Property Boiler Machinery renewal-5017-Renewal Pricing
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
INSURANCE PROPOSAL for City of Denton
A. POLICY TERM:
01 -October-2015 to 01-October-2016
B. NAMED INSURED:
City of Denton
C. POLICY LIMIT:
This Company's total limit of liability, including any insured Business Interruption loss, will not exceed the Policy Limit o f
$449,423,568 as a result of any one occurrence subject to the respective sub-limits of liability shown elsewhere in this
policy.
D. POLICY TERRITORY:
Coverage provided by this policy is limited to property while located within: the fifty (50) United States; District of
Columbia; Commonwealth of Puerto Rico; U.S. Virgin Islands; and Canada.
E. INSURANCE PROVIDED:
This Policy covers property, as described in this Policy, against ALL RISKS OF PHYSICAL LOSS OR DAMAGE, except as
hereinafter excluded, while located as follows:
See Attached Location Schedule.
F. SUB-LIMITS:
Unless otherwise stated below or elsewhere in this Policy, the following sub-limits of liability, including any insured
Business Interruption loss, will be the maximum payable and will apply on a pe r occurrence basis.
The sub-limits stated below or elsewhere in this Policy are part of and not in addition to the Policy Limit.
When a limit of liability applies to a location or property, such limit of liability will be the maximum amount payable for
all loss or damage.
There shall be no liability under this Policy when “NOT COVERED ” is shown as a sublimit.
1. $50,000,000 Earth Movement annual aggregate for all coverages provided, and is the maximum amount
payable for all loss or damage caused by or resulting from Earth Movement in any
occurrence , not to exceed:
$50,000 Earth Movement annual aggregate as respects Errors & Omissions, Off-Premises Service
Interruption, Unnamed Locations and Supply Chain combined.
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
2. $50,000,000 Flood annual aggregate for all coverages provided, and is the maximum amount payable for
all loss or damage caused by or resulting from Flood in any occurrence , not to exceed:
$1,250,000 Flood annual aggregate for all coverages provided for the following locations:
21. 215 East McKinney Street, Denton, TX, 76201
22. 502 Oakland Street, Denton, TX, 76201
34. 1100 South Mayhill Road, Denton, TX, 76208
$50,000 Flood annual aggregate as respects Errors & Omissions, Off-Premises Service Interruption,
Unnamed Locations and Supply Chain combined.
Additional Property Damage Coverage
$5,000,000 Accounts Receivable
$100,000 Arson or Theft Reward
Policy Limit Brands and Labels
$100,000 Change of Temperature
Policy Limit Control of Damaged Property
$1,000,000 Data, Programs or Software
Policy Limit Debris Removal
Policy Limit Decontamination Costs
$100,000 Deferred Payment
Policy Limit Demolition and Increased Cost of Construction
$1,000,000 Errors and Omissions
$250,000 Expediting Expenses
$250,000 Fine Arts
$50,000 Green Coverage not to exceed 25% of the amount of the property damage loss
$100,000 Land and Water Clean Up Expense annual aggregate
$100,000 Locks and Keys
$100,000 Money and Securities
$10,000,000 Newly Acquired Property
$1,000,000 Off-Premises Service Interruption - Property Damage not to exceed $50,000 for voice, data,
and video services
$100,000 Professional Fees
Policy Limit Property Removed from a Location
Policy Limit Protection and Preservation of Property - Property Damage not to exceed $250,000 for
security costs
$100,000 Tax Treatment
$100,000 Tenants Legal Liability
Terrorism Coverage and the Supplemental United States Certified Act of Terrorism
Endorsement
$100,000 A. United States Certified Act of Terrorism coverage
$100,000 B. Terrorism Coverage for Locations Outside of the United States annual aggregate
but not to exceed $100,000 annual aggregate for Property Removed from a
Location, Unnamed Locations and Flood
$500,000 Transit not to exceed $250,000 for Business Interruption
$5,000,000 Unnamed Locations
$5,000,000 Valuable Papers and Records
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
Business Interruption Coverage
This Company's total limit of liability for insured Business Interruption loss, will not exceed $10,000,000 as a result of
any one occurrence subject to the respective sub-limits of liability shown below.
$5,000,000 Gross Earnings not to exceed 30 days for ordinary payroll
$5,000,000 Gross Profits for 12 months Period of Liability not to exceed 30 days for ordinary payroll
$5,000,000 Rental Income
$5,000,000 Extra Expense
Business Interruption Coverage Extensions
$100,000 Attraction Property
30 Days Civil or Military Authority
$250,000 Computer Systems Non-Physical Damage annual aggregate
$100,000 Contractual Penalties
$100,000 Crisis Management not to exceed 30 Days
30 Days Extended Period of Liability
$500,000 Ingress/Egress
$250,000 Leasehold Interest
$100,000 Logistics Extra Cost
$1,000,000 Off-Premises Service Interruption - Business Interruption not to exceed $50,000 for voice,
data, and video services
$5,000,000 Protection and Preservation of Property - Business Interruption
$250,000 Research and Development
$100,000 Soft Costs
$500,000 Supply Chain
G. DEDUCTIBLE AMOUNT:
This Company will not be liable for loss or damage, including any insured Business Interruption loss, in any one
occurrence until the amount of loss or damage exceeds the deductible amount shown below and then this Company
will only be liable for its share of the loss or damage in excess of the deductible amount. If two or more deductibles
apply to a single occurrence , then no more than the largest deductible amount will apply. However, this Policy allows
for the application of separate and distinct deductibles and deductibles for specific loss or damage as shown below.
The following deductible amounts shall apply per occurrence , unless otherwise stated, for insured loss or damage
under this Policy:
1. $100,000 Earthquake (per location for all coverages provided).
