[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1788.5]

[Page 1120]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1788--RUS FIDELITY AND INSURANCE REQUIREMENTS FOR ELECTRIC AND TELECOMMUNICATIONS BORROWERS--Table of Contents
 
               Subpart A--Borrower Insurance Requirements
 
Sec. 1788.5  RUS endorsement required.

    In the case of a cooperative or mutual organization, RUS requires 
that the following:

    Endorsement Waiving Immunity From Tort Liability'' be included as a 
part of each public liability, owned, non-owned, hired automobile, and 
aircraft liability, employers' liability policy, and boiler policy:
    The Insurer agrees with the Rural Utilities Service that such 
insurance as is afforded by the policy applies subject to the following 
provisions:
    1. The Insurer agrees that it will not use, either in the adjustment 
of claims or in the defense of suits against the Insured, the immunity 
of the Insured from tort liability, unless requested by the Insured to 
interpose such defense.
    2. The Insured agrees that the waiver of the defense of immunity 
shall not subject the Insurer to liability of any portion of a claim, 
verdict or judgment in excess of the limits of liability stated in the 
policy.
    3. The Insurer agrees that if the Insured is relieved of liability 
because of its immunity, either by interposition of such defense at the 
request of the Insured or by voluntary action of a court, the insurance 
applicable to the injuries on which such suit is based, to the extent to 
which it would otherwise have been available to the Insured, shall apply 
to officers and employees of the Insured in their capacity as such; 
provided that all defenses other than immunity from tort liability which 
would be available to the Insurer but for said immunity in suits against 
the Insured or against the Insurer under the policy shall be available 
to the Insurer with respect to such officers and employees in suits 
against such officers and employees or against the Insurer under the 
policy.

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