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HomeMy WebLinkAbout2001-07-10; City Council; 16278; Renewal of Excess Workers' Compensation BenefitsCITY OF CARLSBAD - AGENDA BILL 48 # &i27~ TITLE: RENEWAL OF EXCESS WORKERS’ HTG. 7/10/01 COMPENSATION BENEFITS IEPT. HR 3ECOMMENDED ACTION: Approval of Resolution No. 200 I -2 /(> authorizing the renewal of Excess Workers’ Compensation Insurance coverage in accordance with staffs recommendation at a premium deposit of $40,800. ITEM EXPLANATION: The current excess Workers’ Compensation Insurance Policy expired on June 30,200l. Coverage has been continued pending Council action on the current proposal. This policy provides for loss coverage which exceeds the City’s self-insured retention level. Cal-Surance, the City’s insurance broker, has obtained a renewal quote from the City’s incumbent carrier, Employers Reinsurance Corporation. The renewal premium is $40, 800, which is significantly higher than last year’s premium of $25,827. The increased premium reflects the withdrawal of several large workers’ compensation insurance carriers from the excess insurance market. Of the five quotes received, the quote from Employers Reinsurance was the most competitive. All other terms and conditions of coverage are unchanged. FISCAL IMPACT: The recommended renewal quotation for one year is $40,800. The City’s Self Insurance Retention (SIR) would remain at $300,000 for each claim. EXHIBITS: 1. Resolution No. d00[ -&2/D 2. Summary of Excess Workers’ Compensation Insurance Quotations 1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2001-210 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’ compensation; and WHEREAS, the City’s Insurance Broker has received a renewal quotation for Excess Workers’ Compensation Insurance coverage; and WHEREAS, upon evaluation of this quotation for excess insurance, the City desires to renew its insurance. NOW, THEREFORE, BE IT RESOLVED by the City Council of Carlsbad, California, as follows: Ill Ill Ill 1. That the above recitations are true and correct. Ill Ill Ill Ill Ill Ill Ill 1 2. That the renewal of the City’s Excess Workers’ Compensation Insurance 2 coverage with Employers Reinsurance is hereby approved and the Finance Director is 3 authorized to issue a warrant for the deposit premium of said renewal in the amount of 4 $40, 800. 5 6 PASSED, APPROVED, AND ADOPTED at a Regular Meeting of the City 7 Council of the City of Carlsbad on the 10th day of JULY 2001, by the following 0 vote, to wit: 9 AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall 10 11 12 NOES: None ABSENT: None 13 14 15 ATTEST: 16 17 10 20 /I SEAL 21 22 23 24 25 26 27 20 a - ii 3 % $ 4 - 1 3 P 2 . - g! z % 3 - P B _- 5 = 5 a - F g % 9 - B 5 2 k d - g 3 - 7 i i : , : : 1 I 4 1 4 , I I 4 I , , , N # , ! , 4 I e R h C . !2 P . P 4 m v) ii I a a 0 km 0 5 L