PURMS

DEFINITIONS

FOR THE

PURMS JOINT SELF-INSURANCE AGREEMENT

AND OPERATIONAL RULES

Amended and Restated as of December 7, 2001

 

            These Definitions govern the meanings of the words defined when used in the PURMS Joint Self-Insurance Agreement ("SIA") and Operational Rules ("Op. Rules"); provided, however, that any specific definitions set forth in the Coverages Sections of the SIA (§§ III-VI, §§ X-XI and § XIV) shall control the interpretation of those Sections to the extent those definitions are different from the Definitions contained in this § II.  These Definitions were unanimously re-adopted by the Members of the Fund effective December 7, 2001, the same date the Interlocal Agreement was amended and restated.  These Definitions, as amended from time to time pursuant to § I,¶ 5.2 of the SIA, are specifically incorporated into the SIA and the Operational Rules and shall be deemed a part of those documents as if fully set forth therein.

 

 

Accident                                                 --      With respect to the Liability Coverage, shall mean an unusual, unintended, unexpected and unforeseen happening, including continuous or repeated exposure to the same conditions, causing Bodily Injury or Property Damage resulting from the ownership, maintenance or use of a Covered Vehicle by an Insured, and which occurred during the Coverage Period. Multiple Liability Claims arising out of a single Accident, even if asserted against different Members or Employees, shall be deemed to be a single Liability Claim arising from a single Accident. (See § V, ¶ 2.1).

 

With respect to the Property Pool, shall mean an unusual, unintended, unexpected and unforeseen happening, including continuous or repeated exposure to the same conditions, that causes Direct Physical Loss or Damage to a Covered Auto arising from the use thereof by a Member (as defined specifically in § XI, ¶ 1.13) and which occurred during the Coverage Period.  Multiple Property Claims arising out of a single Property Loss, even if filed by multiple Members, shall be deemed to be a single Property Claim arising from a single accident.

 

Accrued Stop Loss Payments                 --      shall mean the total of the payments made by or on behalf of a Member under sub-¶¶s (a) through (c) of ¶ 3.3.1 of the H&W General Assessment Formula (§ XV) which accrue toward satisfying a Member’s Aggregate Stop Loss Point.

 

Actual Cash Value                                  --      Actual Cash Value shall mean Replacement Cost less depreciation (see § X, ¶ 10).

 

Actual Liability Pool Balance                --      shall mean the cash investments, and any other assets held by the Fund for and on behalf of the Liability Pool at any particular point in time for the payment of Incurred Liabilities, Defense Costs, Direct Administrative Expenses and the Liability Pool's allocation of Shared Administrative Expenses, but excluding any cash or other assets allocated to any Special Purpose Accounts for the Liability Pool (see § I, ¶ 13.1.2).

 

Actual Property Pool Balance                --      shall mean the cash, investments, and any other assets held by the Fund for and on behalf of the Property Pool at any particular point in time for the payment of Coverage Payments, Property Claim Costs, Direct Administrative Expenses and the Property Pool's allocation of Shared Administrative Expenses, but excluding any cash or other assets allocated to any Special Purpose Accounts for the Property Pool (see § I, ¶ 13.1.2).

 

Actual Risk Pool Balance                      --      shall mean the cash, invest­ments, and any other assets actually held by the Fund for and on behalf of a Risk Pool at any parti­cular point in time for the payment of the Risk Pool's Operational Costs, but excluding any cash or other assets allocated to any Special Purpose Accounts for that Risk Pool. In determining the level of any Risk Pool's Actual Risk Pool Balance, it shall be assumed that all Members of that Risk Pool, and where applicable, Former Members thereof, have paid their Assess­ment Shares of all previous Assess­ments for that Risk Pool, except to the extent that it is deter­mined by the Administrative Committee that a Member or Former Member will not pay its Assess­ment Share thereof.

 

Added Exposure Contracts                     --      shall mean those contracts Members enter into with Third Parties which the Administrative Committee determines pose unique or substantial additional exposure to the Fund and therefore should be considered in determining a Member's Employee Hours Worked for purposes of applying the General Assessment Formula, as provided in § VIII., ¶ 5.

 

Added-Risk Pass Through                      --      shall mean the portion of the Excess Premium specifically allocated by the Excess Carrier in its normal underwriting to one or more particularly identified risks of a Member's operations that are beyond the types of risks considered by the Excess Carrier in determining its basic premium charge (e.g., a specific premium allocation to the risk posed by a Member's dam). (See, § IX, ¶ 3).

 

Additional Insured                                 --      shall mean any person or entity constituting an Insured Agent or an Insured Volunteer pursuant to § III, ¶ 2.4, Pre-Approved as required by § III, ¶¶ 2.5.3 and 2.6, and in accordance with the Op. Rules, § III, ¶ 2.5.3.  “Additional Insured” shall also mean any person or entity which has been granted the rights of an insured by an Excess Carrier under any of the Fund's Excess Liability Policies, in accordance with § III, ¶ 2.5.3 and the related provisions in the Op. Rules, § III, ¶ 2.5.3.

 

Administrative Committee                     --      shall mean the Standing Committee estab­lished pursuant to § I, ¶ 9.4.

 

Administrative Expenses                        --      shall mean all costs, expenses and obligations, including all Administrator and all general Legal, Broker and Accounting fees, and similar or other charges, incurred by the Fund in connection with the operation and administration of the Fund and its Risk Pools; provided, however:

 

(a)   with respect to the Liability Pool, “Administrative Expenses” shall not include Liability Coverage Payments for Damages or Defense Costs;

 

(b)  with respect to the Property Pool, “Administrative Expenses” shall not include Property Coverage Payments or Property Claim Costs; and

 

(c) with respect to the H&W Pool, “Administrative Expenses” shall not include H&W Claims Costs, whether such are Direct or Shared (ie. shall not include Coverage Payments for H&W Claims) or PPO Charges or Stop Loss Insurance Premiums, but shall include Per Capita Administrative Fees (which shall be considered a “Direct Administrative Expense” of the H&W Pool, and therefore, and “Administrative Expense”).

 

                                                                        Administrative Expenses shall either be “Direct” Administrative Expenses or “Shared” Administrative Expenses.

 

Administrator                                         --      shall mean the person or entity retained by the Board pursuant to § I, ¶ 10.

 

Agenda                                                   --      shall mean the document prepared pursuant to § I, ¶ 7.4, iden­tifying issues to be discussed and/or voted upon by the Board.

 

Agent (or Agency)                                  --      shall mean a person or entity whose relationship with a Member meets the legal requirements necessary to make such person or entity the legal agent of the Member and authorized to act on behalf of the member with respect to issues within the scope of the Agency.

 

Agreement                                              --      shall mean the Self-Insurance Agreement or SIA.

 

 

 

Annual AC Members                              --      shall mean the two (2) members of the Administrative Committee that may be appointed from time-to-time by the Board to serve one-year term.s on that Committee, as provided in § I, ¶¶ 9.4.1 and 9.4.2.

 

Annual Assessment Limit                       --      shall mean the limit on the total amount of General Assessments the Fund may levy on an individual Member of a Risk Pool in any calendar year, as provided in § I., ¶ 13.6.

 

Annual Automatic General

Assessment                                             --      shall mean a General Assessment for a Risk Pool automatically levied in accor­dance with § I., ¶ 13.2.2.

 

Annual Appraisal                                   --      shall mean the Detailed Appraisal or the Updated Appraisal obtained by the Fund on behalf of the Property Pool on an annual basis to establish the Insured Values of Members' Insured Property for purposes of applying the Property Assessment Formulas (see § X, ¶ 14).

 

Appeal Issue                                          --      shall mean any issue that is identified in § I, ¶¶ 19.1 and/or 19.2.1, and therefore is subject to the mandatory Appeal Procedures set forth in § I., ¶ 19.2 (see also § I, ¶ 9.4.4 re Administrative Committee's "Primary Jurisdiction" to first decide Appeal Issues, subject to the Board's authority in § I, ¶ 19.1 (a) and (b)).

 

Appeal Procedures                                 --      shall mean the procedures Members and Employees are required to follow to obtain decisions from the Administrative Committee on issues relating to subjects within its Primary Jurisdiction, and the review of those decisions by the Executive Committee and the Board, as set forth in ¶ 19.2, and subject to the exceptions thereto contained in § I, ¶ 19.1(a) and (b).

 

Assessment(s)                                        --      shall mean one or more of the two different classes of assess­ments for the cost of operating the Fund's Risk Pools, as provided in this Agree­ment: General Assessments and Premium Assessments. “Assessments” can also refer to Special Purpose Assessments pursuant to § I, ¶ 13.4.4.

 

Assessment Formulas                             --      with respect to the Liability Pool, shall mean the Liability General Assessment Formula (§ VIII) and/or the Liability Premium Assessment Formula (§ IX).

                                                                       

                                                               --      with respect to the Property Pool, shall mean the Property General Assessment Formula (§ XII) and/or the Property Premium Assessment Formula (§ XIII).

 

                                                               --      with respect to the H&W Pool, shall mean the Formula for calculating a Member’s Monthly H&W Assessment, which consists of a Member’s Direct H&W Claims Costs paid by the H&W Pool in the preceding month and such Member’s H&W Assessment Share of Shared H&W Costs determined under the H&W General Assessment Formula (§ XV).

 

Assessment Limit Overage                     --      shall mean the amount by which a Member's Assessment Share of a General Assessment exceeds the amount of such Assessment the Member is required to pay after application of the Annual Assessment Limit, in accordance with § VIII, ¶ 3.

 

Assessment Methodology                       --      with respect to Assessments generally, shall mean the factors considered and the calculations performed under one or more particular Assessment Formulas, as set forth in the SIA Sections containing such Formulas.

 

                                                               --      with respect to Special Purpose Assessments, shall mean the particular factors and calculations established by the Board by Super-Majority Vote to determine the amounts of Members respective Assessments for the funding of a Special Purpose Account (see § I, ¶ 13.4.4) or such other funding methodology or combination thereof established by the Board pursuant to that paragraph.

 

                                                               --      with respect to Inter-Pool Loans by the H&W Pool (see ¶ 13.3.1.2) and Program Development by the H&W Pool (see ¶ 13.3.2.2), and Special Assessments for the H&W Pool (see ¶ 13.4.4), “Assessment Methodology” shall mean the formula adopted by the Executive Committee, or the Board, as applicable, governing the calculation of the amount of H&W Pool Members’ Assessments to replenish the H&W Pool Reserves.

 

Assessment Share                                   --      shall mean the amount of money a Member becomes obligated to pay to the Fund as a result of an Assessment.

 

 

Assets                                                     --      shall mean, without limitation, all monies, bank accounts, securities, accounts receivable, collateral,

                                                                        debt instruments, investments, and any other thing of

value owned by the Fund and held by the Fund for the benefit of its respective Risk Pools.

                                                                       

 

Assigned Deductible                              --      shall mean the Deductible a Member chooses to assign to a specific item or specific types of Insured Property as reflected in the Schedule of Values maintained by the Administrator (see § X, ¶ 7.1), or the Deductible otherwise established for the Member's property pursuant to § X, ¶ 7.2.

 

Assumed Liability                                  --      shall mean property owned by a Third Party, excluding property owned by an Employee, for which the Member has agreed to be legally responsible by contract, which is not listed in the Schedule of Values at the time a Property Assessment is issued, but with respect to which Property Coverage is provided pursuant to § X, ¶¶ 3.2.1 and 12.1.1 and the Property Coverage Section.

 

Attachment Point                                    --      shall mean the level of expenditures by the Fund on behalf of a Risk Pool for a Covered Claim, for Coverage Payments, and Defense Costs and/or Property Claim Costs, at which the Risk Pool's Coverage Limit is exhausted and the Risk Pool's Primary Excess Coverage attaches and begins to provide coverage for the Covered Claim.

 

Authorizing Resolution                           --      shall mean the formal resolution duly adopted by the governing body of each Member and New Member specifically authorizing the Member to execute the SIA and agreeing to be bound by its terms, including its Amendment Procedures permitting amendment of some of the provisions of the Program Documents by less than a Unanimous Vote of the Board. “Authorizing Resolution” shall also mean the formal resolution of the governing body of a Member approving any subsequent enactment with respect to or amendment of the Program Documents which requires approval by a Unanimous Vote.  (See, § I, ¶ 5.5); provided, however, that an Authorizing Resolution may specifically ratify the prior Board Votes of Members’ Directors, the documents previously executed by Members’ Directors, and such Member’s de facto operation under or acceptance of the benefits under and terms thereof. 

 

Auto                                                       --      shall mean a land motor vehicle, trailer or semi-trailer designed for travel on public roads, but does not include Mobile Equipment, except for the types of "self-propelled" Mobile Equipment as described in § V, ¶ 1.7(f), regarding Auto Liability Coverage, and in § XI, ¶ 1.14, regarding Auto Physical Damage Coverage.

 

Auto Claim                                             --      shall mean a Property Claim for an Auto Loss.

 

Auto Loss                                               --      shall mean a Property Loss to a Covered Auto arising from an Accident.

 

Auto Loss Amount                                  --      shall mean the Property Loss Amount for an Auto Loss.

