§ 2-42. GUIDELINES AND LIMITATIONS OF LIABILITY FOR SELF-INSURANCE PROGRAM.

2-42.1 Purpose.

a.

The Borough of Sayreville has established a self-insurance program as authorized by N.J.S.A. 40A:10-6 et seq.

b.

The Legislature of the State of New Jersey has enacted various statutes mandating that certain insurance coverages be provided for personal injury protection benefits, uninsured motorist benefits and underinsured motorist benefits; and the Borough of Sayreville desires to avoid or eliminate any uncertainties or ambiguities regarding the nature and extent of the coverages actually provided under the Borough's self-insurance program.

In certain instances the Legislature of the State of New Jersey has provided for the exercise of certain options regarding the aforementioned form of coverage which are or may be applicable to the coverage provided under the Borough's self-insurance program.

Formal action to exercise these options is recommended by the Legal Department of the Borough of Sayreville; and the exercise of these options will result in savings for the taxpayer of the Borough of Sayreville.

(Ord. #288-93, Preamble)

2-42.2 Benefits and Limitations.

a.

Under the provisions of the New Jersey Automobile Reparations Reform Act, commonly known as the No-Fault Act, N.J.S.A. 39:6A-1 et seq., the Borough of Sayreville's self-insurance program personal injury protection benefits shall:

1.

Be limited to the medical benefits only option as authorized by N.J.S.A. 39:6A-4.3 (b) and shall exclude the benefits described in N.J.S.A. 39:6A-4 under subsections (b) (income continuation), (c) (essential services), (d) (death) and (e) (funeral expenses);

2.

In the case of medical expense benefits, be subject to a deductible amount of two thousand five hundred ($2,500.00) dollars for any one (1) accident as authorized under N.J.S.A. 39:6A-4.3(a);

3.

In the case of medical expense benefits, be subject to a co-payment of twenty (20%) percent in accordance with N.J.S.A. 39:6A-4.3(c).

b.

The Borough of Sayreville elects the basic tort option specified in N.J.S.A. 39:6A-8(a);

c.

As authorized by the provision of N.J.S.A. 39:6A-7, the Borough of Sayreville elects to exclude from coverage for benefits under Section 4 and Section 10 of N.J.S.A. 39:6A-1 et seq.:

1.

Any person who suffered personal injuries or death as a result of the following conduct:

(a)

While committing a high misdemeanor or felony or seeking to avoid lawful apprehension or arrest by a police officer;

(b)

While acting with specific intent or causing injury or damage to himself or others.

2.

Any person having incurred personal injuries or death, who, at the time of the accident:

(a)

Was the owner or registrant of an automobile registered or principally garaged in this State that was being operated without personal injury protection coverage;

(b)

Was occupying or operating an automobile without the permission of the owner or other named insured.

(Ord. #288-93, § I)

2-42.3 Uninsured Motorists Coverage. The Borough of Sayreville's self-insurance program uninsured motorists coverage shall be in the amounts of the statutory minimums of fifteen thousand ($15,000.00) dollars, exclusive of interest and costs, on account of injury to or death of, one (1) person in any one (1) accident an amount of thirty thousand ($30,000.00) dollars, exclusive of interest and costs, on account of injury to or death of more than one (1) person in any one (1) accident as authorized under N.J.S.A. 17:1.1 (a).

(Ord. #288-93, § II)

2-42.4 Underinsured Motorists Coverage. The Borough of Sayreville's self-insurance program underinsured motorists coverage shall be limited to the amount of fifteen thousand ($15,000.00) dollars, exclusive of interest and costs, on account of injury to or death of, one (1) person in any one (1) accident and shall be limited to thirty thousand ($30,000.00) dollars, exclusive of interest and costs, on account of injury to or death of more than one (1) person in any one (1) accident.

(Ord. #288-93, 5 III)