HomeMy WebLinkAbout1986-06-24; City Council; 7059-2; Renewal of excess workers compensationCITJPbF CARLSBAD — AGEND^3ILL
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DEPT. RM
TITLE:
RENEWAL OF EXCESS WORKERS'
COMPENSATION. INSUR/WCE
DEPT. HD. /P77
CITY ATTY\)Fjr>
CITY MGR.^H-^
RECOMMENDED ACTION:
Approve Resolution No. j^tp'3Lo authorizing the City Manager to renew the
City's excess workers compensation insurance.
,ITEM EXPLANATION ,
Current excess workers' compensation insurance for the City expires on duly 1,
1986. Presently, the City purchases excess insurance with a self insured
retention of $125,000 through Employers Reinsurance Corporation. The annual
deposit premium is $18,94-4.
Renewal of this coverage has again been seriously affected by the current
insurance market crisis. At the time of preparing this Agenda Bill, no firm
quotations have been received, although the City Broker is confident that
quotations will be received from Employers Reinsurance Corporation, the current
carrier, and General Reinsurance Corporation. Both these companies carry the
highest Bests rating of A+:XV and are admitted in California. It is anticipated
that the premium may increase as much as 30%, and that there may be some
modifications with respect to the deductible amount and the current statutory
limit.
.-In view of the delay in obtaining quotation figures, it is recommended that the
City Manager be given the authority to renew at the best premium and terms
available.,
FISCAL IMPACT^
Funds are available in the Workers Compensation Self-Insurance fund to pay the
deposit premium for this renewal.
\EXHIBITS
Resolution No.
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RESOLUTION NO.8620
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALFORNIA AUTHORIZING RENEWAL OF THE
CITY'S EXCESS WORKERS COMPENSATION INSURANCE
WHEREAS, the City's insurance brokers is obtaining quotations for excess
workers' compensation insurance; and
WHEREAS, because of current conditions in the insurance market, all
quotations may not be available until immediately prior to the renewal date;
and
WHEREAS, upon evaluation of the quotations for excess workers compensation,
City desires to renew its insurance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California as follows:
1. That the above recitations are true and correct.
2. That the City Manager is hereby authorized to enter into an agreement
for renewal of the City's excess workers' compensation insurance in accordance
with the best terms available prior to the renewal date.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of
the City of Carlsbad on the 24th day of June , 1986, by the
following vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: None
MARY H. CASLER, Mayor
ATTEST:
^.
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)