2. Flood (per occurrence for each location for all coverages provided):
A. $100,000 at all locations
Except:
B. $500,000 at the following locations:
21. 215 East McKinney Street, Denton, TX, 76201
22. 502 Oakland Street, Denton, TX, 76201
34. 1100 South Mayhill Road, Denton, TX, 76208
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
3. $50,000 Wind and/or Hail per location, but not to exceed $250,000 per occurrence for all coverages
provided.
4. Off Premises Service Interruption Qualifying Period:
The Company will not be liable for business interruption loss unless the period of liability exceeds 24 hours. Should
the period of liability exceed this time period, the loss will be calculated beginning from the time of loss, subject to
the applicable deductible(s) causing the interruption of services.
5. Data, Programs, or Software and Computer Systems Non-Physical Damage Deductible:
A. Data, Programs, or Software:
In the event of loss or damage to Data, Programs, or Software insured by this Policy caused by the malicious
introduction of a machine code or instruction, no coverage is provided unless the period of liability exceeds 48
hours beginning from the time of insured loss or damage. The company’s liability commences only after, and does
not include, the waiting period specified.
If the period of liability exceeds 48 hours, the insured loss or damage will be calculated based upon the amount of
such loss in excess of the waiting period, subject to a minimum deductible of $50,000 combined for all coverages.
Any period in which business operations or services would have not been maintained, or any period in which
goods would have not been produced will not be included as part of or serve to reduce the effect of any waiting
period.
B. Computer Systems Non-Physical Damage:
In the event of lo ss resulting from the failure of the Insured’s electronic data processing or media to operate as a
direct result of a malicious act directed at the named Insured, no coverage is provided unless the period of liability
exceeds 48 hours beginning from the t ime of insured loss or damage. The company’s liability commences only
after, and does not include, the waiting period specified.
If the period of liability exceeds 48 hours, the insured loss or damage will be calculated based upon the amount of
such loss in excess of the waiting period, subject to a minimum deductible of $50,000 combined for all coverages.
Any period in which business operations or services would have not been maintained, or any period in which
goods would have not been produced will not be included as part of or serve to reduce the effect of any waiting
period.
6. $10,000 Mobile and Contractors' Equipment.
7. $50,000 All Other Losses.
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
H. SPECIAL TERMS AND CONDITIONS:
1. United States Certified Act of Terrorism 2015
As respects the United States, its territories and possessions and the Commonwealth of Puerto Rico, the definition of
terrorism contained in DEFINITIONS is declared null and void and it is agreed that an event defined as a Certified Act of
Terrorism under the terms of the SUPPLEMENTAL UNITED STATES CERTIFIED ACT OF TERRORISM ENDORSEMENT
attached to this policy shall be considered terrorism within the terms of this policy. Notwithstanding anything
contained in this policy to the contrary, this policy provides coverage for direct physical loss or damage to insured
property and any resulting Business Interruption loss, as provided in the policy, caused by or resulting from a Certified
Act of Terrorism only to the extent coverage is provided under the terms and conditions of the SUPPLEMENTAL UNITED
STATES CERTIFIED ACT OF TERRORISM ENDORSEMENT attached to this policy. Any difference in limit between loss
recoverable under the SUPPLEMENTAL UNITED STATES CERTIFIED ACT OF TERRORISM ENDORSEMENT and this policy is
not recoverable under this policy.
2. Transmission and Distribution Systems Exclusion - PRO 132 (04/15)
PROPERTY EXCLUDED is amended to include:
Transmission and distribution systems, including poles, towers and fixtures, overhead conductors and devices,
underground or underwater conduit, underground or underwater conductors and devices, line transformers,
service meters, street lighting and signal systems.
3. Motor Vehicle Coverage at the Insured’s Locations - PRO 143 (4/15)
This Policy covers:
a) Motor vehicles;
b) Trucks; and
c) Trailers;
Licensed for highway use while at a described location .
PROPERTY EXCLUDED, item 7., is amended to:
7. Motor vehicles licensed for highway use owned by directors, officers and employees of the Insured except
while at a described location.
Motor Vehicle Coverage Exclusion: With respect to Motor Vehicle Coverage, the following additional exclusions
apply:
This Policy does not cover loss or damage resulting from:
i) Collision; or
ii) Overturn;
While such motor vehicles, trucks, and trailers are being operated under their own power; or being towed
(whether or not in motion at the time of loss).
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
I. INDEX OF FORMS:
The following forms are made part of this policy:
Title Form No. Edition
Declarations Page PRO DEC 4100 (04/15)
Declarations PRO S-1 4100 (04/15)
All Risk Coverage PRO AR 4100 (04/15)
Supplemental United States Certified Act of Terrorism 7312 (1/15)
Endorsement
Texas Special Mandatory Endorsement AFM 6810 (04/15)
Total Premium including the United States Certified Act of Terrorism coverage: $297,601
Total Premium for the United States Certified Act of Terrorism: $6,000
If the option to purchase coverage for the United States Certified Act of Terrorism is elected, the Additional Property
Damage Coverage Sub-Limit for Terrorism Coverage part A. will be amended to A. $449,423,568
Engineering Fees: $10,000
Applicable state taxes, surcharges and fees are not included in this proposal. Applicable state taxes, surcharges and
fees will be added to the invoice.
Any variations between this proposal letter and Affiliated FM forms versus your application are not provided.
This proposal expires 10/1/15.
