Liability insurance; prohibitions
Sec. 20. (a) A political subdivision may purchase insurance to
cover the liability of itself or its employees, including a member of
a board, a committee, a commission, an authority, or another
instrumentality of a governmental entity. Any liability insurance so
purchased shall be purchased by invitation to and negotiation with
providers of insurance and may be purchased with other types of
insurance. If such a policy is purchased, the terms of the policy
govern the rights and obligations of the political subdivision and the
insurer with respect to the investigation, settlement, and defense of
claims or suits brought against the political subdivision or its
employees covered by the policy. However, the insurer may not enter
into a settlement for an amount that exceeds the insurance coverage
without the approval of the mayor, if the claim or suit is against a
city, or the governing body of any other political subdivision, if the
claim or suit is against such political subdivision.
(b) The state may not purchase insurance to cover the liability of
the state or its employees. This subsection does not prohibit any of
the following:
(1) The requiring of contractors to carry insurance.
(2) The purchase of insurance to cover losses occurring on real
property owned by the public employees' retirement fund or the
Indiana state teachers' retirement fund.
(3) The purchase of insurance by a separate body corporate and
politic to cover the liability of itself or its employees.
(4) The purchase of casualty and liability insurance for foster
parents (as defined in IC 27-1-30-4) on a group basis.
As added by P.L.1-1998, SEC.8. Amended by P.L.192-2001, SEC.3.
Last modified: May 24, 2006