CHAPTER 29. INDIANA POLITICAL SUBDIVISION RISK MANAGEMENT COMMISSION
IC 27-1-29
Chapter 29. Indiana Political Subdivision Risk ManagementCommission
IC 27-1-29-1
"Commission" defined
Sec. 1. As used in this chapter, "commission" refers to the Indianapolitical subdivision risk management commission established bythis chapter.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-2
"Fund" defined
Sec. 2. As used in this chapter, "fund" refers to the politicalsubdivision risk management fund established by this chapter.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-3
"Liability" defined
Sec. 3. As used in this chapter, "liability" means an obligationarising from a claim for the payment of money in an amountestablished under IC 34-13-3 (or IC 34-4-16.5 before its repeal) orany other claim for which coverage is provided for members of thefund under rules adopted by the commission.
As added by P.L.162-1986, SEC.1. Amended by P.L.1-1998,SEC.141.
IC 27-1-29-4
"Political subdivision" defined
Sec. 4. As used in this chapter, "political subdivision" has themeaning set forth in IC 34-6-2-110.
As added by P.L.162-1986, SEC.1. Amended by P.L.5-1988,SEC.143; P.L.1-1998, SEC.142.
IC 27-1-29-5
Creation; purpose; membership; appointment; term;qualifications; vacancies; per diem and expenses; tax exemptproperty of commission
Sec. 5. (a) The Indiana political subdivision risk managementcommission is created as a separate body corporate and politic,constituting an instrumentality of the state for the public purposes setout in this chapter, but not a state agency. The commission isseparate from the state in its corporate and sovereign capacity. Thepurpose of the commission is aiding political subdivisions inprotecting themselves against liabilities. The commission is notsubject to IC 27-6-8, and the Indiana guaranty association created byIC 27-6-8-5 has no obligation to insureds or claimants of thecommission.
(b) The commission consists of the insurance commissioner, whoshall serve as chairman, and ten (10) other commission members.
Except for the commissioner, the members of the commission shallbe appointed by the governor for a term of four (4) years. No morethan five (5) commission members appointed by the governor underthis section may be members of the same political party. Thecommission members appointed by the governor under this sectionmust include one (1) resident of each congressional district inIndiana. The commission shall elect one (1) of the appointedcommission members as secretary of the commission.
(c) The initial appointments of commission members are for thefollowing terms:
(1) Three (3) members appointed for a term of one (1) year.
(2) Three (3) members appointed for a term of two (2) years.
(3) Two (2) members appointed for a term of three (3) years.
(4) Two (2) members appointed for a term of four (4) years.
A commission member may be reappointed to the commission.
(d) In appointing commission members under this section, thegovernor shall consider the qualifications, expertise, and backgroundthat would provide the proper talent to administer this chapter. Tothe degree possible, the members must have backgrounds ineducational administration, risk management, and governance of apolitical subdivision and must include persons with knowledge ofinsurance matters.
(e) A vacancy occurring on the commission shall be filled throughthe appointment of a resident of the same congressional district asthe vacating commission member for the unexpired term of thecommission member leaving the commission.
(f) Each member of the commission who is not a state employeeis entitled to the minimum salary per diem provided byIC 4-10-11-2.1(b). Such a commission member is also entitled toreimbursement for traveling expenses and other expenses actuallyincurred in connection with the member's duties, as provided in thestate travel policies and procedures established by the department ofadministration and approved by the state budget agency.
(g) Each member of the commission who is a state employee isentitled to reimbursement for traveling expenses and other expensesactually incurred in connection with the commission member'sduties, as provided in the state travel policies and proceduresestablished by the department of administration and approved by thestate budget agency.
(h) All property of the commission is public property devoted toan essential public and governmental function and purpose and isexempt from all taxes and special assessments of the state or apolitical subdivision of the state.
As added by P.L.162-1986, SEC.1. Amended by P.L.272-1987,SEC.1.
IC 27-1-29-6
Meetings; actions
Sec. 6. The commission shall meet upon the call of thecommissioner, who shall convene meetings as often as necessary to
accomplish the purposes of this chapter. The commission may act:
(1) through the vote of a majority of members at a meeting atwhich at least six (6) members are present; or
(2) through the commissioner, pursuant to powers granted to thecommission under this chapter and delegated to thecommissioner by the vote of a majority of members at a meetingat which at least six (6) members are present.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-7
Powers of commission; limit on surcharge levied against membersof fund; reports
Sec. 7. (a) The commission is granted all powers necessary,convenient, or appropriate to carry out and effectuate its public andcorporate purposes under this chapter and IC 27-1-29.1 including,but not limited to, and except as otherwise restricted in this chapteror IC 27-1-29.1:
(1) The power to have perpetual existence as a body corporateand politic, and an independent instrumentality, but not a stateagency, exercising essential public functions.