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
Location Schedule
1. 5000 & 5003 Airport Road, Denton, TX, 76 207
2. 300 South Woodrow Lane, Denton, TX, 76205
3. 1988 Kings Row, Denton, TX, 76208
4. 101 South Bonnie Brae Street, Denton, TX, 76201
5. 1304 South Locust Street, Denton, TX, 76201, Index No. 002960.92
6. 3400 North Bonnie Brae Street, Denton, TX, 76207
7. 8401 Jim Christal Road, Denton, TX, 76207
8. 1868 Geesling Road, Denton, TX, 76208
9. 4109 & 4110 North Locust Street, Denton, TX, 76207
10. 1701 Spencer Road, Denton, TX, 76205, Index No. 074302.29
11. Pockrus Page Road & I-35E, Denton, TX, 76210
12. 604 East Hickory Street, Denton, TX, 76205
13. 217 West McKinney Street, Denton, TX, 76201
14. 332 East Hickory Street, Denton, TX, 76201, Index No. 000666.19
15. 3309 East McKinney Street, Denton, TX, 76209
16. 1204 McCormick Street, Denton, TX, 76201
17. 2110 East Sherman Drive, Denton, TX, 76209
18. 2230 West Windsor Drive, Denton, TX, 76207
19. 3232 Teasley Lane, Denton, TX, 76210
20. 801 Texas Street, Denton, TX, 76209, Index No. 074301.38
21. 215 East McKinney Street, Denton, TX, 76201, Index No. 074301.78
22. 502 Oakland Street, Denton, TX, 76201, Index No. 074301.37
23. 3020 North Locust Street, Denton, TX, 76209, Index No. 000172.99
24. 3228 Teasley Lane, Denton, TX, 76210, Index No. 074309.09
25. 321 East McKinney Street, Denton, TX, 76201, Index No. 074301.33
26. 509 North Bell Avenue, Denton, TX, 76209, Index No. 074301.33
27. 1001 Parvin Street, Denton, TX, 76205
28. 2001 West Windsor Drive, Denton, TX, 76207
29. 400 East Hickory Street, Denton, TX, 76201
30. 2400 Long Road, Denton, TX, 76207, Index No. 000660.39
31. 1300 Wilson Street, Denton, TX, 76205
32. 1527 South Mayhill Road, Denton, TX, 76208
33. FM 2181 Old Alton Road, Denton, TX, 76210
34. 1100 South Mayhill Road, Denton, TX, 76208, Index No. 074301.82
36. 1720 Riney Road, Denton, TX, 76 207
37. 705 Thomas Street, Denton, TX, 76201
38. 1/4 mile west of I-35, Denton, TX, 76210
39. 5945 Florence Road, Justin, TX, 76247
40. 16525 Lake Ray Roberts Dam Road, Aubrey, TX, 76227, Index No. 000654.04
41. 221 North Elm Street, Denton, TX, 76201
42. 601 East Hickory Street, Denton, TX, 76205, Index No. 074302.40
43. 804 Texas Street, Denton, TX, 76209
44. 2009 West Windsor Drive, Denton, TX, 76207
45. 629 Lakey Street, Denton, TX, 76205
46. 4109 Lakeview Blvd., Denton, TX, 76208
47. 1201 North Mayhill Road, Denton, TX, 76208
49. Airport Road, Denton, TX, 76201
50. 901 Texas Street, Denton, TX, 76209
EXHIBIT A
G:\#Clients\City of Denton\2015\Proposals\Property\Property Proposal.doc
51. 1117 Riney Road, Denton, TX, 76207
52. 3021A North Bonnie Brae Street, Denton, TX, 76207
53. 1659 Spencer Road, Denton, TX, 76205
54. 4201 Vintage Boulevard, Argyle, TX, 76226
55. 869 South Woodrow Lane, Denton, TX, 76205
56. 1022 North Ruddell Street, Denton, TX, 76209
57. 1521 South Mayhill Road, Denton, TX, 76208
59. 1685 Spenser Road, Denton, TX, 76205
60. 4550 Swisher Road, Denton, TX, 76210
61. 9800 John Payne Road, Argyle, TX, 76226, Index No. 002763.32
62. 3322 Roselawn Drive, Denton, TX, 76205, Index No. 002610.98
63. 651 South Mayhill Road, Denton, TX, 76208
64. 1221 North Bonnie Brae Street, Denton, TX, 76201, Index No. 074302.46
65. 2428 Hickory Creek Road, Denton, TX, 76210
66. 4171 Fort Worth Drive, Denton, TX, 76205
67. 5200 Loop 288, Denton, TX, 76209
68. 750 Precision Drive, Denton, TX, 76207, Index No. 002763.34
69. Shady Oaks Drive & Woodrow Lane, Denton, TX, 76205
70. Shady Oaks Drive & Woodrow Park, Denton, TX, 76205
71. 300 East McKinney Street, Denton, TX, 76201
72. 1001 South Mayhill Road, Denton, TX, 76208
73. 2230 Audra Lane, Denton, TX, 76209, Index No. 002960.93
74. 2520 McKinney Street, Denton, TX, 76209
75. 3537 South Interstate 35 East Suite 317, Denton, TX, 76210
76. 2009 West Windsor Drive, Denton, TX, 76207
77. 3717 North Elm Street, Denton, TX, 76207
EXHIBIT A
Edition January, 2015
POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE
Insured Name: City of Denton Date: 9/18 /15
Account Number : 1-56362
Insurer Name : Affiliated FM Insurance Company
The Terrorism Risk Insurance Act of 2002, as amended and extended in 2005 , 2007 and again in 20 15 , gives
you the right as part of your property insurance program to elect or reject insurance coverage for locations
within th e United States or any territory or possession of the United States for losses arising out of acts of
terrorism, as defined and certified in accordance with the provisions of the act.
