HomeMy WebLinkAbout1992-07-14; City Council; 11788; RENEWAL OF EXCESS WORKERS' COMPENSATION INSURANCERECOMMENDED ACTION:
Approval of Resolution No. 92 -22y authorizing the renewal of Excess Workers’
Compensation Insurance coverage in accordance with staff recommendations at a premium
deposit of $39,358.
ITEM EXPLANATION
The current Excess Workers’ Compensation Insurance Policy with General Reinsurance
expired on June 30, 1992. Coverage has been continued pending Council action on the
current proposals. This policy provides for loss coverage which exceeds the City’s self-insured
retention level.
Quotations for coverage were received from General Reinsurance and American Home, two
of the major providers of this type of coverage in California. Both General Reinsurance and
American Home are rated A+ XV in Best’s 1992 Key Rating Guide. Both companies exceed
the City’s minimum rating requirements.
The basic differences between the quotations are set forth below:
Quote Provider
I Gen. RE $300,000 $0.173 $39,358
I1 her. Home $300,000 $0.1538 $34,576
recommendation.
It is Staffs recommendation that the City renew its coverage with General Reinsurance as se
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FISCAL, IMPACT
The recommended renewal quotation is $39,358. This represents a $2,200 increase over last
year’s premium which is totally due to an increase in the estimated total payroll for the City.
The City’s self-insured retention level would remain at $300,000 for each claim. The City
would be covered for any loss in excess of that amount up to the statutory maximum.
EXHIBITS
1. Resolution No. 92-32y
2. Summary of Excess Workers’ Compensation Insurance Proposals
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EgC&$SWOBBEBEI'COMPEMSATTON Q'UOTMW"B
JULY 1,m to my 1,1998
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COMPANY: ckeral &nerd Empioyern American Rsbur8nce IIairrsuranoe ItdnuUranoe Home
RATING: A+*XV A+*= A+- A+:?CV Admitted Admitted Admitt8d Admitted
IJnKm: $Po,ooo,o0O'wc $10,00 ooowc statuto wc ~1O,OoO,60~
8 I LR, : $800,000 $800,000 $400,000 $800,00
PAYROLL: $2 1,469,840 $22,760,000 $22,76O,OOO $22,750 ,oa
1,000,000EL ~,OO~,OOOEL S~,OOQ~WEL i,om,oo(
ESTIMATED
RATE: I 178 ,178 **.1688
DIEIIPOEIIT PREMIUM: $97,126 $89,868 $84,87
*$U,007 additional charge to provide statutory benefits. This layer would b prod Firemnrsr Fund Inaurarice.
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EXC'MS Wo~'~~cpTC?N QUOTATl~
JULY 1, I992 tamT 1, iees
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mwm: G9IMd Generd Employem bed- Rsinsurenoe R€htBUranoe R4ixKwmw Home
RATINa: A+*XV A+W A+ZEI A+:XV
LIMFM: $Po,ooo,ooo*wc $10,00 ooowc statuto wc $10,ooo,000
8*LR,: !@00,000 $300,000 $400,000 $SoS,OOO
Admitted Admittad Admitted Admitted
l,OQO,OOOEL I,OO~,OOOEL $ I,OW&IEL i,ooo,ooo:
EsmmI? PAYROLL: $2 1,469,840 $22,7 60,000 $22,7 60,000 $22,750,000
RlAm: * 178 ,173 ** ,1688
DEIP08IT PREIc6IuM: $97,126 $89,868 $34,576
*$5,007 sddifional charge to provide etatutorg bnefib. Thigl layer would be prodd Firarnaarr Fund Inaulance. **-vlrp;&l 2770 'w,aEm-
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RESOLUTION NO. 92-224
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING RENEWAL OF THE CITY’S
EXCESS WORKERS’ COMPENSATION
INSURANCE
WHEREAS, the City has established a self-insurance program for workers’
:ompensation; 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad,
California as follows:
1.
2.
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
.he Finance Director is authorized to issue a warrant for the deposit premium of said
renewal in the amount of $39,358.
,
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 14th day of JULY
vote, to wit:
1992, by the following
AYES: Council Members Lewis, Kulchin, and Stantor
NOES:
ABSENT Council Members Larson, and Nygaard
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Cy&$ /, 1 ([ (////,/.. ./ AUDE A. LE~~sFM~JI.”~
ATTEST:
L, &L4.& s( ‘Q&<, -)
ALEMA L. RAUTENKRANZ, City Clerk
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