(2) The power to sue and be sued.
(3) The power to adopt and alter an official seal.
(4) The power to make and enforce bylaws and rules for theconduct of its business, which bylaws and rules may be adoptedby the commission without complying with IC 4-22-2.
(5) The power to make contracts and incur liabilities, borrowmoney, issue its negotiable bonds or notes in accordance withthis chapter, subject to provisions for registration of negotiablebonds and notes, and provide for and secure their payment andprovide for the rights of their holders, and purchase and holdand dispose of any of its bonds or notes.
(6) The power to acquire, hold, use, and dispose of its income,revenues, funds, and money.
(7) The power to acquire, rent, lease, hold, use, and dispose ofproperty for its purposes.
(8) The power to fix and revise from time to time and chargeand collect fees and charges for the use of its services orfacilities.
(9) The power to accept gifts or grants of property, funds,money, materials, labor, supplies, or services from the UnitedStates, any governmental unit, or any person, carry out theterms or provisions or make agreements with respect to the giftsor grants, and do all things necessary, useful, desirable, orconvenient in connection with procuring, accepting, ordisposing of the gifts or grants.
(10) The power to do anything authorized by this article,through its officers, agents, or employees or by contracts witha person.
(11) The power to procure insurance against any losses inconnection with its property, operations, or assets in amounts
and from insurers as it considers desirable.
(12) The power to cooperate with and exchange services,personnel, and information with any federal, state, or localgovernment agency.
(b) The commission may:
(1) implement a statewide program of loss control and riskmanagement to minimize the liabilities of members of the fund;
(2) contract with any persons or entities to obtain or provide theservices of risk managers, actuaries, loss control specialists,attorneys, and other professionals in carrying out its powers andduties under this chapter and to pay for those services from thefund;
(3) exercise control over the defense of members of the fundagainst tort claims, including the selection and retention of legalcounsel, the direction of counsel in the conduct of cases, andthe negotiation and acceptance or rejection of any settlement;
(4) establish procedures by which political subdivisions cangain or regain membership and relinquish membership in thefund;
(5) establish procedures and criteria for the imposition ofassessments to be paid by members of the fund, and thepayment of members' liabilities;
(6) establish programs for the payment of money from the fundto compensate members for damage to or loss of real orpersonal property;
(7) establish programs for the payment of:
(A) liabilities covered under IC 34-13-3 (or IC 34-4-16.5before its repeal); and
(B) liabilities that are not covered under IC 34-13-3 (orIC 34-4-16.5 before its repeal), including, but not limited to,liability due to alleged violations of the Constitution of theUnited States or federal civil rights statutes by lawenforcement officers;
(8) establish programs by which members can protect theirelected officers and employees against liability arising fromtheir alleged errors or omissions;
(9) establish procedures by which a member of the fund cansettle small claims that are within the deductible provision ofcoverage under the fund;
(10) capitalize the fund by levying against each member of thefund an annual surcharge over and above the assessmentimposed against the member under section 12 of this chapter;and
(11) establish any other programs or procedures the commissionconsiders necessary for the implementation of this chapter.
The amount of the surcharge levied against a member of the fund fora particular year under subdivision (10) may not exceed twenty-fivepercent (25%) of the member's assessment for the same year.
(c) The commission shall file a report in an electronic formatunder IC 5-14-6 with the general assembly each year concerning the
operations of the commission and the condition of the fund.
As added by P.L.162-1986, SEC.1. Amended by P.L.272-1987,SEC.2; P.L.1-1998, SEC.143; P.L.28-2004, SEC.166.
IC 27-1-29-8
Expenses incurred; payment
Sec. 8. (a) All expenses incurred by the commission inadministering the fund under this chapter shall be paid from the fund.
(b) All expenses incurred by the commission in administering thepolitical subdivision catastrophic liability fund established byIC 27-1-29.1 shall be paid from the political subdivision catastrophicliability fund.
