2208

LAWS OF MARYLAND

[Ch. 650

Section [[5A]] 11A and 15A
Annotated Code of Maryland
(1969 Replacement Volume and 1973 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section [[5A]] 11A be and it is hereby
added to Article 77A — Higher Education, of the Annotated
Code of Maryland (1969 Replacement Volume and 1973
Supplement) to read as follows:

Article 77A — Higher Education

[[5A]] 11A.

(A)    THE BOARD OF TRUSTEES OF THE STATE COLLEGES
MAY CARRY COMPREHENSIVE LIABILITY INSURANCE TO PROTECT
THE BOARD, ITS AGENTS AND EMPLOYEES, AND ANY AGENTS AND
EMPLOYEES OF ANY COLLEGE UNDER ITS JURISDICTION. THE
PURCHASE OF THE INSURANCE SHALL BE CONSIDERED AS AN
EDUCATIONAL PURPOSE AND AS A VALID EDUCATIONAL EXPENSE.

(B)    THE BOARD [[OF TRUSTEES OF THE STATE
COLLEGES]] MAY ADOPT REGULATIONS SETTING UP STANDARDS AND
GUIDELINES FOR THE COMPREHENSIVE LIABILITY INSURANCE
INCLUDING A MINIMUM LIABILITY COVERAGE WHICH SHALL NOT BE
LESS THAN ONE HUNDRED THOUSAND DOLLARS ($100,000) PER
OCCURRENCE, AND ANY POLICIES PURCHASED UNDER THIS SECTION
AFTER THE ADOPTION OF THESE REGULATIONS SHALL CONFORM TO
THEM.

(C)    THE BOARD SHALL BE CONSIDERED IN COMPLIANCE
HEREIN IF IT IS SELF-INSURED, IN AN AMOUNT NOT LESS THAN
ONE HUNDRED THOUSAND DOLLARS ($100,000) PER OCCURRENCE,
UNDER RULES AND REGULATIONS PROMULGATED BY THE STATE
INSURANCE COMMISSIONER. THE POLICY LIMITS FOR THIS
INSURANCE SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS
($500,000).

[[(C)]] (D) NOTHING IN THIS SECTION [[SHALL]] MAY BE
CONSTRUED AS AFFECTING THE RIGHT OF THE BOARD [[OF
TRUSTEES]], ON ITS OWN BEHALF, FROM RAISING THE DEFENSE
OF SOVEREIGN IMMUNITY TO ANY AMOUNT IN EXCESS OF THE
LIMIT OF AN INSURANCE POLICY.

SECTION 2. AND BE IT FURTHER ENACTED, That new
Section 15A be and it is hereby added to Article 77A —
Higher Education, of the Annotated Code of Maryland (1969
Replacement Volume and 1973 Supplement) to read as
follows:

Article 77A — Higher Education