(a) If the Board elects to establish a self‑insurancetrust fund, the initial contribution to the fund shall be determined by anindependent actuary but shall be no less than three hundred thousand dollars ($300,000).Annual contributions to said fund shall be made in an amount to be determinedeach year by the Trust Fund Council upon the advice of an independent actuaryand shall include amounts necessary to pay all costs of administration of theself‑insurance program and claims adjustment including litigation inaddition to amounts necessary to pay claims. Contributions shall be no lessthan one hundred fifty percent (150%) of the amounts actually paid each year onmedical malpractice claims until such time as the Trust Fund Council, with theadvice of an independent actuary and the approval of the Board of Governors,determines that an annual contribution in a lesser amount will not impair theadequacy of the fund to satisfy existing and potential health care malpracticeclaims for a period of one year.
(b) Claims certified to be paid from the fund shall be paid inthe order of award or settlement. In the event that the fund created hereundershall at any time have insufficient funds to assure that both existing andfuture claims will be paid, the Board is hereby authorized to borrow necessaryamounts up to thirty million dollars ($30,000,000) per established self‑insurancetrust fund account to replenish the fund. The Board shall maintain funds ineach self‑insurance trust at no less than one hundred thousand dollars($100,000) at all times.
(c) Funds borrowed by the Board to replenish the trust fundaccount may be secured by pledging noncapital assets of the members. Membersshall mean those entities, agencies, departments or divisions of the Universitywhich directly contribute funds to the self‑insurance trust. In no eventshall individual health care providers be deemed members for the purposes ofthis section.
(d) Obligations issued under the provisions of this Articleshall not be deemed to constitute a debt, liability or obligation of the Stateor of any political subdivision thereof or a pledge of the faith and credit ofthe State or of any such political subdivision but shall be payable solely fromthe revenues or assets of the members. Each obligation issued under thisArticle shall contain on the face thereof a statement to the effect that theUniversity shall not be obligated to pay the same nor the interest thereonexcept from the revenues or assets pledged therefor and that neither the faithand credit nor the taxing power of the State or of any political subdivisionthereof is pledged to the payment of the principal of or the interest on suchobligation. (1977, c. 523, s.2; 1987, c. 263, s. 2.)
(a) If the Board elects to establish a self‑insurancetrust fund, the initial contribution to the fund shall be determined by anindependent actuary but shall be no less than three hundred thousand dollars ($300,000).Annual contributions to said fund shall be made in an amount to be determinedeach year by the Trust Fund Council upon the advice of an independent actuaryand shall include amounts necessary to pay all costs of administration of theself‑insurance program and claims adjustment including litigation inaddition to amounts necessary to pay claims. Contributions shall be no lessthan one hundred fifty percent (150%) of the amounts actually paid each year onmedical malpractice claims until such time as the Trust Fund Council, with theadvice of an independent actuary and the approval of the Board of Governors,determines that an annual contribution in a lesser amount will not impair theadequacy of the fund to satisfy existing and potential health care malpracticeclaims for a period of one year.
(b) Claims certified to be paid from the fund shall be paid inthe order of award or settlement. In the event that the fund created hereundershall at any time have insufficient funds to assure that both existing andfuture claims will be paid, the Board is hereby authorized to borrow necessaryamounts up to thirty million dollars ($30,000,000) per established self‑insurancetrust fund account to replenish the fund. The Board shall maintain funds ineach self‑insurance trust at no less than one hundred thousand dollars($100,000) at all times.
(c) Funds borrowed by the Board to replenish the trust fundaccount may be secured by pledging noncapital assets of the members. Membersshall mean those entities, agencies, departments or divisions of the Universitywhich directly contribute funds to the self‑insurance trust. In no eventshall individual health care providers be deemed members for the purposes ofthis section.
(d) Obligations issued under the provisions of this Articleshall not be deemed to constitute a debt, liability or obligation of the Stateor of any political subdivision thereof or a pledge of the faith and credit ofthe State or of any such political subdivision but shall be payable solely fromthe revenues or assets of the members. Each obligation issued under thisArticle shall contain on the face thereof a statement to the effect that theUniversity shall not be obligated to pay the same nor the interest thereonexcept from the revenues or assets pledged therefor and that neither the faithand credit nor the taxing power of the State or of any political subdivisionthereof is pledged to the payment of the principal of or the interest on suchobligation. (1977, c. 523, s.2; 1987, c. 263, s. 2.)
(a) If the Board elects to establish a self‑insurancetrust fund, the initial contribution to the fund shall be determined by anindependent actuary but shall be no less than three hundred thousand dollars ($300,000).Annual contributions to said fund shall be made in an amount to be determinedeach year by the Trust Fund Council upon the advice of an independent actuaryand shall include amounts necessary to pay all costs of administration of theself‑insurance program and claims adjustment including litigation inaddition to amounts necessary to pay claims. Contributions shall be no lessthan one hundred fifty percent (150%) of the amounts actually paid each year onmedical malpractice claims until such time as the Trust Fund Council, with theadvice of an independent actuary and the approval of the Board of Governors,determines that an annual contribution in a lesser amount will not impair theadequacy of the fund to satisfy existing and potential health care malpracticeclaims for a period of one year.
(b) Claims certified to be paid from the fund shall be paid inthe order of award or settlement. In the event that the fund created hereundershall at any time have insufficient funds to assure that both existing andfuture claims will be paid, the Board is hereby authorized to borrow necessaryamounts up to thirty million dollars ($30,000,000) per established self‑insurancetrust fund account to replenish the fund. The Board shall maintain funds ineach self‑insurance trust at no less than one hundred thousand dollars($100,000) at all times.
(c) Funds borrowed by the Board to replenish the trust fundaccount may be secured by pledging noncapital assets of the members. Membersshall mean those entities, agencies, departments or divisions of the Universitywhich directly contribute funds to the self‑insurance trust. In no eventshall individual health care providers be deemed members for the purposes ofthis section.
(d) Obligations issued under the provisions of this Articleshall not be deemed to constitute a debt, liability or obligation of the Stateor of any political subdivision thereof or a pledge of the faith and credit ofthe State or of any such political subdivision but shall be payable solely fromthe revenues or assets of the members. Each obligation issued under thisArticle shall contain on the face thereof a statement to the effect that theUniversity shall not be obligated to pay the same nor the interest thereonexcept from the revenues or assets pledged therefor and that neither the faithand credit nor the taxing power of the State or of any political subdivisionthereof is pledged to the payment of the principal of or the interest on suchobligation. (1977, c. 523, s.2; 1987, c. 263, s. 2.)
