[HISTORY: Adopted by the Township Committee of the Township of Maplewood 12-7-1993 as Ord. No. 1932-93. Amendments noted where applicable.]
Defense and indemnification of officials — See Ch. 31.
The Township of Maplewood Insurance Fund is hereby created for the purposes set forth in N.J.S.A. 40A:10-6, Subsections a through c, namely:
To insure against loss or damage, however caused, to any property, motor vehicles, equipment or apparatus owned by it or owned by or under the control of any of its departments, boards, agencies or commissions.
To insure against liability resulting from the use or operation of motor vehicles, equipment or apparatus owned by or controlled by it or owned by or under the control of any of its departments, boards, agencies or commissions.
To insure against liability against its negligence and that of its officers, employees and servants, whether or not compensated or part-time, who are authorized to perform any act or services, but not including an independent contractor within the limitations of the New Jersey Tort Claims Act (N.J.S.A. 59:1-1 et seq.).
The fund shall become effective as of January 1, 1994, and shall be made up initially of the sum of forty-two thousand dollars ($42,000.), to be transferred by emergency appropriation from the township's existing surplus or such lesser or greater sum as the Director of the Division of Local Government Services may approve as an emergency appropriation and which appropriation shall be made forthwith so that it will be available and in existence as of January 1, 1994. This initial sum shall be supplemented by a line item appropriation in the 1994 annual budget of eighteen thousand five hundred dollars ($18,500.) or such greater or lesser amount as the Township Committee may determine and shall be supplemented in all succeeding annual budgets by such amount as the Township Committee may from time to time determine.
The minimum amount of the fund shall be sixty thousand five hundred dollars ($60,500.) (initially as hereinabove provided in § 43-2) and the maximum amount in the fund, including increments from interest and dividends, shall be limited to two hundred fifty thousand dollars ($250,000.).
The Mayor, with the consent of the Township Committee, shall appoint three (3) officials of the township, who may be members of the Township Committee, to serve as Insurance Fund Commissioners and shall appoint a person to serve as Secretary to the Insurance Fund Commission. The Commissioners shall hold office for two (2) years or for the remainder of their term of office as officials, whichever shall be less, and until their successors shall have been duly appointed and qualified. The Secretary shall serve at the pleasure of the Commission. The Commissioners shall serve without compensation. The salary of the Secretary shall be set by ordinance or resolution, as appropriate, as authorized by the Township Committee.
Vacancies in the Office of the Insurance Fund Commissioners caused by any reason other than expiration of term as an official shall be filled for the unexpired term. Vacancies in the position of Secretary shall be filled in the manner of the original appointment.
The Commissioners shall, forthwith after their appointment, organize for the ensuing year by election from their membership of a Chairman, who shall serve for the year.
It shall be the duty of said Insurance Fund Commissioners to invest the aforesaid moneys in the fund, and all additions and accretions thereto, in such securities as are legal for trust funds in New Jersey, provided that they are of such a nature that they may be readily sold for cash for the payment of any losses for which the municipality may be liable.
The Insurance Fund Commissioners shall have the authority and they are expressly vested with the power to determine on what base or for what minimum coverage for each of the aforesaid risks or hazards to which the township may be exposed the fund shall be liable, and to proceed to obtain quotations for the excess coverage beyond said base or minimum coverage to one (1) or more reputable insurance companies authorized to do business in New Jersey, to the end that the township may always be fully protected against any claim, and at the same time may recommend to the Township Committee the proposed division of the risks between the fund and such conventional excess insurance coverage as may be determined to be most feasible and economic for the township.
The Commissioners shall further have the powers and authority set forth in N.J.S.A. 40A:10-10.
Nothing herein contained shall be construed to prevent the Chief Financial Officer of the township from simultaneously acting as custodian of any special workers' compensation insurance fund, now or hereafter set up, to protect the township from losses in this category, but he shall, if appointed an Insurance Fund Commissioner, be qualified to handle both activities concurrently and shall be authorized and directed to utilize the same clerical personnel in the discharge of his duties in connection with both funds so that the same may be operated with a minimum overhead expense to the municipality.