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HomeMy WebLinkAboutresolution.council.093-03 RESOLUTION NO. (SERIES OF 2003) A RESOLUTION OF THE CITY COUNCIL OF ASPEN, COLORADO, APPROVING THE RENEWAL OF THE CIRSA PROPERTY/CASUALTY INSURANCE POLICY FOR THE CITY OF ASPEN FOR 2004, AND AUTHORIZING THE CITY MANGER TO EXECUTE THE ACCEPTANCE OF THE PREMIUM QUOTE ON BEHALF OF THE CITY OF ASPEN WHEREAS, there has been submitted to the City Council the Premium Quote for 2004 C1RSA Property/Casualty Insurance Policy for the City of Aspen, Colorado, a copy of which is annexed hereto and part hereof. NOW, THEREFORE, BE IT RESOLVED.BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section One That the City Council of the City of Aspen hereby approves the CIRSA Premium Quote for 2004 Property/Casualty Insurance Policy for the City of Aspen, Colorado, a copy of which is annexed hereto and incorporated herein, and does hereby authorize the City Manager to execute said Acceptance of Premium Quote on behalf of the City of Aspen. Dated: ~ I, Kat/n'yn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a tree and accurate copy of the that r~i.on adopted by the City Council of the City of Aspen, Colorado, at a meeting held ~.~ ?~ ,2003. : .~Kathryn S7 ~Ch ~ COLORADO INTERGOVERNMENTAL RISK SHARING AGENCY Timothy A. Greer, Executive Director August 29, 2003 Peggy Carlson, Risk Manager City of Aspen 130 South Galena Street Aspen, CO 81611 RE: 2004 Property/Casualty Preliminary Contribution Quotation Dear Peggy: Enclosed is the pretiminaTy quotation for your 2004 contribution to the CIRSA Property/Casualty Pool for the coverage period January I, 2004 through January 1, 2005. Final invoices, mailed on January 1.2004. may increase or decrease based on such factors as the number of CIRSA members for 2004. actual excess insurance premiums and any changes made to your 2004 renewal application The types and moneraty limits of the proposed coverages ro be provided to 2004 CIRSA Property/Casualty members are shown in ATTACHMENT A. The scope, terms, conditions, and limit, ations of the coverages are governed by the applicable excess insurance and/or reinsurance policies, the CIRSA Bylaws and Intergoverrmaantal Agreement, and other applicable documents. Also included in ATTACHMENT A is information on various 2004 contribution credits available to your entity, if any. The quote is shown in ATTACHMENT B. The quote contemplates the exposLtres stated in your 2004 Renewal Application and all Application Amendment Requests received Dy CIRSA through August 15, 2003. ATTACHMENT C contains the Acceptance ofPreliminary Properry/Casuaity Quotation form The form must be completed and returned to CIRSA by Wednesday, October 1. 2003. In addition, the form requires that you indicate the deductibles you are selecting, confirms your participation in or rejection of Medical Payments and Uninsured/Undermsured Motorist coverage as determined from your 2004 renexvai application, and requires that you indicate how your entity would like to use the various credits for which it qualifies, if any. 3665 Cherry Creek North Drive Denver Colorado 80209 (3031757-5475 (800 228-7136 Fax (303 757-8950 www. drsa.org 2004 Property/Casualty Preliminary Contribution Quotation August 29, 2003 Page 2 If you have any questions about your renewal quote, please don't hesitate ro contact us. Michelie Bfichamps. CIRSA's Assistant Executive Director. and I will be in your area ~ver the next couple of weeks to offer any further explanation to your'quote or percentage increases in your exposures. We are also available to give presentations to your council or board of trustees upon request. Should this be of interest ro you, please contact Michelle at (302,757-5475 or (800) 228-7136. Thank you for your on-going support of CI3~SA. We look forward to continuing our relationship with you in 2004. Sincerely, Timothy A. Greer Executive D/rector eric, Acceptance of Preliminary Property~Casualty Quotation Attachment C MUST BE RECEIVED AT THE CIRSA OFFICE ON OR BEFORE WEDNESDAY, OCTOBER 1, 2003 Complete, sign, and return this form if your entity has decided to accept CIRSA's Preliminary Property/Casualty Quotation for 2004. ACCEPTANCE OF PRELIMINARY PROPERTY/CASUALTY QUOTATION This is to notify CIRSA that the City of Aspen accepts the following preliminary quotation for property/casualty coverage for 2004 check and fill in as applicableS: The City of Aspen accepts the prelim/nary 2004 quotation of $ with the same deductibles as 2003 listed below): $ 10.000 Liability, Deductible* $. 