[HISTORY: Adopted by the City Council of the City of Rahway as indicated in article histories. Amendments noted where applicable.]
Fire insurance claims — See Ch. 205.
[Adopted 2-10-1997 by Ord. No. O-13-97]
There is hereby established an Insurance Fund in accordance with the provisions of N.J.S.A. 40A:10-6, and for the reasons set forth therein.
The Mayor and Council may designate the maximum or minimum amount of the Insurance Fund 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.
There is hereby established an Insurance Fund Commission consisting of three Commissioners.
The Commissioners shall be the Business Administrator, the Chief Financial Officer and one other official of the City of Rahway appointed by the Mayor and shall hold office for periods of two years or for the remainder of their terms of office as officials, whichever shall be less, and until their successors have been duly appointed and qualified. To the extent that any Commissioner serves for a lesser period of time, an interim appointment shall be made for the balance of that Commissioner's term. The Commissioners shall serve without compensation.
The Commission shall elect a Chairperson and shall promulgate such rules and regulations as it deems necessary to carry out its function.
There shall be established the position of Secretary to the Board of Insurance Commissioners. The Secretary shall be appointed by the Commission and shall serve at the pleasure of the Commission. The Commission Secretary shall have the obligation to take and maintain accurate minutes of Commission meetings and to maintain accurate records of each and every claim filed against the City of Rahway, whether a general liability claim or a workers' compensation claim.
The annual salary of the Commission Secretary shall be established by ordinance.
The Commissioners shall have the following powers and authority:
Employ necessary clerical assistants, whose compensation shall be fixed and paid by the governing body of the local unit in the same manner as is that of other employees of the municipality.
Invest the fund and all additions and accretions thereto in such securities as they shall deem best suited for the purposes of this article.
Adopt rules and regulations for the control and investment of the fund.
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 City of Rahway, or liability resulting from the operation of publicly owned motor vehicles, equipment or apparatus.
Fix reasonable rates of premium for all insurance carried by the Insurance Fund, and shall effect all insurance in the Insurance Fund or with any insurance company or companies authorized to do business in this state.
Premiums for insurance, whether carried in the Insurance Fund or placed with insurance companies, shall be paid to the Commissioners by the board, commission, department, committee or officer having charge or control of the property insured.
All insurance upon property owned or controlled by the City of Rahway or any of its departments, boards, agencies or commissions shall be placed and effected by the Commissioners.
If provided by the rules and regulations of the Commission, the Secretary to the Insurance Fund Commission shall be entrusted with the daily operation of the Insurance Fund and shall submit a report to the Commissioners at least once a month.
There shall be established the title of Administrating Agency and Risk Manager for the purpose of handling liability and workers' compensation claims filed against the City of Rahway. The Administrative Agency and Risk Manager shall be designated, from time to time, by the Commission, and shall serve and be compensated in accordance with a written contract with terms and conditions mutually agreed upon by the parties and, in any event, to be subject to the provisions of N.J.S.A. 40A:5-17 and as otherwise set forth herein. In no event shall any one contract with the Administrating Agency or the Risk Manager be for more than a three-year period, although any given contract may be extended additional periods not to exceed three years per extension.
The Risk Manager shall have the sole right of approval as to any claim not to exceed an amount to be fixed by the Commission on an annual basis.
The Risk Manager shall submit a voucher on the form prescribed by the city on all claims, of whatever amount, and will, by signature, approve all vouchers and countersign said vouchers in the same manner as any other department head of the city. With respect to all other claims exceeding the amount established pursuant to the terms of § 43-6B, said claims are to be submitted by the Risk Manager to the Insurance Fund Commission for approval, together with the appropriate voucher on a monthly bill list. Payments will be made on all vouchers by checks signed by the appropriate signatory of the city, countersigned by the designee of the Risk Manager.
In determining claim amounts, when dealing with weekly temporary disability benefits and/or medical payments in workers' compensation claims, each said claim is to be construed as a separate claim in determining whether or not the same equals or exceeds the dollar limit hereinabove referred to in § 43-6B.