YOU SHOULD KNOW THAT WHERE COVERAGE IS PROVIDED FOR LOSSES RESULTING FR OM
CERTIFIED ACTS OF TERRRORISM, SUCH LOSSES MAY BE PARTIALLY REIMBURSED BY THE
UNITED STATES GOVERNMENT UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. UNDER
THIS FORMULA, THE UNITED STATES GOVERNMENT GENERALLY PAYS 85% (AND BEGINNING
ON JANUARY 1, 2016, SHALL THEN DECREASE BY 1 PERCENTAGE POINT PER CALENDAR YEAR
UNTIL EQUAL TO 80 PERCENT) OF COVERED TERRORISM LOSSES EXCEEDING A STATUTORILY
ESTABLISHED DEDUCTIBLE PAID BY THE INSURER REFERENCED ABOVE. ALSO, THERE IS A
$100,000,000,000 CAP ON THE FEDERAL AND INS URER SHARE OF LIABILITY STATING THAT
IF THE AGGREGATE INSURED LOSSES EXCEED $100,000,000,000 DURING ANY CALENDAR
YEAR , NEITHER THE UNITED STATES GOVERNMENT NOR ANY INS U RER THAT HAS MET
ITS INSURER DEDUCTIBLE SHALL MAKE PAYMENT OR BE LIABLE FOR ANY PORTION OF
THE AMOUNT OF SUCH LOSS ES THAT EXCEED $100,000,000,000. THE PREMIUM CHARGED
FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE
PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT .
ACCEPTANCE OR REJECTION OF TERRORISM INSURANCE COVERAGE: UNDER FEDERAL
LAW, YOU HAVE THE RIGHT TO ACCEPT OR REJECT THIS OFFER OF COVERAGE FOR
TERRORIST ACTS COVERED BY THE ACT AS PART OF YOUR PROPERTY INSURANCE
PROGRAM. IF WE DO NOT RECEIVE THIS SI G NED DISCLOSURE FO RM PRIOR TO PROPERTY
INSURANCE PROGRAM INCEPTION DATE OF 10 /01 /15 , THEN YOUR PROPERTY INSURANCE
PROGRAM WILL REFLECT YOUR DECISION NOT TO PURCHASE THE TERRORISM COVERAGE
PROVIDED BY THE ACT.
______I hereby elect to purchase coverage for terrorist acts covered by the act for an annual premium of
$6,0 00 . This premium does not include applicable taxes or surcharges.
______I hereby decline this offer of coverage for terrorist acts covered by the act.
_________________________________ ______________________________
Policyholder/Applicant Signature Date
_________________________________
Print Name
EXHIBIT A
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Affiliated FM Insurance Company (?)
A.M. Best #: 000103NAIC #: 10014FEIN #: 050254496
Mailing Address
P .O. Box 7500
Johnston, RI 02919-0750
United States
Web:www.affiliatedfm.com
Phone: 401-275-3000
Fax: 401-275-3029
View Additional Address Information
Based on A.M. Best's analysis, 004067 - Factory Mutual Insurance Company is the A MB Ultimate Parent and identifies the topmost
entity of the corporate structure. View a list of operating insurance entities in this structure.
Best's Credit Ratings
Financial Strength Rating View Definition
Rating:
Affiliation Code:
A+ (Superior)
g (Group)
Financial Size Category: XV ($2 Billion or greater)
Outlook: Stable
Action: Affirmed
Effective Date: September 25, 2014
Initial Rating Date: June 30, 1954
Long-Term Issuer Credit Rating View Definition
Long-Term: aa
Outlook: Stable
Action: Affirmed
Effective Date: September 25, 2014
Initial Rating Date: April 18, 2007
u Denotes Under Review Best's Rating
Best's Credit Rating Analyst
Rating Issued by : A.M. Best Company, Inc.
Senior Financial Analyst: Brian O'Larte
Assistant Vice President: Jennifer Marshall, CPCU, ARM
Disclosure Information
View A.M. Best's Rating Disclosure Statement
A.M. Best Affirms Ratings of FM Global Group's Members
September 25, 2014
Rating History
A.M. Best has provided ratings & analysis on this company sin ce 1954 and it has received Secure Financial Strength Ratings every
year during the most recent 5 year historical period.
Financial Strength
E ffective DateRating
9/25/2014A+
9/20/2013A+
9/20/2012A+
9/23/2011A+
10/1/2010A+
10/6/2009A+
Long-Term Issuer Credit
E ffective DateRating
9/25/2014aa
9/20/2013aa
9/20/2012aa
9/23/2011aa
10/1/2010aa
10/6/2009aa
Related Financial and Analytical Data
The following links provide access to related data r ecords that A.M. Best utilizes to provide financial and analytical data on a consolidated or
branch basis.
AMB #Company Name Company Description
087009 Affiliated FM Insurance Company CABRepresents the Property/ Casualty financials for the Canada Branch of this
legal entity.
Reports and News
Visit Best's News and Analysis site for the latest news and press releases for this company and its A.M. Best Group.
AMB Credit Report - includes Best's Financial Strength Rating and ration ale along with comprehensive analytical
commentary, detailed business overview and key financial data.
Report Revision Date: 5/15/2015 (represents the latest significant change).
Historical Reports are available in AMB Credit Report Archive.
Best's Executive Summary Reports (Financial Overview) - available in three versions, these presentation style reports
feature balance sheet, income statement, key financial performance tests including profitability, liquidity and reserve analysis.
Data Status: 2015 Best's Statement File - P/C, US Contains data compiled as of 9/16/2015 Quality Cross Checked .
•Single Company - five years of financial data specifically on this company.
•Comparison
- side-by-side financial analysis of this company with a peer group of up to five other companies you select.
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- evaluate this company's financials against a peer group composite. Report displays both the average and total composite of
your selected peer group.
