HB 1248-1_ Filed 03/29/2001, 09:36

COMMITTEE REPORT




MR. PRESIDENT:

    The Senate Committee on Corrections, Criminal and Civil Procedures, to which was referred House Bill No. 1248, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 1, line 9; (01)AM124805.1. -->     Page 1, line 9, delete "seven" and insert " five".
    Page 1, line 9, delete "($700,000)" and insert " ($500,000)".
    Page 2, line 33, delete "seven" and insert " five".
    Page 2, line 33, delete "($700,000)" and insert " ($500,000)".
    Page 2, between lines 37 and 38, begin a new paragraph and insert:
SOURCE: IC 34-13-3-20; (01)AM124805.3. -->     "SECTION 3. IC 34-13-3-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 20. (a) A political subdivision may purchase insurance to cover the liability of itself or its employees. Any liability insurance so purchased shall be purchased by invitation to and negotiation with providers of insurance and may be purchased with other types of insurance. If such a policy is purchased, the terms of the policy govern:
         (1) the rights and obligations of the political subdivision and the insurer with respect to the investigation, settlement, and defense of claims or suits brought against the political subdivision or its employees covered by the policy; and
        (2) with respect to the maximum liability limitations if the policy provisions exceed the limitations in section 4 of this chapter.
The liability insurance policy may not provide for an exception to its maximum liability limitations on the basis that the liability is subject to this chapter.
However, the insurer may not enter into a

settlement for an amount that exceeds the insurance coverage without the approval of the mayor, if the claim or suit is against a city, or the governing body of any other political subdivision, if the claim or suit is against such political subdivision.
    (b) The state may not purchase insurance to cover the liability of the state or its employees. This subsection does not prohibit any of the following:
        (1) The requiring of contractors to carry insurance.
        (2) The purchase of insurance to cover losses occurring on real property owned by the public employees' retirement fund or the Indiana state teachers' retirement fund.
        (3) The purchase of insurance by a separate body corporate and politic to cover the liability of itself or its employees.
        (4) The purchase of casualty and liability insurance for foster parents (as defined in IC 27-1-30-4) on a group basis.".

SOURCE: Page 2, line 38; (01)AM124805.2. -->     Page 2, line 38, delete "This act applies" and insert " IC 27-1-29-14 and IC 34-13-3-4, both as amended by this act, apply".
    Page 2, line 39, after "." insert " IC 34-13-3-20, as amended by this act, applies only to liability insurance policies issued or renewed after December 31, 2001.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1248 as printed February 22, 2001.)

and when so amended that said bill do pass .

Committee Vote: Yeas 10, Nays 0.

____________________________________

Senator Long, Chairperson


AM 124805/DI 106    2001