HomeMy WebLinkAbout2015-06-23; City Council; 22008; Purchase Excess Liability Coverage County Supervisors Association of California dba California State Association of Counties Excess Insruance Authority CSAC EIACITY OF CARLSBAD - AGENDA BILL
AB# 22,008 PURCHASE OF EXCESS LIABILITY COVERAGE
THROUGH COUNTY SUPERVISORS
ASSOCIATION OF CALIFORNIA DBA CALIFORNIA
STATE ASSOCIATION OF COUNTIES EXCESS
INSURANCE AUTHORITY (CSAC EIA)
DEPT. DIRECTOR CXi^
MTG. 6/23/15
PURCHASE OF EXCESS LIABILITY COVERAGE
THROUGH COUNTY SUPERVISORS
ASSOCIATION OF CALIFORNIA DBA CALIFORNIA
STATE ASSOCIATION OF COUNTIES EXCESS
INSURANCE AUTHORITY (CSAC EIA)
CITY ATTORNEY ^J/^
DEPT. ASD/RISK
PURCHASE OF EXCESS LIABILITY COVERAGE
THROUGH COUNTY SUPERVISORS
ASSOCIATION OF CALIFORNIA DBA CALIFORNIA
STATE ASSOCIATION OF COUNTIES EXCESS
INSURANCE AUTHORITY (CSAC EIA)
CITY MANAGER / Jf) '
RECOMMENDED ACTION:
Approval of Resolution No. 2015-159 , approving the purchase of excess liability coverage through
County Supervisors Association of California dba California State Association of Counties Excess Insurance
Authority (CSAC EIA).
ITEM EXPLANATION:
The city previously participated in the Alliant Insurance Services, Inc. joint purchase program known as
CAMEL (California Municipal Excess Liability), or ANML (Alliant National Municipal Liability) depending on
the group of cities marketed, for liability insurance coverage.
For the current fiscal year the city paid $491,875.84 for $20,000,000 in excess liability coverage with a
self-insured retention (SIR) of $1,000,000 with an additional $500,000 Corridor Aggregate Retention.
With the assistance of our broker, Alliant Insurance Services, the city is purchasing $25,000,000 of excess
liability coverage with a $1,000,000 self-insured retention through CSAC EIA. The coverage summary is
shown in Exhibit 2 (option: 2).
Staff recommends purchasing excess liability coverage through CSAC EIA at a cost not to exceed
$398,159.00.
FISCAL IMPACT:
This represents a $93,716 (approximately 19 percent) decrease over last year's premium and a $5,000,000
(25 percent) increase in overall coverage limits and the elimination ofthe $500,000 Corridor Aggregate
Retention which was another form of a one-time deductible.
DEPARTMENT CONTACT: Ed Garbo, (760) 602-2471, ed.garbo(5)carlsbadca.gov
FOR CITY CLERKS USE ONLY.
•
COUNCIL ACTION: APPROVED
•
CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
ENVIRONMENTAL IMPACT:
This action is not a "project" within the definition ofthe California Environmental Quality Act in that it
does not have a direct or indirect impact on the physical environment under California Code of
Regulations, Title 14, Chapter 3, section 15378.
EXHIBITS:
1. Resolution No 2015-159 approving the purchase of excess liability coverage through
County Supervisors Association of California dba California State Association of Counties
Excess Insurance Authority (CSAC EIA)
2. Insurance Proposal
EXHIBIT 1
1 RESOLUTION NO. 2015-159
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE PURCHASE OF EXCESS LIABILITY
4 COVERAGE THROUGH COUNTY SUPERVISORS ASSOCIATION OF
CALIFORNIA DBA CALIFORNIA STATE ASSOCIATION OF COUNTIES
5 EXCESS INSURANCE AUTHORITY (CSAC EIA)
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WHEREAS, the City desires to purchase excess liability coverage through California State
8 Association of Counties Excess Insurance Authority (CSAC EIA); and
^ WHEREAS, Alliant Insurance Services has negotiated the purchase of excess liability
coverage through CSAC EIA from July 1, 2015 to June 30, 2016 for a premium of $ 398,159.00;
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
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j4 California, as follows that:
15 1. The above recitations are true and correct
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2. That the purchase of excess liability coverage through the CSAC EIA, effective
July 1, 2015 to June 30, 2016, is hereby approved and the Administrative Services
Director is authorized to issue a warrant in the amount of $398,159.00 for the
payment ofthe premium to CSAC EIA.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 23'^'' day of June, 2015, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Blackburn, Schumacher, Wood and Packard.
