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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1987 

                        CHAPTER 260-H.F.No. 1083 
           An act relating to government liability; authorizing 
          municipal insurers to settle tort claims; clarifying 
          that instrumentalities of municipalities incorporated 
          as nonprofit corporations may be included in the 
          self-insurance pool; amending Minnesota Statutes 1986, 
          sections 466.06; 466.08; and 471.98, subdivision 2. 
    Section 1.  Minnesota Statutes 1986, section 466.06, is 
amended to read:  
    The governing body of any municipality may procure 
insurance against liability of the municipality and its 
officers, employees, and agents for damages resulting from its 
torts and those of its officers, employees, and agents, 
including torts specified in section 466.03 for which the 
municipality is immune from liability.  The insurance may 
provide protection in excess of the limit of liability imposed 
by section 466.04.  If the municipality has the authority to 
levy taxes, the premium costs for such insurance may be levied 
in excess of any per capita or millage tax limitation imposed by 
statute or charter.  However, a school district may not levy 
pursuant to this section for premium costs for motor vehicle 
insurance protecting against injuries or damages arising out of 
the operation of district owned, operated, leased, or controlled 
vehicles for the transportation of pupils for purposes for which 
state aid is authorized under section 124.223, or for purposes 
for which the district is authorized to levy under section 
275.125, subdivision 5d.  Any independent board or commission in 
the municipality having authority to disburse funds for a 
particular municipal function without approval of the governing 
body may similarly procure liability insurance with respect to 
the field of its operation.  The procurement of such insurance 
constitutes a waiver of the defense limits of 
governmental immunity liability under section 466.04 to the 
extent of the liability stated in the policy but has no effect 
on the liability of the municipality beyond the coverage so 
provided.  Procurement of commercial insurance, participation in 
a self-insurance pool pursuant to section 471.981, or provision 
for an individual self-insurance plan with or without a reserve 
fund or reinsurance shall not constitute a waiver of any of the 
immunities conferred under section 466.03. 
    Sec. 2.  Minnesota Statutes 1986, section 466.08, is 
amended to read:  
    Notwithstanding sections 466.03 and 466.06, the governing 
body of any municipality, the administrator of a self-insurance 
pool, or the authorized representative of a private insurance 
carrier may compromise, adjust and settle tort claims against 
the municipality for damages under section 466.02 and may, 
subject to procedural requirements imposed by law or charter, 
appropriate money for the payment of amounts agreed upon.  When 
the amount of a settlement exceeds $2,500, the settlement shall 
not be effective until approved by the district court.  
    Sec. 3.  Minnesota Statutes 1986, section 471.98, 
subdivision 2, is amended to read:  
    Subd. 2.  [POLITICAL SUBDIVISION.] "Political subdivision" 
includes a statutory or home rule charter city, a county, a 
town, a watershed management organization as defined in section 
473.876, subdivision 9, or an instrumentality thereof, including 
but not limited to instrumentalities incorporated under chapter 
317, having independent policy making and appropriating 
authority.  For the purposes of this section and section 
471.981, the governing body of a town is the town board. 
    Approved May 27, 1987

Official Publication of the State of Minnesota
Revisor of Statutes