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EXHIBIT A
Disclaimer
The following summary of coverages is to be used only as an overview of each policy
written and in no way should it be used, nor is intended to be used, as a substitute for the
original policy provisions. It has been prepared as a guideline for your reference only.
The policy/policies contain conditions, limitations and exclusions which may affect or limit
coverage to be provided and should be reviewed by the insured to verify that coverage has
been written as requested.
All of the information contained in this proposal is subject to the terms, conditions and
limitations contained in the policies. Values are based on information provided by the
client.
THIS DOCUMENT IS PROPRIETARY , CONFIDENTIAL AND /OR PRIVILEGED AND IS INTENDED TO BE REVIEWED ONLY BY THE
INDIVIDUAL AND /OR ENTITY TO WHICH IT IS ADDRE SSED . IF YOU ARE NOT THE INTENDED RECIPIENT OR A
REPRESENTATIVE OF THE INTENDED RECIPIENT , YOU ARE HEREBY NOTIFIED THAT ANY REVIEW , COPYING , DISCLOSURE
AND /OR DISSEMINATION OF THIS DOCUMENT OR THE INFORMATION CONTAINED HEREIN IS PROHIBITED .
EXHIBIT A
McGRIFF, SEIBELS & WILLIAMS, INC.
COMPENSATION STATEMENT
Our principal remuneration for the placement and service of your insurance policy(ies) will be by commission (a
proportion of the premium paid that is allowed to us by the insurance company(ies)) and/or a mutually agreed fee.
You should be aware that we may receive additional income from the following sources:
Interest or Investment Inco me earned on insurance premiums.
Expense Allowances or Reimbursements from insurance companies and other vendors for (a)
educational and professional development programs; (b) managing and administering certain binding
authorities and other similar facilities, including claims which may arise; and (c) attendance at insurance
company meetings and events; all of which we believe enable us to provide more efficient service and
competitive terms to those clients for whom we consider the use of such facilities appropriate.
Tier II Commission (sometimes referred to as “extra compensation”) is exclusive to the placement of
employee benefits insurance and is based on premium volume of new business and/or premium retention.
Contingent Commission (sometimes referred to as “profit sharing”) which can be based on profitability,
premium volume, premium retention, and/or growth. If any part of your account is on a fee basis, we will
not accept contingent commissions related to your account.
If you have questions or desire additional information about remuneration and other income, please contact your
Agent who will put you in touch with our Senior Insurance Market Conduct Officer for assistance. If any part of
your insurance program is placed through any BB&T-owned companies (including retail insurance brokers
BB&T Insurance Services, Inc. and BB&T Insurance Services of California, Inc.; wholesale insurance brokers
CRC Insurance Services, Inc. and Crump Life Insurance Services, Inc.; Florida domiciled insurance company,
American Coastal Insurance Company; managing general underwriter AmRisc, LP; insurance premium finance
company, Prime Rate Premium Finance Corporation, Inc. or affiliates; or BB&T Assurance Company, Ltd.)
disclosure of that income will also be included.
7/14 ed
EXHIBIT A
McGRIFF, SEIBELS & WILLIAMS, INC.
PROVIDER SECURITY STANDARDS
The following is a brief summary of the measures that we have taken as your broker to review and report to you
objectively on the financial security of your insuring companies. Information is included on A.M. Best Company,
our primary security rating source, and the internal policies and standards, which we have established to address
this important issue for our customers.
MSW Security Review - McGriff, Seibels & Williams has established an internal “Security Review Committee ” composed
of senior management representatives from the Finance, Marketing, Branch, Wholesale and Administrative
Divisions of the company. This committee ’s purpose is to develop and implement all policies, procedures and
standards for the financial security of all insurers, intermediaries and associations used by MSW and its subsidiary
companies.
This committee meets periodically to review the current listing of all companies, intermediaries and associations,
which are actively used by MSW. It will also act on any pending requests received from throughout the company to
have new Providers activated, and to deactivate any Providers that do not meet current MSW standards.
MSW Provider Classifications:
“Approved Provider ” is any Provider whose A.M. Best ’s rating is A- or higher. The Best ’s rating of an “approved ”
Provider must be printed on all MSW Confirmations of Coverage (Binders) and proposals delivered to clients or
prospects.
“Restricted Provider ” is any Provider whose A.M. Best ’s rating is lower than A-, or any Provider who is “NOT RATED
BY A.M. BEST” and that Provider has not been designated an exception by the Security Review Committee. A
copy of the latest Best Financial Overview Report, if available, on the Provider in question will be printed and
attached at the time of proposal and at binding. Restricted Providers will be bound only upon presentation of a
Standard Disclaimer Letter and signed by the client acknowledging they are authorizing MSW to place their
coverage with the Provider.
“Exception Provider ” is certain Providers with a rating lower than A-, including those companies “not rated by A.M. Best”
which after review by the Security Review Committee will be acceptable security. As an exception “approved”
Provider, the client will not be required to sign a Standard Disclaimer Letter. A copy of the latest Best Financial
Overview Report on the Provider in question will be printed and attached to the proposal and Confirmation of
Coverage (binder).
Any Provider approved by MSW receiving an A.M. Best downgrade of rating will be posted on our website
(www.mcgriff.com ). A downgrade that results in an “Approved” Provider moving to a “Restricted” Pro vider will be
communicated to you in writing.
Revised May 1, 2014
EXHIBIT A
A.M. Best Company
Ambest Road
Oldwick, New Jersey 08858
History - A.M. Best Company was incorporated in 1899 as the first rating agency in the world to offer reliable information
on the financial condition of U.S. insurance companies. The Best ’s Rating Guide was first published in 1900, and
has since become a cornerstone of the security review process by continuously evaluating the financial integrity of
over 4,100 insurance companies. In 1984, the first edition of the Best ’s International Rating Guide was
published, reporting on the claims-paying ability of over 950 international insurers.
