§ 1406. Liability insurance (a) The Secretary of Administration, on behalf of the State, may contract or enter into agreements with any insurance company or companies or insurance corporation or corporations licensed to do business within the State for the purpose of insuring the State against liability or may self-insure against liability. (b) The Secretary of Administration is directed to charge back against individual departmental appropriations in all funds the proper amounts necessary to pay the cost of the insurance or self-insurance referred to in subsection (a) of this section. (c) The State Liability Self-Insurance Fund is created to provide a program of self-insuring liability coverages for all State agencies, Legislature, departments, State colleges, Judiciary, quasi-State agencies, boards, commissions, and employees, as defined in 3 V.S.A. § 1101. All covered entities shall participate in the program and shall contribute to the Fund. The Fund shall be administered by the Secretary of Administration to adjust claims, to pay judgments, and to reimburse contractors and State agencies for services rendered. (1) All balances remaining in the Fund at the end of the fiscal year shall be carried forward to remain in the Fund. Interest earned by the Fund shall be deposited in the Fund. (2) The Commissioner of Finance and Management may anticipate receipts to this Fund and issue warrants based thereon. (3) Losses shall be fully reserved and funded and provision shall be made for losses incurred but not reported. The Fund shall be actuarially reviewed annually.
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