Idaho Code
Chapter 49 - PETROLEUM CLEAN WATER TRUST FUND ACT
Section 41-4905 - CREATION, AUTHORIZATION AND MANAGEMENT OF THE IDAHO PETROLEUM CLEAN WATER TRUST FUND.

41-4905. CREATION, AUTHORIZATION AND MANAGEMENT OF THE IDAHO PETROLEUM CLEAN WATER TRUST FUND. (1) The Idaho petroleum clean water trust fund is hereby created, subject to the direction and supervision of the board, and the administrator is hereby authorized to utilize this trust fund for the purpose of insuring governmental and private entities who are owners and operators of petroleum storage tanks against the costs of corrective action and compensating third parties that are legally entitled to receive compensation for bodily injury and property damage arising out of accidental releases of petroleum from petroleum storage tanks covered by a contract of insurance between the owner or operator and the trust fund.
(2) Nothing in this chapter shall enlarge or otherwise adversely affect the legal liability of any legal entity insured by the trust fund, and any immunity or other bar to a civil lawsuit under Idaho or federal law shall remain in effect. The fact that the trust fund insures the legal liability of any legal entity and thus may relieve the entity or an employee of the entity from the payment of any judgment arising from a civil lawsuit, shall not be communicated to the trier of fact in such a lawsuit.
(3) The trust fund shall consist of all application fees and all transfer fees collected pursuant to section 41-4909, Idaho Code, all other moneys received and paid into the trust fund, property and securities acquired by or through the use of money belonging to the trust fund, money loaned to the trust fund under the terms and agreements of a subordinated note of indebtedness or borrowed surplus as hereinafter defined and authorized, and of interest earned on money and securities owned or in the possession of the trust fund under an agreement that such investment earnings can accrue to the benefit of the trust fund.
(4) The trust fund shall have the powers and privileges of a nonprofit corporate entity and in its name may sue and be sued in any court of competent jurisdiction, and may lease and maintain offices and space for its departmental and operational facilities, subject to the provisions of chapters 6 and 7, title 41, Idaho Code.
(5) The administrator shall enter into a management and administrative contract with the trust fund to provide the following services:
(a) Administrative functions including the hiring of qualified personnel and the payment of salaries and wages earned, plus recordkeeping for the personnel hired to provide services for the trust fund.
(b) Accounting and recordkeeping of all receipts and disbursements of the trust fund.
(c) Underwriting functions of the trust fund to issue contracts of liability insurance and charge appropriate application fees under section 41-4909, Idaho Code, for such contracts and keep accurate statistical records.
(d) Claims handling functions of the trust fund to process and pay appropriate claims in a prompt, fair and reasonable manner.
(e) Auditing functions of the trust fund to maintain accurate records of receipts and disbursements by the trust fund and accurate reporting of statistics by owners or operators of storage tanks covered by a contract of insurance issued by the trust fund.
(f) Actuarial functions of the trust fund to maintain credible and viable statistics, sufficient operating fund balances, and appropriate loss reserves.
(g) Computer and data processing functions to assist the trust fund in maintaining complete and accurate records in a timely manner and issue loss payments and other disbursements, as well as provide individual statistics and records of storage tanks covered by a contract of insurance issued by the trust fund.
(h) Computer programming functions to maintain a proficient and current data processing system for the trust fund.
(i) Legal services for the trust fund.
(j) Any and all other functions the administrator deems prudent and reasonable to assure the successful operation of the trust fund.
(6) The Idaho petroleum clean water trust fund shall be administered without liability on the part of the state insurance fund or the state of Idaho beyond the amount of said trust fund.
(7) The administrator shall have the power to receive and account for all moneys paid into the trust fund, accept and evaluate applications for insurance coverage and issue the contracts of insurance and evaluate, investigate and adjust claims made against the trust fund and make agreements for corrective actions or compensation to third parties for bodily injury or property damage those parties may be legally entitled to receive from the trust fund in accordance with the provisions of this chapter.
(8) The administrator shall establish underwriting procedures to issue contracts of insurance and claim procedures. The administrator shall be given notice of all applications, hearings and proceedings involving the rights of the trust fund and shall represent the trust fund in all proceedings. The administrator’s decisions shall be written, and shall include all reasons for his decisions and shall be subject to judicial review in the district court of Ada county; provided, however, that the administrator and the trust fund shall not be liable for alleged bad faith or other legal theories based on any method or timing of the claims processed on his decision.
(9) The administrator may employ legal counsel or obtain legal counsel through the attorney general concerning all legal matters arising out of the existence and operation of the trust fund, including claims made against the contracts of insurance issued by the administrator of the trust fund.
(10) The administrator may also employ such employees or contract for such services as are necessary to assist in the administration of the trust fund, and all such administrative expenses incurred by the state insurance fund for the benefit of the trust fund shall be reimbursed by the trust fund.

History:
[(41-4905) 41-4904, added 1990, ch. 119, sec. 1, p. 271; am. 1991, ch. 59, sec. 3, p. 119; am. 1998, ch. 428, sec. 7, p. 1353; am. & redesig. 2003, ch. 96, sec. 3, p. 286.]