The information used by Best to rate insurance carriers is provided by the companies themselves as a part of their
normal filings with the National Association of Insurance Commissioners, those states in which the company is
licensed, the SEC and/or with its shareholders. Rating reviews are performed annually on each insurance company,
and on an interim basis as conditions dictate.
Best ’s Rating System - The Best ’s rating system is designed to evaluate a wide range of objective and subjective factors
that affect the overall performance of an insurance company (not applicable to associations or intermediaries).
These factors deal with the company ’s financial strength, its operating performance and its ability to meet its
financial obligations to policyholders, as follows:
* Profitability * Spread of risk
* Quality of reinsurance program * Leverage/Capitalization
* Quality and diversification of assets * Liquidity
* Adequacy of policy loss reserves * Adequacy of policyholder ’s surplus
* Capital structure * Management experience and objectives
Best ’s Rating Symbols - A typical Best ’s rating is composed of two parts. The “Security ” portion provides an alphabetical
indication of the quality of the security provided by a company to its policyholders. This rating is further defined in
three categories, “Secure ”, “Vulnerable ” or “Not Assigned ”. The “Financial Size ” (FSC) portion of the Best ’s
rating uses Roman numerals to rank companies based on the dollar amount of their policyholder ’s surplus and
contingent reserve funds.
While comparative rankings for security or financial size by themselves may not adequately portray the complete
financial health of a company, the combination of the two has proven to be reliable in predicting the ability of a
company to meet its claims obligations in a timely manner, both now and in the near future. The actual rating
symbols used by Best and their meanings are:
“Secure ” Ratings A++ or A+ Superior
A or A- Excellent
B++ or B+ Good
“Vulnerable ” Ratings B or B- Fair
C++ or C+ Marginal
C or C- Weak
D Poor
E Under Supervision
F In Liquidation
S Suspended
“NR ” Not Rated Designation – Assigned to companies not rated by A.M. Best.
Revised May 1, 2014
EXHIBIT A
Financial Size Categories
I Under $1,000,000 VIII 100,000,000 - 250,000,000
II 1,000,000 - 2,000,000 IX 250,000,000 - 500,000,000
III 2,000,000 - 5,000,000 X 500,000,000 - 750,000,000
IV 5,000,000 - 10,000,000 XI 750,000,000 - 1,000,000,000
V 10,000,000 - 25,000,000 XII 1,000,000,000 - 1,250,000,000
VI 25,000,000 - 50,000,000 XIII 1,250,000,000 - 1,500,000,000
VII 50,000,000 - 100,000,000 XIV 1,500,000,000 - 2,000,000,000
XV Over $2,000,000,000
Source: Best ’s Key Rating Guide - 201 3 Edition
EXHIBIT A
CRIME
NAMED INSURED: City of Denton
ADDRESS: 215 E. McKinney
Denton, TX 76201
POLICY NUMBER: Renewal of GVT 268-76 -87 -13-00
EFFECTIVE DATES: 12:01 a.m. on October 01, 2015 to 12:01 a.m. on October 01, 2016
ISSUING COMPANY: Great American Insurance Company
.M.ABestARatedA“ +”A(Excellent)AClassAX III
POLICY FORM: Ed. 04/12
Discovery Form
COVERAGE:
COVERAGE FORM LIMIT DEDUCTIBLE
Employee Dishonesty $500,000 $25,000
Forgery or Alteration $500,000 $25,000
Computer Fraud $500,000 $25,000
Funds Transfer Fraud $500,000 $25,000
ANNUAL PREMIUM: $8,390
2.08% increase from expiring - $8,219
POLICY FORMS:
Great American Insurance Fidelity & Crime Policy Cover
Texas – Important Notice
Important Notice Fidelity Crime Division Claims
Crime Protection Policy for Public Entities
Include Coverage For Funds Transfer Fraud
Include Volunteer Workers Other Than Fund Solicitors as Employees
Exclude Trading Loss
Texas Changes
Texas Changes – Cancellation and Non Renewal
Texas Changes – Loss Payment
Texas Notice
Amend Confidential Information and Data Breach Costs Exclusions
Named Insured Amendment Endorsement – Omnibus Named Insured – 60 Days
Revision to Inventory Shortages
Credit, Debit or Charge Card Forgery - $25,000 Limit of Insurance, $0 Deductible
Faithful Performance of Duty - $500,000 Limit, $25,000 Deductible
Include Employee Dishonesty Excess Over A Statutory Bond Requirement – Delete Bonded Employee/Treasurer or Tax
Collector
Virtual Or On-Line Peer to Peer Mediums of Exchange Exclusion
BusinessPRO Forms and Endorsement Schedule
Economic and Trade Sanctions Clause
In Witness Claus
EXHIBIT A
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Great American Insurance Company (?)
A.M. Best #: 002213NAIC #: 16691FEIN #: 310501234
Domiciliary Address
3 01 E. Fourth Street
Cincinnati, OH 45202
United States
Web:www.greatamericaninsurance.com
Phone: 513-369-5000
Fax: 513-369-3600
Based on A.M. Best's analysis, 058317 - American Financial Group, Inc is the A MB Ultimate Parent and identifies the topmost entity
of the corporate structure. View a list of operating insurance entities in this structure.
