§ 2.34.060. Self-insurance program and risk retention funding.

A.

The director of finance of the Kenai Peninsula Borough is authorized to establish an appropriate internal service fund or funds for insurance, insurance-related contracts and/or services, litigation defense costs and risk management.

B.

The Kenai Peninsula Borough shall use moneys in the fund on behalf of the Kenai Peninsula Borough and School District, for the following purposes only;

1.

Premiums for primary, excess and umbrella insurance coverage to insure the exposures of the Kenai Peninsula Borough and School District.

2.

Premiums for fiduciary bonds and bonds required by the State of Alaska as a prerequisite for self-insuring.

3.

Payment for risk management and insurance related contracts and/or services, including loss adjustment expenses and legal fees for defense of civil suits filed by plaintiff against the Kenai Peninsula Borough and School District.

4.

Insured losses and/or claims, up to the stated limits of deductibles or self-insured retention levels, as defined by following forms of insurance policies in effect at the time of the loss or claim, and beyond the stated limits of deductibles or self-insured retention levels when it is reasonably believed by the majority of committee members that the insured loss and/or claim will be reimbursed by the insurance policy.

5.

Self-insured losses and/or claims in excess of the limits of any policies of insurance that apply to the loss or claim, and/or self-insured losses and/or claims that are not covered by specific policies of insurance, but which have been determined to be a covered item by the risk management committee in accordance with this ordinance, its program requirements and the appropriations and transfers to the fund.

6.

Reimbursement of legal expense arising out of the defense of litigation brought against the Kenai Peninsula Borough and School District, for insured, self-insured and uninsured losses and/or claims.

7.

Judgments and/or awards for exemplary and/or punitive damages are specifically excluded from coverage by this fund.

(Ord. No. 2002-36, § 2, 9-17-02; Ord. No. 89-9, § 1, 1989)