Commission considers changing liability-payments process so county issues settlement checks, UCIP reimburses

Weber County legal staff on Oct. 20 proposed a change in how large liability settlements are paid: instead of UCIP/USIP issuing settlements directly, the county would issue settlement checks and be immediately reimbursed by the pooled insurance entity. County counsel said UCIP’s practice of paying directly can be seen by plaintiffs’ attorneys as an “insurance company” and may weaken the county’s bargaining position in negotiations.

Chris Crockett, identified in the meeting as the county’s lead civil attorney, explained the county’s interest in either (a) receiving a UCIP/USIP check first and then issuing the plaintiff’s payment or (b) having the county float large settlement payments and then receive immediate reimbursement from UCIP/USIP. Commissioners repeatedly asked about procedures, timing and the county’s cash-reserve capacity for very large judgments.

Commissioners and staff agreed on next steps: ask UCIP/USIP to draft a written policy or addendum that would explain thresholds, documentation, timing and checks-flow (including whether UCIP/USIP could send funds to the county first). County counsel said he would ask UCIP/USIP to present the proposed policy at the next UCIP/USIP board meeting and to provide a draft policy for county review. Several commissioners said they would prefer the UCIP/USIP check to be sent to the county first for deposit and then forwarded to the plaintiff to avoid short-term county cash shortfalls on very large judgments; county staff said they have some funds in PTIF that could be used but preferred having an agreed policy.

No change in policy was finalized at the work session. Staff said they will ask UCIP/USIP to prepare written procedures, circulate a proposed policy addendum and schedule the matter for the UCIP/USIP board.