[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.
A. 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.
B. The Commission shall elect a Chairperson and shall
promulgate such rules and regulations as it deems necessary to carry
out its function.
C. Commission Secretary.
(1) 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.
(2) The annual salary of the Commission Secretary shall
be established by ordinance.
The Commissioners shall have the following powers
and authority:
A. 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.
B. Invest the fund and all additions and accretions thereto
in such securities as they shall deem best suited for the purposes
of this article.
C. Adopt rules and regulations for the control and investment
of the fund.
D. 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.
E. 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.
F. 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.
G. 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.
H. 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.