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TAC COUNTY GOVERNMENT
RISK MANAGEMENT POOL
LAW ENFORCEMENT PROFESSIONAL LIABILITY
COVERAGE DOCUMENT
Table of Contents
Page
PART I -CLAIMS MADE COVERAGE AGREEMENT: PAYMENT AND DEFENSE..... 2
A. What we will pay ............................................................................................ 2
B. Defense ...........................................................................................................3
PART II -DEFINITIONS .................................................................................................. 3
PART III -LIMITS OF LIABILITY ................................................................................... 6
A. Limits of liability ............................................................................................. 6
B. Supplementary payments ............................................................................. 7
C. Deductible ....................................................................................................... 7
PART IV -EXCLUSIONS ................................................................................................ 7
PART V -CONDITIONS ................................................................................................. 9
PART VI -EXTENDED REPORTING PERIODS .......................................................... 12
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Board approved 5/22/02
LAW ENFORCEMENT
PROFESSIONAL LIABILITY COVERAGE
THIS IS A CLAIMS MADE FORM.
PLEASE READ THE ENTIRE COVERAGE DOCUMENT CAREFULLY.
The Texas Association of Counties County Government Risk Management Pool ("POOL") was and is
created to enable each MEMBER to purchase coverage against liability claims. This is not a contract of
insurance, but is an agreement for liability coverage pursuant to the provisions of Chapter 119 of the Texas
Local Government Code, and under Chapters 791 and 2259 of the Texas Government Code. Under this
agreement, political subdivisions create and contribute to a pool as an alternative to commercial insurance
markets.
Except as may otherwise be provided herein, the coverage provided by this COVERAGE DOCUMENT is
limited to only those CLAIMS THAT ARE FIRST MADE AGAINST THE MEMBER DURING THE
COVERAGE DOCUMENT PERIOD AND TIMELY REPORTED TO POOL.
PART I -CLAIMS MADE COVERAGE AGREEMENT: PAYMENT AND DEFENSE
In consideration of the MEMBER'S contribution to the POOL and in reliance upon the representations made
by MEMBER in the Application and any Renewal Application for this coverage, and subject to all provisions
contained in this COVERAGE DOCUMENT, including any endorsements hereto, the POOL agrees as
follows:
A. What we will pay
The POOL will pay on behalf of the MEMBER, subject to all provisions contained in this COVERAGE
DOCUMENT, including section I.B., below, any sums which the MEMBER shall become legally
obligated to pay as DAMAGES or CLAIMS EXPENSES by reason of errors, omissions or negligent
acts stated in a CLAIM, which arise out of the conduct of LAW ENFORCEMENT ACTIVITIES of
MEMBER and result in:
PERSONAL INJURY;
BODILY INJURY;
PROPERTY DAMAGE; or
VIOLATION OF CIVIL RIGHTS
PROVIDED ALWAYS that the following are true:
1. NOTICE OF CLAIM occurs during the COVERAGE DOCUMENT PERIOD; and
2. Notice is provided, by the MEMBER to the POOL during a COVERAGE DOCUMENT PERIOD (or
during the OPTIONAL EXTENDED REPORTING PERIOD, if applicable); and
3. The error, omission or negligent act for which CLAIM is first made happened on or after the
retroactive date set forth in the Declarations; and
4. The MEMBER does not have insurance or coverage for such error, omission, or negligent act
through any other contract or policy of insurance or coverage, including any other coverages
provided by the POOL; and
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5. The MEMBER had no knowledge or reason to believe at the inception of the first COVERAGE
DOCUMENT PERIOD or any extensions or renewals thereof that any error, omission or negligent
act was likely to result in a CLAIM being made against any MEMBER.
B. Defense
Subject to all of the provisions contained in this COVERAGE DOCUMENT, including but not
limited to sections 1.6.4 and I.B.5, below, the POOL has the right and duty to defend any CLAIM
arising out of the categories of conduct enumerated above brought against the MEMBER, alleging
an error, omission or negligent act and seeking DAMAGES on account thereof, even if a CLAIM is
groundless, false or fraudulent. The POOL shall have the right to incur CLAIMS EXPENSES and
to make such investigation and settlement of any CLAIM or suit as may be deemed expedient by
the POOL and the POOL may settle any CLAIM at its sole discretion and without the consent of
the MEMBER. The determination by the POOL as to any settlement and as to the
reasonableness of settlements and CLAIMS EXPENSES shall be conclusive on the MEMBER.
The POOL shall have the right, but not the obligation, to appeal any judgment adverse to the
MEMBER. CLAIMS EXPENSES shall not be deducted from the LIMIT OF LIABILITY.
