Terms Used In Vermont Statutes Title 24 Sec. 4942

  • Association: shall mean an association, compact, or corporation, any of which shall be organized not for profit, and formed for the purpose of entering into intermunicipal insurance agreements under this subchapter. See
  • State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See

§ 4942. Contents of agreement

Two or more municipalities, by resolution of their respective legislative bodies or boards, may establish and enter into agreements for obtaining or effecting insurance by self-insurance, for obtaining or effecting insurance from any insurer authorized to transact business in this State as an admitted or surplus lines carrier, or for obtaining and effecting insurance secured in accordance with any other method provided by law, or by combination of the provisions of this section for obtaining and effecting insurance. Agreements made pursuant to this section may provide for pooling of self-insurance reserves, risks, claims and losses, and of administrative services and expenses associated with the same, among municipalities. To accomplish the purposes of this subchapter, two or more municipalities may form an association under the laws of this State to develop and administer an intermunicipal risk management program, having as its purposes reducing the risk of its members; safety engineering; distributing, sharing, and pooling risks; acquiring insurance, excess loss insurance, or reinsurance; and processing, paying, and defending claims against the members of such association. (Added 1985, No. 237 (Adj. Sess.), § 1, eff. June 3, 1986.)