None.
ABSENT: None.
MATT
ATTEST:
rr HALt, Mayor
BARBARA ENGLESON,\City Clerk
(SEAL)
> ry.-- ..o.^ <.
EXHIBIT 2
CSAC EXCESS
INSURANCE AUTHORITY
Alliant
GENERAL LIABILITY PROGRAM I (GLI)
INDICATION
MEMBER City of Carlsbad
PROGRAM TERM July 1, 2015 to July 1, 2016
COMPANIES AFFORDING
COVERAGE
CSAC Excess Insurance Authority (CSAC EIA) with reinsurance
provided by Great American Insurance Company; Wesco Insurance
Company (a member of AmTrust Financial Group); Evanston Insurance
Company (Markel Re); and Argonaut Insurance Company.
COVERAGE PROVIDED Per the CSAC Excess Insurance Authority (CSAC EIA) Excess Liability 1
Program Memorandum of Coverage. Coverage includes:
• Bodily Injury
• Personal Injury
• Property Damage
• Public Officials Errors and Omissions
• Automobile Liability
• Contractual Liability
• Employment Practices Liability
• Non-Owned Aircraft Liability
LIMITS OF LIABILITY Pooled Layer
$ 5,000,000 per occurrence, offense or wrongful act
(difference between $5,000,000 and the Covered
Party's SIR)
Reinsured Layer
$25,000,000 per occurrence or wrongful act excess of $5,000,000
pooled retention
As ResDects all Layers
• Annual aggregate to apply to each layer for completed operations
• Occurrence and aggregate limits apply separately by layer per
member
SELF-INSURED
RETENTION
Option 1:$ 500,000 each occurrence, offense or wrongful act
Option 2: $ 1,000,000 each occurrence, offense or wrongful act
Self insured retention is eroded by defense costs
NOTE- THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN
ANYWAY. PLEASEREFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION
Alliant Insurance Services, Inc. • 1301 Dove Street • Suite 200 • Newport Beach, CA 92660
PHONE (949) 756-0271 • www.alliantinsurance.com • License No. 0C36861 Page 1 of 5
CSAC EXCESS
INSURANCE AUTHORITY
Pliant
GENERAL LIABILITY PROGRAM I (GLI)
INDICATION
MAJOR EXCLUSIONS
(Including but not limited
to)
Airports/Aircraft
Health Care Professional Liability (limited)
Inverse Condemnation/Eminent Domain
Failure to Supply
Subsidence (unless endorsed)
Nuclear Material
Pollution
Dam Failure (unless endorsed)
Asbestos
Fixed Route Transit (unless endorsed)
Punitive Damages
Fiduciary Liability
ERISA
Care Custody and Control
Benefits payable under an employee benefit plan
Non-monetary damages
Breach of Contract
Unlawful Discrimination intentionally committed by, at the
direction of, orwith the consent ofthe Covered Party
Violation of Economic or Trade Sanctions
Strip Search (limited)
Violation of Communication or Information Law
Charter Schools (unless endorsed)
Auxiliary Organizations (unless endorsed)
ESTIMATED ANNUAL
PAYROLL
$ 64,913,906
ANNUAL PREMIUM Option 1:$ 500.000 SIR
$ 417,251
84,070
31,228
18,372
33,447
2,755
32,546
350
$ 620,020
Pool Premium
Reinsurance Premium Layer 1
Reinsurance Premium Layer 2
Reinsurance Premium Layer 3
EIA Administration Fee
EIA Public Entity Fee
Alliant Broker Fee
CSAC EIA One-Time Development Fee
Total Estimated Annual Premium
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN
ANYWAY. PLEASEREFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION
Alliant Insurance Services, Inc.