Best's Credit Ratings
Financial Strength Rating View Definition
Rating: A+ (Superior)
Financial Size
Category:
XIII ($1.25 Billion to $1.5
Billion)
Outlook: Stable
Action: Affirmed
Effective Date: March 20, 2015
Initial Rating Date: September 30, 1908
Long-Term Issuer Credit Rating View Definition
Long-Term: aa-
Outlook: Stable
Action: Affirmed
Effective Date: March 20, 2015
Initial Rating Date: June 17, 2005
u Denotes Under Review Best's Rating
Best's Credit Rating Analyst
Rating Issued by : A.M. Best Company, Inc.
Senior Financial Analyst: Michael W. Russo
Assistant Vice President: Jennifer Marshall, CPCU, ARM
Disclosure Information
View A.M. Best's Rating Disclosure Statement
A.M. Best Affirms Ratings of American Financial Group,
Inc. and Its Property/Casualty Subsidiaries
March 20, 2015
Rating History
A.M. Best has provided ratings & analysis on this company sin ce 1908 and it has received Secure Financial Strength Ratings every
year during the most recent 5 year historical period.
Financial Strength
E ffective DateRating
3/20/2015A+
2/21/2014A+
2/22/2013A
3/29/2012A
2/14/2011A
5/10/2010A
Long-Term Issuer Credit
E ffective DateRating
3/20/2015aa-
2/21/2014aa-
2/22/2013a+
3/29/2012a+
2/14/2011a+
5/10/2010a+
Related Financial and Analytical Data
The following links provide access to related data r ecords that A.M. Best utilizes to provide financial and analytical data on a consolidated or
branch basis.
AMB #Company Name Company Description
005990 Great American Insurance Companies (SG)
Rating Unit
Represents the A.M. Best Consolidated financials for the P roperty/ Casualty
business of this legal entity.
087045 Great American Insurance Company CABRepresents the Property/ Casualty financials for the Canada Branch of this
legal entity.
094364 Great American Insurance Company (SGB)Represents the Property/ Casualty financials for the Singapore Branch of
this legal entity.
Reports and News
Visit Best's News and Analysis site for the latest news and press releases for this company and its A.M. Best Group.
AMB Credit Report - includes Best's Financial Strength Rating and ration ale along with comprehensive analytical
commentary, detailed business overview and key financial data.
Report Revision Date: 6/9/2015 (represents the latest significant change).
Historical Reports are available in AMB Credit Report Archive.
Best's Executive Summary Reports (Financial Overview) - available in three versions, these presentation style reports
feature balance sheet, income statement, key financial performance tests including profitability, liquidity and reserve analysis.
Data Status: 2015 Best's Statement File - P/C, US Contains data compiled as of 8/28/2015 Quality Cross Checked .
•Single Company - five years of financial data specifically on this company.
•Comparison
- side-by-side financial analysis of this company with a peer group of up to five other companies you select.
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Page 1 of 2 Great American Insurance Company -Company Profile -Best's Credit Rating Center
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EXHIBIT A
Disclaimer
The following summary of coverages is to be used only as an overview of each policy
written and in no way should it be used, nor is intended to be used, as a substitute for the
original policy provisions. It has been prepared as a guideline for your reference only.
The policy/policies contain conditions, limitations and exclusions which may affect or limit
coverage to be provided and should be reviewed by the insured to verify that coverage has
been written as requested.
All of the information contained in this proposal is subject to the terms, conditions and
limitations contained in the policies. Values are based on information provided by the
client.
THIS DOCUMENT IS PROPRIETARY , CONFIDENTIAL AND /OR PRIVILEGED AND IS INTENDED TO BE REVIEWED ONLY BY THE
INDIVIDUAL AND /OR ENTITY TO WHICH IT IS ADDRE SSED . IF YOU ARE NOT THE INTENDED RECIPIENT OR A
REPRESENTATIVE OF THE INTENDED RECIPIENT , YOU ARE HEREBY NOTIFIED THAT ANY REVIEW , COPYING , DISCLOSURE
AND /OR DISSEMINATION OF THIS DOCUMENT OR THE INFORMATION CONTAINED HEREIN IS PROHIBITED .
EXHIBIT A
McGRIFF, SEIBELS & WILLIAMS, INC.
COMPENSATION STATEMENT
Our principal remuneration for the placement and service of your insurance policy(ies) will be by commission (a
proportion of the premium paid that is allowed to us by the insurance company(ies)) and/or a mutually agreed fee.
You should be aware that we may receive additional income from the following sources:
Interest or Investment Inco me earned on insurance premiums.
Expense Allowances or Reimbursements from insurance companies and other vendors for (a)
educational and professional development programs; (b) managing and administering certain binding
authorities and other similar facilities, including claims which may arise; and (c) attendance at insurance
company meetings and events; all of which we believe enable us to provide more efficient service and
competitive terms to those clients for whom we consider the use of such facilities appropriate.
Tier II Commission (sometimes referred to as “extra compensation”) is exclusive to the placement of
employee benefits insurance and is based on premium volume of new business and/or premium retention.
Contingent Commission (sometimes referred to as “profit sharing”) which can be based on profitability,
premium volume, premium retention, and/or growth. If any part of your account is on a fee basis, we will
not accept contingent commissions related to your account.
If you have questions or desire additional information about remuneration and other income, please contact your
Agent who will put you in touch with our Senior Insurance Market Conduct Officer for assistance. If any part of
your insurance program is placed through any BB&T-owned companies (including retail insurance brokers
BB&T Insurance Services, Inc. and BB&T Insurance Services of California, Inc.; wholesale insurance brokers
CRC Insurance Services, Inc. and Crump Life Insurance Services, Inc.; Florida domiciled insurance company,
American Coastal Insurance Company; managing general underwriter AmRisc, LP; insurance premium finance
company, Prime Rate Premium Finance Corporation, Inc. or affiliates; or BB&T Assurance Company, Ltd.)
disclosure of that income will also be included.
