[HISTORY: Adopted by the Township Committee of the Township of Maplewood 12-7-1993
as Ord. No. 1932-93. Amendments noted where applicable.]
GENERAL REFERENCES
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:
A.
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.
B.
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.
C.
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.
A.
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.
B.
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.
C.
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.