(c) All expenses incurred by the commission that are not incurreddirectly in connection with the administration of the politicalsubdivision risk management fund or the political subdivisioncatastrophic liability fund shall be paid equally from each fund.
As added by P.L.162-1986, SEC.1. Amended by P.L.272-1987,SEC.3.
IC 27-1-29-9
Liability insurance or indemnification; state responsibility forcommission obligations
Sec. 9. (a) The commission shall purchase liability insurance for,or otherwise indemnify, its members against personal liability foracts and omissions arising out of their performance, in good faith, oftheir duties as members of the commission.
(b) The state is not responsible for the payment of any obligationof the commission.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-10
Political subdivision risk management fund; purpose;administration; expenses; depositories; investment; reserveaccount
Sec. 10. (a) The political subdivision risk management fund isestablished for the purpose of:
(1) paying the liabilities of political subdivisions to the extentspecified in this chapter;
(2) receiving assessments paid by political subdivisions toreplenish the fund and to pay the principal of and interest onbonds or notes issued by the commission under section 17(b)(2)of this chapter; and
(3) receiving money from any other source.
(b) The fund shall be administered by the commission.
(c) The expenses of administering the fund shall be paid frommoney in the fund.
(d) All money received by the commission under this chapter,whether as assessments, proceeds from the sale of bonds, orrevenues, are trust funds, to be held and applied solely as providedin this chapter. Current operating funds shall be kept in depositories
selected by the commission. The commission shall deposit with thetreasurer of state the money in the fund not currently needed to meetthe obligations of the fund, and the treasurer of state shall invest suchmoney for the commission in accordance with the provisions of anyresolution or trust agreement that the commission adopts or entersinto under this chapter. Interest that accrues from these investmentsshall be credited to the commission and to the fund.
(e) Money in the fund at the end of a particular fiscal year doesnot revert to the state general fund.
(f) The commission shall create a reserve account in the fund andshall capitalize the reserve account through the surcharges leviedunder section 7(b)(10) of this chapter.
As added by P.L.162-1986, SEC.1. Amended by P.L.272-1987,SEC.4.
IC 27-1-29-11
Fund members; eligibility; assessments; surcharge levies; paymentof liabilities
Sec. 11. All political subdivisions are eligible for membership inthe fund. Each member of the fund:
(1) shall contribute to the fund in the amount of the assessmentcharged the member under this chapter;
(2) shall pay the annual surcharge levied against the memberunder this chapter; and
(3) is entitled to payment of its liabilities from the fund underthis chapter.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-12
Assessments on members of fund
Sec. 12. (a) The commission shall impose an assessment to bepaid by each member of the fund. The assessments to be paid bymembers of the fund shall be set in fairness to all members, basedupon the uniform application of actuarial principles and underwriters'rating principles. A member shall pay its assessment in accordancewith rules of the commission.
(b) The assessment for the first twelve (12) months of a politicalsubdivision's membership in the fund shall be no greater than thepayment made by the political subdivision to a commercial insurerfor like coverage for the twelve (12) month period immediatelypreceding the political subdivision's application to become amember. In the case of an applicant not insured by a commercialinsurer, the commission shall set the amount of the assessment forthe first twelve (12) months of membership in accordance withsubsection (a).
As added by P.L.162-1986, SEC.1.
IC 27-1-29-13
Payment of liabilities of members of fund; primary coverage
Sec. 13. (a) The commission shall pay liabilities of members of
the fund in accordance with rules established by the commission.
(b) Payment from the fund for any liability covered underIC 34-13-3 (or IC 34-4-16.5 before its repeal) or for any otherliability designated under rules adopted by the commission isprimary coverage in relation to the following:
(1) Any insurance policy issued to a member of the fund that,by its terms, provides coverage secondary to coverage providedthrough membership in the fund.
(2) A fund member's own program of self insurance.
Payment of a liability identified in this subsection must be madewithin the limits set forth in section 14(b) of this chapter andirrespective of the existence of an insurance policy described insubdivision (1) or of a self insurance program described insubdivision (2).
As added by P.L.162-1986, SEC.1. Amended by P.L.1-1998,SEC.144.
IC 27-1-29-14
Eligibility and guidelines for payment from fund
Sec. 14. (a) In order to be eligible for payment under this chapter,a liability of a political subdivision must arise out of a claim basedupon an act or omission that takes place while the politicalsubdivision is a member of the fund.
