12 V.S.A. § 5603: Settlement of claims

(a) The Attorney General may consider, adjust, determine, and settle any claim for damages against the State of Vermont resulting from the acts or omissions of an employee as provided under 3 V.S.A. § 159. If the State elects to self-insure the liability as defined in 12 V.S.A. § 5601, the Attorney General shall consult with the Secretary of Administration prior to exercising his or her authority under this subsection.

(b) If the State of Vermont has undertaken the defense of a claim against a State employee as required by 3 V.S.A. § 1101, the acceptance by the claimant of any award, compromise, or settlement shall be final and conclusive on the claimant and shall constitute a complete release of any claim against the State of Vermont and all of its employees.

(c) Notwithstanding the provisions of subsection (b) of this section, if the employee has purchased a policy of liability insurance which covers claims based on gross negligence or willful misconduct in the operation of a motor vehicle, the acceptance of an award, compromise, or settlement shall not bar a claim for gross negligence or willful misconduct covered by that policy.