 

Auto Liability Coverage

     (or “Auto Coverage”)                       --      shall mean the Automobile Liability Coverage provided by the Fund for Members of the Liability Pool under the Auto Liability Coverage Section of the SIA (§ V).

 

Auto Physical Damage Coverage           --      shall mean the Auto Physical Damage Coverage which is offered to Members of the Property Pool for Direct Physical Loss or Damage to a Covered Auto arising from an Accident as part of the Fund's Property Coverage Program, as set forth in § XI. 

 

Auto Physical Damage Coverage

Limit                                                       --      shall mean the Property Coverage Limit for the General Property Coverage Section (§ X) which shall be applied in the manner set forth therein to all Covered Auto Physical Damage Claims and/or to all Covered Property Claims involving Property Loss (including Auto Loss) arising from a single Property Loss.

 

Basic Per Capita                                    --      shall mean the 10% portion of a Liability or a Property General Assessment that is allocated equally among all Members for purposes of calculating a Member's Assessment Share of the General Assessment, as provided in § VIII, ¶ 2.1.

 

Benefits                                                  --      shall mean “Health & Welfare Benefits” (or “H&W Benefits”).

Board                                                     --      shall mean the Board of Directors of the Fund, as provided in § I., ¶ 6.

 

Board Decisions                                    --      shall mean those decisions by the Board, made in compliance with the applicable Voting Standard and consistent with the terms of this Agreement, which, as a result, are binding on all Members. (See, § I, ¶ 6.3).

 

Board Remedies                                     --      shall mean those actions the Board may take with respect to a Member's violation of the Fund's Risk Management Program, as provided in § I, ¶ 17.4.

 

Bodily Injury                                          --      shall mean physical injury, sickness, disease or death sustained by any Third Party, and/or mental anguish, mental illness, emotional upset or anguish sustained by any Third Party connected with or arising out of such physical injury, sickness, disease or death, and any loss of consortium.

 

Broker                                                    --      shall mean the person or entity retained by the Board pursuant to § I., ¶ 10.2.

 

Business Activities                                --      shall mean those activities of a Member that normally relate to the types of Services the Member provides in its Public Utility Operations and which are reasonably necessary to providing those Services or to producing income for the Member from those Services or for related business activities for which the Member specifically charges Customers or other Third Parties.  (See, § III, ¶ 3.15(b)).

 

CGL Coverage                                       --      shall mean the Commercial General Liability Coverage provided by the Fund for Members of the Liability Pool under the CGL Coverage section of the SIA (§ III).

 

Claim                                                     --      shall mean either a Liability Claim, a Property Claim or an H&W Claim.

 

Claimant                                                 --      shall mean the Third Party that has asserted a Liability Claim against a Member and/or an Employee, Insured Agent or Insured Volunteer.

 

Claim Resolution (Rules & Procedures)         --         shall mean the section of the SIA that addresses the rules and procedures for resolving Claims, including Defense, selection of Defense Counsel, Member participation in litigation and payment of Coverage Payments. (§ VII).

 

Claim Resolution Costs                          --      shall mean any attorneys fees, court and legal costs

                                                                        and similar related costs incurred by the Fund in connection with a Member’s Assessment delinquency. (See § I, ¶ 13.7(d)).

 

 

 

Cleanup Costs (or Cleanup)                   --      shall mean the portion of Remediation Costs that relate to treating, incinerating, neutralizing, removing or otherwise cleaning up or disposing of Pollution (as distinguished from Containment Costs).

Colorable Claim of Liability                  --      shall mean any Liability Claim with respect to which the Administrative Committee concludes that there is some reasonable basis in both fact and in law to believe that the Claim asserted could result in a judgment of liability against a Member and/or Employee.

 

Colorable Dispute                                  --      shall mean a dispute regarding the existence of coverage between a Member and an Excess or Stop Loss Carrier which involves facts or legal issues determined by the Administrative Committee to constitute legitimate grounds for pursuing Coverage Litigation against such Carrier, as referenced in § I, ¶¶15.1 and 15.7.

 

Commissioner                                        --      shall mean any duly elected commissioner in good standing of any of the public utility district Members.

 

Community Activities                             --      shall mean those activities or services, including the use of a Member's Equipment, donated by a Member or its Employees to or for the benefit of community, charitable or civic organizations.  (See, § III, ¶ 3.15(a).

 

Compliance Date                                    --      shall mean the date stated in a Remediation Letter by which the correction or remedy of an Unreasonable Risk needs to occur for the Member to avoid the potential imposition of Board Remedies under § I, ¶ 17.4.2 for violation of the Fund's Risk Management Program.

 

Conditional Coverage Payment              --      shall mean the Fund's payment of a portion or all of its Coverage for a Covered Liability Claim to or on behalf of a Member under a Reservation of Rights, pending ultimate resolution of the Reservation, as permitted in § VII, ¶ 7.5.

 

Containment Costs (or Containment)      --      shall mean the costs of designing, building, installing, maintaining and monitoring a system for containing a Pollution Release and preventing further migration of the Pollution.  In the context of a Remediation Action or Pollution Claim, "Containment Costs" shall be such actual costs of containing the Pollution, whether on a Member's property or Third Party Property, as may be imposed upon or agreed to by the Member with the Environmental Enforcement Agency, subject to the Liability Coverage Limit.  In the context of a Claim by a Member for Property Damage to the Member's Owned Property resulting from a Pollution Release that occurred on the Owned Property, "Containment Costs" shall mean reasonable, or a reasonable estimate of, Containment Costs to prevent the migration of Pollution to Third Party Property or to prevent further Environmental Damage to such Third Party Property, subject to the Liability Coverage Limit  (see, § VI, ¶¶ 3.1.5 and 3.1.6).

Contract Conversion Hours                    --      shall mean the hours the Administrative Committee determines should be added to a Member's Employee Hours Worked because of an Added Exposure Contract such Member has or proposes with a Third Party, for purposes of applying the Liability General Assessment Formula. (See, § VIII, ¶ 5.2).

 

Contribution                                           --      shall mean the legal obligation to pay a proportionate share of a whole liability as one of several joint tortfeasors, joint debtors or otherwise.

 

Cost of Substitute Service                      --      shall mean the difference between the cost to the Member of acquiring the raw material that is the subject of its services (i.e., electricity, water, gas or sewer) under Normal operations and the cost to the Member of acquiring such material from alternative sources in order to continue its operations as the result of a Property Loss (see § X, ¶ 2.4).

 

Coverage(s)                                           --      shall mean the protection provided by the Fund under the SIA for Members of its Risk Pools (see §§ III-VI, X-XI, and XIV).

 

Coverage Determination                        --      shall mean the decision of the Administrative Committee as to whether a Claim is in fact a Covered Claim, as provided for in § VII, ¶ 2.1 and Op. Rules, § I, ¶ 9.4.3(d).

 

Coverage Limit                                      --      shall mean the maximum amount the Fund may be required to pay, including Coverage Payments, Defense Costs and Property Claim Costs, for all Covered Claims arising from one Loss Event, as provided in § III, ¶ 2.2; § IV, ¶ 2.2; § V, ¶¶ 2.2 and 2.4.2; § VI, ¶ 2.1; § X, ¶ 4; and § XII, ¶ 4.

 

Coverage Litigation                                --      shall mean any lawsuit brought by the Fund against any Excess Carrier or Stop Loss Carrier, or by an Excess Carrier against the Fund or its Members or Employees, in which coverage is sought for a Claim, in accordance with § I, ¶ 15.  "Coverage Litigation" shall also refer to such a lawsuit brought by members of a Subgroup against a Subgroup Carrier. (See, Op. Rules, § I, ¶ 16.7).

 

Coverage Litigation Costs                      --      shall mean the total of the legal fees, costs and expenses, and expert fees incurred by the Fund in connection with Coverage Litigation. (See § I, ¶ 15).

 

 

Coverage Payments                                --      shall mean any and all payments the Fund makes to or on behalf of a Member or Employee because of a Covered Claim: ie. payments for Damages for a Covered Liability Claim; Property Coverage Payments for a Covered Property Claim; and payments for H&W Claim Costs for a Covered H&W Claim.

 

Coverage Period                                    --      shall mean, with respect to a Liability Claim against a Member or a Property Claim by a Member, the time period during which the Member was a Member of the Risk Pool, and with respect to a Liability Claim against an Employee or a Property Claim by a Member on behalf of an Employee, the time period during which the Employee was employed by a Member while the Member was a Member of the Risk Pool, for purposes of determining whether the Loss Event took place within the period of time for which the Fund provides Coverage.

 

Coverage Qualifications                        --      shall mean the requirements set forth in § III, ¶ 2.4 as conditions precedent to Liability Coverage by the Fund for an Employee, Insured Agent or Insured Volunteer.  The "Coverage Qualifications" for the PO&E Coverage are set forth in § IV, ¶ 2.4.

 

Coverage Territory                                --      This Auto Physical Damage Coverage shall apply to all Covered Autos worldwide.

 

Coverages                                              --      shall mean §§ III through VI and §§ X-XI of the SIA that set forth the protection provided by the Fund for Members of its Risk Pools and their Employees for Covered Claims.

 

Covered Auto                                         --      for purposes of the Auto Physical Damage Coverage Section, shall have the meaning set forth in § XI, ¶ 1.8.

 

Covered Auto Physical Damage Claim  --      shall mean a Property Claim filed with the Administrator by a Member, on behalf of the Member or one or more of its Employees, arising out of an Accident causing Direct Physical Loss or Damage to a Covered Auto, which occurred at a time when the Member requesting Auto Physical Damage Coverage for the Property Claim was a Member of the Property Pool, and for which Auto Physical Damage Coverage is provided by the Fund pursuant to the terms of the Auto Physical Damage Coverage Section (see § XI).

 

Covered Automobile Liability Claim     --      shall mean a Liability Claim for which Coverage is provided under the Automobile Liability Coverage Section (§ V).

 

Covered Claim                                       --      shall mean a Covered Liability Claim, a Covered Property Claim, or a Covered H&W Claim.

 

Covered Liability Claim                        --      shall mean a Liability Claim asserted against a Member or Employee, or a Director, Fund Officer or member of the Fund's Standing Committees for which Liability Coverage is provided by the Fund pursuant to the terms of §§ III-VI, or with respect to which the Fund is proceeding to provide Defense under a Reservation of Rights.

 

Covered PO&E Claim                           --      shall mean a Liability Claim for which Coverage is provided under the Public Officials and Entity Liability Coverage Section (§ IV).

 

Covered Pollution Claim                       --      shall mean a Liability Claim for which Coverage is provided under the Pollution Liability Coverage Section (§ VI).

 

Covered Property Claim                        --      shall mean a Property Claim filed by a Member, on behalf of the Member or one or more of its Employees, for which Property Coverage is provided by the Fund pursuant to the terms of § X and/or § XI.

 

Covered Vehicle                                    --      for purposes of the Auto Liability Coverage Section, shall have the meaning set forth in § V, ¶ 1.3.

 

Customer                                                --      shall mean a person or entity that purchases Services or Products from a Member in connection with its Public Utility Operations.

 

Damages                                                 --      generally throughout the SIA, and in particular with respect to the CGL Coverage (§ III), shall mean the amount of monetary compensation or recovery a Member or Employee is or becomes legally obligated to pay to a Third Party for liability arising out of a Covered Liability Claim, including any award of costs or attorneys fees against a Member or Employee.  When appropriate in the context, "Damages" can also mean the amount of compensation demanded by a Claimant.  With respect to the PO&E Coverage (§ IV), "Damages" shall have the meaning in ¶ 1.2 thereof.

 

Date of Default                                       --      shall mean the date a Member's Assessment Share of any Assessment levied by the Fund is due under the terms of § I, ¶ 13.4.

De Minimis Premium                             --      shall mean that additional portion of a settlement offered by an Environmental Enforcement Agency to a Potentially Responsible Party involved in a Pollution Claim who qualifies under the circumstances for a de minimis treatment as the quid pro quo for release or conditional Release of such party from the obligation it would have otherwise had to participate in paying its share of all Remediation Costs actually ultimately incurred. (See, § VII, ¶ 7.3.2.3).

Debris Removal Expense                       --      shall mean the Property Coverage the Fund provides for removal of debris caused by a Property Loss to Insured Property, as provided in § X, ¶ 17 of the Property Coverage Section.

 

Decision Issue                                        --      shall mean any issue a Member is entitled to have placed on the Agenda for discussion and decision by Board Vote at the next General or Special Meeting: (a) by providing the Administrator with the written request required by § I, ¶ 7.4 and Op. Rules, § I, ¶ 7.4 at least 30 days prior to the date set for the Meeting at which the issue is to be decided; or (b) with respect to Appeal Issues only, by exhausting the Appeal Procedures through the Executive Committee level or pursuant to § I, ¶ 19.1(a) and (b), by addressing the Appeal Issue directly to the Board. (A “Decision Issue” shall also be an issue properly raised for Board Decision pursuant to § 1, ¶ 7.1.2 or ¶ 7.6).

 

Deductible                                              --      shall mean the amount of money the Member or Employee must pay for or toward the liability for a Covered Liability Claim before the Fund's Coverage obligation begins, as required in § III., ¶ 2.3; § IV, ¶ 2.3; § V, ¶ 2.3; and § VI, ¶ 2.1.

