COMMONWEALTH OF VIRGINIA

Administered by
Department of the Treasury
Division of Risk Management

The Commonwealth of Virginia, Department of the Treasury, Division of Risk Management, in accordance with '2.1-191.9 and 2.1-191.11 of the Code of Virginia, as amended, with the approval of the Governor, hereby establishes the terms and conditions of this Risk Management Plan (hereafter referred to as the Plan) for the Commonwealth of Virginia, its departments, agencies, institutions, boards, commissions, officers, employees and agents.

I. Coverage

A. This Plan will pay all sums, except as herein limited or limited by the Code of Virginia, which the Commonwealth of Virginia, its departments, agencies, institutions, boards, commissions, officers, agents, judges or employees; local soil and water conservation districts, their directors, officers, agents or employees; electoral boards, members or general registrars and local school board selection commissions or local school board commission members, shall be obligated to pay by reason of liability imposed by law for damages resulting from any claim arising out of acts or omissions of any nature while acting in an authorized governmental or proprietary capacity and in the course and scope of employment or authorization.

B. The Plan provides protection against liability arising out of the ownership, maintenance or use of buildings, grounds or properties owned or leased by the Commonwealth of Virginia or used by state employees or other authorized persons in the course of their employment.

C. Coverage applies to incidental medical payments arising out of the official activities of any authorized volunteer in an amount not to exceed $10,000 per incident. This coverage does not increase the limits in Section II, Limits of Liability.

D. Coverage applies to participation in student disciplinary proceedings at state educational institutions to the extent authorized by ' 2.1-191.11.A.1.b of the Code of Virginia.

E. Coverage applies only to the extent of provisions of any authorized indemnification agreement in accordance with              ' 2.1-191.11.A.1.c of the Code of Virginia.

F. Coverage applies to physical damage to motor vehicles listed with the Division of Risk Management subject to a $1,000 deductible. Authorized use of vehicles rented, leased, borrowed or hired are not subject to a deductible.

G. Coverage applies to uninsured motorist exposures pursuant to ' 2.1-191.9.C and 46.2-472 of the Code of Virginia. Coverage is limited to $25,000 per person in any one accident, $50,000 for two or more persons in any one accident and $20,000 for damage to or destruction of the property of others in any one accident. Underinsured motorist coverage is limited to $50,000 per person.

H. Coverage applies to incidental medical payments in a motor vehicle accident to an amount not to exceed $5,000 per person.

I. Recovery is limited for loss of use of a motor vehicle to the limits provided in ' 8.01-66. of the Code of Virginia.

II. Limits of Liability

A. The amount recoverable by any claimant with respect to the Commonwealth of Virginia, its departments, agencies, institutions, boards or commissions, local soil and water conservation districts, electoral boards or local school board selection commissions, or any director, officer, employee or agent thereof, shall not exceed $75.000 per claim for events occurring prior to July 1, 1993. For events occurring on or after July 1, 1993, the limit is $100,000 per claim. These limits shall not be applicable to any claim or causes of action other than those established by Virginia law. For claims or causes of action other than those established by Virginia law, the amount recoverable shall not exceed $2,000.000 per claim.

B.  The amount recoverable by any claimant with respect to officers, employees and agents of the Commonwealth of Virginia; local soil and water district directors, officers, employees and agents; general registrars; electoral board members and local board selection committee members shall not exceed $2,000,000 per claim. 

C. For any claim against a health care provider as defined in ' 8.01-581.1 of the Code of Virginia, the amount recoverable involving an act or acts of medical malpractice shall be limited to the amount provided in ' 8.01-581.15 (Effective August 1, 1999) of the Code of Virginia.

D. Motor vehicle physical damage coverage shall be paid based on the smaller of the amount needed to repair or replace the damaged property with valuation based on the actual cash value to repair or replace the items with those of like kind or quality. The sum of $1,000 shall be deducted from applicable physical damage claims.

E. In the event the State Insurance Reserve Trust Fund is rendered or become insolvent, neither the Commonwealth of Virginia, the General Assembly of Virginia, nor any department, agency, institution, board, commission, official, agent or employee thereof shall be liable for any claim that would have been covered under this Plan but for such insolvency. The establishment of this Plan does not and shall not be deemed or construed to pledge or obligate the full faith and credit of the Commonwealth of Virginia.

III. Exclusions

The following are excluded from coverage under this Plan:

A.  The Medical College of Virginia Associated Physicians or other similar or like organization, the Medical College of Virginia Hospital Authority or the Virginia Commonwealth University Health System Authority, unless premiums have been paid.  

B. Health care providers eligible to charge through the University of Virginia Health Services Foundation or other similar or like organization for services rendered at the University of  Virginia Health Sciences Center.

C. Any obligation for which a covered organization or individual or any insurance company thereof may be held liable under any workers= compensation, unemployment compensation, disability benefits law or any similar law.

D. Liability assumed under any written contract or agreement.

E. Any claim by a person who has (1) gained any profit or advantage illegally, (2) acted in a fraudulent or dishonest manner, or (3) committed a willful and wanton act. The Plan will defend when a claim contains allegations thereof except when a court or other trier of fact shall have determined that (1), (2) and/or (3) have occurred.