7/14 ed
EXHIBIT A
McGRIFF, SEIBELS & WILLIAMS, INC.
PROVIDER SECURITY STANDARDS
The following is a brief summary of the measures that we have taken as your broker to review and report to you
objectively on the financial security of your insuring companies. Information is included on A.M. Best Company,
our primary security rating source, and the internal policies and standards, which we have established to address
this important issue for our customers.
MSW Security Review - McGriff, Seibels & Williams has established an internal “Security Review Committee ” composed
of senior management representatives from the Finance, Marketing, Branch, Wholesale and Administrative
Divisions of the company. This committee ’s purpose is to develop and implement all policies, procedures and
standards for the financial security of all insurers, intermediaries and associations used by MSW and its subsidiary
companies.
This committee meets periodically to review the current listing of all companies, intermediaries and associations,
which are actively used by MSW. It will also act on any pending requests received from throughout the company to
have new Providers activated, and to deactivate any Providers that do not meet current MSW standards.
MSW Provider Classifications:
“Approved Provider ” is any Provider whose A.M. Best ’s rating is A- or higher. The Best ’s rating of an “approved ”
Provider must be printed on all MSW Confirmations of Coverage (Binders) and proposals delivered to clients or
prospects.
“Restricted Provider ” is any Provider whose A.M. Best ’s rating is lower than A-, or any Provider who is “NOT RATED
BY A.M. BEST” and that Provider has not been designated an exception by the Security Review Committee. A
copy of the latest Best Financial Overview Report, if available, on the Provider in question will be printed and
attached at the time of proposal and at binding. Restricted Providers will be bound only upon presentation of a
Standard Disclaimer Letter and signed by the client acknowledging they are authorizing MSW to place their
coverage with the Provider.
“Exception Provider ” is certain Providers with a rating lower than A-, including those companies “not rated by A.M. Best”
which after review by the Security Review Committee will be acceptable security. As an exception “approved”
Provider, the client will not be required to sign a Standard Disclaimer Letter. A copy of the latest Best Financial
Overview Report on the Provider in question will be printed and attached to the proposal and Confirmation of
Coverage (binder).
Any Provider approved by MSW receiving an A.M. Best downgrade of rating will be posted on our website
(www.mcgriff.com ). A downgrade that results in an “Approved” Provider moving to a “Restricted” Pro vider will be
communicated to you in writing.
Revised May 1, 2014
EXHIBIT A
A.M. Best Company
Ambest Road
Oldwick, New Jersey 08858
History - A.M. Best Company was incorporated in 1899 as the first rating agency in the world to offer reliable information
on the financial condition of U.S. insurance companies. The Best ’s Rating Guide was first published in 1900, and
has since become a cornerstone of the security review process by continuously evaluating the financial integrity of
over 4,100 insurance companies. In 1984, the first edition of the Best ’s International Rating Guide was
published, reporting on the claims-paying ability of over 950 international insurers.
The information used by Best to rate insurance carriers is provided by the companies themselves as a part of their
normal filings with the National Association of Insurance Commissioners, those states in which the company is
licensed, the SEC and/or with its shareholders. Rating reviews are performed annually on each insurance company,
and on an interim basis as conditions dictate.
Best ’s Rating System - The Best ’s rating system is designed to evaluate a wide range of objective and subjective factors
that affect the overall performance of an insurance company (not applicable to associations or intermediaries).
These factors deal with the company ’s financial strength, its operating performance and its ability to meet its
financial obligations to policyholders, as follows:
* Profitability * Spread of risk
* Quality of reinsurance program * Leverage/Capitalization
* Quality and diversification of assets * Liquidity
* Adequacy of policy loss reserves * Adequacy of policyholder ’s surplus
* Capital structure * Management experience and objectives
Best ’s Rating Symbols - A typical Best ’s rating is composed of two parts. The “Security ” portion provides an alphabetical
indication of the quality of the security provided by a company to its policyholders. This rating is further defined in
three categories, “Secure ”, “Vulnerable ” or “Not Assigned ”. The “Financial Size ” (FSC) portion of the Best ’s
rating uses Roman numerals to rank companies based on the dollar amount of their policyholder ’s surplus and
contingent reserve funds.
While comparative rankings for security or financial size by themselves may not adequately portray the complete
financial health of a company, the combination of the two has proven to be reliable in predicting the ability of a
company to meet its claims obligations in a timely manner, both now and in the near future. The actual rating
symbols used by Best and their meanings are:
“Secure ” Ratings A++ or A+ Superior
A or A- Excellent
B++ or B+ Good
“Vulnerable ” Ratings B or B- Fair
C++ or C+ Marginal
C or C- Weak
D Poor
E Under Supervision
F In Liquidation
S Suspended
“NR ” Not Rated Designation – Assigned to companies not rated by A.M. Best.
Revised May 1, 2014
EXHIBIT A
Financial Size Categories
I Under $1,000,000 VIII 100,000,000 - 250,000,000
II 1,000,000 - 2,000,000 IX 250,000,000 - 500,000,000
III 2,000,000 - 5,000,000 X 500,000,000 - 750,000,000
IV 5,000,000 - 10,000,000 XI 750,000,000 - 1,000,000,000
V 10,000,000 - 25,000,000 XII 1,000,000,000 - 1,250,000,000
VI 25,000,000 - 50,000,000 XIII 1,250,000,000 - 1,500,000,000
VII 50,000,000 - 100,000,000 XIV 1,500,000,000 - 2,000,000,000
XV Over $2,000,000,000
Source: Best ’s Key Rating Guide - 201 3 Edition
EXHIBIT A