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Home My WebLink About2009-07-07; City Council; 19879; Renewal of liability coverage through CAMELCITY OF CARLSBAD - AGENDA BILL AB# 19.879 MTG. 7/7/09 DEPT. RM RENEWAL OF LIABILITY COVERAGE THROUGH CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL) PROGRAM DEPT. CITY ATTY. CITY MGR Q LJJ Ia.OL o oo RECOMMENDED ACTION: Approval of Resolution No. 2009-169 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 2009-10. The City's premium is $240,747, which is the same as last year's premium due to a relatively flat liability insurance market 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 2009-10 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 2009-169 2. Summary of Coverage DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, Erin.Letsch@carlsbadca.gov Exhibit 2 DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC.°Alliant CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL JULY 1,2009 TO JULY 1,2010 CITY OF CARLSBAD INSURANCE COMPANY: *BEST'S GUIDE RATING: *STANDARD & POOR'S: CALIFORNIA STATUS: 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 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 PROGRAM TERM: COVERAGE: 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 July 1,2009 to July 1,2010 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. 'MATAtt PROGRAM Alliant insurance Services, inc. • 1301 Dove Street. Suite 200 • Newport Beach. C'A 926oO Phone 949-756-0271 • Fax 944-756-27)3 « www.alliantinsurance.coni • License No. OC3686I CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE 3 DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC.*Alliant LIMITS OF LIABILITY: SELF-INSURED RETENTION: DEFENSE COSTS AND EXPENSES: ANNUAL PREMIUM: COMMISSION: SUBJECT TO AUDIT: CONDITIONS: PRESENT EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM $ 10,000,000 Any one occurrence or any combination thereof $ 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 (Excludes TRIA) 10% No PROPOSED EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM $ 10,000,000 Any one occurrence or any combination thereof $ 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 10% No • Policy coverage form amendments per attached Advisory Notice - Pollution changes attached • Coverage applicable to Named Insureds at time of binding. Additional named insureds subject to underwriting and additional premium "ANML PROGRAM CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE 4 DRIVER SPECIALTY GROUP ALLIANT INSURANCE SERVICES, INC."AJIiant BROKER:ALLIANT INSURANCE SERVICES, INC. NEWPORT BEACH, CALIFORNIA Gordon DesCombes Rennetta Poncy Senior Vice President Vice President Julia Gordon Account Executive Ryan Jacques Sr. Account Manager THIS PROPOSAL IS FOR INFORMA TION PURPOSES ONLY AND DOES NOT ALTER THE POLICY IN ANY WA Y, 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.alllantinsurance.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. gov "ANML PROGRAM POLLUTION ADVISORY NOfTICE CHANGES ENDORSEMENT TO POLICYHOLDERS This Notice does not form a part of your insurance construed,to replace any provisions of your this Notice and the policy (Including its endorsements), ments) shall prevail. Carefully read your policy, Including the endo -sements attached to your policy. This Notice provides Information concerning ENIL9MU0708 contract. No coverage Is provided by this Notice, nor can It be policy (including Its endorsements). If there Is any conflict between the provisions of the policy (Including Its endorse- the following new endorsement which applies to your new or re- newal policy being Issued by us: Pollution Changes Endorsement Ell 01 510 07 08 This endorsement modifies the current pollu ion exclusion In your policy. The exclusion, as modified, reinforcesthe scope of the pollution exclusion, by explk Illy stating that such exclusion applies regardless of whether or not apollutant Is of essential or significant use to ti e Insured's business. The exclusion in this endorsement applies to all coverages provided by your Commercial Property, CommercialExcess, General Liability, Professional Liability, Commercial Umbrella or Commercial Auto Insurance, unlessstated otherwise In your poflcy. ENIL9MU0708 Copyrigh Includes copyrigl COPY Everest Reinsurance Company, 2009.ted material of Insurance Services Office, Inc.Page 1 of 1 \ 1 RESOLUTION NO. 2009-169 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE RENEWAL OF 3 LIABILITY INSURANCE THROUGH THE CALIFORNIA 4 MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) 5 WHEREAS, in 1999 the City became a member of the California Municipal Excess 6 Liability program (CAMEL) for purposes of obtaining liability coverage; and 7 WHEREAS, the City desires to renew its insurance through Alliant Insurance Services, 8 Inc. 9 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, 10 California, as follows: 11 1. That the above recitations are true and correct. 12 .- 2. That the renewal of liability coverage through the California Municipal Excess 14 Liability program effective July 1, 2009 to June 30, 2010 is hereby approved and the Finance 15 Director is authorized to issue a warrant in the amount of $240,747 for the payment of the 16 premium to Alliant Insurance Services, Inc. 17 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the 18 City of Carlsbad on the 7t-V> day of July , 2009, by the following vote: 19 AYES: Council Members Lewis, Kulcbin, Hall, Packard and Blackburn. 20 NOES: None. ABSENT: None. 21 22 23 i~™u«™ A LEWIg; Mayor 24 ATTEST:.v\»»"""/,25 •^O — \j ••=s»i<r-3«s«i' JC-~K r-. — "Y r\ / \ i r^T^^f*~<A->*—-, »= LO&RAIN£ to. WOfolj, City Clerk' 7T /•vr '- '*• VWKMKI^B"" ^ "» T II \ J J *^->27 ^,0^|PP'^C^ (SEAL) 28