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Home My WebLink About2010-06-22; City Council; 20274; Renewal of liability insurance through CAMELCITY OF CARLSBAD - AGENDA BILL 15 AB# 20,274 MTG. 6/22/10 DEPT. FIN RENEWAL OF LIABILITY COVERAGE THROUGH CALIFORNIA MUNICIPAL EXCESS LIABILITY (CAMEL) PROGRAM DEPT. DIRECTOR &L CITY ATTORNEY <^^ CITY MAN ACER (XA— RECOMMENDED ACTION: Approval of Resolution No. 2010-156 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 2010-11. 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. In addition, all terms and conditions of coverage remain the same. A summary of coverage is shown in Exhibit 2. FISCAL IMPACT: This premium will be paid with funds from the 2010-11 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. ENVIRONMENTAL IMPACT: The proposed action does not qualify as a "project" under the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15378 as it does not result in a direct or reasonably foreseeable indirect physical change in the environment. EXHIBITS: 1. 2. Resolution No 2010-156 Summary of Coverage DEPARTMENT CONTACT: Erin K. Letsch, (760) 602-2470, Erin.Letsch@carlsbadca.gov FOR CITY CLERK'S USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED X D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D 1 RESOLUTION NO. 201°-156 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE RENEWAL 3 OF LIABILITY INSURANCE THROUGH THE CALIFORNIA 4 MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) 5 WHEREAS, in 1999 the City became a member of the California Municipal 6 , Excess Liability program (CAMEL) for purposes of obtaining liability coverage; and 7 WHEREAS, the City desires to renew its insurance through Alliant Insurance8 9 Services, Inc. 10 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 11 Carlsbad, California, as follows: 12 1. That the above recitations are true and correct. 2. That the renewal of liability coverage through the California Municipal 14 Excess Liability program effective July 1, 2010 to June 30, 2011 is hereby 15 approved and the Finance Director is authorized to issue a warrant in the 16 amount of $240,747 for the payment of the premium to Alliant Insurance 18 Services, Inc. 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of June, 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, and Blackburn. NOES: None. ABSENT: Council Member Packard. . LEWIS, Mayor ATTEST: ORRAINE/MJWOOD, City ClerkA (SEAL) ^ u PUBLIC ENTITY GROUP ALLIANT INSURANCE SERVICES, INC.»Alliant CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL JULY 1,2010 TO JULY 1,2011 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 1,2009 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 • Dams July 1,2010 to July 1,2011 Excess Municipal Liability on an Occurrence Basis including: • Bodily Injury • Personal Injury • Property Damage • Public Officials Errors & Omissions • Unfair Employment Practices Liability • Dams *See last page for additional details. "ANML PROGRAM G:\_Client Files\Caltfomia Municipal Excess Liability Program (CAMEL)\Camel 2010-2011\2. Quote-Proposal Alliant Insurance Services. Inc. • 1301 Dove Street. Suite 200 • Newport Beach, CA 92660 Phone 949-756-0271 • Fax 949-756-2713 • www.alliantinsurance.com • License No. OC36861 CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE 2 PUBLIC ENTITY 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 Uninsured/Underinsured Motorist Transit except nonfixed or dial-a-ride TRIA (Except where coverage was purchased for an additional premium of $4,815) 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 Uninsured/Underinsured Motorist 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. "ANML PROGRAM CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGES PUBLIC ENTITY GROUP ALLIANT INSURANCE SERVICES, INC. PRESENT PROPOSED LIMITS OF LIABILITY: SELF-INSURED RETENTION: DEFENSE COSTS AND EXPENSES: ANNUAL PREMIUM: COMMISSION: SUBJECT TO AUDIT: CONDITIONS: EVEREST NATIONAL INSURANCE COMPANY EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM **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 N/A $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 • Coverage applicable to Named Insureds at time of binding. Additional named insureds subject to underwriting and additional premium "AHML PROGRAM CALIFORNIA MUNICIPAL EXCESS LIABILITY PROGRAM (CAMEL) INSURANCE PROPOSAL CITY OF CARLSBAD PAGE 4 PUBLIC ENTITY GROUP ALLIANT INSURANCE SERVICES, INC.xAlliant PRESENT PROPOSED BROKER: EVEREST NATIONAL INSURANCE COMPANY EVEREST NATIONAL INSURANCE COMPANY **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM **ALLIANT NATIONAL MUNICIPAL LIABILITY PROGRAM ALLIANT INSURANCE SERVICES, INC. NEWPORT BEACH, CALIFORNIA Gordon DesCombes Rennetta Poncy Executive Vice President Vice President Julia Gordon Asst. Vice President Ryan Jacques Account Manager Lead 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 wwtv.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.gov "ANML PROGRAM