HomeMy WebLinkAbout1996-161E \WPDOCS\ORD\PUBLIC OFF
ORDINANCE NO 91jP 16�?/
AN ORDINANCE ACCEPTING THE PROPOSAL OF NATIONAL UNION FIRE
INSURANCE COMPANY FOR PUBLIC OFFICIAL LIABILITY INSURANCE COVERAGE,
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND DECLARING AN
EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the proposal of National Union Fire Insurance
Company for public official liability insurance coverage for the
City of Denton, a copy of which is attached hereto and incorporated
by reference herein, is hereby accepted
SECTION II That the City Council hereby authorizes the
expenditure of funds in the manner and amount as specified in the
agreement
SECTION III, That this ordinance shall become effective
immediately upon its passage and approval
PASSED AND APPROVED this the 14d-� day of 1996
JACKAqILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
>Ir
* EMPLOYERS GENERAL
* * * * * Insurance Group, Inc
Sherman Service Office
123 N Crockett Suite 600
Sherman Texas75090
(903)893-9477
FAX (903)892-6593
Home (903) 892-8600
June 26, 1996
City of Denton
Attn Max Blackburn
City Manager
215 East McKinney Street
Denton, Texas 76201
Re Public Officials Liability
Policy * 44542-72
Dear Max
Jim Leinart
Senior Marketing Executive
As you are aware, your Public Officials coverage with National Union Fire Insurance
Company will expire at 12 01 a in on July 17, 1996
In an effort to obtain the most competitive pnce for the City of Denton, we have gone to
three different markets for this coverage As you are aware, the Public Officials liability is a
very specialized market and there are only a handful of companies that write this coverage
In addition to National Union, we have contacted National Casualty and Apex insurance
National Casualty still will not quote Public Officials coverage unless the city maintains police
liability through an approved carver As you know, we are working with Apex at the current
time and have furnished them with some additional information that they had requested We
hope to have their quote prior to July 17, but their indication to us in their memo was that
their price would be in the $60,000 to $70,000 range I do not think that any of the
information that they requested from us would cause them to come in with a price lower than
the National Umon quote
page 1
Member of the Old Republic Insurance Group
page 2
The National Union Fire quotes are as follows
QUOTE I - $1,000,000 per wrongful act subject to $1,000,000 aggregate
with $25,000 deductible, including the employment practices
endorsement and choice of counsel endorsement, total annual
premium - $45,535
QUOTE II - $1,000,000 per wrongful act subject to $1,000,000 aggregate
with $25,000 deductible, including the employment practices
endorsement and without choice of counsel endorsement,total
annual premium - $40,982.
As you know, the premium for this coverage has been at $32,240 since it was written by
National Union Fire in 1992 The premium has stayed at this level for four years The
increase in premium they feel is justified since the city budget was $128,401,000 compared to
the current budget of $153,015,529, therefore, the citys' budget has increased approximately
$25,000,000 from when tlus coverage was originally written They indicate this is the reason
for the premium increase
We discussed the possibility of not including the employment practices endorsement,
however, they indicate if we do not include this endorsement there would be no coverage for
wrongful termination and that is a very important part of this Public Officials coverage I am
attaching a copy of the employment practices endorsement that is not currently on your policy
and I think provides some additional coverage for the city officials
Please review and give me a call of any questions that you might have concerning this
renewal offer We will contact you as quickly as we receive the other quote from Apex
We certainly appreciate working with you and the City of Denton and appreciate the
opportunity to provide you with tlus quote
Sincerely, l %%
/ ?S=
ieinartr Markettng Executive
JL/cs