 

 

Defense (or "Right of Defense" or

"Defend" or "Duty to Defend")               --      shall mean the Fund's obligation to provide a Member or Employee with a defense against a Covered Liability Claim by paying the Defense Costs thereof, as required by § VII, ¶ 5, and subject to any restrictions thereon in the SIA (see also § III, ¶ 2.1; § IV, ¶ 2.1; § V, ¶ 2.1; and § VI, ¶ 2.1).

 

Defense Costs                                        --      shall mean all costs and expenses the Fund incurs in connection with resolving a Covered Liability Claim, including without limitation, investigation and expert expenses, witness fees, court costs and attorneys fees, but excluding any "Coverage Payments" or related Administrative Expenses.  "Defense Costs" shall also mean the same types of reasonable expenses when used to refer to Defense Costs Members have reasonably incurred that may be reimbursable by the Fund.  With respect to the PO&E Coverage (§ IV), "Defense Costs" shall have the meaning in ¶ 1.3 thereof.

 

Defense Counsel                                    --      shall mean the attorney retained by the Fund to defend Members and Employees from Covered Liability Claims, as provided in § VII., ¶ 4.

 

Definitions                                             --      shall refer to the section of the SIA that contains the definitions for words commonly used throughout all Program Documents (see § II), subject to modification by the specific definitions contained in the Coverage sections (§§ III-VI and §§ X-XI).

 

Demand for Arbitration                          --      shall mean the notice invoking the arbitration procedures set forth in § I, ¶ 24.4.3.

 

 

Designated Liability Pool Balance         --      shall mean the Designated Risk Pool Balance for the Liability Pool, as established by the Board from time to time pursuant to § I, ¶ 13.1.1.

 

Designated Property Pool Balance         --      shall mean the Designated Risk Pool Balance for the Property Pool, which shall be an amount equal to two (2) times the currently applicable Maximum Property Retention, as established by the Board from time to time pursuant to § I, ¶ 13.1.1 (see also § X, ¶4).

 

Designated Risk Pool Balance               --      shall mean the amounts designated by the Board for each Risk Pool pursuant to § I., ¶ 13.1.1.

 

Detailed Appraisal                                 --      shall mean the comprehensive Annual Appraisal obtained by the Fund on behalf of the Property Pool in the first calendar year of the Property Pool's operation, and in every third calendar year thereafter, as provided in § X, ¶ 14.

 

Direct Administrative Expenses             --      generally, shall mean those Administrative Expenses that are not Shared Administrative Expenses, i.e. they are the Administrative Expenses the Fund incurs as a direct result of the operations of a particular Risk Pool, which shall be allocated in total to the financial responsibility of that Risk Pool (see § I, ¶ 13.1.5).

 

                                                               --      with respect to the Liability Pool, “Direct Administrative Expenses” shall not include Liability Coverage Payments for Damages or Defense Costs.

                                                              

                                                               --      with respect to the Property Pool, “Direct Administrative Expenses” shall not include Property Coverage Payments or Property Claim Costs.

 

                                                               --      with respect to the H&W Pool, “Direct Administrative Expenses” shall mean and include Administrator,  Broker, Accounting, Legal and similar or other fees and charges directly attributable to operation of the H&W Pool, including Per Capita Administrator Fees, but shall not include PPO Charges or Stop Loss Insurance Premiums, or H&W Claims Costs (i.e. Direct H&W Claims Costs and Shared H&W Claims ).

Direct Physical Loss or Damage            --      shall mean destruction of or damage to Insured Property as a result of an Insured Peril(s) (see definition of "Property Loss", § X, ¶ 1.42, and terms of "Property Coverage" set forth in § X, ¶ 4).

 

Director                                                  --      shall mean the Commissioner, or other representative from a Member's governing body, or Employee designated of record to serve as a Member's representative on the Board, as provided in § I., ¶ 6.1, and shall include alternate Directors and Employee Designees (see also Op. Rules, § I, ¶ 6.1).

 

Disbursement Procedures                       --      shall mean the general requirements set forth in § I, ¶ 12.4, and in particular, the written procedures and which govern how the Fund disburses money and approves and issues payments for the Fund’s respective Risk Pools as contained in the Financial Procedures Manual retained in the offices of the Administrator. (See Op. Rules, § I, ¶ 12.4).

 

Discretionary General Assessment        --      shall mean a General Assessment levied by the Board in accordance with § I., ¶ 13.2.3.

 

Discussion Issue                                     --      shall mean any issue a Member is entitled to have placed on the Agenda for discussion by the Board by providing the Administrator with the written request required by § I., ¶ 7.4 and Op. Rules, § I, ¶ 7.4 at least 14 days prior to the date set for the General or Special Meeting at which the issue shall be discussed.

 

Dissolution Vote                                    --      shall mean a Super-Majority Vote of the Directors entitled to vote to dissolve a Risk Pool or the Fund and windup its operations and affairs.  (See, § I, ¶ 21.1).

 

Dissolution Date                                    --      shall mean effective date of a Risk Pool's or the Fund's dissolution, which shall be at the end of the calendar year in which the Dissolution Vote occurred.  (See, § I, ¶ 21.1).

 

Disputes                                                 --      shall mean the types of disagreements among Fund Members or between a Member and the Fund relating to the Program Documents or actions of the Board or Committees that are subject to mandatory binding arbitration under § I, ¶ 24.4.1, or resolution by a court under § I, ¶ 24.4.7, after exhaustion of the Appeal Procedures.  (See, § I, ¶ 24.4.2).

                                                                              

Dollar Percentage-of-Completion          --      for purposes of determining the Insured Value of Property-Under-Construction, shall mean the dollar value of the construction work in place, measured by the total dollar obligation the Member has incurred under the construction contract as reflected by the construction progress payment schedule at the time the Property Assessment was issued.

 

Emergency Decisions                             --      shall mean those decisions the Executive Committee is authorized to make on behalf of the Board on subjects the Board can decide by Majority Vote under circumstances where it is reasonably necessary that an immediate decision be made, and it is not reasonably possible to convene a Board meeting (physically or by telephone) without risking prejudice to the interests of the Fund or a Member or Employee.  (See, § I, ¶ 9.2(e)).

 

Emergency Response Costs                    --      shall mean the reasonable costs incurred by or on behalf of a Member, including reasonable wages and overhead allocations for a Members' use of its own Employees and/or equipment (as provided in the Op. Rules § VII, ¶ 7.1), in taking emergency measures to contain a Pollution Release and prevent it from imminently spreading to or causing further Environmental Damage to Third Party Property. (See, § VI, ¶ 3.1.4).

 

Employee                                               --      generally, shall mean any commis­sioner, director, officer or employee of any Member of a Risk Pool. Where reasonable and appropriate in the context, “Employee” shall include any former officer, commissioner, or employee of a Member of a Risk Pool. 

 

                                                               --      with respect to the CGL Coverage (§ III), the term “Employee” shall also include any Insured Agent and Insured Volunteer, except where specifically provided otherwise. 

                                                              

                                                               --      with respect to the PO&E Coverage (§ IV), the term “Employee” shall also have the meaning in ¶¶ 1.4 and 1.8(d) thereof.

 

                                                               --      with respect to the H&W Pool, the term “Employee” shall mean the Employee of a Member of the H&W Pool, and unless otherwise inconsistent in the context, shall include such Employee’s Dependents, as determined by the terms of the applicable Coverage Booklet.

 

                                                               --   with respect to a Former Member, “Employee” shall include such Employees who were Employees of the Former Member when such Member was a Member of a Risk Pool, to the extent any rights are afforded such Former Member or its Employees under the SIA.

 

 

 

Employee Designee                                --      shall mean the Employee designated by a Member to serve as the Director-representative at a Board meeting, as provided for in § I., ¶¶ 6.1.2 (see also Op. Rules, § I, ¶¶ 6.1.2(A) and (B)).

 

Employee Hours Worked                       --      shall mean the 70% portion of a Liability General Assessment that is allocated to a Member based on the ratio of the Member's total Employee Hours Worked divided by the total of such Hours for all Members (as reflected on the reports Members file with Washington Department of Labor & Industries entitled "Employers Quarterly Report of Hours for Industrial Insurance," or similar report required of Members located outside of Washington) for purposes of calculating a Member's Assessment Share of the General Assessment, as provided in § VIII, ¶ 2.3.  "Employee Hours Worked" shall include the Contract Conversion Hours approved by the Administrative Committee for any Added Exposure Contract pursuant to § VIII, ¶ 5.2.

 

Employee's Auto                                    --      shall mean an Auto owned by an Employee, or a Member of his or her family, which shall be treated as a Non-Owned Auto for purposes of determining Coverage under the Auto Physical Damage Coverage Section (§ XI).

 

Employee's Property                              --      shall mean property owned by the Employee which is covered under the General Property Coverage Section under the circumstances set forth in § X, ¶ 2.1.5, and shall include "Employee's Autos", which are covered under the Auto Physical Damage Coverage Section under the circumstances set forth in § XI, ¶ 1.8.3.

 

Environmental Damage                          --      generally, shall mean the injurious presence of Pollution in or upon land, the atmosphere, or any water course or body of water as a result of a Pollution Release.  In the context of a Remediation Action by an Environmental Enforcement Agency, to constitute "Environmental Damage," the Pollution must rise to the threshold level authorizing an Environmental Enforcement Agency under the applicable law to take any Remediation Action or resulting in such Agency taking such Action against a Member for Remediation Costs.  In all other contexts, "Environmental Damage" shall mean a Pollution Release that results in Personal Injury or Property Damage which may or in fact does give rise to a Pollution Claim.

 

Environmental Enforcement Agency      --      shall mean any agency of any state or federal government having jurisdiction over alleged Environmental Damage.

 

Equipment                                              --      shall mean tools, equipment, mobile heavy equipment (e.g., tractors with backhoes) and equipment attached to vehicles (like the hydraulic basket on line trucks).

 

Excess Coverage (or Excess Insurance) --      shall mean Excess Liability Coverage or Excess Property Coverage.

 

Excess Liability Coverage (or

Excess Liability Insurance)                    --      shall mean the coverage provided by the Fund's Excess Liability Policies for Members of the Liability Pool for Incurred Liabilities and Defense Costs in excess of the Fund's Liability Coverage Limit, consisting of the Primary Excess Liability Coverage (§ I, ¶ 14.1) and any Supplemental Excess Liability Coverage (§ I., ¶ 14.2).

 

Excess Liability Policies                       --      shall mean the insurance policies that reflect the Excess Liability Coverages for Members of the Liability Pool.

 

Excess Carrier                                       --      shall mean an insurance company that has issued an Excess Policy to the Fund.

 

Excess Policies                                      --      shall mean the insurance policies reflecting the Excess Liability Coverages and/or the Excess Property Coverages the Fund acquires for the Members of the Liability or Property Pool, respectively.

 

Excess Premium                                     --      shall mean the total premium charged by an Excess Carrier for issuance of an Excess Policy.

 

Excess Premium Base Amount               --      in connection with applying the Liability Premium Assessment Formula, shall mean the amount remaining after all Members' Added-Risk Pass Throughs are subtracted from the Excess Premium for Excess Liability Coverage.  (See, § IX., ¶ 3).

 

Excess Property Coverage

(or Excess Property Insurance)              --      shall mean the Coverage provided by the Fund's Excess Property Policies for Members of the Property Pool for Property Coverage Payments and Property Claim Costs in excess of the Fund's Property Coverage Limit, consisting of the Primary Excess Property Coverage (§ I, ¶ 14.1) and any Supplemental Excess Property Coverage (§ I, ¶ 14.2).

 

Excess Property Policies                       --      shall mean the insurance policies that reflect the Excess Property Coverages for Members of the Property Pool.

 

Exclusions                                              --      shall mean the provisions in the Coverages sections of the SIA entitled "Exclusions" which identify the types of Claims that are excluded from Coverage under the Insuring Agreements (see, ¶ 3 of §§ III-VI, § X, ¶¶ 8 and 9; and § XI, ¶¶ 8 and 9).

 

Executive Committee                             --      shall mean the committee consisting of the Fund Officers and the Administrative Committee members established pursuant to § I., ¶ 9.2.

 

Executive Session                                  --      shall mean a closed session or portion of a meeting of the Board or any Committee to discuss issues permitted by applicable Public Disclosure Laws to be conducted in such fashion pursuant to § I, ¶ 11.5.

 

Expediting Expenses                              --      shall mean those expenses a Member incurs to expedite repair or replacement of the damaged Insured Property, as provided in § X, ¶ 2.5; provided that such expenses are approved by the Administrator in advance, as required by § X, ¶ 12.5.

 

Extended Coverage H&W Claim

--

shall mean any H&W Claim for which H&W Coverage is provided by the H&W Pool for the Employee of a Former Member, after the effective date of such Member’s withdrawal from the H&W Pool, for a Medical Condition that gives rise to a right to Continuing Treatment for such Former Member’s Employee in accordance with such Member’s Coverage Booklet, or that involves mandated Continuing Treatment under the H&W Coverage for such Employee beyond the Former Member’s Withdrawal Date under the terms of COBRA, or similar law.

 

 

Extra Expense                                        --      shall mean the excess of the total cost to the Member during the Period of Restoration of the damaged Insured Property chargeable to the operation of the Member's Public Utility Operations over and above the total cost the Member would have incurred to conduct its Normal operations during the same period of time had no Property Loss occurred (see § X, ¶ 2.4).

