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HomeMy WebLinkAboutInsurance Renewal Agreement with All American Insurance, LLC for ICRMP "'~ ,..~~ q¡JJ ALL AMERICAN INSURANCE, LLC RECEIVED SEP 2 4 2004 city of Meridian City Clerk atfice September 24, 2004 City of Meridian Attention: Will Berg 33 E. Idaho Meridian, ID 83642 RE: Insurance Renewal Dear Will: This year we have we have marketed the City's insurance program to a number of companies in addition to ICRMP. As I am sure you know, there are relatively few markets for smaller municipalities and the coverage offered varies greatly from company to company. This is, in large part, why ICRMP was founded. The results of our marketing effort were disappointing, but not necessarily unexpected. Of the insurance companies that offer plans for municipalities, some do not write business in Idaho. Some write only cities larger or smaller than Meridian. Some simply do not respond to offers to quote, which is their way of declining. The City's loss experience is also a factor. At this time, some of the companies that typically offer coverage to cities like Meridian would offer only part of the coverage needed. In other words, they would not offer Employment Practices or Police Liability coverage. I've attached a summary of the results from companies that were likely prospects for offering coverage. It does not include those that do not write in Idaho or were non-responsive to our inquiries. As you can see, we were not able to find an insurer that would offer a better program than the one from ICRMP. Although we do not have access to every program, for instance the Trident plan from Argonaut, we are familiar with them. Typically, they do not offer the same level of coverage and services at pricing comparable to ICRMP. P,O. BOX 650 . MERIDIAN, IDAHO 83680 . PHONE (208) 888-1465 . FAX (208) 888-6777 Page 2 I've also included a copy of this year's renewal information from ICRMP. It includes the new Split Limit policy option, which matches coverage with the Idaho Tort Liability Act. This not only limits the City's liability under the act, but also reduces the premium. We would like to meet with you next week to review and discuss the renewal. This would be a good time to go over some of the details of the City's exposures and coverage. I'll call you to see about arranging a time and will look forward to meeting with you. Regards, F James Fullinwider All American Insurance, LLC Encl. Cc: The Honorable Tammy de Weerd Companies Employers Mututallnsurance City of Meridian Commercial Insurance 2004 Marketing Summary Response Will not offer General liability. Population is too large for them National Insurance Professionals Corporation Cannot offer the limits that are request, and cannot be competative with ICRMP Hartford Insurance 51. Paul/Travelers Professional Underwriters AIG Is not a market for this type of risk. Declined to offer premium indication. Will not offer Police Professional Liablity, Public Oficials, or Employement Practices Liability Will not write the complete package. The parts they would write would be split between several companies. - ICRMP IDAHO COUNTIES RISK MANAGEMENT PROGRAM P. O. BOX 15249, BOISE, IDAHO 83715 UNDERWRITING PHONE: (208) 246-8213 FAX: (208) 246-8199 SIGNA TURE PAGE FOR RENEWAL CONFIRMA nON Renewal Term: October 1,2004 to October 1, 2005 Member: City of Meridian Agent: Agency: James Fullinwider All American Ins LLC Split - Limit Policy and Idaho's Tort Liability Act A split-limit policy provides liability limits up to the $500,000 tort cap provided by the Idaho Tort Liability Act. This cap protects your public entity against claims filed under the act that are in excess of $500,000. Choosing higher limits allows your entity to be sued for higher amounts. A split limit policy will provide higher limits to protect your entity from other types of claims such as Federal and out of state claims that are not capped. ICRMP recommends a split-limit policy as a cost effective way to control the expense of protecting your public entity, Please choose one of the options below: Split-Limit Policy Member Contribution: $116,683.00 Sign here to choose a split-limit policy. Governing Board Member's Signature Date Higher Limit Policy Member Contribution: $122,824.00 Sign here to renew your current higher limit policy. Governing Board Member's Signature Date ** ** Please return to ICRMP by September 1st 7/04.ICRMP SPRC S.L 02114 ICRMP's Split-Limit Policy What is a split-limit policy? This policy is specifically designed to protect public entities from claims filed in excess of the $500,000 tort damage cap as provided for in the Idaho Tort Claims Act. This Act limits damage claims filed against governmental entities to the maximum amount of $500,000. Our split-limit policy provides a $500,000 limit for those claims filed under the Act, and it, also, provides a higher limit for any other type of claim not covered by the Act, such as federal civil rights claims--hence, the name, "Split Limit". What is the advantage of a split-limit policy? Your entity's liability exposure is limited by the Idaho Tort Claims Act to $500,000 or the limits of available insurance. Buying more insurance for State tort claims increases the amount of damages for which your entity can be sued. A split-limit policy limits your liability exposure to the $500,000 capped amount. Who is protected by the Idaho Tort Claims Act? Only Idaho local governments and the State are protected by the Act. Forty-three percent (43%) of ICRMP members have chosen split-limit policies, and we expect many more to choose split-limits