(a) Definitions. Unless the context clearly requires otherwise, as used in this subchapter, the term:(1) “Agency” or “Port Authority” means the Virgin Islands Port Authority.(2) “Program Administrator” means the Chief Executive Officer or designee of the Virgin Islands Port Authority.(3) “Self-insurance program” means a formal program of advance funding and management of the Virgin Islands Port Authority’s financial exposure to a risk of loss that is not transferred through the purchase of an insurance policy or contract.
(1) “Agency” or “Port Authority” means the Virgin Islands Port Authority.
(2) “Program Administrator” means the Chief Executive Officer or designee of the Virgin Islands Port Authority.
(3) “Self-insurance program” means a formal program of advance funding and management of the Virgin Islands Port Authority’s financial exposure to a risk of loss that is not transferred through the purchase of an insurance policy or contract.
(b) Insurable assets.(1) The self-insurance program must write insurance only for the Port Authority, as an insured, in regards to those insurable risks or portions of those insurable risks that the Port Authority, in its discretion, considers appropriate and in the best interest of the Port Authority; however, the Port Authority may not self-insure the first party property aspects of its real property assets and the improvements thereon or employee medical, life, and health program.(2) The Port Authority’s self-insurance program may cover the following categories:(A) its general liability risk in whole or in part;(B) its motor vehicle liability risk in whole or in part;(C) its third-party injuries; and;(D) any other risk that is not excluded by this section.
(1) The self-insurance program must write insurance only for the Port Authority, as an insured, in regards to those insurable risks or portions of those insurable risks that the Port Authority, in its discretion, considers appropriate and in the best interest of the Port Authority; however, the Port Authority may not self-insure the first party property aspects of its real property assets and the improvements thereon or employee medical, life, and health program.
(2) The Port Authority’s self-insurance program may cover the following categories:(A) its general liability risk in whole or in part;(B) its motor vehicle liability risk in whole or in part;(C) its third-party injuries; and;(D) any other risk that is not excluded by this section.
(A) its general liability risk in whole or in part;
(B) its motor vehicle liability risk in whole or in part;
(C) its third-party injuries; and;
(D) any other risk that is not excluded by this section.
(c) Management. The Governing Board of the Port Authority has general oversight over the self-insurance program. The Governing Board shall delegate the administrative responsibilities of the self-insurance program to the Program Administrator of the Virgin Islands Port Authority. The Governing Board may adopt such bylaws, rules, and regulations as may be necessary or desirable in administering the self-insurance program.
(d) Maintenance of self-insurance program. The agency shall meet the following requirements as a condition of maintaining the self-insurance program:(1) Maintenance of competent and trustworthy persons to service the program. Written notice shall be provided to the Program Administrator before changing the fund’s method of fulfilling its servicing requirements;(2) Maintenance of a risk management program;(3) Maintenance of a deposit of cash or securities in the amount of $300,000 in the first year and $200,000 every year thereafter to a restricted account or a surety bond in lieu thereof until a threshold of $600,000 is met;(4) Maintenance of excess insurance in accordance with sound actuarial principles; and(5) Maintenance of appropriate funded loss reserves determined in accordance with sound actuarial principles to the Program administrator.
(1) Maintenance of competent and trustworthy persons to service the program. Written notice shall be provided to the Program Administrator before changing the fund’s method of fulfilling its servicing requirements;
(2) Maintenance of a risk management program;
(3) Maintenance of a deposit of cash or securities in the amount of $300,000 in the first year and $200,000 every year thereafter to a restricted account or a surety bond in lieu thereof until a threshold of $600,000 is met;
(4) Maintenance of excess insurance in accordance with sound actuarial principles; and
(5) Maintenance of appropriate funded loss reserves determined in accordance with sound actuarial principles to the Program administrator.