15-387

15-387. Procurement of insurance; eligibility
of governing board members, former board members and surviving
spouse and dependents; deposit of monies

A. Notwithstanding section 15-323, the governing board may procure insurance from
any insurer authorized by the director of the department of insurance or may establish a
self-insurance program as provided in section 15-382 for the management and
administration of a system for direct payment of benefits, losses or claims or any
combination of insurance and direct payments, including risk management consultation, to
provide:

1. Health, accident, life or disability benefits for employees of the school
district and their dependents and for members of the governing board and their dependents
as provided in subsection B of this section.

2. Payment of any property or fidelity loss sustained, legal expenses incurred or
lawful claim of liability or fortuitous loss made against the school district or its
employees, including leased employees, or officers if the employees, leased employees or
officers are acting in the scope of their employment or authority.

3. Coverage for all construction projects for purposes of general liability,
property damage and workers' compensation.

B. A governing board member is eligible to participate in an insurance plan
provided as an employee benefit pursuant to subsection A, paragraph 1 of this section if
the member pays the full premium and the participation of the member does not result in
an expenditure of school district monies.

C. If the governing board allows its members to participate in the insurance plan,
a governing board may also adopt a policy allowing participation in an insurance plan
provided as an employee benefit pursuant to subsection A, paragraph 1 of this section for
former board members and for surviving spouses and dependents of board members or former
board members as follows:

1. The board may allow a former board member to continue to participate if the
former board member served at least four consecutive years on the board, was covered
under the insurance plan while serving on the board and pays the full premium and the
participation does not result in an expenditure of school district monies.

2. The board may allow the surviving spouse and dependent of the board member or
former board member to continue to participate in the insurance plan if the surviving
spouse or dependent pays the full premium and the participation of the surviving spouse
and dependent does not result in an expenditure of school district monies and if:

(a) The deceased board member or former board member met the qualifications for
eligibility pursuant to paragraph 1 of this subsection.

(b) The deceased board member or former board member would have met the
qualifications for eligibility pursuant to paragraph 1 of this subsection if the deceased
board member or former board member had not died in office.

D. Monies that are provided by employees, board members, former board members and
surviving spouses and dependents of board members or former board members and that are
received pursuant to this section shall be deposited in an account as provided in section
15-1223.