2. a. Upon written request to the POOL by NAMED MEMBER for pre-CLAIM involvement of
POOL prior to the formal existence of a CLAIM, the POOL has the right, but not the duty, to
designate attorneys, investigators, or other persons to perform work and incur expenses on behalf
of the NAMED MEMBER where the POOL anticipates a CLAIM.
b. If, in the sole discretion of the POOL, employing the services of attorneys, investigators, or
other persons to perform work and incur expenses on behalf of any MEMBER or the POOL is
deemed appropriate to protect POOL interests prior to the formal existence of a CLAIM, the POOL
has the right, but not the duty, to employ such persons as a POOL operational expense.
3. The POOL shall have the right, but not the duty, to monitor and participate in the defense of any
investigatory, administrative or disciplinary proceeding relating to any LAW ENFORCEMENT
ACTIVITY of the MEMBER. Should the POOL elect to defend, monitor or participate under this
provision, such election shall not constitute a waiver of any rights the POOL may have pursuant to
any of the provisions of this COVERAGE DOCUMENT.
At any time during the pendency of a CLAIM, if it appears to the POOL that the LIMIT OF
LIABILITY under this COVERAGE DOCUMENT may be insufficient to pay or settle any CLAIM or
CLAIMS for which coverage is sought hereunder, or if there are multiple or competing CLAIMS
against the MEMBER or MEMBERS, the POOL may, in its sole discretion, tender the remaining
LIMIT OF LIABILITY available under this COVERAGE DOCUMENT, either to the treasury of the
NAMED MEMBER, or a person authorized to receive funds for the NAMED MEMBER, or the
registry of a court of competent jurisdiction and thereby exhaust the LIMIT OF LIABILITY under
this COVERAGE DOCUMENT. The tender by the POOL of an amount which would exhaust the
LIMIT OF LIABILITY shall terminate any responsibility or liability of the POOL to pay any amounts
for CLAIMS EXPENSES which have not been incurred by POOL with regard to such CLAIM or
CLAIMS, and shall also terminate POOL's duties to defend any MEMBER from any such CLAIM
OR CLAIMS.
5. Upon the exhaustion of the amount designated as AGGREGATE in the Declarations, the POOL's
duties to defend any MEMBER shall terminate with regard to and in connection with any CLAIMS
made against MEMBER subsequent to the exhaustion of such AGGREGATE, and the POOL shall
have no responsibility or liability to pay any amounts for CLAIMS EXPENSES for any such
CLAIMS.
PART II -DEFINITIONS
A. AGGREGATE - as used herein shall mean the POOL's total liability for DAMAGES resulting from all
CLAIMS first made against the MEMBERS during the COVERAGE DOCUMENT PERIOD and shall
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not exceed the amount stated in the Declarations as AGGREGATE regardless of the time when such
CLAIM is paid. In the event the MEMBER exercises the right to purchase the OPTIONAL EXTENSION
COVERAGE, the AGGREGATE limit for the OPTIONAL EXTENDED REPORTING PERIOD shall be
no more than that which remains of the AGGREGATE limit from the immediately preceding
COVERAGE DOCUMENT PERIOD.
B. BODILY INJURY - as used herein shall mean physical injury to any person (including death) and
mental anguish associated with or arising from such physical injury.
C. CIVIL RIGHTS - as used herein shall mean a person's rights under the United States constitution or
any state constitution, or laws affording a civil right of action for damages by reason of invasion of a civil
right or liberty.
D. CLAIM - as used herein shall mean a demand received by the MEMBER specifically for money
DAMAGES, including NOTICE OF CLAIM, service of suit or institution of arbitration proceedings
against the MEMBER.
CLAIMS based on or arising out of the same error, omission, or negligent act or interrelated errors,
omissions or negligent acts, involving one or more of the MEMBERS, shall be considered a single
CLAIM, and a CLAIM so considered shall be deemed to have been made solely during the one
COVERAGE DOCUMENT PERIOD which includes the time the CLAIM is initially made.
E. CLAIMS EXPENSES - as used herein shall mean:
1. Fees incurred by the POOL for an attorney designated by the POOL;
2. All other fees, costs and expenses resulting from the investigation, adjustment, defense and
appeal of a CLAIM, if incurred by the POOL, except for those fees, costs, and expenses of
employees of the POOL, or of the employees of the Texas Association of Counties, or expenses
of the regular claims adjustment contractor for the POOL;
3. Fees charged by any attorney designated by the MEMBER with the written consent of the POOL,
but only as to those fees incurred after receipt by MEMBER of such written consent from the
POOL; and
4. Expenses incurred where the POOL, in accordance with section I. B. 2. a. of this COVERAGE
DOCUMENT, responds to a written request by NAMED MEMBER for pre-CLAIM involvement of
the POOL prior to the formal existence of a CLAIM to perform work and incur expenses on behalf
of the NAMED MEMBER.