 

Extraordinary Activities                         --      shall mean all Community Activities, and shall include those Business Activities of a Member, including sales of Products, that are beyond or fall outside of what a reasonable person would believe constituted the normal and expected Business Activities of a local governmental entity providing Services consistent with the Member's type of local governmental entity.  (See, § III, ¶¶ 2.5.5 and 3.16).

 

Failure to Supply                                    --      shall mean circumstances where a Service provided by a Member is either substantially diminished or not supplied at all for a period of time to a Member's Customer.

 

Fair Market Value                                  --      shall mean the amount a third-party purchaser, who is not under compulsion, would pay for the Insured Property at the time and place of the Property Loss if the Property had not been damaged; provided that the Fair Market Value shall never exceed the Actual Cash Value thereof.

 

Final Quote                                            --      shall mean the second and final quote for the premium for the Proposed Coverage which shall be provided by the Administrator to the Remaining Subgroup Participants under the Subgroup Procedures.  (See, Op. Rules, § I, ¶ 16.2).

 

Financial Officer                                    --      shall mean the auditor, director of finance or other financial officer or employee of a Member, which shall be a qualification to be appointed as Auditor for the Fund. (See § I, ¶ 12.1).

 

Financial Procedures Manuel                 --      shall mean the manuel retained at the offices of the Administrator that, among other things, contains copies of the Fund’s currently applicable Investment Procedures and Disbursement Procedures.

 

First Quote                                             --      shall mean the first quote for the premium for the Proposed Coverage which shall be provided by the Administrator to all Subgroup Participants under the Subgroup Procedures.  (See, Op. Rules, § I, ¶ 16.1(B)).

 

Follow-Up Assessment                          --      shall mean a Property Assessment for Newly Acquired Property, Leased Property, Assumed Liability or Property-Under-Construction, issued retroactively to one or more Members of the Property Pool under the circumstances set forth in § X, ¶¶ 12.1.2 and 12.2.2.

 

Former Member                                     --      shall mean any prior Member of a Risk Pool which has withdrawn from that Risk Pool pursuant to § I, ¶ 21.

 

Formula Component                               --      shall mean the basic elements for determining a Member's Assessment Share under the General and Premium Assessment Formulas.  For the Liability Pool, the Formula Components consist of the Basic Per Capita, Employee Hours Worked, and Historical Claims Experience (see, §§ VIII and IX).  For the Property Pool, the Formula Components consist of the Basic Per Capita, the Relative Insured Value and the Fire Rate Adjusted Relative Insured Value (see §§ XII-XIII).

 

Fund                                                       --      shall mean the unincorporated association of local governmental entities, including any New Members, established pursuant to this Self-Insurance Agreement.

 

Fund Officer                                           --      shall mean the President, Vice-President or Secretary-Treasurer of the Fund, as provided in § I, ¶ 8.1.

 

General Assessment                               --      shall mean any Assessment calculated pursuant to the Liability General Assessment Formula (see, § VIII) or the Property General Assessment Formula (see, § XII) and levied to provide assets allocable to the Actual Risk Pool Balance to pay the Operational Costs of a Risk Pool (see, § I, ¶ 13), and including any Special Purpose Assessments for such Risk Pool pursuant to § I, ¶ 13.2.4, but excluding any Assessment for the payment of premiums for Excess Policies or Subgroup Policies, which shall be purchased through Premium Assessments, and excluding any Reserve Assessments.

 

                                                               General Assessment Formulas         --         shall mean the formula for calculating Members' Assessment Shares of a Liability General Assessment applicable to Members of the Liability Pool (see § VIII) or a Property General Assessment applicable to Members of the Property Pool (see § XII).

 

General Counsel                                     --      shall mean the attorney(s) retained by the Administrative Committee and approved by the Board to serve as General Counsel to the Fund on all legal matters and to represent the Fund in actions involving the Fund, as set forth in § I, ¶ 10.3.

 

General Meeting                                     --      shall mean the two semi-annual meetings of the Board provided for under § I., ¶ 7.1.1.

 

General Property Coverage                    --      shall mean the Coverage provided to a Member of the Property Pool as part of the Fund's Property Coverage Program for Direct Physical Loss or Damage to Insured Property under the General Property Coverage Section (§ X).

 

Gross Revenues                                     --      shall mean, for purposes of determining application of the Annual Assessment Limit under the General Assessment Formulas, the annual total of revenue dollars received by a Member from sales of electricity, water, gas and/or sewer Services, less the amount of any municipal/urban taxes that the Member collects from Customers and remits to the taxing authority.

 

 

Historical Claims Experience                --      shall mean the 20% portion of a Liability General Assessment that is allocated to a Member based on the ratio of the Member's Historical Claims Experience divided by the total of such Experience of all Members for purposes of calculating a Member's Assessment Share of the Liability General Assessment, as provided in § VIII., ¶ 2.2.  A Member's Historical Claims Experience shall consist of the total of the amounts the Fund has paid or incurred in connection with resolving Covered Liability Claims asserted against the Member and its Employees, Insured Agents and Insured Volunteers during the preceding five (5) year time period for Liability Incident investigation costs (once the Claim has been asserted), Defense Costs and Coverage payments.

 

Imminent Re-pollution                            --      shall mean the situation where, without certain Remediation measures for Pollution on a Member's Owned Property, the Pollution from the original Pollution Release would migrate to and/or otherwise imminently and in the natural course cause further Environmental Damage to Third Party Property after Remediation of the Third Party Property.

 

Imminent Threat                                     --      shall mean the situation where it is probable that a Pollution Release on a Member's Owned Property will cause Environmental Damage to Third Party Property unless the Member takes immediate emergency measures to contain the Pollution.

 

Incidental Medical Malpractice Injury   --      shall mean Bodily Injury resulting from the rendering of or failure to render the following services by a Member or Employee:

 

                                                                           (a)    medical, surgical, dental, x-ray or nursing services or treatment, or the furnishing of food or beverages in connection therewith; or

 

                                                                           (b)    the furnishing or dispensing of drugs or medical, surgical or dental supplies or appliances;

 

                                                                        but only if such services are provided incidentally in connection with a Member's Public Utility Operations.

 

Incurred Liability                                   --      with respect to the Liability Pool, shall mean the amount of a Member's or Employee's legal obligation to a Third Party for Damages, including any liability for payment of costs and attorneys fees to a Third Party, arising from a Covered Liability Claim, as established by legal proceedings or by settlement approved by the Fund;

 

                                                               --      with respect to the Property Pool, shall mean the Property Loss Amount established in connection with a Covered Property Claim.

                                                              

                                                               --      with respect to the H&W Pool, shall mean the financial obligation Incurred  by the H&W Pool to pay for H&W Claims for the delivery of Medical Services to Employees and Dependents.           

 

Incurred Liability Exposure                   --      shall mean all the liabilities and obligations of a Risk Pool, or the Fund at a particular point in time, including those related to Loss Events that have already taken place, whether known or unknown, and whether liquidated, contingent, or contested, along with all expenses which will be incurred to settle, contest, liquidate or otherwise resolve any existing Covered Claims or Incurred Liabilities, including, all Defense Costs and all Property Claim Costs, if any, related thereto and all Administrative Expenses.  (See, § I, ¶ 20.2.3 re Former Members and ¶ 21.4 re Dissolution of the Fund).

 

 

                                                               Independent Contractor        --         shall mean a Third Party with whom a Member has a business or contractual relationship to provide products or services to or on behalf of the Member, and who may or may not legally constitute an Agent of the Member.

 

Industrial Insurance Act                         --      shall mean the Washington statute (RCW 51.04 et seq.) and related administrative rules establishing a no-fault compensation system for workers and their families for injuries that occurred during the course of employment.

 

Insured                                                   --      with respect to the Liability Pool, shall mean a Member of the Liability Pool and its Employees, including Public Officials, and including Insured Agents and Insured Volunteers where applicable in the context.  With respect to Auto Coverage (§ V), “Insured” shall have the meaning in ¶ 1.4 thereof.

 

                                                                        --    with respect to the Property Pool, shall mean a Member of the Property Pool, or an Employee to the extent Property Coverage is provided therefore under the terms of §§ X and XI of the SIA.

                                                              

                                                                        --    with respect to the H&W Pool, shall mean an Employee or Dependant.

 

Insured Agent                                         --      shall mean an Agent of a Member of the Liability Pool which has been named as an Additional Insured under the SIA and/or the Fund's Excess Liability Policies in accordance with § III ¶ 2.5.3 and Op. Rules, § III, ¶ 2.5.3.  An Insured Agent shall have the same rights and obligations under the SIA as an Employee, except where specifically provided otherwise.

 

Insured Contract                                     --      for purposes of the Auto Coverage section (§ V), shall have the meaning in ¶ 1.5 thereof.

 

Insured Perils                                         --      shall mean all perils covered under the all-risk General Property Coverage Section, except for the perils that are Excluded (see, § X, ¶ 8).

 

Insured Premises                                    --      shall mean the buildings, structures and improvements on real property thereon identified to the Member as Insured Property in the Schedule of Values maintained by the Administrator.

 

Insured Property                                     --      shall mean property identified to the Member in the Schedule of Values maintained by the Administrator or property subject to one of the exceptions thereto set forth in § X, ¶¶ 3.2.1 and 12.1.1 or in ¶ 3.2.2, and shall include all Autos identified for Coverage under § XI.

 

Insured Values                                        --      shall mean the value(s) assigned to items or types of Insured Property listed in the Schedule of Values established pursuant to an Annual Appraisal (see § X, ¶ 3.1), or the value(s) otherwise assigned to the property by the Administrator in accordance with § X, ¶ 3.3, which shall be used for purposes of determining Members' Assessment Shares under the Property General Assessment and Premium Assessment Formulas.

 

Insured Volunteer                                   --      shall mean a person who volunteers time and/or services to a Member of the Liability Pool or to Third Parties for or on behalf of such Member or in connection with Services provided by such Member, who is an Agent of the Member and who qualifies as an Additional Insured under § III, ¶ 2.5.3 and Op. Rules § III, ¶ 2.5.3. An Insured Volunteer shall have the same rights and obligations under the SIA as an Employee, except where specifically provided otherwise.

 

Insuring Agreement                                --      with respect to the Liability Pool, shall mean the provisions in the Liability Coverage Sections of the SIA (§§ III-VI) identified as the "Insuring Agreement," stating the Liability Coverages provided by the Fund to Members of the Liability Pool, subject to the applicable Exclusions and any other provisions of the SIA providing for limitation or revocation of such Coverages.

 

                                                               --      with respect to the Property Pool, shall mean the provisions in the Property Coverage Sections of the SIA (§§ X-XI) identified as "Interest and Property Insured," subject to the applicable Exclusions and any other provisions of the SIA providing for limitation or revocation of such Coverages.

 

Interim Automatic General Assessment  --      shall mean a General Assessment automatically levied in accordance with § I., ¶ 13.2.1.

 

Interlocal Agreement                              --      shall mean the inter-local agreement pursuant to RCW 39.34 et seq. which constitutes § I of the SIA and which shall be executed by all Members of any Risk Pool established by the Fund.

 

 

Investment Policy                                   --      shall mean the general requirements set forth in § I, ¶ 12.2, and in particular, the written policy contained in § XVI, Appendix-A, as amended from time to time, by the Board by Two-Thirds Vote, which governs the nature and manner of investments the Fund makes of its Assets on behalf of its respective Risk Pools.

 

Investment Procedures                           --      shall mean the general requirements set forth in § I, ¶ 12.2, and in particular, the written procedures which govern the manner in which the Fund invests the Assets held on behalf of the respective Risk Pools and the delegations of certain authority regarding the same to the Administrator, which are contained in the Financial Procedures Manual retained in the offices of the Administrator.  

 

Joint Venture                                          --      shall mean an association of one or more Members with one or more Third Parties to carry out a single business enterprise or project for profit for which purpose they combine a portion of their property, money, effects, skills or knowledge, such as an electrical co-generation project between a Member and a Third Party lumber mill.

 

Jones Act                                                --      shall mean 48 U.S.C. § 668 et seq., as may be amended from time to time.

 

Layer of Coverage                                  --      shall mean one of two or more layers of Excess Coverage constituting the Fund's mandatory Primary Excess Coverage, as permitted under § I, ¶ 14.1.2.

 

Leased Autos                                          --      shall mean Hired Autos and/or Substitute Autos, which shall be subject to Property Coverage as "Leased Property" pursuant to § X, ¶¶ 3.2.1 and 12.1.1 and shall be subject to Property Assessments based on their Insured Values as determined for Leased Property in § X, ¶ 3.3.

 

Leased Property                                     --      shall mean property owned by a Third Party which a Member, or an Employee at the direction of the Employee's Supervisor, borrows or leases for use in the Member's Public Utility Operations, which is not listed in the Schedule of Values at the time a Property Assessment is issued, but with respect to which Property Coverage is provided pursuant to § X, ¶¶ 3.2.1 and 12.1.1 and the Property Coverage Section.

 

Liability Assessment                              --      shall mean an Assessment of the Liability Pool Members by the Fund on behalf of the Liability Pool under one of the Liability Assessment Formulas (see §§ VII and IX).