F. Liability for punitive damages or liability in any suit or action in which by judgment of final adjudication it is determined that such liability was incurred by reason of (1) acts of fraud or dishonesty, (2) acts of intentional, malicious or willful and wanton misconduct, or (3) any claim in which a covered person has gained any profit or advantage not otherwise legally entitled. The Plan may provide coverage for such acts or punitive damages if the Attorney General and the Governor determine that such coverage is in the public interest.

G. Liability for the return of any remuneration paid if the payment of such remuneration shall be held to be in violation of the law by a court of competent jurisdiction.

H. Loss to motor vehicles resulting from wear and tear, freezing, mechanical or electrical failure.

IV. Coverage Period

A. This Plan, except for medical malpractice, applies only to a claim, suit, action or other proceeding arising on or after the Governor or his designee approves and signs this Plan, provided the acts or omissions which give rise to such claim, suit, action or other proceeding did not occur prior to that approval and signature.

B. Medical malpractice coverage applies to a claim, suit, action or other proceeding arising on or after the Governor or his designee approves and signs this Plan, provided the acts or omissions which give rise to such claim, suit, action or other proceeding occurred subsequent to June 30, 1975.

V. Other Insurance or Self-Insurance

If at the time of loss, claim, suit, action or other proceeding there is insurance or self-insurance available to any organization or individual covered by this Plan, or which would have covered such loss, claim, suit, action or other proceeding but for the existence of this Plan, the Plan shall not be liable for any amount collectable under such other insurance or self-insurance.

VI. Notice of Occurrence, Claim or Suit

A. All Claims Other Than Motor Vehicle

1. When an occurrence takes place which an organization or individual has reason to believe may result in a claim, suit, action or other proceeding, notice shall be given immediately to the Division of Risk Management.

B. Motor Vehicle Claims

1. The vehicle operator must notify the State Police or other authorized law enforcement organization as well as the authorized claims administrator or insurer and cooperates fully in the investigation, defense or settlement of any claim or suit.

2. The vehicle operator shall immediately notify his or her agency of any accident or loss and forward all notice or legal papers received. The agency shall immediately notify and forward all information and documents to the authorized claims service organization.

3. No person shall, except at individual expense, voluntarily make any payments, assume any obligation or incur any costs.

4. Such notice shall be given immediately after the organization or individual has knowledge of the occurrence. It shall include all reasonably obtainable information about the time, place and circumstances of the occurrence as well as the names, addresses, telephone numbers and other pertinent information of all individuals involved.

5. If a claim, suit, action or other proceeding is made against an organization or individual, every demand, notice, summons or other process shall be immediately forwarded to the Division of Risk Management.

VII. Defense, Assistance and Cooperation

A. The Plan will defend and claim, suit, action or other proceeding relative to any loss or other occurrence that may be covered under this Plan. Defense is provided under ' 2.1-37.1 et. seq. of the Code of Virginia. Unless otherwise approved in accordance with '' 2.1-121 or 2.1-122 of the Code of Virginia, the office of the Attorney General shall provide defense.

B. As a condition of coverage any organization or individual covered by the Plan agrees to promptly notify the Division of Risk Management of any claim, suit, action or other proceeding and cooperate fully and completely in the investigation and defense of such claim, suit, action or other proceeding that may be covered by this Plan. Failure to promptly notify the Division of Risk Management or to cooperate may, at the Division's option, result in termination of coverage.

C. Settlement of any claim, suit, action or other proceeding involving the interests of the Commonwealth shall be subject to    ' 2.1-127 of the Code of Virginia. The Division of Risk Management must approve all settlements.

VIII. Appeals

In the event an organization or individual elects not to appeal a judgment, the Division of Risk Management may elect to make such appeal at its own cost.

IX. Subrogation

The Plan shall be subrogated to off of an organization=s or an individual=s right of recovery against any person or organization. Those organizations or individuals covered by the Plan shall do whatever is necessary to secure such rights.

X. Action Against the Plan

No action shall lie against the Plan or the Commonwealth of Virginia or any agency thereof, unless as a condition precedent thereto the covered organization or individual shall have fully complied with all terms, conditions and procedures of the Plan and until the amount of any obligation to pay shall have been finally determined either by judgment or written agreement.

XI. Definitions

All terms, phrases and definitions used in the Plan shall be those used in the Code of Virginia, as amended.

XII. Changes

The terms, conditions and procedures of the Plan shall not be waived or changed except by written amendment after approval by the Governor. However, on a case-by-case basis the Governor may approve a deviation from any term, condition, or procedure of the Plan if the Governor determines that such deviation is in the public interest.  

IN WITNESS THEREOF the Department of the Treasury, Division of Risk Management,  has executed this Plan to be effective immediately upon the approval of the Governor.

Don W. LeMond, Director
Department of the Treasury
Division of Risk Management

APPROVED

Mary G. Morris
Treasurer

APPROVED

Ronald L. Tillett
Secretary of Finance

APPROVED BY THE GOVERNOR

James S. Gilmore, III
DATE:  03/09/01