HomeMy WebLinkAbout1984-12-18; City Council; 7657-1; Renewal of excess liability InsuranceCIT^pF CARLSBAD - AGENDA ILL £.4 ••••./,
AB# 7^7- /
MTG. 12/18/84
DEPT PCH
TITLE: •'.- ". '• •'• . • ••''•:••' •• ••- -:' '
' RENEWAL OF EXCESS LIABILITY INSURANCE
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RECOMMENDED ACTION:
Approve Resolution No.authorizing the purchase of $19,000,000
excess liability insurance at an annual premium $3.8,330 from International , ,
•'Insurance Company. . , ; -
.ITEM EXPLANATION ' ' :;-, ' :•; ...... ;'....
-the. City purchases liability insurance up to a limit ,of $20,000,000. The ; City
self-insures the first $50,000.
Company',./•"• ' .
City Self-Insurance
'; Twin Cities
First State Ins. Co.
Amount
.$. 50> 000
950,000
19 million
Premium ; .'- ; ' Term
$ 30,760 3/16/84 to 3/16/85
$ 12,760 .,nO/1/84 to 10/1/85
First State Insurance Co. is cancelling its $19 million policy as of 1/1/85.
Therefore, the. City's liability insurance broker was instructed to obtain quotes
to replace the policy being cancelled. During the current insurance crisis,
.markets for muncipal liability insurance are extremely limited. Quotations were
solicited from six insurance carriers, but only two proposals were received.
Company ; ;
International Ins. Co.
First State Ins. Co &
Federal Ins i' Co.
Amount Premium •• Term
$19 million V $ 38,300 1/1/85 to 1/1/86
19 million 48,000 : 10/1/84 to 10/1/85
It is recommended that a new policy be written with International Insurance
Company, however, the total program will be again marketed in March when the
primary policy with Twin City Insurance Company comes up for renewal. At that
time we will be comparing quotations obtained through the City broker with the.
cost of participating in the San Diego County Cities Risk Management AuthorityV
;. a Joint Powers Authority (OPA) which provides liability insurance> for its
members. •'.'. ; '
FISCAL IMPACT . '.•..'•:'.• •'.. 1-..:- •-.^'••,- " ' ' V'' ''''.-.'•-•• "•''<<•'• ' '
, The annual premium payment of $38,330 will be offset by a $9,545; return premium
as a result of cancellation of our policy by First State. Funds are available
for the net payment, of $28,785 in'the Liability Self-Insurance fund.
EXHIBITS.
1 . Resolution^ No./
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RESOLUTION NO.7841
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING PURCHASE OF
. EXCESS LIABILITY INSURANCE.
WHEREAS, the City's Insurance Broker has received
quotations for excess liability insurance; and
WHEREAS, upon evaluation of. the quotations received, the
City desires to renew coverage in the amount of $19,000,000 excess
$1,000,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Mayor is hereby authorized to enter into an
agreement for the purchase of the City's excess liability insurance
with International Insurance Company in the amount of $38,330.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
City Council on the 18th day of December ,^1984, by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: None
ATTEST:
MARY H. CASLER, Mayor
ALETHA L. RAUTENKRANZ, City jUerk
(SEAL)