this year. The State of Idaho has always limited its insurance coverage for State tort claims to the tort cap amount. Can I obtain more information on the split-limit policy? Your independent insurance agent and ICRMP's staff and attomeys are ready to provide a more detailed explanation of the split-limit policy and to answer all of your questions relating to split limits. Just give us a call at 1-800-336-1985. SUMMARY OF POLICY CHANGES THIS IS A SUMMARY OF THE MAJOR CHANGES TO YOUR ICRMP MULTI-LINES POLICY. NO COVERAGE IS PROVIDED BY THIS SUMMARY NOR CAN IT BE CONSTRUED TO REPLACE ANY PROVISION OF YOUR POLICY. YOU SHOULD READ YOUR POLICY CAREFULLY AND REVIEW YOUR DECLARATION PAGE FOR COMPLETE INFORMATION ON THE COVERAGES PROVIDED. IF THERE IS ANY CONFLICT BETWEEN THE POLICY AND THIS SUMMARY, THE PROVISIONS OF THE POLICY SHALL PREVAIL. General Exclusions Civil Penalties Exclusion Reduction This exclusion was amended to inciude Criminal Penalties as well. Contractual Liability Exclusion Reduction and Broadening Language added to exclude performance or non performance of contract terms excepting employment claims premised upon implied contracts. Course and Scope Exclusion Reduction Language added to specifically exclude personal injury or property damage resulting from an act outside the course and scope of employment. Pollution Exclusion Reduction Statement added "or negligence resulting therefrom." to exclude negligent acts. Punitive Damages Exclusion Reduction Added the term "however characterized" to remove any ambiguity with reference to punitive damages. Page10f8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 2 Section I Property Insuring Agreements Definitions ADDlicable to ProDertv Insurina Aareement Automobile Definition Neutral Definition of Automobile simplified and now uniform In all policy sections. Covered Property Definition Broadening Added Mobile Equipment Mobile Equipment Definition Broadening Definition of Mobile Equipment added. Like Kind and Quality Broadening Definition added to mean the sum it takes to replace your damaged or destroyed property with one of like kind and quality. Now applies to Automobiles and Mobiie Equipment. Replacement Cost Broadening Definition revised and does not deduct for depreciation or obsolescence. SDecific Conditions ADDlicable to ProDertv Insurina Aareement Automobiles Owned by Authorized Volunteers Condition Broadening Language changed to make ICRMP the primary coverage for authorized voiunteers only while participating in search and rescue mobilizations initiated by the named insured. Valuation of Loss Broadening Clarifies that the 125% valuation provision applies only to buildings and structures. Condition includes reference to "Actual Cash Value" "Replacement Cost" and Like Kind and Quality. defined terms. General Contents, Automobiles and "Mobile Equipment" are now specified within this condition. Page20f8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 3 Exclusions ADDlicable to ProDertv Insurina Aareement Vacant Building Damage Exclusion Broadening Term of building being vacant extended to 120 days in lieu of 30 days. Excluded Property Reduction Added trees and lawns to the exclusion. Section II General Liability and Premises Medical Payments InsurinQ AQreement Title Heading of Section II, Definitions, Conditions, and Exclusions Neutral The word "Comprehensive" deleted from Section II. Premises Medical Payments was added to the title to differentiate Premises Med Pay from General Liability. Definitions ADDlicable to General Liabilitv and Premises Medical Pavments Insurina Aareement Automobile Definition Broadening Definition of Automobile simplified and now uniform in ail policy sections. References to what is not considered an Automobile removed. Mobile Equipment Definition Broadening Definition of Mobile Equipment replaces definition of Mobile Agricultural Machinery. SDecific Conditions ADDlicable to General Liability and Premises Medical Payments Insurina Aareement Employee Benefit Liability Condition Neutral Condition removed from this section and added to Section IV Errors & Omissions Page30f8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 4 Incidental Medical Liability Broadening Condition is amended to include Paramedics and to employees providing first aid. SDecific Exclusions ADDlicable to General Liabilitv and Premises Medical Pavments Insurina Aareement Act or Omission Outside the Course and Scope of Employment Exclusion Neutral Exclusion removed. General Exclusion for Course and Scope addresses this and now applies to all sections of the policy. Bidding Process Exclusion Reduction Exclusion added to clarify that this Section does not apply to cost overruns and the bidding process. Suits Brought by Spouse, Child, Parent or Sister Exclusion Reduction - Correction The word 'sister" amended to'sibling", Planning ánd Zoning Activities Exclusion Reduction The phrase 'regulatory takings" added under this exclusion. Last sentence added to specify that the exclusion does not to claims of monetary damages for alleged violations of due process rights in the course of planning and zoning proceedings. Sexual Misconduct Exclusion Broadening Previous Exclusion 14 referring to sexual or physical abuse has been removed. The 'Course and Scope Exclusion" under General Exclusions now governs coverage for this type of allegation, Page 4 018 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 5 Professional Health Care Services Exclusion Reduction The phrase 'Any professional medical services by a physician or physician's assistant" was added. Also, the word "01" has