Structure Idaho Code

Idaho Code

Title 41 - INSURANCE

Chapter 49 - PETROLEUM CLEAN WATER TRUST FUND ACT

Section 41-4901 - SHORT TITLE.

Section 41-4902 - LEGISLATIVE FINDINGS AND INTENT.

Section 41-4903 - DEFINITIONS.

Section 41-4904 - BOARD OF TRUSTEES OF THE FUND.

Section 41-4905 - CREATION, AUTHORIZATION AND MANAGEMENT OF THE IDAHO PETROLEUM CLEAN WATER TRUST FUND.

Section 41-4906 - LIMITS OF LIABILITY FOR CONTRACTS OF INSURANCE ISSUED BY THE ADMINISTRATOR.

Section 41-4907 - OWNER OR OPERATOR FINANCIAL RESPONSIBILITY.

Section 41-4908 - EXCLUSIVENESS OF REMEDY.

Section 41-4909 - SOURCE OF TRUST FUND — APPLICATION FEES — APPLICATION FOR ENROLLMENT — TRANSFER FEES.

Section 41-4910 - DISTRIBUTION OF APPLICATION FEES AND TRANSFER FEES.

Section 41-4910A - APPORTIONMENT OF MONEYS TRANSFERRED TO THE STATE HIGHWAY ACCOUNT FROM THE IDAHO PETROLEUM CLEAN WATER TRUST FUND SUSPENSE ACCOUNT ON APRIL 1, 1997.

Section 41-4911 - ISSUANCE OF CONTRACTS OF INSURANCE BY THE ADMINISTRATOR OF THE IDAHO PETROLEUM CLEAN WATER TRUST FUND — DEFERRAL.

Section 41-4911A - PROVISIONS OF CONTRACTS OF INSURANCE — RENEWAL.

Section 41-4912 - STORAGE TANKS ELIGIBLE FOR INSURANCE.

Section 41-4912A - STORAGE TANKS LOCATED ON SITES WHERE CONTAMINATION IS PRESENT.

Section 41-4913 - STATE TREASURER CUSTODIAN OF TRUST FUND — DUTIES.

Section 41-4914 - DEPOSIT AND INVESTMENT OF FUNDS — INTEREST.

Section 41-4915 - PERPETUAL APPROPRIATION.

Section 41-4916 - ENROLLED SUBSCRIBERS’ LIABILITY ON JUDGMENT.

Section 41-4917 - ACTIONS FOR COLLECTION IN CASE OF DEFAULT — PENALTY — CANCELLATION OF INSURANCE CONTRACT.

Section 41-4918 - CANCELLATION OF INSURANCE.

Section 41-4919 - REINSURANCE.

Section 41-4920 - PAYMENTS FROM THE TRUST FUND BY STATE TREASURER.

Section 41-4921 - RESERVE FUNDS.

Section 41-4922 - PLAN OF OPERATION.

Section 41-4923 - REGISTRATION OF THE TRUST FUND.

Section 41-4924 - QUALIFICATIONS FOR REGISTRATION.

Section 41-4925 - APPLICATION FOR REGISTRATION — FEE.

Section 41-4925A - AMENDMENTS TO PLAN OF OPERATION.

Section 41-4926 - GRANT OR DENIAL OF REGISTRATION.

Section 41-4927 - BYLAWS OF THE FUND.

Section 41-4928 - RECORDS AND ACCOUNTS — ANNUAL STATEMENT.

Section 41-4929 - MANAGEMENT CONTRACT WITH THE ADMINISTRATOR — MANDATORY PROVISIONS.

Section 41-4930 - EXISTING INSURANCE LAWS TO APPLY TO THE TRUST FUND WITH CERTAIN EXCEPTIONS.

Section 41-4931 - TAXES.

Section 41-4932 - EXAMINATION OF BOOKS, RECORDS AND ACCOUNTS.

Section 41-4933 - ADMINISTRATOR — FIDELITY BONDS.

Section 41-4934 - PROHIBITED PECUNIARY INTERESTS IN PLAN MANAGEMENT.

Section 41-4935 - POLITICAL CONTRIBUTIONS PROHIBITED.

Section 41-4936 - RECOVERY OF DEPLETED FUNDS.

Section 41-4937 - IMPAIRED TRUST FUND.

Section 41-4938 - LIQUIDATION OF TRUST FUND.

Section 41-4939 - VOUCHERS FOR EXPENDITURES.

Section 41-4940 - BORROWED SURPLUS AND SUBORDINATED INDEBTEDNESS.

Section 41-4941 - PENALTIES.

Section 41-4942 - RULES — DIRECTOR — DEPARTMENT OF INSURANCE.

Section 41-4943 - APPLICATION OF CHAPTER.

Section 41-4944 - INSURANCE.

Section 41-4945 - PERSONAL LIABILITY.

Section 41-4946 - ACTIONS AGAINST THE FUND, THE BOARD, ITS EMPLOYEES, AND ADMINISTRATOR SUBJECT TO THE IDAHO TORT CLAIMS ACT.