(a) All political subdivisions shall carry liability insurance on their motor vehicles or shall become self-insurers, individually or collectively, for their vehicles, or both, in the minimum amounts prescribed in the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.
(b) The combined maximum liability of local government employees, volunteers, and the local government employer in any action involving the use of a motor vehicle within the scope of their employment shall be the minimum amounts prescribed in the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq., unless the political subdivision has purchased insurance coverage or participates in a self-insurance pool providing for an amount of coverage in excess of the minimum amounts prescribed in the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq., in which event the maximum liability of the insurer or pool shall be the limits of the coverage provided for in the policy or agreement.
(c) (1) Any person who suffers injury or damage to person or property caused by a motor vehicle operated by an employee, agent, or volunteer of a local government covered by this section shall have a direct cause of action against the insurer if insured, or the governmental entity if uninsured, or the trustee or chief administrative officer of any self-insured or self-insurance pool.
(2) Any judgment against a trustee or administrator of a self-insurance pool shall be paid from pool assets up to the maximum limit of liability as provided in this section.
History. Acts 1969, No. 165, § 3; A.S.A. 1947, § 12-2903; Acts 1987, No. 590, § 1; 1987, No. 1064, § 1; 1989 (3rd Ex. Sess.), No. 47, § 1.
Research References
Ark. L. Rev.
City of Caddo Valley v. George: Stop or I'll Sue! Police Chases and the Price Cities May Pay, 55 Ark. L. Rev. 425 (2002).
U. Ark. Little Rock L. Rev.
Survey - Insurance, 10 U. Ark. Little Rock L. Rev. 587.
Survey - Torts, 10 U. Ark. Little Rock L. Rev. 609.
Case Notes
Purpose.
Failure to Carry Insurance.
Instructions.
Liability.
Nonregistered Vehicles.
Political Subdivision.
Workers' Compensation.
In order that persons injured by a political subdivisions' vehicles may have redress for negligence, this section requires political subdivisions to carry liability insurance on their motor vehicles. King v. Little Rock Sch. Dist., 301 Ark. 148, 782 S.W.2d 574 (1990).
The legislature did not intend for a school district to insure a bus that was owned by an independent entity, operated by a driver who was not employed or hired by the district, and chartered for a one day field trip. King v. Little Rock Sch. Dist., 301 Ark. 148, 782 S.W.2d 574 (1990).
Regardless of statutory governmental tort immunity, city which failed to conform to this section was responsible as self-insurer for injuries resulting from negligent operation of its vehicles up to amount equivalent to required policy limits stated in § 27-19-713. Sturdivant v. Farmington, 255 Ark. 415, 500 S.W.2d 769 (1973).
The holding in Sturdivant v. City of Farmington, 255 Ark. 415, 500 S.W.2d 769 (1973), which made school districts self-insurers when they did not carry insurance, is not unconstitutional as a violation of the separation of powers doctrine of Ark. Const., Art. 4, § 2. Thompson v. Sanford, 281 Ark. 365, 663 S.W.2d 932 (1984).
In personal injury action against school district and its employee, employee was not entitled to instruction on district's limited liability, and the trial court was right to wait until the jury had determined liability and damages before applying this section as interpreted by Sturdivant v. City of Farmington, 255 Ark. 415, 500 S.W.2d 769 (1973). Thompson v. Sanford, 281 Ark. 365, 663 S.W.2d 932 (1984).
A city is not immune to the extent that it has liability insurance. City of Caddo Valley v. George, 340 Ark. 203, 9 S.W.3d 481 (2000).
Because there were two emergency vehicles involved in the accident and each officer was found five percent at fault, the city, as a joint tortfeasor, would be jointly and severally liable in the amount of $25,000.00 for each of the city's vehicles; therefore, defendant should have recovered $50,000.00 against the city, and the trial court erred in ruling otherwise. City of Caddo Valley v. George, 340 Ark. 203, 9 S.W.3d 481 (2000).
Trial court did not err in reducing a jury's award of $92,500 for bodily injury to a motorcyclist against a city in a negligence action involving a city-owned garbage truck to $25,000, the maximum amount of its liability under the state's tort immunity law and subsection (b) of this section. Fritzinger v. Beene, 80 Ark. App. 416, 97 S.W.3d 440 (2003).
This section requires all municipalities to carry liability insurance on their vehicles or be treated as self-insurers, but the statute does not require a municipality to guarantee the solvency of its insurer; thus, where coverage was in effect when the accident occurred and there was no evidence that the city could have anticipated that its carrier would become insolvent, once the city's insurer did become insolvent, the city should not have been relegated to the status of a self-insurer. Taylor v. City of N. Little Rock, 88 Ark. App. 48, 194 S.W.3d 797, 2004 Ark. App. LEXIS 690 (Oct. 6, 2004).
The General Assembly, in requiring political subdivisions to purchase motor vehicle liability insurance, never intended nonregistered vehicles to be covered. Cousins v. Dennis, 298 Ark. 310, 767 S.W.2d 296 (1989).
Self-propelling mowers and other equipment not designed or intended for transportation purposes - being exempt from registration - are not required to comply with the security deposit or liability insurance provisions required under the Motor Vehicle Safety Responsibility Act. Cousins v. Dennis, 298 Ark. 310, 767 S.W.2d 296 (1989).
This section does not require political subdivisions to purchase motor vehicle liability insurance for non-registered vehicles. Clark v. Randolph County, 71 Ark. App. 112, 36 S.W.3d 353 (2000).
Summary judgment was improperly granted in favor of a city and its employee in a negligence action based on governmental immunity where there was a genuine issue of material fact as to whether the operation of the loader on public roads was frequent and regular or merely incidental and, thus, whether the front-end loader was exempted from the statutory definition of “motor vehicle.” Spears v. City of Fordyce, 351 Ark. 305, 92 S.W.3d 38 (2002).
If a political subdivision fails to carry liability insurance on its motor vehicles it becomes, in effect, a self-insurer and may be held liable for an amount not to exceed the minimum amounts of coverage prescribed by the Motor Vehicle Safety Responsibility Act. King v. Little Rock Sch. Dist., 301 Ark. 148, 782 S.W.2d 574 (1990).
In a negligence action stemming from a motor vehicle accident, the trial court erred in declaring the city to be self-insurer because, at the time of the accident, the city had in full force and effect a motor vehicle liability insurance policy and there was no evidence that the city could have anticipated that its carrier would become insolvent. Taylor v. City of N. Little Rock, - Ark. App. -, - S.W.3d -, 2004 Ark. App. LEXIS 690 (Oct. 6, 2004).
Where teachers were acting within the scope of their employment at time of school bus accident, injured teachers' exclusive remedy was to file claims under the Workers' Compensation Act and they were not entitled to any part of the school district's insurance policy proceeds. Helms v. Southern Farm Bureau Cas. Ins. Co., 281 Ark. 450, 664 S.W.2d 870 (1984).
Cited: Sullivan v. Pulaski County, 247 Ark. 259, 445 S.W.2d 94 (1969); Hardin v. City of DeValls Bluff, 256 Ark. 480, 508 S.W.2d 559 (1974); Augustine v. City of W. Memphis, 281 Ark. 162, 662 S.W.2d 813 (1984); Lacey v. Bekaert Steel Wire Corp., 619 F. Supp. 1234 (W.D. Ark. 1985); City of Little Rock v. Weber, 298 Ark. 382, 767 S.W.2d 529 (1989).