F. COVERAGE DOCUMENT - as used herein shall mean this agreement between the POOL and
MEMBER, including any endorsements incorporated herein.
G. COVERAGE DOCUMENT PERIOD - as used herein shall mean that one-year period designated in the
Declarations, unless otherwise specified, or such period as shortened by termination, if any.
In the event the OPTIONAL EXTENDED REPORTING PERIOD coverage is purchased by the
MEMBER, it shall in no way increase the COVERAGE DOCUMENT PERIOD or any renewal thereof,
except that any OPTIONAL EXTENDED REPORTING PERIOD shall be included in the previous
COVERAGE DOCUMENT PERIOD for purposes of application of the AGGREGATE limit of the
POOL's liability.
H. DAMAGES - as used herein shall mean actual and compensatory money damages only, arising out of
an error, omission or negligent act of MEMBER, and does not include;
punitive or exemplary damages, penalties, fines, restitution of any kind or sanctions;
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2. attorneys fees and any costs, charges, fees or expenses of litigation if any such are demanded
from MEMBER without an accompanying demand for other relief which would constitute
DAMAGES, or that portion of any attorneys fees and any costs, charges, fees or expenses of
litigation demanded from MEMBER which are attributed or attributable to any portion of a CLAIM
excluded under this COVERAGE DOCUMENT, to any demand for relief other than for actual or
compensatory damages, or to any demand or matter not covered under this COVERAGE
DOCUMENT.
EFFECTIVE DATE - as used herein shall mean the date the COVERAGE DOCUMENT becomes
effective in a COVERAGE DOCUMENT PERIOD. The EFFECTIVE DATE of any renewal of this
COVERAGE DOCUMENT shall be considered the EFFECTIVE DATE of a new COVERAGE
DOCUMENT PERIOD.
J. JAIL - as used herein shall mean any places or systems regularly used for the incarceration,
internment or detention of persons either convicted or suspected of criminal conduct and any LAW
ENFORCEMENT ACTIVITIES associated with the operation of such places or systems.
K. LAW ENFORCEMENT ACTIVITY - as used herein shall mean and is strictly limited to the following
activities by a MEMBER: Performance of the duties of PUBLIC EMPLOYMENT of a MEMBER.
L. LIMIT OF LIABILITY -the LIMIT OF LIABILITY of the POOL for payment of DAMAGES shall be the
applicable Limit shown in the Declarations, under Item C "LIMITS OF LIABILITY.
M. MEMBER - as used herein shall mean only the following:
1. The NAMED MEMBER;
2. Each Law Enforcement Department or Agency named in the Declarations and which is duly
constituted and operating under the jurisdiction of the NAMED MEMBER;
3. The individual law enforcement officers or other employees or volunteers of each Law
Enforcement Department or Agency set forth in the Declarations as are regularly employed or
officially engaged in LAW ENFORCEMENT ACTIVITIES for such Department or Agency.
N. NAMED MEMBER - as used herein shall mean a county or other political subdivision so designated in
the Declarations.
O. NOTICE OF CLAIM - as used herein shall mean one of the following, whichever occurs first:
In the event of a lawsuit against the MEMBER, notice of said suit by service of process or
otherwise; or
2. The MEMBER obtains or receives knowledge or reason to believe that any error, omission or
negligent act may reasonably be expected to result in a CLAIM.
P. OPTIONAL EXTENSION COVERAGE - as used herein shall mean the optional coverage that may be
purchased in the event the POOL, or the NAMED MEMBER, shall cancel or refuse to renew this
COVERAGE DOCUMENT, subject to the conditions as set forth in Part VI of this COVERAGE
DOCUMENT.
Q. OPTIONAL EXTENDED REPORTING PERIOD - as used herein shall mean the period for which the
NAMED MEMBER elects to purchase OPTIONAL EXTENSION COVERAGE.
R. PERSONAL INJURY - as used herein shall mean:
1. False arrest, false imprisonment, wrongful detention, wrongful eviction, wrongful entry or other
invasion of the right of private occupancy, or malicious prosecution;
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2. Wrongful or improper service of process;
3. Libel, slander, defamation of character, or violation of an individual's right of privacy.
S. POOL - as used herein shall mean the Texas Association of Counties County Government Risk
Management POOL.
T. PROPERTY DAMAGE - as used herein shall mean:
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;
but shall not mean effects on any real or personal property, whether direct or indirect or consequential,
which do not constitute physical injury, destruction or loss of use of property.
U. PUBLIC EMPLOYMENT - as used herein shall mean the status of being a public employee, a public
official, or a volunteer of a Law Enforcement Department or Agency named in the Declarations and
acting within the course and scope of official duties of that particular public employee, public official, or
volunteer specifically for a Law Enforcement Department or Agency named in the Declarations.