 

Liability Claim                                       --      shall mean a formal demand for payment of Damages asserted by a Third Party against a Member or Employee.  A "Liability Claim" shall also include any enforcement action against a Member by any governmental agency.  A "Liability Claim" may or may not be a "Covered Claim."

 

Liability Coverage                                 --      shall mean the Coverage provided to a Member of the Liability Pool for Commercial General Liability (§ III), Public Officials and Entity Liability (§ IV), Auto Liability (§ V) and Pollution Liability.

 

                                                               Liability Coverage Limit      --         shall mean the maximum amount the Fund may be required to pay, including Defense Costs, for all Covered Liability Claims asserted against one or more Members and /or their Employees arising from any one Occurrence, as provided in § III, ¶ 2.2; § IV,¶ 2.2; § V, ¶¶ 2.2 and 2.4.2; and § VI, ¶ 2.1.

 

                                                               Liability Coverage Payments           --         shall mean the payment(s) the Fund makes to or on behalf of a Member or Employee for Damages in connection with a Covered Liability Claim, and shall not include Defense Costs or Direct or Shared Administrative Expenses.

 

Liability Exposure                                  --      shall mean the reasonably estimated amount of a Member's or Employee's potential liability to a Third Party arising out of a Covered Liability Claim, including possible awards of costs and attorneys fees where applicable in the context, so long as there is Coverage therefor under the SIA.  (See, § VII, ¶ 7.3.2.2).

 

Liability Incident                                    --      shall mean any Occurrence, Wrongful Act, Accident or other event that causes Personal Injury or Property Damage, or otherwise gives rise to a Claim with respect to which the Fund may provide Liability Coverage, whether or not a Claim has been filed with or asserted against a Member or Employee.

 

Liability Pool                                         --      shall mean the Risk Pool operated by the Fund that provides protection to its Members against Liability Claims.

 

Liability Pool Operational Costs           --      shall mean all of the costs and expenses the Fund incurs with respect to operation of the Liability Pool, including without limitation, Direct Administrative Expenses, its allocation of Shared Administrative Expenses,        Liability Coverage Payments for Damages and Defense Costs.

 

Liability Program                                   --      shall mean the rights and obligations of Members of the Liability Pool with respect to Defense and Liability Coverages, and the entire range of Administrative services provided by the Fund in connection therewith.

 

Local Governmental Entity

     (or “Entity”)                                      --      shall mean a local governmental entity as defined in RCW 48.62.020, as now enacted or hereafter amended.

 

                                                               Loss Amount     --    when used in connection with a Liability Claim, shall mean the amount of Damages incurred by or awarded against a Member or Employee as a result of such Liability Claim.

 

                                                                        --    when used in connection with a Property Claim, shall mean the Property Loss Amount of such Property Claim.

 

                                                               --      when used in connection with an H&W Claim, shall mean the H&W Claim Cost of such H&W Claim.

 

Loss Control Guidelines                        --      shall mean the Guidelines governing certain aspects of Members operations for the purposes of reducing the risk of loss, as adopted from time to time by the Board pursuant to § I., ¶ 17.2.

 

                                                               Loss Event        --    with respect to Liability Coverage, shall mean an Occurrence, Wrongful Act, Accident or Pollution Release, depending on the particular Liability Coverage involved.

                                                                              

                                                                        --    with respect to Property Coverage, shall mean a Property Loss.

                                                                       

                                                                        --    with respect to H&W Coverage, shall mean a Medical Incident.

                                                              

                                                               Loss of Coverage

           (or Loss of Coverage Period)     --      shall mean the period of time during which the Member of a particular Risk Pool is in default on its Assessment obligations and its applicable Coverage is irrevocably suspended, and is defined as the period beginning 180 days after the Date of Default and continuing until all amounts in default, including accrued interest thereon and the Fund’s costs and attorneys fees incurred with respect thereto, are paid in full. (See § I, ¶ 13.7(b)).

 

Majority Vote                                         --      with respect to issues affecting the Fund or more than one Risk Pool, shall mean the affirmative vote of more than half of the total number of Directors of all Members of the Fund; provided that there is a Quorum of Directors of all Members entitled to vote on the issue.

 

                                                               --      with respect to issues affecting only one Risk Pool, shall mean the affirmative vote of more than half of the Directors of such Risk Pool; provided that there is a Quorum of Directors of all Members entitled to vote on the issue.

 

Management                                           --      with respect to the PO&E Coverage section (§ IV), shall mean the Member's officers, manager, department heads, administrators and supervisory personnel, Employees performing engineering and surveying activities to the extent not excluded by § IV, ¶ 3.15, and any other job positions that may from time to time be established in the Operational Rules, but excluding elected public officials and directors, and excluding all other Employees of the Member.  "Management" shall have this same meaning in § III, ¶ 3.25.

 

 

 

Maximum Property Retention                 --      shall mean the amount established by the Board by Super-Majority Vote which sets the ceiling for any increases the Board can make in the Property Coverage Limit from time-to-time by Majority Vote (see § I, ¶ 13.1.1 and § X, ¶ 4).

 

Medical Expenses                                  --      All reasonable expenses reasonably incurred in the treatment of injuries sustained in an Accident for which Uninsured Vehicle Coverage is provided under § V, ¶ 2.4, including all charges for hospitalization, doctors' fees, dental fees, charges by treatment centers or nursing homes, costs of physical therapy, costs of prostheses or other medical devices, and charges for medications, laboratory and diagnostic procedures, or other reasonably necessary medical charges.

 

 

Member                                                  --      shall mean a Local Governmental Entity signatory to this Agreement that is participating in one or more of the Fund's Risk Pools, but shall not include a Former Member.  "Member" with reference to a particular Risk Pool shall mean a Member of that Risk Pool.

                                                              

                                                               --      for purposes of ¶ 2 of the Auto Physical Damage Coverage Section (§ XI), shall have the meaning set forth in ¶ 1.13 thereof. 

 

Member Settlement Ceiling                    --      shall mean the maximum amount the Fund will pay for a Covered Liability Claim a Member settles without prior notice to and approval of the Administrator, as provided in § VII, ¶ 6.3.

 

Member’s Representative                      --      shall mean any person that may from time to time be appointed by a Member as its Representative to the Administrative Committee for specific purposes in accordance with the provisions of § I, ¶¶ 15.3 or 19.2.6, or § VII, ¶¶ 3.1 and 3.2, and shall be subject to any limitations contained therein and in the Operational Rules.

 

Mobile Equipment                                  --      for purposes of the Auto Liability Coverage Section (§ V), shall have the meaning in ¶ 1.7 thereof, and for purposes of the Auto Physical Damage Coverage Section (§ XI), shall have the meaning set forth in ¶ 1.14 thereof.

 

                                                               Month      --       shall mean thirty (30) consecutive days.

 

Monthly Receipts and Expenditures

Analysis                                                 --      shall mean the schedule reflecting the Fund's receipts and expenditures, prepared monthly under the supervision of the Auditor and the Administrative Committee, per Op. Rules, § I, ¶ 9.4.3(n) and SIA § I, ¶ 12.6, and reviewed and approved by the Executive Committee, per § I., ¶ 9.2.1(a).

 

Multi-Member Claim                             --      shall mean Covered Liability Claims asserted against two or more Members, and/or against one or more Employees of at least two different Members, or a Covered Property Claim filed by two or more Members, arising out of the same, single Loss Event.  (see, § VII, ¶ 3.1.2 re participation in litigation; ¶ 4.4 re selection of Defense Counsel; ¶ 4.4 re Defense; and ¶ 7.3 re Coverage Payments).

 

Multiple Liability Claim                        --      shall mean Covered Liability Claims asserted against more than one Insured (counting both Members and Employees) arising out of a single Loss Event, and shall include the meaning of a “Multi-Member Claim” (which contemplates the involvement of at least two (2) different Members).

 

"Necessarily Related" Remediation

                                                               Costs       --       shall mean the Remediation Costs Covered by the Fund under § VI, ¶ 3.1.5 in the situation where some Remediation of the Pollution on the Member's Owned Property is necessarily required in order to fully Remediate the Environmental Damage to Third Party Property.

 

 

New Member                                         --      shall mean a Local Governmental Entity that has been accepted for membership in one or more of the Fund's Risk Pools pursuant to § I, ¶ 18.

 

New Subgroup Member                         --      shall mean any Member that is granted admission to a Subgroup under Op. Rules, § I, ¶ 16.1(I) during the Subgroup Procedures or during the Subgroup Policy year.

 

Newly Acquired Autos                          --      shall mean an Owned Auto acquired by a Member which is subject to Property Coverage as "Newly Acquired Property" pursuant to § X, ¶¶ 3.2.1 and 12.1.1, and shall be subject to Property Assessments based on their Insured Values as determined for "Newly Acquired Property" in § X, ¶ 3.3.

 

Newly Acquired Property                      --      shall mean property acquired by a Member which is not listed in the Schedule of Values at the time a Property Assessment is issued, but with respect to which Property Coverage is provided pursuant to § X, ¶¶ 3.2.1 and 12.1.1 and the Property Coverage Section. 

 

Normal                                                   --      shall mean the condition that would have existed had no Property Loss occurred.

 

Not-For-Profit Organization                   --      shall mean: (a) An organization, no part of the income or assets of which is distributable to its owners, stockholders or members and which is formed and operated for a purpose other than the pecuniary profit or financial gain of its owners, stockholders or members; or (b) A political action committee which is defined for these purposes as a separate segregated fund to be utilized for political purposes as described in the United States Federal Election Campaign Act (2 U.S.C. 441b(2)(C)). (see, § IV, ¶ 1.5).

 

Notice of Appeal                                    --      shall mean a Member's written notice to the Administrative Committee of its desire to invoke the Appeal Procedures with respect to any Appeal Issue, except a Coverage Determination, as provided in Op. Rules, § ¶ 19.2.5(b).

 

Notice Date                                            --      shall mean the date a Member delivers a notice of intent to withdraw from one or more Risk Pools to the Administrator, provided it is delivered prior to October 1 of the calendar year of withdrawal.  (see, § I, ¶ 20.1).

 

Notice of Meeting                                  --      shall mean the notice provided to Directors by the Administrator of a General, Special or Emergency Meeting.  (See § I, ¶¶ 7.1, 7.2 and 7.3).

 

Occurrence                                             --      with respect to the Liability Coverage’s generally, shall mean an act or event, including, without limitation, repeated or continuous exposure to substantially the same harmful conditions, or the performance or failure of performance by an Employee of his or her duties for a Member of the Liability Pool, that happens during the Coverage Period and which results in Personal Injury, Property Damage, diminution in value or loss of use of intangible property, or other injury, loss, or damage to a Third Party compensible by monetary damages.  With respect to the Pollution Coverage Section, “Occurrence” shall have the additional meaning set forth § VI, ¶1.10.

 

Official Records                                    --      shall mean those documents identified in § I, ¶ 11 and in Op. Rules, § I, ¶ 11.1.

 

Operational Costs                                  --      with respect to the Fund, shall mean all costs and expenses incurred in connection with operation of the Fund and all of its Risk Pools.

 

                                                               --      with respect to a particular Risk Pool, shall mean all costs and expenses the Fund incurs in connection with the operation of that Risk Pool (ie. the Liability Pool Operational Costs, the Property Pool Operational Costs, or the H&W Pool Operational Costs. (See § I, ¶ 13.1.5).

 

Operational Rules                                  --      shall mean the rules, regulations, and procedures governing the operation of the Fund and its Risk Pools under the SIA, as provided for in § I, ¶¶ 5.1 and 5.6, as may be adopted or amended from time to time by the Board.  (See, SIA Notebook).

 

Operations Committee                            --      shall mean the Standing Committee established pursuant to § I, ¶ 9.3.

 

Order of Coverage Payments                 --      The terms and conditions of § X, ¶ 13 of the General Property Coverage Section shall apply to Covered Auto Physical Damage Claims filed under this Auto Physical Damage Coverage Section, and for purposes of determining the "Order of Coverage Payments" for any Property Loss involving a Covered Auto, a Covered Auto Physical Damage Claim shall be paid under Coverage A of the General Property Coverage Section.

 

Other Insurance                                      --      shall mean any insurance issued by any insurance carrier that provides coverage for a Liability Claim against a Member or Employee, or provides coverage for a Property Claim by a Member, with respect to which the Fund also potentially provides Coverage, and shall include all applicable Third Party Indemnifications.  (See, § III, ¶ 2.7; § IV, ¶ 2.5; § V, ¶ 2.5; § VI, ¶ 2.1; § X, ¶ 18; and § XI, ¶ 16).

 

Owned Property                                     --      shall mean any real or personal property that falls within the terms of the Owned Property Exclusion contained in § III, ¶ 3.14 of the CGL Coverage (see also Pollution Coverage, § VI, ¶ 3.1.1).

 

Owned Property Exclusion                    --      shall mean § III, ¶ 3.14 which generally excludes from CGL Coverage Claims for damage to property owned, occupied, rented to or controlled by a Member (see also Pollution Coverage, § VI, ¶ 3.1.1).

