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1987-1511967L AN ORDINANCE ACCEPTING THE PROPOSAL OF ARKWRIGHT INSURANCE COMPANY AND A PORTION OF THE PROPOSALS OF ARTHUR J GALLAGHER & COMPANY AND EMPLOYERS INSURANCE OF TEXAS FOR PROPERTY, CASUALTY AND WORKERS' COMPENSATION INSURANCE, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, AND DECLARING AN EFFECTIVE DATE THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the proposal of Arkwrlght Insurance Company and a portion of the proposals of Arthur J Gallagher & Company and Employers Insurance of Texas for property, casualty and workers' compensation insurance, copies of which are attached hereto and incorporated by reference herein, are 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~_~day of~, 1987 ATTEST JE~-FER ~ALTER~, CITY SECRETARY APPROVED AS TO LEGAL FORM DEBRA ADAMI DRAYOVITCH~ CITY ATTORNEY ATTACHIvIENT A AIHtWIHGllT August 13, 1986 I)dhs IX7"i210 Purchasing Department City of Denton 90lB Texas Street ~ Denton, Texas 76201 SUBJECT Property Insurance Proposal Bid #9768 Gentlemen Enclosed is Arkwrlght Insurance Company's proposal for Property insurance Some objectives of our proposed "Ail Risk" program are 1 Consolidate all property coverages into one master proKram, including your current Arkwright Boiler and Machinery coverages This also encompasses the EDP equipment and mobile equipment 2 Only one deductible aoDlies in the event of a joint property and Boiler & Machinery loss This feature could save a significant amount of money for the City of Denton No Joint Loss Agreement is necessary as all coverages are underwritten by Arkwright 3 Ease of administration Combining several small policies into a single program accomplishes this 4 T ee r ol c This provides stability while avoiding annual negotiations caused by contracts expiring Excellent engineering/property conservation services are provided free of charge to enable The City of Denton to improve and to control your risk management programs to the fullest degree This proposal meets or exceeds specifications See attached forms and proposal details We are prepared to bind these coverages effective October 1 1987 If any questions arise from this proposal, I will be available for assistance Cordially, Alan H Armbruster Senior Account Representative 0459a INSURANCE PROPOSAL FOR THE CITY OF DENTON, TEXAS August 13 1986 By Alan H Armbruster Arkwright Insurance Company 12700 Hillcrest Road Suits 270 Dallas, TX 75230 OVERVIEW As a member of the Factory Mutual System, Arkwright enjoys the reputation as one of the world's foremost property insurance companies' We are organized to work closely with our policyholders It is important that The City of Denton know Arkwright and its capabilities as this will enable you to improve and control your risk management programs to the fullest degree Our presentation is designed within the principles of Risk Manamement. We feel you will know us even better through our proposal All of Arkwrtght's property forms are fully approved and admitted by the State of Texas Included in this proposal is the most recent Arkwright Annual Report This report reflects the success we've had in achieving our long term goal to provide a stable economical market for you Stability will be an important factor in the future as reinsurance markets and many stock companies face severe market restrictions because of recent poor underwriting results and cyclical financial results in the securities markets Sound ~inancial management and the high quality of the organizations we insure has made this stability possible These factors, coupled with a traditionally low level of losses is a source of pride to us and one in which we hope you will elect to participate CLAIMS SERVICES Property claims are adjusted through Factory Mutual Adjustment located in Dallas, Texas Factory Mutual Adjustment will work directly so that claims can be expedited and delays minimized Losses are reported to Mr Alan H Armbruster, Sr Account Representative, at 214 233 1094 or directly to Factory Mutual Adjustment at 214-661 9202 The report of loss will be immediately transmitted to Factory Mutual Adjustment, which will contact the insured for immediate action based on the loss Depending upon the nature of claims adjustment representatives can be at the site of the loss within hours Mr Tom Freeman, Vice President and Regional Claims Manager for Arkwright is responsible for developing a positive working relationship with our policyholders and working closely with Factory Mutual Adjustment He will monitor all loss adjustment activities and participate where necessary to provide supplemental service that will assure fair and equitable settlements on a timely basis Representatives of The Gity of Denton will be kept informed through correspondence and reports so that the status of claims can be known at all times COVERAGES I BASIC COVERAGES. "Ail Risk" coverages, Real and Personal Property including Flood and Earthquake, and EDP Equipment See enclosed property forms II COVERAGES INCLUDE. Automatic Coverage Error and Omissions Demolition Increased Cost of Construction Debris Removal Collapse Theft/Burglary Transit Property of Others III SPECIAL CONDITIONS. 