AGO 85-28.

CourtNorth Dakota
North Dakota Attorney General Opinions 1985. AGO 85-28. Office of the Attorney General State of North Dakota Opinion No. 85-28Date Issued: August 14, 1985Requested by: Gail Hagerty Burleigh County State's Attorney--QUESTION PRESENTED-- Whether Burleigh County commissioners may use the funds currently segregated in the insurance reserve fund established pursuant to N.D.C.C. § 32-12.1-08 to pay the premium for liability insurance.--ATTORNEY GENERAL'S OPINION-- It is my opinion that Burleigh County may use the funds currently segregated in the insurance reserve fund established pursuant to N.D.C.C. § 32-12.1-08 to pay the premium for liability insurance. --ANALYSIS-- N.D.C.C. § 32-12.1-08(1) authorizes political subdivisions, including counties, to 'establish and maintain an insurance reserve for insurance purposes' to be funded out of the annual tax levy of the political subdivision. Subsection 2 of the Statute states that 'the fund established pursuant to this section shall be kept separate and apart from all other funds and shall be used only for the payment of claims against the political subdivision which have been settled or compromised, judgments rendered against the political subdivision for injuries arising out of risks established by this chapter, or costs incurred in the defense of claims.' N.D.C.C. § 32-12.1-07(1) reads as follows:
1. The insurance authorized by this chapter may be provided by:
Self-insurance, which may be funded by appropriations to establish or maintain reserves for self-insurance purposes.
An insurance company authorized to do business in this state which a commissioner has determined to be responsible and financially sound, considering the extent of the coverage required. c. Any combination of the methods of obtaining insurance authorized in subdivisions a and b. Use of the moneys...

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