PHONE (949) 756-0271
1301 Dove Street • Suite 200 • Newport Beach, CA 92660
' www.alliantinsurance.com • License No. 0C36861 Page 2 of 5
CSAC EXCESS
INSURANCE AUTHORITY
GENERAL LIABILITY PROGRAM I (GLI)
INDICATION
Ootion 2: $1,000,000 SIR
$ 217,673 Pool Premium
84,070 Reinsurance Premium Layer 1
31,228 Reinsurance Premium Layer 2
18,372 Reinsurance Premium Layer 3
22,141 CSAC EIA Administration Fee
1,757 CSAC EIA Public Entity Fee
22,567 Alliant Broker Fee
350 CSAC EIA One-Time Development Fee
$ 398,159 Total Estimated Annual Premium
CONDITIONS • Indication only- Terms and Conditions subject to change
• Premium is subject to change
• Subject to carrier approvals
• Premium includes a $1,000 annual loss prevention subsidy
• Premium includes a $2,000 actuarial subsidy
• Premium includes cost for claim audit requirement
• Membership Conditions:
• Claims audit to be conducted within the first year
• Actuarial Study to be conducted in the first year of participation
• Receipt of completed and signed Authorization to Obtain Loss
Data for
• Receipt of the executed Joint Powers Agreement (JPA) prior to
binding
• Receipt ofthe executed General Liability 1 Memorandum of
Understanding priorto binding
• Receipt of executed of Designated Representative form prior to
binding
Notes:
• Undenwriting and Executive Committees have approved with dam
exclusion buy back
• Premium includes Dam exclusion buy back
• Loss Prevention review complete
BROKER ALLIANT INSURANCE SERVICES, INC.
Gordon DesCombes, Executive Vice President
Nazie Arshi, Senior Vice President
Tom E. Corbett, Senior Vice President
Kevin Bibler, Senior Vice President
Rennetta Poncy, Senior Vice President
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN
ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION
Alliant Insurance Services, Inc. • 1301 Dove Street • Suite 200 • Newport Beach, CA 92660
PHONE (949) 756-0271 • www.alliantinsurance.com • License No. 0C3686I Page 3 of 5
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CSAC EXCESS
INSURANCE AUTHORITY
Alliant
GENERAL LIABILITY PROGRAM I (GLI)
INDICATION
Courtney Ramirez, Assistant Vice President
Brenna Smith, CSAC EIA Program Specialist Team Lead
INDICATION DATE May 20, 2015
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POUCY FORM IN
ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION
Alliant Insurance Services, Inc. • 1301 Dove Street • Suite 200 • Newport Beach, CA 92660
PHONE (949) 756-0271 • www.alliantinsurance.com • License No. 0C36861 Page 4 of 5
CSAC EXCESS
INSURANCE AUTHORITY
Pliant
GENERAL LIABILITY PROGRAM I (GLI)
INDICATION
California Status A.M. Best's Guide Rating Standard & Poor's Rating
CSAC Excess Insurance Authority
(CSAC EIA)
Not Applicable 1 Not Applicable Not Applicable
THIS PROPOSAL OF INSURANCE IS PROVIDED AS A MATTER OF CONVENIENCE AND INFORMATION ONLY. ALL
INFORMATION INCLUDED IN THIS PROPOSAL, INCLUDING BUT NOT LIMITED TO PERSONAL AND REAL PROPERTY VALUES,
LOCATIONS, OPERATIONS, PRODUCTS, DATA, AUTOMOBILE SCHEDULES, FINANCIAL DATA AND LOSS EXPERIENCE, IS
BASED ON FACTS AND REPRESENTATIONS SUPPLIED TO ALLIANT INSURANCE SERVICES, INC. BY YOU. THIS
PROPOSALDOES NOT REFLECT ANY INDEPENDENT STUDY OR INVESTIGATION BY ALLIANT INSURANCE SERVICES, INC.
