CHAPTER 2154. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE SELF-INSURANCE PROGRAM
INSURANCE CODE
TITLE 10. PROPERTY AND CASUALTY INSURANCE
SUBTITLE G. POOLS, GROUPS, PLANS, AND SELF-INSURANCE
CHAPTER 2154. VOLUNTEER FIRE DEPARTMENT MOTOR VEHICLE
SELF-INSURANCE PROGRAM
Sec. 2154.001. DEFINITIONS. In this chapter:
(1) "Fund" means the volunteer fire department self-insurance
fund established under Section 2154.005.
(2) "Program" means the volunteer fire department motor vehicle
self-insurance program administered under this chapter.
(3) "Service" means the Texas Forest Service of The Texas
A&M University System.
(4) "Volunteer fire department" means a fire department operated
by the fire department's members on a not-for-profit basis. The
term includes a fire department that is exempt from federal
income tax under Section 501(a), Internal Revenue Code of 1986,
by being listed as an exempt organization in Section 501(c)(3) of
that code.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.002. MOTOR VEHICLE SELF-INSURANCE PROGRAM. (a) The
service shall administer a volunteer fire department
self-insurance program that:
(1) identifies and evaluates risks arising from the use of motor
vehicles by volunteer fire departments;
(2) maintains a loss-prevention and loss-control program to
reduce risks arising from the use of motor vehicles by volunteer
fire departments;
(3) consolidates and administers volunteer fire department risk
management and self-insurance programs; and
(4) provides motor vehicle self-insurance coverage in accordance
with Section 2154.003.
(b) The service may employ staff to administer the program.
(c) The director of the service may adopt rules to implement and
administer the program.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.003. SELF-INSURANCE POOL; COVERAGE. (a) The program
shall administer a self-insurance pool to provide coverage for
motor vehicles a volunteer fire department uses for fire
fighting.
(b) The coverage may indemnify an official, employee, member, or
volunteer of a volunteer fire department for liability arising
from the use of a covered motor vehicle in performing the
person's fire-fighting duties. The maximum limits of coverage
are:
(1) for bodily injury or death:
(A) $100,000 for each person; and
(B) $300,000 for each single occurrence; and
(2) for injury to or destruction of property, $100,000 for each
single occurrence.
(c) Self-insurance coverage provided under this section may be
funded only from money available from the fund.
(d) The director of the service may establish:
(1) eligibility requirements for participation in coverage under
this section; and
(2) equipment and safety standards for the motor vehicles to be
covered under this section.
(e) Coverage limits of self-insurance provided under this
section must be based on the liquidity of the fund after
deducting the cost of administering this chapter.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.004. PARTICIPATION IN SELF-INSURANCE POOL. (a) To
participate in coverage provided under Section 2154.003, a
volunteer fire department must submit a written request to the
program.
(b) The director of the program shall approve the request for
participation if each motor vehicle to be covered meets the
eligibility requirements and equipment and safety standards
established under Section 2154.003(d).
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.005. VOLUNTEER FIRE DEPARTMENT SELF-INSURANCE FUND.
(a) The fund is an account in a depository selected by the board
of regents of The Texas A&M University System in the manner
provided by Section 51.003, Education Code, for funds subject to
the control of institutions of higher education under Section
51.002, Education Code.
(b) The fund is composed of:
(1) money collected under Section 2154.007; and
(2) interest accruing on money in the fund.
(c) Money in the fund may be spent only for:
(1) funding self-insurance under the program; or
(2) administering this chapter, including paying the salaries
and expenses of staff for the program and the fund.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
730, Sec. 3B.059(a), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 9.059(a), eff. September 1, 2007.
Sec. 2154.006. LIMITATION ON STATE'S LIABILITY. The state's
liability for a loss covered by self-insurance provided under
this chapter is limited to the assets of the fund, and the state
is not otherwise liable for that loss.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.007. SELF-INSURANCE FEE. (a) The service may assess
and collect a reasonable fee from participating volunteer fire
departments to provide self-insurance coverage under this
chapter. In establishing the amount of the fee, the service shall
consider the amount that could be charged to the volunteer fire
department for similar insurance coverage provided to that
department in accordance with this code.
(b) Fees collected under this section shall be deposited to the
credit of the fund.
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.
Sec. 2154.008. LEGAL REPRESENTATION. (a) The service may
employ an attorney to represent a volunteer fire department or an
official, employee, member, or volunteer of a volunteer fire
department in a liability action for which insurance coverage is
provided under this chapter.
(b) The attorney general may not provide the services described
by Subsection (a).
Added by Acts 2005, 79th Leg., Ch.
727, Sec. 2, eff. April 1, 2007.