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Home My WebLink About2008-06-24; City Council; 19495; Renewal Of Liability InsuranceCITY OF CARLSBAD - AGENDA BILL AB# 19.495 MTG. 6/24/08 DEPT. RM TITLE: RENEWAL OF LIABILITY COVERAGE THROUGH CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL) PROGRAM Q UJ Scra.a. O o D Oo RECOMMENDED ACTION: Approval of Resolution No. 2008-187 approving the renewal of liability insurance through the California Municipal Excess Liability (CAMEL) insurance program. ITEM EXPLANATION: The City participates in the Alliant Insurance Services, Inc. CAMEL joint purchase program for liability coverage. Alliant negotiated a renewal for the program for 2008-09. The City's premium is $240,747, a 13.5% decrease from last year's premium. This decrease is due to improved market conditions and the benefits of participation in a joint purchase program. A summary of coverage is shown as Exhibit 2. FISCAL IMPACT: This premium will be paid with funds from the 2008-09 Liability Fund. The Carlsbad Municipal Water District and Housing and Redevelopment Agency are also insureds under this coverage and contribute to the premium through the budget process. EXHIBITS: Resolution No 2008-187 2. Summary of Coverage DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, elets@ci.carlsbad.ca.us 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2008-187 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE RENEWAL OF LIABILITY INSURANCE THROUGH THE CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) WHEREAS, in 1999 the City became a member of the California Municipal Excess Liability program (CAMEL) for purposes of obtaining liability coverage; and WHEREAS, the City desires to renew its insurance through Alliant Insurance Services, Inc. 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 renewal of liability coverage through the California Municipal Excess Liability program effective July 1, 2008 to June 30, 2009 is hereby approved and the Finance Director is authorized to issue a warrant in the amount of $240,747 for the payment of the premium to Alliant Insurance Services, Inc. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 24th day of June , 2008, by the following vote: AYES: Council members Lewis, Kulcbin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. ATTEST: M. WOJQLX City Clerk INSURANCE COMPANY: *BEST'S GUIDE RATING: *STANDARD & POOR'S: CALIFORNIA STATUS: PROGRAM TERM: COVERAGE: EXHIBIT 2 DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC. CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL JULY 1,2008 TO JULY 1,2009 CITY OF CARLSBAD PRESENT Everest National Insurance Company "*Alliant National Municipal Liability Program A+, Superior; Financial Size Category 15; Greater than $2,000,000,000 AA-; Very Strong Financial Security Admitted July 1,2007 to July 1,2008 Excess Municipal Liability on an Occurrence Basis including: • Bodily Injury • Personal Injury • Property Damage • Public Officials Errors & Omissions • Unfair Employment Practices Liability • Employee Benefit Liability • Dams *See last page for additional details. PROPOSED Everest National Insurance Company **Alliant National Municipal Liability Program A+, Superior, Financial Size Category 15; Greater than $2,000,000,000 AA-; Very Strong Financial Security Admitted July 1,2008 to July 1,2009 Excess Municipal Liability on an Occurrence Basis including: • Bodily Injury • Personal Injury • Property Damage • Public Officials Errors & Omissions • Unfair Employment Practices Liability • Employee Benefit Liability • Dams *ANIMAL PROGRAM O:UPUnitCamel\_Camel 08-09VProposals\08-09 Camel Liab Proposal-Mng.doc Alliant Insurance Services, Inc. • 3.501 Dove Street, Suite 200 • Newport Beach. CA 92660 Phone 949-756-0271 » Fax 949-756-2713 « w\v\v.altiantinsurance.com • License No. OC3686I CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE! DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC. PRESENT PROPOSED EVEREST NATIONAL INSURANCE COMPANY EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM MAJOR EXCLUSIONS: Note: Refer to policy for complete details Nuclear Punitive, exemplary or multiplied damages Aircraft or Airports, except public areas Workers' Compensation or similar law Property owned by insured or in their care, custody and control Asbestos Pollution/Contamination except for: Hostile Fire and Collision Upset/Overturn of owned and non-owned vehicles and Time Element Extension. Eminent Domain or condemnation proceedings except as a result of negligence ERISA Financial Interests Subsidence Failure to Supply - amended Medical Malpractice Transit except nonfixed or dial-a-ride TRIA (Except where coverage was purchased for an additional premium of $5,566) Nuclear Punitive exemplary or multiplied damages Aircraft or Airports, except public areas Workers' Compensation or similar law Property owned by insured or in their care, custody and control Asbestos Pollution/Contamination except for: Hostile Fire and Collision Upset/Overturn of owned and non-owned vehicles and Time Element Extension. Eminent Domain or condemnation proceedings except as a result of negligence ERISA Financial Interests Subsidence Failure to Supply - amended Medical Malpractice Transit except nonfixed or dial-a-ride TRIA (Except where coverage is purchased for an additional premium of $4,815) INSURING AGREEMENT: Pay on behalf Pay of behalf CLAIMS ADMINISTRATION: Claims reporting requirements apply as outlined in Claims reporting requirements apply as outlined in the issued policy. the issued policy. **ANIMAL PROGRAM G:UPUmt\Camel\_Camel 08-09\Proposals\08-09 Camel Liab Proposal-Mrg.doc CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGES DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC. PRESENT PROPOSED EVEREST NATIONAL INSURANCE COMPANY EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM **ALLLANT NATIONAL MUNICIPAL LIABILITY PROGRAM LIMITS OF LIABILITY:$10,000,000 Any one occurrence or any combination thereof $10,000,000 Any one occurrence or any combination thereof SELF-INSURED RETENTION: DEFENSE COSTS AND EXPENSES: ANNUAL PREMIUM: $ 10,000,000 Aggregate applies to Completed Operations Hazard Note: Aggregate applies separately to each CAMEL Member $ 500,000 Per Occurrence $ 1,000,000 Employment Practices Liability Defense Costs are included inside the Self-Insured Retention and inside the Limits of Liability $278,320 (Excludes TRIA) $ 10,000,000 Aggregate applies to Completed Operations Hazard Note: Aggregate applies separately to each CAMEL Member $ 500,000 Per Occurrence $ 1,000,000 Employment Practices Liability Defense Costs are included inside the Self-Insured Retention and inside the Limits of Liability $240,747 / $245,562 Total if TRIA is purchased Commission 10% SUBJECT TO AUDIT: CONDITIONS: No No Policy coverage form amendments per attached Advisory Notice Coverage applicable to Named Insureds at time of binding. Additional named insureds subject to underwriting and additional premium **ANIMAL PROGRAM G:\JPUmt\Camel\ Camel 08-09\Proposals\08-09 Camel Liab Proposal-Mrg.doc CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE 4 DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC.^Alliant PRESENT PROPOSED EVEREST NATIONAL INSURANCE COMPANY EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM SIR OPTIONS: BROKER: None requested ALLIANT INSURANCE SERVICES, INC. NEWPORT BEACH, CALIFORNIA Gordon DesCombes Senior Vice President Rennetta Poncy Vice President Julia Gordon Account Executive THIS PROPOSAL IS FOR INFORMATION PURPOSES ONLY AND DOES NOT ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE, TERMS & CONDITIONS AND EXCLUSIONS. Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliantinsurance.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: Chief Financial Officer, 1301 Dove Street, Suite 200, Newport Beach, CA 92660. * Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings. A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com To learn more about companies doing business in California, visit the California Department of Insurance website at www.insurance.ca.zov (eh **ANIMAL PROGRAM G:\)PUnilCamel\_Camel 08-09\Proposals\08-09 Camel Liab Proposal-Mrg.doc