PART III -LIMITS OF LIABILITY
A. Limits of liability
Regardless of the number of:
MEMBERS involved in a CLAIM,
2. Persons or entities who sustain DAMAGES, or
3. CLAIMS made,
the POOL's liability to pay any DAMAGES or CLAIMS EXPENSES shall cease once the applicable
LIMIT OF LIABILITY shown in the Declarations is exhausted- In no event shall the POOL be required
to pay DAMAGES in excess of the applicable LIMIT OF LIABILITY shown in the Declarations in
connection with any CLAIM or CLAIMS.
CLAIMS based on or arising out of the same or related act(s), omission(s) or event(s) involving one or
more MEMBERS shall be considered a single CLAIM and only one deductible and one LIMIT OF
LIABILITY shall be applicable to such CLAIM. If MEMBER has, or is a beneficiary of, other
COVERAGE DOCUMENTS through the POOL, the POOL shall not be required to pay an amount in
excess of the appropriate LIMIT OF LIABILITY shown in the Declarations in connection with any
CLAIM, it being agreed by POOL and MEMBER that POOL coverages do not overlap with respect to
payment of DAMAGES or CLAIMS EXPENSES.
In no event shall the POOL's total liability for DAMAGES for all CLAIMS, during any one COVERAGE
DOCUMENT PERIOD, exceed the AGGREGATE stated in Item C, "LIMITS OF LIABILITY," of the
Declarations.
The tender by the POOL of an amount which would exhaust either the LIMIT OF LIABILITY for any
CLAIM, or the aggregate LIMIT OF LIABILITY applicable to all CLAIMS, to the treasury of the NAMED
MEMBER or a person authorized to receive funds for the NAMED MEMBER or the registry of a court of
competent jurisdiction, shall exhaust and terminate any responsibility or liability of the POOL to pay any
amounts for DAMAGES or CLAIMS EXPENSES with regard to such CLAIM or CLAIMS.
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B. Supplementary payments
The POOL will pay, in addition to the applicable CLAIMS EXPENSES and the LIMIT OF LIABILITY, as
shown in Declarations:
Expenses incurred by the POOL's regular employees, Texas Association of Counties ("TAC")
employees, if any, or regular claims adjustment contractors in the monitoring and supervision of
CLAIMS;
2. Interest, but only on that portion of any judgment which does not exceed the POOL's LIMIT OF
LIABILITY thereon, which accrues after entry of the judgment and before the POOL has paid or
tendered or deposited into the court registry that portion of the judgment which is the POOL's
liability;
3. Up to $250 per bond premium on appeal bonds in any suit defended by the POOL and up to $250
premium on bonds to release attachments in any such suit, for an amount not in excess of the
LIMIT OF LIABILITY. However, in accordance with its discretionary right to appeal, the POOL
shall have the right, but not the obligation, to apply for or furnish any appeal bond.
C. Deductible
The POOL will pay only those DAMAGES and CLAIMS EXPENSES, with regard to a CLAIM, which are
in excess of the Deductible amount(s) stated in the Declarations. The Deductible amount(s) stated in
the Declarations shall be borne by NAMED MEMBER and shall not be borne by the POOL.
At the option and discretion of the POOL, the POOL may pay all or part of the Deductible amount(s) to
effect settlement, and, upon notification to the NAMED MEMBER, NAMED MEMBER shall promptly
reimburse the POOL for all such expenditures. If the POOL pays any CLAIMS EXPENSES which fall
within the Deductible amounts stated in the Declarations, the NAMED MEMBER, upon notification,
shall promptly reimburse the POOL for all such expenditures.
The Deductible amount stated in the Declarations as "Deductible (a)" shall be applicable to each
CLAIM involving each MEMBER and shall include payments for DAMAGES and CLAIMS EXPENSES.
Regardless of the number of CLAIMS made during the COVERAGE DOCUMENT PERIOD, the total
deductible amounts applicable to the COVERAGE DOCUMENT PERIOD shall not be greater than the
amount stated in the Declarations as "Deductible (b)." The absence in the Declarations of any entry in
maximum "Deductible (b)" means that no maximum shall apply and each and every CLAIM during the
COVERAGE DOCUMENT PERIOD shall be subject only to the per claim "Deductible (a)."
