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<chapter num="02" heading="Maryland Tort Claims Act—Coverage and Limits" title_num="25" subtitle_num="02">
  <regulation prefix="Regulation" num=".01" heading="Commercial Insurance.">
    <paragraph num="A.">
      <text>Within budgetary appropriations and market availability, the Treasurer, in the Treasurer's sole discretion, may purchase commercial insurance to provide coverage, in whole or in part, under the Maryland Tort Claims Act.</text>
    </paragraph>
    <paragraph num="B.">
      <text>If the Treasurer elects to purchase commercial insurance under §A, above, the:</text>
      <paragraph num="(1)">
        <text>Policy limits, terms, and conditions of the commercial insurance shall determine coverage and establish the limitation of State liability; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Payment limits, terms, and conditions applicable to the Treasurer's self-insurance program under this chapter shall determine the coverage and establish the limitation of State liability for purposes of the State's deductible or self-insured retention, if any, under this commercial insurance.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Self-Insurance.">
    <paragraph num="A.">
      <text>General. Within budgetary appropriations, the Treasurer may provide self-insurance to provide coverage under the Maryland Tort Claims Act for those incidents not covered by purchased commercial insurance obtained pursuant to Regulation .01.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Coverage. Subject to §A, above, self-insurance shall provide coverage for a tortious act or omission of State personnel that:</text>
      <paragraph num="(1)">
        <text>Is within the scope of public duties of the State personnel; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>No element of which constitutes malice or gross negligence.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Exclusions and Limitations. The Treasurer may not provide self-insurance coverage for:</text>
      <paragraph num="(1)">
        <text>Punitive damages;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Interest before judgment;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A claim that arises from the combatant activities of the State militia during a state of emergency;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>A tortious act or omission of State personnel:</text>
        <paragraph num="(a)">
          <text>That is not within the scope of the public duties of the State personnel, or</text>
        </paragraph>
        <paragraph num="(b)">
          <text>An element of which constitutes malice or gross negligence; or</text>
        </paragraph>
      </paragraph>
      <paragraph num="(5)">
        <text>A cause of action that law specifically prohibits.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>Limits of Liability. Within total budgeted funds available for self-insurance coverage of tort claims, the limits of State liability shall be:</text>
      <paragraph num="(1)">
        <text>Subject to §D(2) of this regulation, $200,000 per claimant for all injury, loss, and damage to person and property arising from a single incident. For the purpose of determining the limits of liability under this subsection, all persons claiming damages resulting from:</text>
        <paragraph num="(a)">
          <text>Bodily injury to, or the death of, any one person shall be considered to be one claimant; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Damage to or destruction of a single item of property shall be considered to be one claimant.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>Such greater, lesser, or additional limits as otherwise may be established by the annual State Budget for incidents occurring during that fiscal year.</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>No Waiver of Immunity. The sovereign immunity of the State is not waived for claims in excess of the limits set forth in §D of this regulation.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Discretionary Payments.">
    <paragraph num="A.">
      <text>Within budgetary appropriations, the Treasurer may pay from the State Insurance Trust Fund all or part of that portion of a claim that exceeds the limits of purchased commercial insurance coverage obtained pursuant to Regulation .01 of this chapter under the following conditions:</text>
      <paragraph num="(1)">
        <text>The claim is consistent with the provisions of Regulation .02B and C of this chapter;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>A judgment or settlement has been entered granting the claimant damages greater than the limits of the purchased commercial insurance obtained pursuant to Regulation .01 of this chapter;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>A request for a discretionary payment is submitted to the Treasurer within 60 days of entry of the settlement or judgment described in §A(2) of this regulation; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The Board of Public Works, with the advice and counsel of the Office of the Attorney General, has approved the discretionary payment.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>A discretionary payment of part of a settlement or judgment pursuant to §A of this regulation:</text>
      <paragraph num="(1)">
        <text>Does not abrogate the sovereign immunity of the State beyond the waiver provided in Regulation .02 of this chapter; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Is subject to the monetary limits of Regulation .02D of this chapter.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>Pursuant to State Government Article, §12-501(b), Annotated Code of Maryland, a decision of the Board of Public Works under §A(4) of this regulation is not subject to judicial review.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Finance and Procurement Article, §§9-104 and 9-105; State Government Article, §12-101 et seq; Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: July 2, 1984 (11:13 Md. R. 1178)</annotation>
    <annotation type="History" subtype="Administrative History">Chapter recodified from COMAR 25.02.01 to 25.02.02 effective as an emergency provision July 17, 1985 (12:16 Md. R. 1603); emergency status extended at 12:22 Md. R. 2102); adopted permanently effective November 4, 1985 (12:22 Md. R. 2109)</annotation>
    <annotation type="History" subtype="Administrative History">Chapter, State Insurance Trust Fund, repealed effective April 16, 1990 (17:7 Md. R. 853)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.03, Maryland Tort Claims Act, adopted effective April 16, 1990 (17:7 Md. R. 853)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02D amended effective January 12, 1998 (25:1 Md. R. 17); June 26, 2000 (27:12 Md. R. 1142)</annotation>
  </annotations>
</chapter>