HomeMy WebLinkAbout1982-06-15; City Council; 7059; Renewal of workers compensation insuranceCITftp CARLSBAD — AGEND/93ILL
AR# 70^?
MTG.
DEPT.
6/15/82
CM.
TITLE:
RENEWAL OF EXCESS WORKERS' COMPENSATION
INSURANCE
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CITY ATTYJ
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RECOMMENDED ACTION:
Approve Resolution N o . [§ ^ i j | , authorizing renewal of excess
Workers' Compensation Insurance in accordance with staff recommend-
ations at a deposit premium of $15,000.
ITEM EXPLANATION:
Current exces.s Workers' Compensation Insurance for the City expires
on July 1, 1982. Presently the City purchases limits of Five
Million Dollars over a self-insured retention of One Hundred
Thousand Dollars through Employers Reinsurance Corporation.
Premium is based on a rate of .3242 per $100 of payroll, a deposit
premium of $18,800.
Upon renewal, no change is recommended in the City's self-insured
retention. For the first time, however, coverage is now available
up to the full limit of the City's statutory liability for Workers'
Compensation benefits under the Labor Code, as opposed to the
current five million dollar limit. Purchase of this additional
protection is recommended. It involves an additional premium co.st
of only One Thousand Dollars and quotations on this basis were
received from two companies:
Company
Employers Reinsurance Corp.
Occidental Fire &. Casualty
Rate per/$100
of Payroll
.2178
.275
Deposit
Premium
$15 ,000
$18,950
Staff is accordingly recommending that the City renew its Excess
Workers'1.' Compensat ion Insurance with the.City's existing carrier,.
Employers Reinsurance Corporation.
FISCAL IMPACT:
a premium reduction of approximately $3,800
in annual
the Workers'
The City will reali-ze
over the current year, despite a substantial increase
payroll and increased limits. Funds are available in
Compensation Revolving Fund to pay the $15,000 deposit premium.
EXHIBIT:
Resolution No. /0 9 /
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. . . .RESOLUTION NO. 6911 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD,- CALIFORNIA, AUTHORIZING-RENEWAL OF THE • '' '•:
.CITY'S EXCESS WORKER'S COMPENSATION INSURANCE
WHEREAS, the City has established a self-insurance program for worker's
compensation; and ' •
WHEREAS, the City's Insurance Broker has received quotes for excess
worker's compensation insurance; and
WHEREAS, upon evaluation of the quotes for excess insurance, the City
desires to renew its insurance.
NOW, THEREFORE BE IT RESOLVED by the City Council of Carlsbad, California
as foJLlows: •
1. That the above recitations are true and correct.
2. That the Mayor is hereby authorized to enter into-an agreement for
the renewal of the City's excess worker's compensation insurance with
Employer's Reinsurance Corporation.
PASSED, APPROVED AND .ADOPTED at a regular meeting of the City Council on
the 15th day of June , 1982 by the following vote, to wit:
AYES: Govpncil Menfoers Casler, Lewis, Kulchin and Chick
NOES: None
ABSENT: None -• ' / •
ATTEST:H. .OASLER, Mayor
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ALETHA L. RAUTENKRANZ, City
(SEAL) .