(b) The maximum amount payable from the fund for any liability,whether or not it is covered under IC 34-13-3 (or IC 34-4-16.5 beforeits repeal), is:
(1) for injury, death, or damage suffered by any one (1) personas a result of the act or omission from which the liability arises:
(A) three hundred thousand dollars ($300,000) for a cause ofaction that accrues before January 1, 2006;
(B) five hundred thousand dollars ($500,000) for a cause ofaction that accrues on or after January 1, 2006, and beforeJanuary 1, 2008; or
(C) seven hundred thousand dollars ($700,000) for a causeof action that accrues on or after January 1, 2008; and
(2) one million dollars ($1,000,000) for all injury, death, ordamage suffered by all persons as a result of the act or omissionfrom which the liability arises.
(c) No amount may be paid from the fund in respect of punitivedamages paid by or assessed against a member of the fund.
(d) No amount may be paid from the fund in the case of a liabilitybased upon bodily injury or property damage arising out of thedischarge, dispersal, release, or escape of smoke, vapors, soot, fumes,acids, alkalis, toxic chemicals, liquids, gases, waste materials, orother irritants, contaminants, or pollutants into or upon land, theatmosphere, or any watercourse or body of water unless thedischarge, dispersal, release, or escape:
(1) is caused by an act or omission of a political subdivisionthat is a member of the fund; and
(2) occurs as a result of: (A) a household hazardous waste; or
(B) a conditionally exempt small quantity generator (asdescribed in 40 CFR 261.5(a));
collection, disposal, or recycling project conducted by orcontrolled by the political subdivision.
(e) The commissioner may pay a liability of a member of the fundin a series of annual payments. The amount of any annual paymentunder this subsection must be one hundred thousand dollars($100,000) or more, except for the final payment in a series ofpayments.
(f) The commission may negotiate a structured settlement of anyclaim.
(g) As used in this section, "household hazardous waste" meanssolid waste generated by households that consists of or contains amaterial that is:
(1) ignitable, as described in 40 CFR 261.21;
(2) corrosive, as described in 40 CFR 261.22;
(3) reactive, as described in 40 CFR 261.23; or
(4) toxic, as described in 40 CFR 261.24.
As added by P.L.162-1986, SEC.1. Amended by P.L.273-1987,SEC.1; P.L.256-1995, SEC.1; P.L.1-1998, SEC.145; P.L.108-2003,SEC.1.
IC 27-1-29-15
Filing notice of intent to become member of fund; relinquishingmembership in fund
Sec. 15. (a) A political subdivision may become a member of thefund by filing a written notice of its intent to become a member withthe commission by the date exactly six (6) months before theexpiration date of the liability insurance policy covering the politicalsubdivision on December 31, 1986.
(b) Each political subdivision that files a notice of intent tobecome a member of the fund by the date set forth in subsection (a)shall be granted membership in the fund. A political subdivision thatfiles a notice of intent to become a member after the date set forth insubsection (a) may be admitted to or rejected for membership in thefund at the discretion of the commission.
(c) A rule adopted by the commission to establish the proceduresdescribed in section 7(b)(4) of this chapter may not provide that apolitical subdivision continues to be a member of the fund more thantwelve (12) months after the political subdivision gives notice to thecommissioner of its intention to relinquish its membership.
(d) After relinquishing its membership in the fund, a politicalsubdivision remains liable for its pro rata share of assessments to payfor liabilities of fund members that arose out of claims based uponacts or omissions that took place while the political subdivision wasa member of the fund. If a political subdivision fails to pay anassessment to which it is subject under this chapter, the commissionmay give notice to any department or agency of the state (includingthe treasurer of state or the auditor of state) that is the custodian of
money payable to the delinquent political subdivision after the dateof the notice, that the political subdivision is in default on thepayment of an assessment under this chapter. After receiving thisnotice, the department or agency shall withhold the delinquentamount from money payable to the political subdivision and pay overthe money to the commission to be applied against the delinquentassessment.
As added by P.L.162-1986, SEC.1. Amended by P.L.273-1987,SEC.2; P.L.272-1987, SEC.5.
IC 27-1-29-16
Appointment of members; rules
Sec. 16. (a) The governor shall appoint the initial members of thecommission by May 1, 1986.
(b) The commission shall adopt rules under IC 4-22-2 for theimplementation of this chapter by October 1, 1986, and shall adoptother rules as required after that date.