5.000 Auto Liability Deductible $_ 10.000 Property Deductible $ 10.000 Auto Physical Damage Deductible The City of Aspen accepts the preliminary 2004 quotation of $_ with new deductibles of: $ Liability Deductible* $ Auto Liability Deductible $ Property Deductible $ Auto Physical Damage Deductible *A ~'500 deductible quotation is offered to members, if requested, for property, auto physical damage, auto liability and general liability. However, police professional and public offi5ials errors and omissions deductibles cannot go below $1,000. Medical Payments and Uninsured/Underinsured Motorist Coverage Based upon the selections made in your 2004 Property/Casualty Renewal Application. the City of Aspen has elected: Not to participate in Medical Payment Coverage, and To participate in Uninsured/Underinsured Motorist Coverage. If this is incorrect, or you wish to change ~ our selection at this time, please contact your underwriting representative at (80Co 228-7136 or (303' 75'7-5475. Acceptance of Preliminary Proper~y/Casualty Ouotation Attachment C (continued Page 2 LOSS CONTROL STANDARDS AUDIT SCORE CREDIT AND RISK RATING SUMMARY CREDIT Please indicate below how you would like to utilize your 2004 Loss Control Standards Audit Score Credit or Risk Rating Summary Credit, if applicable: Apply the credit towards our 2004 Property/Casualty contribution. Apply the credit towards our 2004 Workers' Compensation contribution. Deposit the credit in our Loss Control Credit Accoum on January 1. 2004. Send us a check for the amount of the credit (after January 1, 2004~. EQUITY CREDIT Please indicate below how you would like to utilize your 2004 equity credit, if applicable: Apply $ of the credit towards our 2004 Property/Casualty contribution. Apply $ of the credit towards our 2004 Workers' Compensation contribution. Keep the full amoum in our equity and do not reduce the contribution. LOSS CONTROL CREDIT ACCOUNT Please indicate below ho~v you would like to utilize your Loss Control Credit Account Balance, if applicable: Apply $ of the credit l )wards our 2004 Property/Casualty contribution. Apply $ of the credit towards our 2004 Workers' Compensation contribution. Keep the full amount in our Loss Control Credit Account and do nor reduce our contribution. Accepzance of Preliminary Property~Casualty Quo~atzon Attachment C 'continued) Page 3 THIS IS NOT A BILL. AN IN¥OICE WILL BE SENT ON JANUARY 1, 2004. The undersized is authorized to accept this preliminary quotation on behalf of the City of Aspen. We accept this preliminary quotation for January 1, 2004 to January 1, 2005. We understand our final invoice may increase/decrease depending upon the number of CIRSA Property/Casualty members for 2004, actual excess insurance premiums, and any change~~u7 2004/~ren~ Signature: /J" ?'~'- --~ 6/, Title: Date: ATTACHMENT A PROPOSED PROPERTY/CASUAL 'FY COVERAGES The types and monetary limits of the coverages to be provided to CIRSA Property/Casualty members for the applicable coverage period(s) are generally described below. The scope, terms conditions. and limitations of the coverages are governed by the applicable excess and/or reinsurance policies, the CIRSA Bylaws and Intergovernmental Ageement, and other applicable documents. I. TYPES OF COVERAGES (subject to the limit on CIRSA's liability as described in Section II below ~: A Property coverage (including auto physical damage) B. Liability coverage: 1. General liability 2. Automobile liability 3. Law enforcement liability 4. Public officials errors and omissions liability C. Crime coverage (including employee dishonesty and theft of money and secuntiesj II. CIRSA RETENTIONS. LOSS FUNDS. AGGREGATE LiiViITS. AND MEMBER DEDUCTIBLES: For the coverages described in Section I_ CIRSA is liable only for payment of the applicable self- insured retentions and only to a total annual aggregate amount for CiRSA members as a whole of the amount of the applicable CIRSA loss fund for the coverage period. There is no aggegate excess coverage over any loss fund. Coverages in excess of CIRSA's self-insured retentions are provided only by the applicable excess insurers and/or reinsurers m applicable excess and/or reinsurance policies, and shall be payable only by those excess insurers and/or reinsurers. The limits of coverage provided by the excess insurers and/or r~msurers for the coverage period shall be described in the coverage documents issued to the members. Ag~egate and other limits shall apply as provided in said documents, A. CIRSA SELF-INSURED RETENTIONS FOR THE COVERAGE PERIOD: $500,000 per claim/occurrenceproperty 2. $1,000,000 per claim/occurrence liability 3. $1,000~000 each and every claim Public Officials liability 4. $150,000 per claim/occurrence cr~me B. CIRSA LOSS FUND AMOUNTS FOR TItE COVERAGE PERIOD: Loss fund amounts are as adopted or amended from time to time by the Board of Directors based on the members in the Property/Casualty Pool for the year and investment earnings on those amounts Information on the