HomeMy WebLinkAbout1994-07-12; City Council; 12765; RENEWAL OF EXCESS WORKERS' COMPENSATION INSURANCE,
0
0
a 2
9
a
.. z o - 6
6 4
z 3 0 0
b ur LARL~CSAU - AUENW BILL . ,”
\ DEPT. I AB#m TITLE: RENEWAL OF EXCESS WORKERS’
COMPENSATION INSURANCE CITY A MTG. 7/12/94
DEPT. RM CITY M
RECOMMENDED ACTION:
Approval of Resolution No. 9‘1- ‘8b authorizing the renewal of Excess Workers’
Compensation Insurance coverage in accordance with staffs recommendation at a premium
deposit of $37,671.
ITEM EXPLANATION
The current Excess Workers’ Compensation Insurance Policy expired on June 30, 1994.
Coverage has been continued pending Council action on the current proposals. This policy
provides for loss coverage which exceeds the City’s self-insured retention level.
Quotations for coverage were received from the following insurance companies: National
Union, Employers Reinsurance and General Reinsurance. National Union and General
Reinsurance are rated A+ +:XV and Employers Reinsurance is rated A+ +XIV in Best’s
1994 Key Rating Guide. All three companies exceed the City’s minimum rating requirements.
The basic differences between the quotations are set forth below.
Limit Rate/$lOO Quote Provider on Benefits of Pavoll DeDosit Premium
H National Union Unlimited $0.2159 $50,736
I1 Employers RE Unlimited $0.1603 $37,671
IIH Gen. RE $10’000,o0o $0.195 $48,825
The only differences between these programs center around the cap on workers compensation
benefits and the premium. Benefits under General Reinsurance are capped at $10,000,000.
There is no cap on the benefits under the National Union and Employers Reinsurance
programs. Of the three insurance companies, Employers Reinsurance provided the lowest
quote which is 14% below the premium paid last year. As a result, staff recommends that the
City renew its coverage with Employers Reinsurance as set forth in Quotation 11.
FISCALIMPACT
The recommended renewal quotation is $37,671. The City’s SIR would remain at $300,000
for each claim.
EXHIBITS
1. Resolution No. 4q-ISG-
2. Summary of Excess Workers’ Compensation Insurance Proposals
i2
1
2
3
4
5
6
RESOLUTION NO. 94-188
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’
mpensation; and
9
10
11
12
13
14
15
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
19
20
21
22
23
24
25
26
27
28
ount of $37,671. I
I
t ‘
I
f
1
1
1
It.
1
2
3
4
5
6
7
a
9
10
11
12 ::
15
16
17
18
19
20
21
22
23
24
25
26
27
28
W 0
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City
Council of the City of Carlsbad on the 12th day of JULY 1994, by the following
vote, to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Fi
NOES: None
ABSENT: None &kL
CLAUDE A. LEWIS, Mayor
ATTEST:
w%&* 2, City Clerk
KAREN R. KUNDT ssistant City Clerk
I
5
fAnlDI I e e 6
CURRENT
National Employers General National
Union Reinsurance Reinsurance Union COMPANY:
RATING: A++ : XV A++:XIV A++:XV A++:XV
Admitted Admitted Admitted Admitted
LIMITS: Unlimited WC Unlimited WC $1o,ooo,ooowc Unlimited WC
$l,000,000EL $1,000,000EL $l,000,000EL $1,000,000EL
$300,000 $300,000 S.I.R. $300,000 $300,000
ESTIMATED PAYROLL: $23,500,000 $23,500,000 $23,500,000 $23,864,937
RATE: ,2159 .1603 ,195 .1836
DEPOSIT PREMIUM $50,736 $37,671 $45,825 $43,822
VHjd(1). 172IJun 94