As added by P.L.162-1986, SEC.1.
IC 27-1-29-17
Bonds or notes issued by commission; purposes; status; procedures
Sec. 17. (a) As used in this section:
(1) "basic fund" refers to the political subdivision riskmanagement fund established by this chapter; and
(2) "catastrophic fund" refers to the political subdivisioncatastrophic liability fund established by IC 27-1-29.1.
(b) Before July 1, 2005, the commission may issue its bonds ornotes in amounts that it considers necessary to provide funds to:
(1) establish or maintain the reserve account in the catastrophicfund provided for in IC 27-1-29.1-8;
(2) provide for the payment of liabilities payable out of thebasic fund to the extent such liabilities exceed the money in thebasic fund; and
(3) pay, fund, or refund, regardless of when due, the principalof or interest or redemption premiums on bonds or notes issuedunder subdivision (1) or (2).
Bonds or notes issued under subdivision (2) must mature within three(3) years after their date of issuance.
(c) The bonds or notes of the commission may be issued and soldby the commission to the Indiana bond bank under IC 5-1.5.
(d) Every issue of bonds or notes is an obligation of thecommission. An issue of bonds or notes under subsection (b)(1) ispayable solely from assessments imposed by the commission underIC 27-1-29.1 on political subdivisions that are members of thecatastrophic fund, and the commission may secure such bonds ornotes by a pledge of assessments imposed under IC 27-1-29.1. Anissue of bonds or notes under subsection (b)(2) is payable solelyfrom assessments imposed by the commission under section 12 ofthis chapter on political subdivisions that are members of the basicfund, and the commission may secure such bonds or notes by a
pledge of assessments imposed under section 12 of this chapter.
(e) A bond or note of the commission:
(1) is not a debt, liability, loan of credit, or pledge of the faithand credit of the state; and
(2) must contain on its face a statement that the commission isobligated to pay principal and interest, and the redemptionpremium, if any, and that the faith, credit, and taxing power ofthe state are not pledged to the payment of the bond or note.
(f) The state pledges to and agrees with the holders of the bondsor notes issued under this chapter that the state will not:
(1) limit or restrict the rights vested in the commission to fulfillthe terms of any agreement made with the holders of its bondsor notes; or
(2) in any way impair the rights or remedies of the holders ofthe bonds or notes;
until the bonds or notes, together with the interest on the bonds ornotes, and interest on unpaid installments of interest, and all costsand expenses in connection with an action or proceeding by or onbehalf of the holders, are fully met, paid, and discharged.
(g) The bonds or notes of the commission are negotiableinstruments for all purposes of IC 26-1, subject only to the provisionsof the bonds and notes for registration.
(h) Bonds or notes of the commission must be authorized byresolution of the commission, may be issued in one (1) or moreseries, and must:
(1) bear the date;
(2) mature at the time or times;
(3) be in the denomination;
(4) be in the form;
(5) carry the conversion or registration privileges;
(6) have the rank or priority;
(7) be executed in the manner;
(8) be payable from the sources in the medium of payment atthe place inside or outside the state; and
(9) be subject to the terms of redemption;
as the resolution of the commission or the trust agreement securingthe bonds or notes provides.
(i) Bonds or notes may be issued under this chapter withoutobtaining the consent of any agency of the state and without anyother proceeding or condition other than the proceedings orconditions specified in this chapter.
(j) The rate or rates of interest on the bonds or notes may be fixedor variable. Variable rates shall be determined in the manner and inaccordance with the procedures set forth in the resolution authorizingthe issuance of the bonds or notes. Bonds or notes bearing a variablerate of interest may be converted to bonds or notes bearing a fixedrate or rates of interest, and bonds or notes bearing a fixed rate orrates of interest may be converted to bonds or notes bearing avariable rate of interest, to the extent and in the manner set forth inthe resolution pursuant to which the bonds or notes are issued. The
interest on bonds or notes may be payable semiannually or annuallyor at any other interval or intervals as may be provided in theresolution, or the interest may be compounded and paid at maturityor at any other times as may be specified in the resolution.
(k) The bonds or notes may be made subject, at the option of theholders, to mandatory redemption by the commission at the times andunder the circumstances set forth in the authorizing resolution.