60 Day Cancellation Clause No Coinsurance Agreed Amount Repair or Replace Premium and/or Rates can be adjusted annually IV POLICY TERM. October 1, 1987 to October 1 1990 V ~OCATIONS. As per specifications VI VALUES TOTAL. $43,508 000 100% per specifications VII LIMITS OF LIABILITY. Blanket 43 508,000 EDP Equipment 1~500 000 EDP/Media 250,000 EDP/EE 100,000 Floed 5 000,000 annual aggregate Earthquake 5 000,000 annual aggregate Unnamed Floater Loc 500 000 Errors & Omissions 1 000 000 Demol£tion and Incr Cost of Constr 1 000 000 Automatic Coverage 5 000,000 Transit 100,000/200,000 VIII ~ "All Risk" $50,000 Combined IX PREMIUM. $38 285 annually X OV G IONS Coverage for scheduled vehicles at described locations $6,535 annual premium, policy deductible applies U RY OF BEN FITS 1 Arkwright is a major underwriter of Municipalities and Institutional ~ The property insurance programs we design for these Insureds are unique in each case 2 ~O~tcy Administration will be simple and tim~ expended by The City of Denton management will be minimal 3 Arkwright is committed to providinm stability in the marketplace 4 ~eDair or replacement coverage is provided for property coverages without coinsurance 5 Favorable Drictnl and deductibles, both now and in the future 6 Excellent En~ineerinm/ProDertv Conservation services An engineer of our organization will periodically visit with you to assist in property conservation needs Free engineering reviews of plans, materials and completed work is provided for any new or proposed projects 7 ,Service is provided On several levels with planned visits by management the account underwriter, and the account engineers 8 Hew additions at Insured locations are covered automatically without the need for additional Builder's Risk policy, up to the policy limits 9 Himh limits of capacity to provide Fire and DIC limits as well as Boiler and Machinery requirements as needed 10 Coverage for collapse and liauid damame is to full policy limits 11 Full DIG coverage including theft, flood, and earthquake 12 The deductible for the various property coverages applies concurrently A Joint loss involving Fire Boiler and Machinery, and Difference In Conditions coverages would have only one deductible applying to any one loss 13 iThere will be no need for a Joint loss a~reement as all property coverages are being underwritten by Arkwright Boston Insurance Company 14 Damage to ~roDsrtv of others is included while in your "care, custody and control", with values appropriately reported 15 Written notice is not reauired in the event of loss 16 Extra Expense and Valuable Papers coverages can be added at any time CURRENT ARKWRIGHT POLICYHOLDERS INCLUDE. CITY OF DENTON CITY OF DALLAS CITY OF AUSTIN CITY OF EL PASO CITY OF GARLAND CITY OF ODESSA PUBLIC SERVICE OF SAN ANTONIO DALLAS/FORT WORTH INTERNATIONAL AIRPORT DALLAS INDEPENDENT SCHOOL DISTRICT RICHARDSON INDEPENDENT SCHOOL DISTRICT DRESSER INDUSTRIES INC TEXAS INSTRUMENTS INCORPORATED ALL RISK POLICY STOCK COMPANY FORM Pohcy No Arkwr ght-Boston Insurance Arkwright-Boston Insurance Company 225 Wyman Street Waltham Massachusetts 02154 In Consideration of the Provisions and Stipulations here~n or added hereto and of Dollars Premium th~sCompany for theterm from the day of. 19 at 12 01 am StandardT~me at of to the day of 19 Iocat~orr of property ~nvolved to an amount not exceeding Dollars does~nsure and legal representatives to [he extent el the actual cash value of the property at lime of loss but not exceeding the amount which It would cost to repair or replace the property wdh mater~al of hke k~nd arid quahty wdh~n a reasonable t,me after such loss w~thout allowance for any H~creased cost of repair or reconstruction by reason of any ordinance or law regulahn9 construct;on repair and use and w~thout compeRsatlon lor loss resulting from interruption of business or manufacture nor in any event for more than the ~nterest of the ~nsured against ALL RISKS OF PHYSICAL LOSS OR DAMAGE except as hereinafter excluded to the property described hereinafter while located or conlalned as described ~n th~s Policy or pro rata for n~nety days at each proper plaoe to which any of the property sl~all nocossardy be removed for proservahon from loss ~nsured against in this Policy but not elsewhere PROVISIONS SPECIALLY APPLICABLE TO THIS POLICY Assignment of this Pohcy shall not be vahd except w~th the written consent el th~s Company Th~s Pohcy is made and accepted sublecl to the foregoing prows~ons and sl~pulat~ons and those hereinafter stated which are hereby made a part of this Pohcy Iogelher wdh such other prows~ons shpulat~ons and agreements as may be added thereto as prowded in this Pohcy In Witness Whereof, this Company has executed and attested these presents but this policy shall not be valid unless countersigned by the duly authorized Agent of this Company at Secretary President Countersigned this day of 19 __ Agent (Rev 2 86) (a) hostile or warhke action in time of peace or war ~nclud~ng action in hinder mg combating or defending against an actual ~mpend~ng or expected attack (I) by any government or sovereign power (de jure or de facto) or by any authority ma~nta~mng or using mlhtary naval or a~r forces, or (u) by md~tary navalor air forces or (m) by an agent of any such government power authority or forces (b) any weapon of war employing atomic fission or rad~oachve force whether ~n hme of peace or war, (c) msurrect~on rebelhon revoluhon c~wl war usurped power or action taken by governmental authority ~n hindering combating or defending