 

Period of Restoration                             --      shall refer to Insured Property that has suffered a Property Loss and is being rebuilt, repaired or replaced, and for purposes of Extra Expense Coverage, such property shall be considered within the "Period of Restoration" for the length of time required for the Member, with the exercise of due diligence and dispatch, to rebuild, repair or replace the damaged property (see § X, ¶ 2.4).

 

Personal Injury                                       --      shall mean Bodily Injury, and shall also include damage to reputation from libel, slander, and defamation, humiliation, invasion of privacy, loss of personal freedom, wrongful entry or eviction, false arrest, wrongful detention, malicious prosecution, discrimination, sexual harassment, and mental anguish, mental illness, emotional upset and other compensable emotional damages relating thereto or arising therefrom.

 

PO&E Claim                                          --      shall mean any formal demand, suit or proceeding asserted by a Third Party against any Public Official or a Member which seeks actual monetary Damages and which may result in any Public Official or Member becoming legally obligated to pay such Damages by reason of any Wrongful Act actually or allegedly caused, committed or attempted during the Coverage Period as a result of acts or omissions in the capacity of a Public Official while the Public Official was employed by a Member or, with respect to the PO&E Coverage provided to Members in § IV, ¶ 2.1(c), as a result of a Wrongful Act by any Employee acting within the scope of his/her actual or apparent authority while employed by the Member.  Multiple demands or suits arising out of the same Wrongful Act or interrelated acts shall be deemed to be a single PO&E Claim.

 

PO&E Coverage                                    --      shall mean the Public Officials and Entity Liability Coverage provided under the PO&E Coverage Section of the SIA (§ IV).

 

Pollution                                                 --      shall mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.  Waste includes materials to be recycled, reconditioned or reclaimed.

 

Pollution Claim                                      --      shall mean any Claim for Damages or Contribution asserted against a Member or Employee by any Third Party for Personal Injury or Property Damage arising out of a Pollution Release.  Depending upon the context, the term "Pollution Claim" may also include a "Remediation Action."

 

                                                               Pollution Coverage --         shall mean the Pollution Liability Coverage provided by the Fund under the "Pollution Coverage" Section of the SIA (§ VI).

 

Pollution Occurrence                             --      with respect to the Pollution Liability Coverage (§ VI), shall mean a Pollution Release during the Coverage Period that results in Environmental Damage.  Multiple Liability Claims arising out of a single Pollution Release, even if asserted against different Members or Employees, shall be deemed to be a single Claim arising from a single Pollution Occurrence.

 

Pollution Release                                   --      shall mean the emission, discharge, release or escape of Pollution, whether sudden and accidental or gradual over time, into or upon any person, thing or place, including the land, the atmosphere, any man-made structure and any above or below ground watercourse or body of water, provided that such emission discharge release or escape results in Environmental Damage.  The entirety of any such Release shall be deemed to be a single Pollution Occurrence.

 

Possession                                              --      shall mean a Member's taking care, custody or control of property.

 

                                                               Post-Admission Loss Event --         shall mean an Occurrence, Wrongful Act, Accident or Property Loss that takes place with respect to any Member of a Risk Pool or its Employees, or a New Member of such Risk Pool, after the date the New Member became a Member thereof.  (See, § I., ¶ 18.3).

 

Potentially Responsible Party                --      shall mean any Third Parties, including Members of the Fund, that are potentially liable under the applicable law to pay for or make Contribution to the Remediation Costs for a Pollution Release imposed by or agreed to in a Remediation Action or as a result of a Pollution

 

Pre-Approval (also, Pre-Approved)      --      shall mean those requirements and procedures contained in § III, ¶¶ 2.5 and 2.6 and in the Op. Rules, § III, ¶ 2.5, requiring Members to submit certain specified types of Risks to the Administrator for approval as a condition precedent to Liability Coverage by the Fund.  “Pre-Approved” shall mean that the particular Risk had been approved by the Administrator or Administrative Committee in writing, for Coverage by the Fund, or was conditionally Pre-Approved under § III, ¶ 2.6, at the time the Risk gave rise to the Liability Claim at issue.

 

                                                               Predecessor SIAs     --         shall mean the previous versions of the Self-Insurance Agreement that governed the Fund and the rights and obligations of its Members, as identified in § I, ¶ 1.

 

Premium Assessments                            --      shall mean those Assessments levied to provide assets for the payment of premiums for Excess Policies obtained by the Fund to provide Excess Coverage for the Members under § I, ¶¶ 14.1 and 14.2. Where appropriate in the context, "Premium Assessment" shall also mean the Assessment for the premium for a Subgroup Policy.  (See, § I, ¶ 16).

 

Premium Assessment Formulas              --      shall mean the formula for determining Liability Pool Members' Assessment Shares of the premium for the Excess Liability Policies under the Liability Premium Assessment Formula (see § IX), or for determining Property Pool Members' Assessment Shares of the premium for the Excess Property Policies under the Property Premium Assessment Formula (see § XIII), as provided in § I, ¶ 13.3.2, and for determining each Subgroup Member's Assessment Share of the premium for a Subgroup Policy, as provided in Op. Rules, § I, ¶ 16.1(E).

 

Pre-Withdrawal Loss Event                   --      shall mean an Occurrence, Wrongful Act, Accident or Property Loss that takes place with respect to any Member or Employee prior to the effective date of a Member's withdrawal from a Risk Pool and with respect to which the withdrawing Member continues to be obligated to pay its Assessment Share of the costs of resolving, even as a Former Member, in accordance with § I, ¶ 20.2.3.

 

Primary Excess Coverage

(or Primary Excess Insurance)               --      shall mean the insurance or coverage provided by the Primary Excess Policies purchased by the Fund pursuant to § I, ¶ 14.1.

 

Primary Excess Liability Coverage

(or Primary Excess Liability Insurance) --      shall mean the insurance or coverage provided by the Primary Excess Liability Policies purchased by the Fund pursuant to § I, ¶ 14.1.

 

Primary Excess Liability Policies          --      shall mean the one or more insurance policies that comprise the Primary Excess Coverage for Members of the Liability Pool in which all such Members must participate.

 

Primary Excess Policies                        --      shall mean the one or more insurance policies that comprise the Fund's Primary Excess Coverage for a Risk Pool in which all Members of that Risk Pool must participate.

 

Primary Excess Property Coverage

(or Primary Excess Property Insurance) --      shall mean the insurance or coverage provided by the Primary Excess Property Policies purchased by the Fund pursuant to § I, ¶ 14.1.

 

Primary Excess Property Policies          --      shall mean the one or more insurance policies that comprise the Primary Excess Coverage for Members of the Property Pool in which all such Members must participate.

 

 

                                                               Primary Jurisdiction --         shall mean the Administrative Committee's authority to decide in the first instance, and each Member's obligation to submit to the Administrative Committee, all issues relating to the subjects identified § I, ¶¶ 19.1 and 19.2.1, subject to decision by the Board directly under § 19.1(a) and (b) (see also § I, ¶ 9.4.4).

 

                                                               Procedural Rights     --         shall mean a Member's rights that prescribe or govern the methods for implementing or enforcing Members' (or Employees') Substantive Rights with respect to Coverage provided by a particular Risk Pool, or that relate to the basic operation and administration of the Fund.  (See, § I, ¶ 5.4.2.1).

 

Procedural Memoranda                          --      shall mean the memoranda that the Administrative Committee publishes to Members reflecting discussions by the Committee on issues falling within the Administrative Committee's Primary Jurisdiction, as provided in § I, ¶ 5.1.

 

Products                                                 --      shall mean a Member's products sold to Third Parties; provided that electricity, water, sewer and gas Services shall not be considered Products.

 

                                                               Professional Independent Contractor           --          shall mean an Independent Contractor whose relationship with the Member involves the rendering of professional services to the Member (like architects, engineers and appraisers).  (See, § III, ¶ 3.6).

 

                                                               Program Development          --         shall mean and refer to the authority in § I, ¶ 13.3.2 for the Board, by Super Majority Vote, to authorize and/or allocate  the use of specified portions of the Assets of the Actual Risk Pool Balances of one or more Risk Pools, to be replenished in the normal course through the applicable Assessment Formulas, for the development or establishment of additional or expanded self-insurance, or other types of insurance, bonding, or risk management programs that, at the time of the expenditures, may not directly benefit the current Members of such Risk Pools, but which Programs will ultimately be available to all Members of the Fund.

 

Program Documents                               --      shall mean the documents containing the various agreements, rules and procedures that govern the operation of the Fund and its Risk Pools, as identified in § I, ¶ 5.1, and shall include Predecessor SIAs.

 

Property Assessment                              --      shall mean an Assessment of the Property Pool Members by the Fund on behalf of the Property Pool under one of the Property Assessment Formulas (see §§ XII and XIII).

 

Property Assessment Formula                --      shall mean either the Property General Assessment Formula (see § XII) or the Property Premium Assessment Formula (see § XIII).

 

Property Claim                                       --      shall mean a Claim filed by a Member of the Property Pool, on behalf of the Member or one or more of its Employees, requesting Property Coverage for a Property Loss.  "Property Claim" shall also include a claim for Direct Physical Loss or Damage to a Covered Auto under the Auto Physical Damage Coverage Section (see § XI).  A "Property Claim" may or may not be a "Covered Claim."

 

Property Claim Costs                             --      shall mean all costs and expenses the Fund incurs in connection with resolving a Covered Property Claim, including without limitation, professional investigation and expert expenses, witness fees, court costs and attorneys' fees directly relating to the Property Claim, but not including any Direct or Shared Administrative Expenses or any Property Coverage Payments.

 

Property Coverage                                 --      shall mean the Coverage provided to a Member of the Property Pool for Direct Physical Loss or Damage to Insured Property under the General Property Coverage Section (see § X) or to Covered Autos under the Auto Physical Damage Coverage Section (see § XI).

 

Property Coverage Limit                        --      shall mean the maximum amount the Fund may be required to pay, including Property Claim Costs, for all Covered Property Claims filed by one or more Members arising from one Property Loss, as provided in § X, ¶ 4, less applicable Assigned Deductibles.

 

Property Coverage Payments                 --      shall mean the payment(s) the Fund makes to or on behalf of a Member for the Property Loss Amount in connection with a Covered Property Claim, and shall not include any Property Claim Costs or Direct or Shared Administrative Expenses.

 

Property Damage                                    --      shall mean (1) physical injury to or destruction of tangible property, including the loss of use thereof, or (2) loss of use of tangible property which has not been physically injured or destroyed.

 

                                                               Property Deductible Credits --         shall mean the credits a Member is allocated under the Property General Assessment Formula according to rates set forth in the current ISO Commercial Lines Manual or successor manuals (which shall be available for inspection at the Administrator's offices), based upon the Assigned Deductibles for the Member's Insured Property as reflected in the Schedule of Values (see § XII, ¶ 3).

 

Property General Assessment                --      shall mean a General Assessment under the Property General Assessment Formula (see § XII).

 

Property General Assessment Formula  --      shall mean the General Assessment Formula for the Property Pool, set forth in § XII.

 

Property-In-Transit                                --      shall mean the shipment or movement of Insured Property within the Coverage Territory of this Property Coverage, by any means of conveyance, from the time the Insured Property is moved for the purpose of loading and continuously thereafter while awaiting and during loading and unloading and in temporary storage, including deviation and delay, until delivered to the place of final destination (see § X, ¶ 2.2).

 

Property Loss                                         --      shall mean an act or event constituting an Insured Peril(s) that causes Direct Physical Loss or Damage to Insured Property of a Member of the Property Pool (or its Employee) which occurs during the Coverage Period (see § X, ¶ 4).  "Property Loss" shall include Direct Physical Loss or Damage arising from an Accident involving a Covered Auto under the Auto Physical Damage Coverage Section (see § XI).  Multiple Property Claims arising out of a single Property Loss, even if filed by multiple Members, shall be deemed to be a single Property Claim arising from a Single Property Loss.

 

Property Loss Amount                            --      shall mean the total dollar amount of loss or damage to a Member's Insured Property, including Covered Autos, if any, resulting from a single Property Loss, as determined under § X, ¶ 10, "Valuation of Property Loss", and any additional amounts for which Property Coverage is provided under Coverages D and E ("Extra Expense" and "Expediting Expenses").

 

Property Pool                                         --      shall mean the Risk Pool operated by the Fund that provides protection to its Member's for Property Losses.

 

Property Pool Investment                       --      shall mean the amount of money, without interest, a Member contributed to the Fund on behalf of the Property Pool at any time pursuant to one or more Reserve Assessments (see § I, ¶ 21.5).

 

Property Pool Operational Costs           --      shall mean all of the costs and expenses the Fund incurs with respect to operation of the Property Pool, including without limitation, Direct Administrative Expenses, its allocation of Shared Administrative Expenses, Property Coverage Payments and Property Claim Costs.

 

Property Premium Assessment               --      shall mean a Premium Assessment under the Property Premium Assessment Formula (see § XIII).

 

Property Premium Assessment Formula --      shall mean the Premium Assessment Formula for the Property Pool, set forth in § XIII.

 

                                                               Property Program     --         shall mean the rights and obligations of Members of the Property Pool with respect to Property Coverages, and the entire range of Administrative services provided by the Fund in connection therewith.

 

Property-Under-Construction                 --      shall mean the renovation or construction of buildings or improvements on real property in which the Member has an interest and which have a value or  construction contract price exceeding $25,000, while under the process of construction (see § X,¶ 2.3).