OR ITS AGENTS AND EMPLOYEES.
PLEASE BE ADVISED THAT THIS PROPOSALIS ALSO EXPRESSLY CONDITIONED ON THERE BEING NO MATERIAL CHANGE
IN THE RISK BETWEEN THE DATE OF THIS PROPOSAL AND THE INCEPTION DATE OF THE PROPOSED POLICY (INCLUDING
THE OCCURRENCE OF ANY CLAIM OR NOTICE OF CIRCUMSTANCES THAT MA Y GIVE RISE TO A CLAIM UNDER ANY POLICY
WHICH THE POLICY BEING PROPOSED IS A RENEWAL OR REPLACEMENT). IN THE EVENT OF SUCH CHANGE OF RISK,
THE INSURER MAY, AT ITS SOLE DISCRETION, MODIFY, OR WITHDRAW THIS PROPOSAL WHETHER OR NOT THIS OFFER
HAS ALREADY BEEN ACCEPTED.
THIS PROPOSAL IS NOT CONFIRMATION OF INSURANCE AND DOES NOT ADD TO, EXTEND, AMEND, CHANGE, OR ALTER
ANY COVERAGE IN ANY ACTUAL POLICY OF INSURANCE YOU MAY HAVE. ALL EXISTING POLICY TERMS, CONDITIONS,
EXCLUSIONS, AND LIMITATIONS APPLY. FOR SPECIFIC INFORMATION REGARDING YOUR INSURANCE COVERAGE,
PLEASE REFER TO THE POLICY ITSELF. ALLIANT INSURANCE SERVICES, INC. WILL NOT BE LIABLE FOR ANY CLAIMS
ARISING FROM OR RELATED TO INFORMATION INCLUDED IN OR OMITTED FROM THIS PROPOSALOF INSURANCE.
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: GENERAL COUNSEL, 701 B STREET, 6TH FLOOR, SAN DIEGO,
CA 92101.
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 ANAL YSIS. BOTH A.M. BEST AND STANDARD AND POOR'S HA VE BEEN INDUSTRY LEADERS IN THIS
AREA FOR MANY DECADES, UTILIZING A COMBINATION OF QUANTITATIVE AND QUALITATIVE ANALYSIS OF THE
INFORMA TION A VAILABLE IN FORMULA TING THEIR RA TINGS.
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.STANDARDANDP00RS.COM.
OUR GOAL IS TO PROCURE INSURANCE FOR YOU WITH UNDERWRITERS POSSESSING THE FINANCIAL STRENGTH TO
PERFORM. ALLIANT DOES NOT, HOWEVER, GUARANTEE THE SOLVENCY OF ANY UNDERWRITERS WITH WHICH
INSURANCE OR REINSURANCE IS PLACED AND MAINTAINS NO RESPONSIBILITY FOR ANY LOSS OR DAMAGE ARISING
FROM THE FINANCIAL FAILURE OR INSOLVENCY OF ANY INSURER. WE ENCOURAGE YOU TO REVIEW THE PUBLICLY
AVAILABLE INFORMATION COLLECTED TO ENABLE YOU TO MAKE AN INFORMED DECISION TO ACCEPT OR REJECT A
PARTICULAR UNDERWRITER. TO LEARN MORE ABOUT COMPANIES DOING BUSINESS IN YOUR STATE, VISIT THE
DEPARTMENT OF INSURANCE WEBSITE FOR THAT STATE.
YOUR POLICY WILL COME WITH SPECIFIC CLAIM REPORTING REQUIREMENTS. PLEASE MAKE SURE YOU UNDERSTAND
THESE OBLIG A TIONS. CONTACT YOUR ALLIANT SERVICE TEAM WITH ANY QUESTIONS.
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POUCY FORM IN
ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION
Alliant Insurance Services, Inc. • 1301 Dove Street • Suite 200 • Newport Beach, CA 92660
PHONE (949) 756-0271 • www.alliantinsurance.com • License No. 0C36861 Page 5 of 5