Liability insurance and self-insurance. (a) Purchase of liability insurance.-- A local agency may purchase insurance on itself or its employees for any liability
Pennsylvania Consolidated Statutes
Section: 8564
Jurisdiction: PA
Bluebook Citation: 42 Pa. Cons. Stat. § 8564
§ 8564. Liability insurance and self-insurance. (a) Purchase of liability insurance.-- A local agency may purchase insurance on itself or its employees for any liability
arising from the performance of their duties within the scope of their employment. (b) Employment of risk manager.-- A local agency may employ a professional risk manager whose responsibility it shall
be to administer a public liability insurance program for the local agency and initiate
any risk management program for the local agency and its employees. (c) Joint action by local agency.-- Any two or more local agencies may join together, enter into any agreements or jointly
contract for the development of a group risk management program either through the
provisions of the act of July 12, 1972 (P.L.762, No.180), referred to as the Intergovernmental
Cooperation Law, or any other applicable statute. Any two or more local agencies may
join together, enter into any agreements or jointly contract for the purchasing of
public liability insurance. Any two or more local agencies may pool their public liability
insurance risks through the provisions of the act of July 12, 1972 (P.L.762, No.180)
or any other applicable statute. (d) Insurance pooling and coinsurance.-- The pooling of insurance risks, reserves, claims or losses shall not be construed
to be transacting insurance nor otherwise subject local agencies to the provisions
of statutes regulating insurance or insurance companies. Local agencies may be coinsured
under a master policy and the total premium may be prorated among the local agencies.
Any county may undertake a group risk management program or public liability insurance
program on behalf of itself and any other local agencies covered by this subchapter
within the county that wish to voluntarily participate in the programs. (e) Self-insurance.-- Any local agency may self-insure which must be funded on an annual basis by appropriations
to establish a reserve for self-insurance purposes. References in Text. The act of July 12, 1972, P.L.762, No.180, referred to as the Intergovernmental Cooperation
Law, referred to in subsec. (c), was repealed by the act of December 19, 1996, P.L.1158,
No.177. The subject matter is now contained in Subchapter A of Chapter 23 of Title
53 (Municipalities Generally). Cross References. Section 8564 is referred to in sections 5602, 8002 of Title 53 (Municipalities Generally).
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