(l) Bonds or notes of the commission may be sold at public orprivate sale at such price, either above or below the principalamount, as the commission fixes. If bonds or notes of thecommission are to be sold at public sale, the commission shallcomply with IC 5-1-11 and shall publish notice of the sale inaccordance with IC 5-3-1-2 in two (2) newspapers published and ofgeneral circulation in Indianapolis.
(m) The commission may periodically issue its notes under thischapter and pay and retire the principal of the notes, pay the interestdue on the notes, or fund or refund the notes from proceeds of bondsor of other notes or from other funds or money of the commissionavailable for that purpose in accordance with a contract between thecommission and the holders of the notes.
(n) The commission may secure any bonds or notes issued underthis chapter by a trust agreement by and between the commission anda corporate trustee, which may be any trust company or bank havingthe powers of a trust company within or outside Indiana.
(o) The trust agreement or the resolution providing for theissuance of the bonds or notes may contain provisions for protectingand enforcing the rights and remedies of the holders of any suchbonds or notes as are reasonable and proper and not in violation oflaw.
(p) The trust agreement or resolution may set forth the rights andremedies of the holders of any bonds or notes and of the trustee andmay restrict the individual right of action by the holders.
(q) In addition to the provisions of subsections (n) through (p),any trust agreement or resolution may contain other provisions thecommission considers reasonable and proper for the security of theholders of any bonds or notes.
(r) All expenses incurred in carrying out the provisions of the trustagreement or resolution may be paid from assessments, revenues, orassets pledged or assigned to the payment of the principal of and theinterest on bonds and notes or from any other funds available to thecommission.
(s) Notwithstanding the restrictions of any other law, all financialinstitutions, investment companies, insurance companies, insuranceassociations, executors, administrators, guardians, trustees, and otherfiduciaries may legally invest sinking funds, money, or other fundsbelonging to them or within their control in bonds or notes issuedunder this chapter.
(t) All bonds or notes issued under this chapter are issued by abody corporate and politic of this state, but not a state agency, andfor an essential public and government purpose and the bonds and
notes, the interest thereon, the proceeds received by a holder fromthe sale of the bonds or notes to the extent of the holder's cost ofacquisition, proceeds received upon redemption before maturity, andproceeds received at maturity, and the receipt of the interest andproceeds are exempt from taxation in Indiana for all purposes exceptthe financial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
As added by P.L.272-1987, SEC.6. Amended by P.L.21-1990,SEC.52; P.L.254-1997(ss), SEC.25; P.L.235-2005, SEC.203.
IC 27-1-29-27.1
Code of ethics
Sec. 27.1. (a) The commission shall:
(1) adopt:
(A) rules under IC 4-22-2; or
(B) a policy;
establishing a code of ethics for its employees; or
(2) decide it wishes to be under the jurisdiction and rulesadopted by the state ethics commission.
(b) A code of ethics adopted by rule or policy under this sectionmust be consistent with state law and approved by the governor.
As added by P.L.5-1996, SEC.19.
IC 27-1-29-28
Actions affecting fund warranted by declining membership orfinancial conditions
Sec. 28. (a) As used in this section, "fund" means the politicalsubdivision risk management fund established by section 10 of thischapter.
(b) Notwithstanding any other provision of this chapter, thecommission:
(1) with the approval of the insurance commissioner; and
(2) upon a determination by the commission that:
(A) membership in the fund is declining; and
(B) financial conditions warrant the action;
is authorized to take action under subsection (c).
(c) Under the circumstances set forth in subsection (b), thecommission may do the following with respect to the fund:
(1) Prevent any political subdivision that is not already amember of the fund from becoming a member.
(2) Decline to renew the membership of the politicalsubdivisions that are members of the fund.
(3) When the membership of the last member has expired, ceasethe operation of the fund, except for:
(A) the payment of liabilities of former members of the fund;and
(B) the collection of assessments from former members ofthe fund, if any are due;
in accordance with this chapter and rules adopted by thecommission. (4) Allow or cause a partial reduction or complete depletion ofthe balance of the fund through:
(A) the payment of liabilities of former members of the fund;and
(B) at the discretion of the commission, and with theapproval of the commissioner, the pro rata return to formermembers of assessments paid by former members of thefund;
in accordance with this chapter and rules adopted by thecommission.
(d) After any or all of the actions authorized by subsection (c), thecommission, with the approval of the insurance commissioner, mayresume using the fund to pay the liabilities of members of the fundunder this chapter.
As added by P.L.103-1998, SEC.1.