current loss fund amounts is available from the Chief Financial Officer. Attachment A continued C, EXCESS INSURANCE LIMITS FOR THE COVERAGE PERIOD: 1. Excess property: to $50I million each claim/occurrence 2, Excess liability: ro $5 million each cia/m/occurrence except excess auto liability: to $1.5 million each claim/occurrences: $10.000.000 annual aggregate for public officials errors and omission liability 3. Excess crime (optional]: to $2 million per claim/occurrence D. MEMBER DEDUCTIBLES: A member-selected deductible shall apply ro each of the member's claims/occurrences. Payment of the deductible reduces the amount omerwtse payable under the applicable CIRSA retention. Allocated loss adjustment expenses are included in the member deductible. III. LOSS CONTROL STANDARDS AUDIT SCORE CREDIT AND RISK RATING SUMMARY CREDIT CIRSA members who received a Loss Control Standards Audit Score of 0.80 or higher in 2003~ and renew their membership in 2004. are eligible for a Loss Control Standards Audit Score Credit in 2004. Refer to ATTACHMENT B for the amount of this credit, if any. Under the Loss Control Standards Audit Score Credit Program, you have three options for utilizing this credit. You may: A. Place the amount in ~ our Loss Control Credit Account. to be used as reimbursement for approved safety-related purchases: or B. Credit the amount against your 2004 contribution: or C. Receive the amount in the form of a check in January, 2004. CIRSA members who have been in the pool less than one year and have nor yet had a loss control audit performed, but who received a New Member Risk Rating Sun,mary of 3.5 or higher upon entering the pool. are eligible for a Loss Control Risk Rating Summary Credit. The credit ~s applicable only until the member has been in the pool long enough to be evaluated under the Loss Control Standards Audit. The amount of this credit, if any, is included in the Loss Control Credit shown in ATTACHMENT B. IV. 2004 EQUITY CREDIT The Board approved a special credit in conjunction with the 2004 rates. This credit is funded by a member's own eqmry. Only members with a sizeable equity position are eligible because only that portion of their own eqmty which exceeds surplus requirements is eligible for distribution. Due to the Board-esrablished surplus goals, this credit is limited to the amount that caps a member's rate increase to no more than 10% excluding exposure changes]. This is an optional credit. You can elect ro use ail or any portion of the credit available. If elected: the credit can 9n1¥ be applied to your 2004 contribution. Please note that if you elect to use this credit, your entity's entity position in the pool will be reduced by that amount. Attachment A continued~ V. LOSS CONTROL CREDIT ACCOUNT The Board has approved member's use of any'balance in the Loss Control Credit Account to pay 2004 contributions. Your entity's balance in this account on August 18, 2003. if any, is shown on ATTACHMENT B. This is an optional credit. Yoa can elect co use all or any portion of the credit balance available. If elected, the credit can only be applied to your 2004 contribution. VI. PRELIMINARY QUOTATION FOR 2004 PROPOSED PROPERTY/CASUALTY COVERAGES The preliminary quotation is shown in ATTACHMENT B. It is for the proposed coverages along with administrative costs, claims servicing tees. and a reserve fund contribution, if applicable The quote contemplates the exposures stated in your 2004 renewal application and all Application Amendment Requests received by CIRSA through August 15. 2003 and includes the deductible options you requested. Do not pay the amount of this preliminary quotation. It zs provided only for your information and to provide a basis upon which you can decide whether to continue Property~Casualty coverage through C[RSA for 2004 Final invozces for 2004 will be mailed ro members on January 1, 2004. VII. ACCEPTANCE PROCEDURES Please complete the enclosed form indicating your decision for 2004. and return it to the CIRSA office on or before Wednesday, October 1, 2003. Failure to return the form in time may result in the imposition of penalties under Bylaw Article XI¥ upon withdrawal. You may fax the form to CIRSA at (800~ 850-8950 and follow with a hard copy by mail. VIII. WITFI:I)RAWAL PROCEDURES (if applicable, The enclosed Article XIV of the CIRSA Bylaws describes withdrawal procedures from CIRSA. Written notice of withdrawal must be received by CIRSA no later than Wednesday, October 1, 2003, for a withdrawal without penalty effective January 1, 2004. Article XIV should be read in ~ts entirety for any penalties, which would otherwise apply. Withdrawing members who subsequently apply to rejoin CIRSA may be subject to such terms and conditions as established by the CIRSA Board of Directors.