PART IV -EXCLUSIONS
A. This COVERAGE DOCUMENT does not apply to CLAIMS arising out of, in whole or in part, directly or
indirectly, or arising in concurrent cause with the following:
1. The ownership, operation, management, use, control, repair, maintenance, demonstration, loading
or unloading of any motor vehicles of any kind, aircraft, watercraft, or any motor driven equipment,
and any policies, practices, customs, usages or procedures related to the above;
2. Fraud or dishonesty or any malicious or criminal act of any MEMBER;
3. Unfair, discriminatory or unlawful practices relating to employment or to applicants for
employment, trainees or volunteers; any errors, omissions or negligent acts relating to
employment, including the processes of hiring and firing and the provision of wages and benefits;
any work-related bodily injury of a MEMBER for which a claim for Worker's Compensation could
be made;
TAC LE (10/02) ' ~
Board approved 5/22/02
;, '~
4. Continuous or repeated exposure to the same or similar conditions in which any such exposure
existed or happened prior to the retroactive date set forth in the Declarations;
5. Any interference with or violation of property rights or a reduction or loss in the value of real or
personal property other than PROPERTY DAMAGE; nor to inverse condemnation, takings as
understood under any law, adverse possession, dedication by adverse use or nuisance; nor to the
intentional, negligent or accidental discharge, disbursal, release or escape of pollutants, or
potential pollutants including smoke, vapors, soot, fumes, acids, alkalis, toxins, pathogens,
chemicals, particulates, fibers, radioactivity or radiation, whether thermal, thermonuclear or
otherwise, solids, liquids or gases, waste materials or irritants, contaminants, or other pollutants or
potential pollutants of any kind into or upon land, any area below ground, air, the atmosphere, or
water; nor to demands or actions arising from any governmental direction or request that the
MEMBER test for, monitor, clean up, remove, contain, analyze, examine, treat, detoxify or
neutralize pollutants or potential pollutants. However, for purposes of this exclusion, tear gas,
mace or similar substances shall not be considered pollutants or potential pollutants when used or
handled in the performance of a LAW ENFORCEMENT ACTIVITY;
6. Any premise defect on the real property of MEMBER or on real property under the control of
MEMBER;
7. The performance or non-performance of judicial acts or judicial duties; nor to the performance or
non-performance of prosecutorial acts or prosecutorial duties.
B. This COVERAGE DOCUMENT also does not apply to:
Any CLAIM which alleges, involves or arises from any liabilities, responsibilities, duties or activities
assumed, undertaken or accepted by any MEMBER pursuant to any contract or agreement
whether written, oral, or implied. This exclusion does not apply to CLAIMS brought against a
MEMBER that are otherwise covered under this COVERAGE DOCUMENT that arise from the
LAW ENFORCEMENT ACTIVITIES of an employee of the NAMED MEMBER pursuant to a
mutual law enforcement assistance agreement, so long as the employee has been assigned to
perform such activities as part of his or her employment with the NAMED MEMBER.
For the purposes of this provision, "employee" means an individual who: 1) is deputized or
appointed by either the governing body or an elected official of the NAMED MEMBER; 2) is paid a
salary by the NAMED MEMBER; and 3) is entitled to receive as compensation from the NAMED
MEMBER the same benefits afforded to other employees of the NAMED MEMBER. Under no
circumstances does this provision provide coverage to any individual who is not an employee of
the NAMED MEMBER as defined in this section.
Under no circumstances does this COVERAGE DOCUMENT provide coverage to any entity other
than the NAMED MEMBER. Coverage is not provided for any entity that is created by a mutual
law enforcement assistance agreement to which the NAMED MEMBER is a party, nor is coverage
provided to any other entity that enters into a mutual law enforcement assistance agreement with
the NAMED MEMBER. The terms of a mutual law enforcement assistance agreement do not
become a part of this COVERAGE DOCUMENT.
2. Any act, service, or duty for which an individual MEMBER is being compensated or otherwise
engaged other than by a Law Enforcement Department or Agency or other Agency named in the
Declarations. However, this provision shall not exclude a CLAIM arising out of performance of a
LAW ENFORCEMENT ACTIVITY performed by MEMBER during a period of time for which said
MEMBER receives compensation from other than NAMED MEMBER, if performance of such LAW
ENFORCEMENT ACTIVITY is undertaken on behalf of the NAMED MEMBER and if such LAW
ENFORCEMENT ACTIVITY and such compensation were authorized by NAMED MEMBER;
3. Any CLAIM for the return of money or other property seized, held, auctioned or sold by MEMBER,
including any forfeited money or other property or for the value of such money or other property;
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4. Demands or actions seeking equitable relief, or redress in any form other than money DAMAGES;
nor to actions or demands for costs, charges, attorneys fees or other fees or expenses in relation
to any action, suit or proceeding seeking relief or redress in any form other than money
DAMAGES; nor to any investigatory, administrative, disciplinary, or criminal proceeding against a
MEMBER;
5. Any CLAIM by or through any MEMBER against another MEMBER, either individually or
collectively; nor to any CLAIM by any public official on behalf of a MEMBER against any
MEMBER; nor to any CLAIM by any public official or any governmental department or agency
against any MEMBER; nor to any CLAIM by a volunteer engaged in activities for any MEMBER
against any MEMBER; nor to any CLAIM which alleges or involves PROPERTY DAMAGE to
property of any MEMBER or to property of any employee, official, agent or volunteer of the
MEMBER arising out of or in the course of activity with or employment by the MEMBER, including
loss of use of property.
