HomeMy WebLinkAbout1991-07-16; City Council; 11254; RENEWAL OF EXCESS WORKERS' COMPENSATION INSURANCEAB# I/, a5f/
MTG. 7/16/91
DEPT. RM
TITLE: DEPT. H
CITY AT
CITY MC
RENEWAL OF EXCESS WORKERS’
COMPENSATION INSURANCE
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exceeded, General Reinsurance will pay the claims expense on a pro rata basis only. This
difference is also considered to be insignificant. Third, under the General Reinsurance
Program, the coverage for losses in excess of $lO,OOO,O00 is provided by Fireman’s Fund.
The coverages provided by the combination of General Reinsurance and Fireman’s Fund are
equal to that offered by Employer’s Reinsurance. However, the self-insured retention level
offered by General Reinsurance is $100,000 lower than that offered by Employer’s
Reinsurance. That means that under General Reinsurance, the City’s risk of loss on any claim
is only $300,000 as opposed to $400,000. Additionally, the combined premium offered by
General Reinsurance and Fireman’s Fund is $18,648 less than that required by Employer’s
Reinsurance.
It is Staffs recommendation that the City renew its coverage with General Reinsurance and
Fireman’s Fund as set forth in Quotation I.
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FISCAL IMPACT
The recommended renewal quotation is $42,126. The City’s self-insured retention level would
remain at $300,000 for each claim. However, the City would be covered for any loss in excess
of that amount up to the statutory maximum.
EXHIBITS
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2.
Resolution No. 9 1 -2 29
Summary of Excess Workers’ Compensation Insurance Proposals
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RESOLUTION NO. 9 1 - 2 2 9
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING RENEWAL OF THE CITS
EXCESS WORKERS’ COMPENSATION
INSURANCE
WHEREAS, the City has established a self-insurance program for workers’
compensation; and
WHEREAS, the City’s Insurance Broker has received quotations for Excess
Workers’ Compensation Insurance coverage; and
WHEREAS, upon evaluation of these quotations for excess insurance, the
City desires to renew its insurance.
WOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad,
California as fo8lows:
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That the above recitations are true and correct.
That the renewal of the City’s Excess Workers’ Compensation
Insurance coverage with General Reinsurance and Fireman’s Fund is hereby approved and
the Financial Management Director is authorized to issue a warrant for the deposit
premium of said renewal in the amount of $42,126. I
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 16th day of
vote, to wit:
Ju1Y 1991, by the following
AYES:
NOES: None
ABSENT: None
Council Members Lewis, Kulchin, Larson, Nygaard and
St ant on
ATTEST:
lIlL?LBi?-
ALETHA L. RAUTENKRANZ, City Clerk
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EXHIBIT - m m
CPI’Y OF CARLSIBAD
EXCESS W0RKER.S COMPENSATION QUOTATIONS
JULY 1,1991 tu JULY I, 1992
(?uRmmT $Urn I QWOTE Dc,
COMPANY: General Gensrd Employors
Reinsurance ReinsWanCe R@iPalU€UiCf3
RATING; A+:XV A+:W A+:XZII Admitted Admitted Admitted
LIMITS: $10,000,000 wc $10,000,000* wc Statutory WC 1,000,000 EL 1,000,000 EL 1,000,000 EL
S.I.R.: $300,000 $300,000 $400,000
ESTIMATED PAYROLL: $18,81O,400 $2 1,469,840 $2 1,459,840
RATE; 173 -173 .2832 .257
DEPOSIT PREMIUM: $32,600 $37,126 $60,774
*$6,000 additional charge to prvvide statutory benefits. This layer would provided by Fireman’s Fund Insurance.
BXbr.€W.l $¶?-PI
GALeURANCE ASSOCIATE