INSURANCE Kinds of Insurance; Limits of Risks: Mandate Limited Waiver of Sovereign Immunity for Local Governments for Losses Caused by Negligent Use of a Motor Vehicle; Allow Continued Immunity for Liabilities in Excess of Statutory Thresholds; Require Waiver of Immunity for Amounts Insured by Local Governments Beyond Statutory Thresholds

The Act limits the sovereign immunity of local governments for injuries arising from the negligent use of a motor vehicle. The Act provides that, for accidents occurring between January I, 2005 and December 31 2006, the waiver will be $100,000 per accident for claims involving personal injury or death to anyone person, with an aggregate waiver of $300,000 per accident for claims made by two or more people. The Act also waives immunity up to $50,000 per occurrence for injuries or destruction of property occurring after January 1, 2005. The Act provides a schedule for increasing waiver amounts to $250,000/$450,000 for accidents occurring between January 1, 2007 and December 31, 2007. The Act provides that for all accidents occurring on or after January 1, 2008, the waiver amounts will be raised to $500,000/$700,000. The Act also provides that where local governments are insured for amounts exceeding the statutory waiver amounts, their immunity will be waived to the extent of their excess coverage