PART V -CONDITIONS
A. Compliance with Conditions. If any MEMBER shall breach any warranty or condition of this
COVERAGE DOCUMENT there shall be no coverage, including any obligation to defend, for any
MEMBER as to the particular CLAIM or action in connection with which such breach occurred.
B. Declarations. The Declarations stated by POOL for any COVERAGE DOCUMENT PERIOD
constitute terms and conditions for that COVERAGE DOCUMENT PERIOD, and constitute part of the
COVERAGE DOCUMENT for such COVERAGE DOCUMENT PERIOD. In the case of an extension of
coverage, the Declarations may be stated in the form of an extension endorsement.
C. Delivery of this COVERAGE DOCUMENT. Delivery of this COVERAGE DOCUMENT to the NAMED
MEMBER shall be considered delivery to each MEMBER and the NAMED MEMBER is authorized by
each MEMBER to accept delivery on the MEMBER'S behalf.
D. Application for Coverage. The Application and any Renewal Application for this coverage submitted
to the POOL, which is signed by MEMBER or its designated or authorized representative, is part of this
COVERAGE DOCUMENT for purposes of reliance by the POOL on information contained in the
Application. Any substantial mistake or misrepresentation in such an Application for coverage which is
relied upon by the POOL terminates all the obligations of the POOL under this COVERAGE
DOCUMENT, including those of payment and defense. The POOL may, at its sole option, elect to
waive termination of any part of its obligations.
E. Assistance and Cooperation of the MEMBER.
1. The MEMBER shall assist and cooperate with the POOL and upon the request of the POOL, or its
authorized representative, shall submit to examination by a representative of the POOL under
oath, if requested, and shall attend hearings, depositions and trials and shall assist in effecting
settlement, securing and giving evidence, obtaining the attendance of witnesses in the conduct of
suits, in giving written statements to the POOL'S representatives and meeting with such
representatives for the purpose of investigation and/or defense without charge to the POOL.
2. The MEMBER shall not, except at its own cost, make any payment, assume or admit any liability,
waive any defense or settle any CLAIM or action or incur any expense, without the written consent
of the POOL first obtained. Any such liabilities admitted, assumed or settled, defenses waived or
any payments made, or expenses, including legal expenses, incurred by MEMBER, without prior
written consent of the POOL, shall be the sole obligation of the MEMBER.
3. Further, MEMBER shall not demand, or agree to, arbitration or mediation of any CLAIM made
against MEMBER without written consent of the POOL first obtained.
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4. Each MEMBER agrees to cooperate with the POOL in the prosecution of such CLAIMS, suits,
indemnity actions, cross-claims, and/or counterclaims as the POOL, in its sole discretion, shall
deem to be appropriate with respect to any CLAIM or suit brought against any MEMBER and each
MEMBER agrees to execute such papers as are required to be executed in the defense of any
action against any MEMBER, or with respect to the prosecution of such CLAIMS, suits, indemnity
actions, cross-claims, and/or counterclaims.
5. The NAMED MEMBER is authorized by each MEMBER to give and receive all notices to and from
the POOL on the MEMBER's behalf.
F. Notice to the POOL. As a condition precedent under this COVERAGE DOCUMENT the MEMBER
shall:
1. Promptly and as soon as reasonably practicable report to the POOL all events or occurrences
which could reasonably be expected to result in the POOL being required to consider a CLAIM
against MEMBER, together with information concerning any particulars known by MEMBERS and
including any reasonably obtainable information with respect to persons, events, locations and
dates involved;
2. Immediately upon receipt of a CLAIM or NOTICE OF CLAIM by MEMBER, and during a
COVERAGE DOCUMENT PERIOD, provide the POOL written notice of any CLAIM or NOTICE
OF CLAIM made against said MEMBER together with information concerning any particulars
known by MEMBERS and including any reasonably obtainable information with respect to
persons, events, locations and dates involved;
3. In the event suit is brought against a MEMBER, immediately forward to the POOL any demand,
notice, summons or other process received directly or indirectly by the MEMBER or by the
MEMBER'S representative, along with a precise statement to the POOL of when such demand,
notice, summons or other process was received, and by whom it was received;
4. Where conditions precedent in this paragraph require that notice be given to the POOL,
immediately render such notice or report to the person(s) or agent(s) specifically designated by the
POOL as authorized to receive such notice for the POOL, it being expressly recognized and
agreed that only notice rendered to an authorized recipient for the POOL can satisfy any notice
requirement herein.