been substituted for "and" after each sub- category (a through e) to permit exclusion of anyone of the listed services. Collection of Taxes Exclusion Reduction This is an added exclusion. No coverage Is intended to apply to any claim tor failure to coliect taxes. Section III Automobile Liability and Medical Payments Aareement Title Heading of Section III, Definitions, Conditions, and Exclusions Neutral Medical Payments added to distinguish Medical Payments from Automobile Liability. Definitions ADDlicable to Automobile Liability and Premises Medical Payments Insurina Aareement Automobile Definition Broadening Definition of Automobiie simplified and now uniform in all policy sections. Bodily Injury Definition Broadening Definition also includes civil rights violations related to law enforcement liability arising out of the use of an insured automobile, For example, police pursuit claims. Mobile Equipment Definition Broadening Definition of Mobile Equipment now consistent throughout the policy and replaces the definition of Mobile Agricultural Machinery, Page 5 of8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 6 Recreational Vehicle Definition Neutral Definition removed. Recreational vehicles used by public entities are covered under mobile equipment and Section II General Liability. Seeclfic Conditions Aeelicable to Automobile Liabilitv and Medical Payments AClreement Automobiles Owned by Authorized Volunteers Condition Broadening Language changed to make ICRMP primary coverage for authorized volunteers while participating in search and rescue mobilizations initiated by the named insured. Exclusions Aeelicable to Automobile Liability and Medical Payments AClreement Mobile Equipment Exclusion Neutral Exclusion added since coverage is provided under Section II General Liability Section IV Errors and Omissions Insurina Aareement Coverage A Neutral Changed the phrase 'the policy period" to '1his policy period" and added a paragraph in the insuring agreement that specifically outlines the period of time in which a wrongful act must occur and when a claim must be first made under this claims made coverage part. Exclusion for wrongful acts and claims first made outside this time period remains unchanged. Coverage B Broadening Insuring agreement for Errors and Omissions now includes coverage for liability arising out of the negligent computation or withholding of an employee benefit to which the employee is otherwise entitled. Page 6 of 8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 7 Definitions Applicable to Errors and Omissions Insurina Aareement Claim Definition Broadening Complaints filed with the Idaho Human Rights Commission (IHRC) and the Equal Employment Opportunities Commission have been included in the definition. First Made Definition Neutral The phrase, "but not later than the end of this Policy Period or the end of any Extended Reporting Period" was added into the definition, Exclusion for wrongful acts and claims first made outside this time period remains unchanged. Wrongful Act Definition Reduction Language added to include only torts but not contracts. Definition includes negligent performance or failure to perform a legal duty or responsibility in a tortious manner pursuant to the Idaho Tort Claims Act or premised upon allegations of unlawful violations of civil rights pursuant to Federal law. Specific Conditions Applicable to Errors and Omissions Insurina Aareement Extended Reporting Period Condition Neutral-Correction The word "for" in the phrase "any wrongful act for such termination" has been corrected to read "any wrongful act before such termination". Interlocking Clause Condition Neutral This condition removed. The conditIon originally intended to limit liability to only one single or one policy involved in a claim. Already addressed in the condition of "Multiple Insureds, Claims or Claimants" as well as other appropriate places within the policy. Exclusions Applicable to Errors and Omissions Insurina Aareement Course and Scope Exclusion Neutral Course and Scope Exclusion has been added to General Exclusions applying to all coverage parts of the policy. Page 7 of 8 ICRMP 0904SPC Policy Change Advisory Notice to ICRMP Members, Continued Page 8 Estimates of Probable Costs or Faulty Bid Specifications Exclusion Neutral The last sentence was deleted because it was incorrectly inserted and did not apply to this exclusion. Planning and Zoning Activities Exclusion Reduction The phrase "regulatory takings" added under this exclusion for clarification. This exclusion is now uniform with the planning and zoning exclusion appearing in Section II General Liability. Collection of Taxes Exclusion Reduction This exclusion has been added to exclude any claim involving collection of taxes, Failure of Investments in Employee Benefit Program Exclusion Reduction Exclusion added since Employee Benefits Program investment activities are not covered under the policy. Negligence, Financial Failure or Breach of Contract by Health or Benefit Provider Exclusion Reduction Exclusion added since Employee Benefits Program financial failure, breaches of contract or provider negligence are not covered under the policy. Section V Crime Insurina Aareements 5Decific Conditions AqDlicable to Crime Insurina Ag,reements Coverage in Lieu of Public Officials Surety Bond Reduction The term "as outlined in Chapter 8, Title 59, Idaho Code, known as the Surety Bond Acf' has been changed to "to the extent required by Chapter 8, Title 59, Idaho Code..." This change confines coverage only that which is specified within the code. Page a ota ICRMP 0904SPC