Preexisting liabilities qualifying for partial payment

Sec. 11. A liability that arises out of an act or omission that takes place before the political subdivision bearing the liability becomes a member of the fund does not qualify for partial payment under this chapter unless the liability: (1) is expressly covered by the provisions of a coverage document that: (A) is issued to the fund member; and (B) is in effect when the claim is made; and (2) is also covered by the underlying coverage that is claims made basis coverage. As added by P.L.272-1987, SEC.7.