 

Proposed Coverage                                --      shall mean the type and amount of excess insurance proposed by two or more Members to be acquired pursuant to the Subgroup Procedures as set forth in the Op. Rules, § I, ¶ 16.1(A).

 

Prospective Amendment                         --      shall mean an amendment to the Program Documents, including an amendment affecting Procedural or Substantive Rights, that may be applied only prospectively from its effective date, as provided in § I, ¶ 5.4.1.

 

Public Disclosure Laws                         --      shall mean those laws of the State that establish what information may be kept confidential by the Fund and what must be disclosed, including without limitation, Chapters 42.17, 48.62 and 42.30 RCW, and any other applicable law.

 

Public Official                                       --      as used in the PO&E Coverage section (see § IV, ¶ 1.8) either in the singular or plural, shall mean:

                                                                               (a)    (1) Any person who was, is now, or shall be a commissioner, director, trustee or Management of a Member and any other Employee of a Member who may be acting in the capacity of a commissioner, director, officer, trustee or Management of a Member with the express authorization of a commissioner, director, officer, trustee or Management of a Member;

                                                                              

                                                                                         (2)  Any person who was, is now or shall be a lawfully elected or appointed official or member of the governing body of a Member;

                                                                              

                                                                                         (3)  Any member of a commission, board or other unit operating by and under the jurisdiction of the governing body of a Member; or;

            (4) Employee of a Member who is directly responsible to the governing body of a Member or to its commissions or boards;

 

(b)  Any person included in subparagraph (a)(1) above who is serving or has served at the specific request or with the permission of the Member's governing body as a director, officer or trustee of any outside Not-For-Profit Organization;

                                                                              

                                                                               (c)  The estates, heirs, legal representatives or assigns of deceased persons who were persons included in subparagraph (1) above at the time the Wrongful Acts upon which such Liability Claims were based were committed and the legal representatives or assigns of such persons in the event of their incompetency, insolvency or bankruptcy; and

                                                                              

                                                                               (d) With respect to the PO&E Coverage provided to the Member under § IV, ¶ 2.1(c) and applicable Exclusions, the term "Public Official" shall mean and include all Employees of a Member;

                                                                              

                                                                               provided, however, that the term "Public Official" shall not include a trustee appointed pursuant to Title 11, United States Code, or pursuant to the Securities Investor Protection Act, a receiver appointed for the benefit of creditors by Federal or State courts, an assignee for the benefit of creditors or similar fiduciary appointed under Federal or State laws for the protection of creditors or the relief of debtors.

                                                                       

                                                                        In the event that a Liability Claim which is within the PO&E Coverage afforded by § IV is made against any Public Official and such Claim includes a claim against the lawful spouse of such Public Official solely by reason of (a) such spousal status or (b) such spouse's ownership interest in property or assets which are sought as recovery for the Wrongful Act of a Public Official, such spouse shall be deemed to be a Public Official hereunder, but solely with respect to such Claim.  In no event, however, shall the lawful spouse of a Public Official be deemed to be a Public Official as regards any Liability Claim in respect of which there is a breach of duty, neglect, error, misstatement, misleading statement or omission actually or allegedly caused, committed or attempted by or claimed against such spouse, acting individually or in his or her capacity as the spouse of a Public Official.

 

Public Officials and Entity Liability

("PO&E") Coverage                              --      shall mean the Public Officials and Entity Liability Coverage provided  for Public Officials and Members for the Wrongful Acts of Public Officials under the PO&E Coverage Section of the SIA (§ IV).

 

                                                               Public Utility Operations     --         shall mean the operations of the Member related to, arising from or associated with the production, transmission, delivery or furnishing of electricity, gas, water or sewer Services to the public, including the ownership, operation, management or control of any plant or equipment used in connection therewith.

 

PUD Business                                        --      for purposes of the Auto Liability Coverage Section (see § V) and for purposes of the Auto Physical Damage Coverage Section (see § XI), shall mean all activities falling within the definition of Public Utility Operations which involve the use of a Covered Vehicle, and all business activities related thereto (like attending seminars, conventions, trade association meetings, etc.) involving the use of a Covered Vehicle, so long as the primary purpose for such use is related to such business activities and any use thereof for personal purposes is incidental to such business use.

 

PUD Business                                        --      for the purposes of the Auto Physical Damage Coverage Section (see § XI), shall mean all activities falling within the definition of Public Utility Operations which involve the use of a Covered Auto, and all business activities related thereto (such as attending seminars, conventions, trade association meetings, etc.) involving the use of a Covered Auto, so long as the primary purpose for such use is related to PUD business activities and any use thereof for personal purposes is incidental to such business use.

 

PUD Vehicle                                          --      shall mean any Covered Vehicle operated or otherwise being used by an Insured,  regardless of who is actually driving the vehicle, subject, however, to the Other Insurance provisions in § V, ¶ 2.5. (See § V, ¶ 2.4.1).

 

Quorum                                                  --      with respect to issues affecting the Fund or more than one Risk Pool, shall mean a majority of the total number of Directors of all Members; and with respect to issues affecting only one Risk Pool, shall mean a majority of the number of Directors of all Members of the Risk Pool.

 

 

Recovery Proceeds                                --      shall mean all money received by the Fund from Coverage Litigation, less any costs and legal fees specifically awarded to the Fund by the terms of a settlement or by a court or other tribunal. (See, § I, ¶ 15.9).

 

Remaining Subgroup Participant            --      shall mean any Member that timely responds to the First Quote on the premium for the Proposed Coverage indicating its election to continue its involvement in the Subgroup Procedures (see, Op. Rules, § I, ¶ 16.1(B)).

 

Remediation                                           --      shall mean the Containment and/or Cleanup of Pollution that has caused Environmental Damage. "Remediation" shall also refer to the same activities if performed on a Member's Owned Property.

 

Remediation Action                               --      shall mean any formal notice by any Environmental Enforcement Agency to any Member alleging that such Member is or may be responsible for all or a portion of any Remediation Costs for Environmental Damage, and shall include any subsequent legal proceedings relating thereto.

 

Remediation Costs                                 --      shall mean such Cleanup Costs and/or Containment Costs, and any other related costs, as required or imposed by an Environmental Enforcement Agency or a court, or by agreement among Potentially Responsible Parties (approved by the Fund), or as result of a Pollution Claim, relating to or arising out of Environmental Damage.

 

Remediation Letter                                 --      shall mean the letter that may be issued by the Executive Committee pursuant to § I, ¶ 17.4.1 notifying a Member of an Unreasonable Risk that must be corrected or remedied by the Compliance Date or risk imposition of a Board Remedy pursuant to § I., ¶ 17.4.2.

 

Replacement Cost                                  --      shall mean the amount it would take to replace the damaged or destroyed property with property of like kind and quality, determined at the time and place of the Property Loss (see § X, ¶ 10, "Valuation of Property Loss"), including sales tax and reasonable cost of installation. "Replacement Cost" shall include any increased cost imposed by any Governmental Authority in connection with repairing, replacing or rebuilding damaged Insured Property, except as provided in Perils Exclusions, § X, ¶¶ 9.1.10, 9.1.11 and 9.1.12 regarding asbestos.

 

"Repollution Avoidance" Remediation

Costs                                                      --      shall mean the Remediation Costs Covered by the Fund under § VI, ¶ 3.1.6 in the situation where some Remediation of the Pollution on the Member's Owned Property is necessary to avoid Imminent Repollution of Third Party Property.

 

 

 

Representative (or “Member’s

     Representative”)                               --      shall mean the person appointed by a Member as its Representative to the Administrative Committee in connection with a Covered Liability Claim asserted against the Member or its Employee or a Covered Property Claim filed by a Member (see § VII, ¶¶ 3.1 and 3.2), or in connection with Coverage Litigation against an Excess Carrier (see § I., ¶ 15.3), or the person appointed by a Member as its Representative in connection with the Appeal Procedures (see § I., ¶ 19.2.6).

 

Request (for Reconsideration)               --      shall mean a Member's (or Employee's) written request to the Administrative Committee in connection with the Appeal Procedures to reconsider its decision on a Coverage Determination, as provided in the Op. Rules § I, ¶ 19.2.5(a).

 

Reservation (of Rights)                          --      shall mean "a reservation of rights" under which the Fund may proceed with providing a Defense to a Liability Claim while reserving its right to terminate Defense and seek reimbursement for Defense Costs or to deny Coverage for the Claim at any time.  (See, § VII, ¶ 2.2).

 

Reserves Assessment Formula               --      shall mean the Assessment Formula used to fund any "Reserves" necessary for the Property Pool, as set forth in § I, ¶ 13.5.3 of the SIA.

 

                                                               Reserve Assessments           --         shall mean those Assessments of Property Pool Members for the purpose, initially, of establishing the Reserves necessary to commence operation of the Property Pool, and thereafter, as determined by the Board from time to time, to fund the Reserves necessary to support any increases in the Maximum Property Retention or the Designated Property Pool Balance from the level established upon commencement of the Property Pools' operations.

 

Reserves                                                --      shall mean the minimum amount of liquid assets the Property Pool is required to establish to provide financial support for the Property Coverage Limit in order to commence operations of the Property Pool, and any additional amounts thereafter established by the Board to support any increase in the Property Coverage Limit over its initial level, as determined by Super-Majority Vote effecting an increase in the Maximum Property Retention or the Designated Property Pool Balance.  All Reserves shall be funded by Reserve Assessments (see § I, ¶ 13.3.3)

 

Retroactive Coverage                            --      shall mean the Coverage the Fund provides for the Members of its Liability or Property Pools retroactive to a date certain from the date of the Board Vote approving such Coverage under § I, ¶ 5.4.2. “Retroactive Coverage” may also refer to an H&W Pool Member’s right to provide “retroactive” Benefits to its Employees and/or their Dependants, or to provide H&W Coverage for a specific H&W Claim that has been denied, as referenced in § I, ¶ 5.4.2.2.

 

Revised Subgroup Assessment Share     --      shall mean the adjustment made to Subgroup Members' Assessment Shares for the premium for the Subgroup's Policy when New Subgroup Members are admitted, as set forth in the Op. Rules, § I, ¶ 16.1(J).

 

Risk                                                        --      shall mean the danger, casualty, hazard or condition that could give rise to a Liability Claim asserted against a Member or its Employees or that could give rise to a Property Claim for a Property Loss, including Risks for which the Member may become liable as a result of a contractual indemnification of a Third Party.

 

Risk Pool                                               --      shall mean the Liability Pool, the Property Pool, and/or any other Risk Pool established by the Fund.

 

Risk Management Account                     --      shall mean the portion of the money in the Fund's Actual Fund Balance that the Board allocates annually for use by the Administrative Committee in connection with the Fund's Risk Management Program, as provided in the Op. Rules, § I., ¶ 9.4.3(u)(6).

 

Risk Management Program                     --      shall mean the program adopted and amended from time to time by the Board pursuant to § I, ¶ 17.

 

Salvage                                                  --      with respect to the Property Coverage, shall mean any payment due or received by a Member for selling damaged Insured Property that is beyond repair, or is determined by the Administrator to be uneconomical to repair.  All salvage payments owed or made to a Member (including an Employee) from a Third Party purchaser of salvage, excluding proceeds from Subrogation, shall reduce the Member's Property Loss Amount accordingly (see also § X, ¶ 23).

 

Schedule of Values                                 --      shall mean the information maintained by the Administrator regarding Members' Insured Property which shall be used by the Fund, among other things, in establishing whether a Member's property is Insured Property, and in determining Members' Assessment Shares under the Property Assessment Formulas (see § X, ¶ 3).

 

Self-Insurance Agreement

(or Agreement, or SIA)                          --      shall mean the Interlocal Agreement (pursuant to RCW 39.34) forming the Fund, along with the thirteen separate additional sections including Definitions, Coverages, Claims Resolution, the Assessment Formulas and Appendices, which are specifically incorporated into the SIA by reference.  (See §§ I--XIV).

 

Services                                                 --      shall mean the utility services rendered by Members to their Customers involving the provision or delivery of electricity, water  sewer or gas services.

 

Shared Administrative

Expenses                                                --      shall mean those Administrative Expenses that are not Direct Administrative Expenses, ie. they are Administrative Expenses the Fund incurs that do not arise directly from the operation of a particular Risk Pool, but relate to the Fund generally, or relate to or benefit two or more Risk Pools, and which are allocated pro rata among the Fund's Risk Pools, as provided in § I, ¶ 13.1.5.

 

SIA                                                         --      shall mean the Self-Insurance Agreement.

 

Special Purpose Committees                  --      shall mean those committees established from time to time by the Board pursuant to § I., ¶ 9.1 for a designated purpose and duration.

 

                                                               Special Defense Services    --         shall mean those legal services rendered by Defense Counsel for the unique benefit of one Member or less than all Members involved in a Multi-Member Liability Claim that are in addition to or substantially different from the legal services rendered on behalf of or for the common benefit of all Members involved in the Claim.  (See, § VIII, ¶ 4.2.3).

 

Special Purpose Account                       --      shall mean the bookkeeping entries in the Fund's financial records for keeping track of the assets of a particular Risk Pool that have been designated by the Board to be used for a special purpose and for keeping such monies separate from the assets in the Actual Risk Pool Balance.  (See, § I, ¶ 13.2.4).