G. Action Against the POOL.
No legal action may be brought against the POOL until there has been full compliance with all
terms of this COVERAGE DOCUMENT. In addition, no action may be brought against the POOL
in regard to any matter involving a CLAIM or suit or proceeding involving this COVERAGE
DOCUMENT until the amount of the MEMBER' obligation with respect to the pertinent CLAIM or
suit or proceeding has been rendered certain, either by final judgment against the MEMBER by
the court of last resort after actual trial of the issues and appeal has been determined, or if the time
to appeal therefrom has expired without an appeal having been taken, or has been made certain
by written agreement of the MEMBER, the claimant and the POOL.
2. Nothing contained in this COVERAGE DOCUMENT shall give the MEMBER or any person, firm,
corporation or organization other than the POOL, any right to join the POOL as a party in any
action or proceeding against the MEMBER to determine the MEMBER' liability.
3. In no event shall any action be maintained against the POOL by the MEMBER or any other person
unless such action is brought within two years and one day after such cause of action accrues.
H. Subrogation. In the event of any payment under this COVERAGE DOCUMENT, the POOL shall be
subrogated to all of the MEMBER'S rights of indemnity or recovery therefor, against any individual, firm,
corporation, organization, or any other person, and the MEMBER shall execute and deliver such
instruments and papers and do whatever else shall be reasonably requested to advance the POOL's
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pursuit of its rights, and MEMBERS shall do nothing after any CLAIM is made to prejudice such rights.
The POOL shall be entitled to take over and conduct, in the name of the MEMBER, for the POOL's own
benefit, any CLAIM to which the POOL is subrogated hereby against any third party. The POOL may
pursue or settle any such CLAIM for its own benefit at its sole discretion.
t. Termination and Non-renewal Provisions.
1. Termination by NAMED MEMBER: This COVERAGE DOCUMENT may be terminated by the
NAMED MEMBER by giving thirty (30) days written notice of termination of this COVERAGE
DOCUMENT to the POOL. Any notice of termination must be delivered by deposit in the U. S.
Mail, certified, return receipt requested.
2. Termination by POOL: This COVERAGE DOCUMENT may be terminated by the POOL at the
POOL's sole discretion by mailing to the NAMED MEMBER at the address shown in the
Declarations, written notice of termination stating when such termination shall be effective.
However, the effective date of termination shall be not less than sixty (60) days from the date of
mailing of the notice.
3. Upon termination of the Interlocal Participation Agreement, or termination of this COVERAGE
DOCUMENT pursuant to any particular provisions of the Interlocal Participation Agreement, or
withdrawal or expulsion of NAMED MEMBER from the POOL pursuant to the POOL's Bylaws and
Plan of Operation, this COVERAGE DOCUMENT shall terminate effective on the date of said
termination, withdrawal or expulsion.
4. The effective date and hour of termination stated in the notice shall be the end of the COVERAGE
DOCUMENT. If, however, the date and hour of termination stated in the notice of termination
given by either the POOL or the NAMED MEMBER does not meet the notice requirements of this
section, then the notice shall be effective to terminate the COVERAGE DOCUMENT at the earliest
date and hour the noticing party could have properly designated as the termination date and hour
in its notice.
5. Retained Contribution Proportions;
a. If this COVERAGE DOCUMENT shall be terminated by the NAMED MEMBER, the POOL
shall retain the customary short rate proportion of the contribution.
b. If this COVERAGE DOCUMENT shall be terminated by or on behalf of the POOL, the POOL
shall retain the customary pro-rata proportion of the contribution.
6. Non-Renewal: The POOL, in its sole discretion, may choose not to renew this COVERAGE
DOCUMENT by giving written notice to the NAMED MEMBER at least thirty (30) days prior to the
end of the COVERAGE DOCUMENT PERIOD.
J. Certain Modified Terms. An increase in contribution or deductible, or a reduction in LIMIT OF
LIABILITY or AGGREGATE, or addition of endorsements to this COVERAGE DOCUMENT, does not
constitute a termination or refusal to renew this COVERAGE DOCUMENT.
K. Waiver. Notice to any agent or knowledge possessed by any agent or by any other person of any fact,
condition or other matter which might constitute grounds for denial of coverage shall not effect a waiver
or a change in any part of this COVERAGE DOCUMENT or estop the POOL from asserting any rights,
including a right to deny coverage, under this COVERAGE DOCUMENT, nor shall the terms of this
COVERAGE DOCUMENT be waived or changed except by a written endorsement.
L. Assignment. Assignment of any interest under this COVERAGE DOCUMENT shall not bind the
POOL without its prior written consent.
