FL H1131

Political subdivisions may purchase insurance or self-insure at two coverage levels: $5 million per person/$7.5 million per incident, or $10 million per person/$15 million per incident.

Purchased insurance must pay covered liabilities up to policy limits without requiring legislative action, and self-insurance requires depositing the lesser of the claimant's demand or policy limits into a contingent liability account within 45 days of notice of loss.

Political subdivisions complying with these insurance requirements are only liable for their deductible and cannot be held liable for judgments exceeding policy limits; injured parties cannot seek payments beyond insurance coverage.

Counties may purchase umbrella policies extending coverage to municipalities within the county on a pro-rata cost basis, though municipalities are not required to participate.

Injured parties may pursue judgments exceeding policy limits only if the insurer is found to have acted in bad faith in meeting its obligations to the political subdivision.