 

Special Purpose Assessment                  --      shall mean a Discretionary General Assessment of Members of a Risk Pool levied by the Board pursuant to § I., ¶ 13.2.4 under the General Assessment Formula for a specifically designated purpose, which monies shall be allocated to a Special Purpose Account for that Risk Pool rather than being included as part of its Actual Risk Pool Balance.

 

Standing AC Members                           --      shall mean the four (4) members of the Administrative Committee appointed by Majority Vote of the Board to serve four (4) year terms on such Committee, as provided in § I, ¶¶  9.4.1 and 9.4.2.

 

Standing Committees                              --      shall mean the Executive, Operations and Administrative Committees established by § I., ¶¶ 9.2, 9.3 and 9.4, respectively.

 

State Regulatory Agencies                     --      shall mean the State of Washington Division of Risk Management, the State Auditor's Office, and any other State agency having jurisdiction over the operations of the Fund.

 

Stop-Loss Insurance                               --      with respect to the Liability and Property Pools, shall mean insurance the Fund may acquire under § I, ¶ 14.2.1 which would protect the Fund from losses resulting from Covered Claims which, in the aggregate, total in excess of a specified amount within a specified period of time.

 

 

 

Subgroup                                                --      shall mean a group of less than all Members of a Risk Pool that has acquired additional or different liability or property insurance coverage, in addition to the Risk Pool's Primary Excess Coverage and Supplemental Excess Coverage, if any, in accordance with § I., ¶ 16 and Op. Rules, § I, ¶ 16.1.

 

Subgroup Carrier                                   --      shall mean an insurance company that has issued a Subgroup Policy.

 

Subgroup Member                                  --      shall mean those Members who become committed to participating in a Subgroup Policy under the procedures in the Op. Rules, § I, ¶ 16.

 

Subgroup Notice                                    --      shall mean the Notice sent by the Administrator to all Fund Members that the Subgroup Procedures are being initiated to acquire the Proposed Coverage, as provided in the Op. Rules, § I, ¶ 16.1(A).

 

Subgroup Participant                              --      shall mean any Member that timely responds to the Subgroup Notice indicating its election to become involved in the Subgroup Procedures with respect to acquiring the Proposed Coverage. (see, Op. Rules, § I, ¶ 16.1(A)).

 

Subgroup Policy                                     --      shall mean an insurance policy purchased through the Fund by a Subgroup.

 

Subgroup Procedures                             --      shall mean the rules and procedures governing the formation and operation of Subgroups for the acquisition of additional or different insurance, as set forth in § I., ¶ 16.1(A)-(K).

 

Subgroup Renewal                                 --      shall mean the renewal of an existing Subgroup Policy at the end of the Subgroup Policy year.  (see, Op. Rules, § I, ¶ 16.1(H)).

 

Subrogation Rights                                 --      shall mean the Fund's automatic right to succeed to the rights and remedies of its Members (or their Employees) for the wrongful or negligent acts or omissions of Third Parties which may have contributed to the Loss Event that gave rise to the Covered Claims paid by the Fund to or on behalf of such Members or Employees, as provided in § VII, ¶ 7.2; § X, ¶ 22, and § XI, ¶ 17.

 

Substantive Rights                                  --      with respect to the Liability and Property Coverages, shall mean a Member's (or Employees') right to Coverage and Defense from the Fund with respect to a Covered Liability Claim, as set forth in §§ III through VI and in § VII, and in related provisions of this SIA, or in Predecessor SIAs, or a Member's right to Property Coverage for a Covered Property Claim, and all rights (and related obligations) reasonably necessary to preserve the value/benefit of such Substantive Rights to the Member (or Employee) involved.  (See, § I, ¶ 5.4.2.3).

 

                                                               --      with respect to an H&W Claim, shall mean an Employee’s or Dependant’s right to Coverage for an H&W Claim in accordance with the terms of the applicable Coverage Booklet in effect at the time the H&W Claim is Incurred.

 

Sufficient Cause                                     --      shall mean such cause as the Board by Super- Majority Vote deems sufficient to permit Coverage for a Covered Claim to exceed the applicable Coverage Limit, based on circumstances significantly beyond or different from those normally involved in resolving a Covered Claim (e.g., experts costs were unusually high, or the Board deemed it in the Fund's best interest to vigorously defend a Liability Claim, or the Property Coverage Limits are not sufficient to cover all Property Loss Amounts in a Multi-Member Property Claim, or there is a gap in Excess Coverage for such Property Losses (see, e.g., § III, ¶ 2.2).

 

                                                               Supervisor        --    shall mean an Employee's immediate superior in the chain of command and/or the person to whom the Employee is assigned to report.

 

Super-Majority Vote                              --      with respect to issues affecting the Fund or more than one Risk Pool, shall mean the affirmative vote of 85% of the total number of Directors of all Members of the Fund; provided that there is a Quorum of Directors of all Members entitled to vote on the issue.

 

                                                               --      with respect to issues affecting only one Risk Pool, shall mean the affirmative vote of 85% of the Directors of all Members of such Risk Pool; provided that there is a Quorum of Directors of all Members entitled to vote on the issue. 

 

Supplemental Excess Coverage             --      shall mean any Excess Insurance the Fund acquires for Members of a Risk Pool (and/or their Employees) to supplement the Risk Pool's Primary Excess Coverage, as provided in § I, ¶ 14.2.

 

Surplus                                                   --      shall mean the amount by which the money constituting a Risk Pool's Actual Risk Pool Balance exceeds the applicable Designated Risk Pool Balance (see § I, ¶¶ 13.1.2 and 13.1.3).

 

Suspension Period

   (or Suspension of Coverage)               --      shall mean the period of time commencing twenty (20) days after the Administrator provides a Member of the H&W Pool with notice of default on an Assessment, and continuing until such Member pays in full such Assessment and related costs or 180 days elapses, whichever first occurs, during which time the H&W Pool has authority under § I, ¶ 13.7(d) to suspend payment of H&W Claims for the Employees and Dependents of such defaulting Member.

 

System                                                    --      shall mean The Washington Public Utility Districts' Utilities System.

 

Third-Party                                             --      shall mean any person or entity, other than the Fund, a Member or an Employee, except that a Member or an Employee shall be a Third Party if asserting a Liability Claim against another Member or an Employee of another Member.

 

Third Party Indemnifications                  --      shall mean any contractual indemnifications by Third Parties (but not those by Members) that provide coverage or protection for a Member or Employee with respect to a Claim for which the Fund also provides Coverage.  For purposes of the "Other Insurance" clauses in the Coverages sections (see, e.g., § III, ¶ 2.7), Third Party Indemnifications shall be included within the meaning of "Other Insurance."

 

Third Party Property                              --      shall mean any real or personal property that does not fall within the terms of the Owned Property Exclusion contained in § III, ¶ 3.14 of the CGL Coverage (see also § VI, ¶ 3.1.2).  "Third Party Property" shall include property which by State statute belongs to the State or the people of the State.

 

                                                               Two-Thirds Vote     --         with respect to issues affecting the Fund or more than one Risk Pool, shall mean the affirmative vote of two-thirds of the Directors of all Members of the Fund; provided that there is a Quorum of Directors of all Members entitled to vote on the issue. 

 

                                                                        --    with respect to issues affecting only one Risk Pool, shall mean the affirmative vote of two-thirds of the Directors of all Members of such Risk Pool; provided that there is a Quorum of Directors of all Members entitled to vote on the issue. 

 

Trailer                                                    --      shall include semi-trailer.

 

Treasury Bill Rate                                  --      shall mean the Treasury Bill Rate established as of December 31 of the year prior to the year of the Member's default on an Assessment for purposes of determining the interest rate applicable to unpaid Assessments, as provided in § I, ¶ 13.4.

 

Ultimate Net Loss                                   --      shall mean the total Damages and Defense Costs with respect to each Wrongful Act to which the PO&E Coverage (§ IV) applies, subject to the Liability Coverage Limit set forth in § IV, ¶ 2.2.

 

Unanimous Vote                                     --      shall mean that the affirmative vote of the Directors of all Members of the Fund which is required to amend or modify the provisions of the Program Documents with respect to which it applies, and which requires an Authorizing Resolution from each Member, as more particularly described in § I., ¶ 5.3.

 

                                                               Uninsured Motor Vehicle     --         shall include an "underinsured" motor vehicle and shall mean a motor vehicle with respect to the ownership, maintenance, or use of which either no bodily injury or liability bond or insurance policy applies at the time of an Accident, or with respect to which the sum of the limits of liability under all bodily injury liability bonds and insurance policies applicable to a person after an Accident is less than the Uninsured Vehicle Coverage Limit provided for in § V, ¶ 2.4.2, and shall include, but not be limited to, hit and run motor vehicles and vehicles which cause an Accident without physical contact where the owner or operator of such vehicle cannot be located following the Accident after diligent search; provided, however, that Uninsured Motor Vehicles shall not include vehicles (1) owned by any governmental unit or agency, (2) designed mainly for use off public roads while not upon public roads, (3) while located for use as a residence or premises, or (4) owned or operated by a person or entity qualifying as a self-insurer under any applicable motor vehicle law.

 

                                                               Uninsured Vehicle Coverage            --         shall mean the Liability Coverage provided by the Fund in § V, ¶ 2.4 for Medical Expenses for any person that, while occupying a PUD Vehicle, sustains Bodily Injury caused by an Accident with an Uninsured Motor Vehicle.

 

Uninsured Vehicle Coverage Limit        --      shall mean the Liability Coverage Limit and related terms set forth in § V, ¶ 2.2, which is applicable to the Fund's Uninsured Vehicle Coverage contained in § V, ¶ 2.4.1, as modified by the terms of the Uninsured Vehicle Coverage Limit contained in ¶ 2.4.2.

 

Updated Appraisal                                 --      shall mean the less comprehensive, off-site, computer-updated Annual Appraisal obtained by the Fund in each of the two calendar years between Detailed Appraisals, as provided in § X, ¶ 14, "Appraisals to Establish Insured Values."

 

Unreasonable Risk                                 --      shall mean any condition existing with respect to a Member's Owned Property or a Member's methods of operation which the Administrative Committee determines constitutes an unreasonable Risk to the Fund given the magnitude of exposure presented by the Risk versus the relative cost and effort to the Member to correct or remedy the Risk.  (see, § I, ¶ 17.3).

 

Vested (Substantive Rights)                   --      shall mean the Substantive Rights of a  Member (or its Employees or Dependants, as applicable) or those of a Former Member, to Coverage (and as applicable, Defense) under the SIA, or Predecessor SIA, for a Loss Event, which without the Insured’s and/or Member's written consent, may not be abrogated or modified as a result of the retroactive effect of an amendment of the Program Documents because such Substantive Rights are vested once the Loss Event giving rise to the Claim has taken place.  (See, § I, ¶ 5.4.2.3).

 

Veto                                                        --      shall mean a Member's right to veto the first attorney selected by the Administrative Committee as Defense Counsel for a Covered Liability Claim, as provided in § VII, ¶ 4.2.

 

Vicarious Liability                                 --      shall refer to the liability imposed upon a Member for the acts or omissions of its Employees, Insured Agents or Insured Volunteers under the principles of respondent superior or Agency.  With respect to the PO&E Coverage (§ IV), "Vicarious Liability" shall have the meaning in ¶ 1.11 thereof.

 

Volunteer                                                --      shall mean a person or entity who provides services to or for a Member, without an agreement for remuneration, and who may or may not be an Agent of the Member.

 

Voting AC Members                              --      shall mean the four (4) Standing AC Members and the two (2) Annual AC Members, and shall include the Chairperson of the Operations Committee in the event of a tie-vote, as provided in§ I, ¶ 9.4.1.

 

Voting Standards                                    --      shall mean the various standards governing Board Votes on Board Decisions with respect to particular subjects (including those relating to amendment of the Program Documents), as contained in various provisions of the Program Documents, and as specifically set forth for amending the Program Documents in § I., ¶ 5.2-5.5.

 

Withdrawal Date                                    --      shall mean December 31 of the calendar year in which a Member withdraws and ceases being a Member of a Risk Pool in accordance with § I, ¶ 20.1.

 

Wrongful Act                                          --      shall mean any actual or alleged breach of duty, neglect, error, misstatement, misleading statement or omission actually or allegedly caused, committed or attempted during the Coverage Period by:  (a) any Public Official while acting individually or collectively in their capacity as Public Officials, or claimed against them solely by reason of their being Public Officials; or (b) with respect to the PO&E Coverage provided to Members in ¶ 2.1(c) only, any Employee acting within the scope of his/her actual or apparent authority; or (c) a Member; but subparagraphs (a) through (c) above shall apply only with respect to the Public Utility Operations of a Member.  All such interrelated breaches of duty, neglects, errors, misstatements, misleading statements or omissions actually or allegedly caused, committed or attempted by or claimed against one or more of the Public Officials shall be deemed to be a single "Wrongful Act", regardless of the number of Members or Employees allegedly involved in the Wrongful Act.

Exhibit numbers use endnote numbering.  These numbers will automatically renumber when you add or delete Exhibits.  Because the endnotes also print at the end of the document, be sure your document contains a hard page break at the bottom of the last page.