COMPROMISE OR SETTLEMENT OF CLAIMS

  Section 1. Compromise or Settlement Authority. Any claim covered under this Act may be compromised or settled according to the requirements in section 2 of this chapter. In settling a claim, the risk manager will require the execution and presentation of those documents which discharge or hold harmless the state or public employee of all liability under the claim.

  Section 2. Settlement Authority. The following parties are authorized to make compromises or settlements of claims in the following amounts:

  (a) The risk manager is authorized to settle claims for an amount not to exceed fifty thousand dollars ($50,000);

  (b) The risk manager, after consultation with the attorney general, is authorized to settle claims for an amount not to exceed one hundred thousand dollars ($100,000); and

  (c) The governor is authorized to settle claims for any amount if the action arises under federal law. The governor is authorized to settle claims brought under the Act for any amount not to exceed the maximum liability limits under the Act.

  Section 3. Settlement Standards. The risk manager shall consider the following standards for settlement, among others:

  (a) The reasonable likelihood that factual and legal liability exists;

  (b) The costs of defense in light of the above likelihood;

  (c) Fulfillment of requirements under the Act;

  (d) The existence of waiver under the Act; and

  (e) The interests and general welfare of the state.

  Section 4. Documents Required for Settlement. A settlement is not effective until required documents are completed and presented for payment. Such documents shall consist of:

  (a) A full and final release of all claims against the state and public employees signed by the claimant and/or claimant's legal representative.

  (b) The release shall contain the following items at a minimum, although a settlement authority may require additional items when appropriate:

    (i)  A statement of knowing and intelligent waiver and release of rights; and

    (ii) A statement releasing the state and its public employees of all claims arising out of the occurrence including a claim of attorney fees.

  (c) Any other documents required by the risk manager dependent on the circumstances of the specific claim.

  Section 5. Funds. No agency director, administrator, employee or peace officer has the authority to obligate funds of the State Self-Insurance Fund.