M. Other Coverage or Insurance. If there is or may be other coverage or insurance against any incident,
loss or CLAIM for which coverage is afforded under this COVERAGE DOCUMENT, the coverage
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provided under this COVERAGE DOCUMENT shall be deemed to be excess over any valid and
collectible coverage or insurance available to any MEMBER against whom a CLAIM is made.
MEMBERS shall respond promptly to any reasonable inquiries from the POOL concerning other
coverage or insurance that may be afforded to the MEMBER or certain MEMBERS.
N. Performability in Travis County. This agreement providing for law enforcement professional liability
coverage by the POOL has been executed in Travis County and is performable in Travis County.
O. Entire Agreement. The COVERAGE DOCUMENT, the Bylaws and Plan of Operation and the
Interlocal Participation Agreement for the POOL together constitute the entire coverage agreement and
this agreement cannot be modified except as agreed in writing.
P. Payment. Payment of contribution to POOL by NAMED MEMBER, as consideration for this
agreement, shall be made as set forth in the Declarations.
Q. No duty to defend shall exist for CLAIMS in which the State of Texas determines that it will defend
MEMBER;
R. No duty to pay or indemnify shall exist for CLAIMS in which the State of Texas has
the responsibility to pay or indemnify, nor for which the State of Texas determines to defend
MEMBER or settle on behalf of MEMBER;
S. No governmental or official immunities are waived except by Act of the Texas Legislature.
PART VI -EXTENDED REPORTING PERIODS
If the POOL shall terminate or refuse to renew this COVERAGE DOCUMENT for reasons other than the
NAMED MEMBER'S non-payment of contributions and/or deductibles or non-compliance with the terms and
conditions of this COVERAGE DOCUMENT, or the NAMED MEMBER shall terminate or refuse to renew
this COVERAGE DOCUMENT, the NAMED MEMBER, upon payment of an additional contribution as set
forth herein, shall have the option to extend the claims made coverage afforded by this COVERAGE
DOCUMENT to apply to CLAIMS first made against the NAMED MEMBER during the 12 month period, or
the 24 month period, immediately following the EFFECTIVE DATE of such termination. Such OPTIONAL
EXTENDED REPORTING PERIOD is limited to and shall only be effective for purposes of any error,
omission or negligent act committed prior to the date on which the OPTIONAL EXTENDED REPORTING
PERIOD commenced and after the retroactive date set forth in the Declarations, and subject always to the
terms, conditions, definitions, limits of liability, exclusions and deductible provisions of the COVERAGE
DOCUMENT in effect on the date the OPTIONAL EXTENDED REPORTING PERIOD is exercised.
With respect to the triggering of the right to an OPTIONAL EXTENDED REPORTING PERIOD, an increase
in contribution or deductible, or reduction in LIMIT OF LIABILITY or AGGREGATE, does not constitute a
termination or refusal to renew this COVERAGE DOCUMENT.
The extension of coverage for CLAIMS made and reported subsequent to termination of the COVERAGE
DOCUMENT shall be endorsed hereto, if purchased, and shall be referred to in this COVERAGE
DOCUMENT as the OPTIONAL EXTENDED REPORTING PERIOD. Individual CLAIMS made and
reported during any OPTIONAL EXTENDED REPORTING PERIOD shall be deemed to have occurred
during the most recent COVERAGE DOCUMENT PERIOD and all terms of the COVERAGE DOCUMENT
shall apply.
The contribution for the OPTIONAL EXTENDED REPORTING PERIOD elected by the NAMED MEMBER
shall be:
A. fora 12 month OPTIONAL EXTENDED REPORTING PERIOD: 100 percent of the full annual
contribution for coverage under this coverage document;
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B. fora 24 month OPTIONAL EXTENDED REPORTING PERIOD: 150 percent of the full annual
contribution for coverage under this COVERAGE DOCUMENT.
As a condition precedent to the NAMED MEMBER's right to purchase the OPTIONAL EXTENDED
REPORTING PERIOD coverage, the NAMED MEMBER must tender payment of all contributions and any
unpaid deductibles due for the preceding period of coverage. The NAMED MEMBER's right to purchase the
OPTIONAL EXTENDED REPORTING PERIOD coverage must be exercised by notice in writing and
tendering of the contribution due not later than ten days after the termination of this COVERAGE
DOCUMENT. If such notice and contributions are not timely and properly made, the NAMED MEMBER
shall not at a later date have any right to obtain an OPTIONAL EXTENDED REPORTING PERIOD.
At the commencement of any OPTIONAL EXTENDED REPORTING PERIOD, the entire contribution
therefor shall be deemed earned, and in the event the NAMED MEMBER terminates the OPTIONAL
EXTENDED REPORTING PERIOD before the expiration of its full term for any reason, the POOL shall not
be liable to return to the NAMED MEMBER any portion of the contribution for the OPTIONAL EXTENDED
REPORTING PERIOD.
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