-Insurance Programs

[Adopted 9-7-1989 as Ord. No. 1080-89]

§ 25-7 Personal injury benefits.

Under the provisions of the New Jersey Automobile Reparation Reform Act, commonly known as the "No-Fault Act," N.J.S.A. 39:6A-1 et seq., the City of Passaic self-insurance program personal injury protection benefits shall be:

A. Limited to the medical benefits only option as authorized by N.J.S.A. 39:6A-4.3b and shall exclude the benefits described in N.J.S.A. 39:6A-4 under Subsections b (income continuation), c (essential services), d (death) and e (funeral expenses).

B. In the case of medical expense benefits, subject to a deductible amount of $2,500 for any one accident as authorized under N.J.S.A. 39:6A-4.3a.

C. In the case of medical expense benefits, subject to a copayment of 20% in accordance with N.J.S.A. 39:6A-4.3.

§ 25-8 Election of tort option.

The City of Passaic elects the basic tort option specified under N.J.S.A. 39:6A-8a.

§ 25-9 Exclusions from personal injury benefits.

As authorized by the provisions of N.J.S.A. 39:6A-7, the City of Passaic elects to exclude from coverage for benefits under N.J.S.A. 39:6A-4 and 39:6A-10:

A. Any person who suffered personal injuries or death as a result of the following conduct:

(1) While committing a high misdemeanor or felony or seeking to avoid lawful apprehension or arrest by a police officer.

(2) While acting with specific intent of causing injury or damage to himself or others.

B. Any person having incurred personal injuries or death who, at the time of the accident:

(1) Was the owner or registrant of an automobile registered or principally garaged in this state that was being operated without personal injury protection coverage.

(2) Was occupying or operating an automobile without the permission of the owner or other named insured.

§ 25-10 Uninsured motorist coverage.

A. The City of Passaic self-insurance program uninsured motorists coverage shall be in the amounts of the statutory minimums of $15,000, exclusive of interest and costs, on account of injury to or death of one person in any one accident and of $30,000, exclusive of interest and costs, on account of injury to or death of more than one person in any one accident as authorized under N.J.S.A. 17:28-1.1a.

B. The City of Passaic self-insurance program underinsured motorists coverage shall be limited to the amount of $15,000, exclusive of interest and costs, on account of injury to or death of one person in any one accident and shall be limited to $30,000, exclusive of interest and costs, on account of injury to or death of more than one person in any one accident.