against such an occurrence seizure or destrucbon under quaranbne or custom regulations conhscabon by order of any government or public authority or risks of contra band or dlegal transportabon or trade explosion rupture bursting cracking burmng or bCgmg of steam boders steam turbines gas turbines steam engines and pressure vessels or p~pmg or apparatus attached to any of the foregoing whde such property ~s owned operated or controlled by the Insured (a) except loss or damage resulting from the explosion of accumulated corn busbble gases or unconsumed fuel w~th~n a furnace of a boder or pressure vessel other than combustion gas turbines or w~th~n the flues or passages whmh conduct the gases of combustion therefrom (b) unless 1 caused by fire, or 2 damage by fire results and then the Company shall be hable for only such resulting fire damage delay or loss of market any fraudulent or dishonest act or acts committed alone or m collusion w~th others (a) by any proprietor partner d~rector trustee ofhcer or employee of the Insured whether or not such acts are committed dunng regular business hours or (b) by any proprietor partner d~rector trustee or ofhcer of any proprietorship partnership corporabon or association (other than a common carrier) engaged by the Insured to render any service or perform any act ~n connect,on w~th property insured under this Pohcy extremes or changes of temperature (except damage to equipment) or changes m relative humidity all whether atmospheric or not unless hqu~d escapes to the open ~n which case the Pohcy w~ll cover damage caused by the escaped hqu~d and loss Qf or damage to the hqu~d lack of ~ncommg electricity fuel water gas steam or refrigerant caused by an occurrence off the premmes described ~n th~s Pohcy unless specifically endorsed here~n, however ~f the lack of such a serwce causes physical damage otherwise ~nsured under thru Pohcy on the descnbed premises th~s Pohcy shall cover the resulting damage, ~nsects or vermin flood waters waves tide or t~dal water the release of water the rising overflowing or breaking of boundaries of natural or man made bodies of water or the spray from any of the foregoing whether or not caused by resulhng from or contributed to by loss or damage of the type insured under th~s Pohcy unless damage by fire or explosion results arid then the Company shall be hable for only such resulhng damage, Form 3OQOT PAGE 2 OF 7 Edition May 1985 Factoq~ Mulual Service I~ureau Norwood Massachusett~ SPECIAL CONDITIONS The coverages provided by the Texas Standard Policy are hereto extended to include All R~sks of physmal loss or damage to insured property located m Texas except as hereinafter excluded The terms and cond~bons of the Texas Standard Pohcy shall take precedence over any terms and cond~hons of th~s Form and Endorsements thereto whmh are inconsistent therewith A PROPERTY INSURED Unless otherwme excluded th~s Poi my covers the following property wh~le on the descn bed premises and w~thm 1 000 feet thereof real property in which the Insured has an insurable ~nterest 2 personal property owned by the Insured 3 personal property other than motor vehicles of officers and employees of the Insured 4 personal property of others in the custody of the Insured which the Insured is under obligation to keep insured for physical damage of the type insured against under this Policy 5 personal property of others tn the custody of the Insured to the extent of the Insured s legal habdlty for physical loss or damage of the type insured against by this Policy This Company further agrees to defend any su~t against the Insured alleging liability for such damage destruction or loss and seeking damages on account thereof even if such suit Is groundless false or fraudulent but this Company may without prejudice make such investigation negotiation and settlement of any claim or suit as this Company deems expedient B PROPERTY EXCLUDED Th~s Pohcy does not ~nsure against loss or damage to bdls ewdences of btle notes fine arts furs jewelry precious metals or precious stones 2 land standing bmber growing crops 3 vehicles otherwise ~nsured watercraft 4 property sold by the Insured under cond~honalsale trust agreement ~nstallment plan or other deferred payment plan after dehvery to customers 5 property in transit unless endorsed hereon 6 underground m~nes and mining property located below the surface of the ground 7 dams ord~kes C EXCLUSIONS GROUP A Th~s Policy does not insure against loss or damage caused by or resulhng from any of the following regardless of any other cause or event contributing concurrently or ~n any other sequence to the loss 1 nuclear reacbon or nuclear rad~ahon or rad~oachve contamlnabon from any cause all whether d~rect or md~rect proximate or remote however (a) ~f hre not otherwise excluded results the Company shall be hable for d~rect loss by such resulbng hre but not ~nclud~ng any loss due to nuclear reacbon - nuclear rad~abon or rad~oacbve contamination and (b) th~s Policy does insure against loss or damage caused by sudden and accidental radioactive contamination includ,ng resultant radlabon damage from material used or stored or from processes conducted on the described premises prowded that at the t~me of such loss there ~s neither a nuclear reactor capable of susta~mng nuclear fission ~n a self supporbng chain reachon nor any new or used nuclear fuel on the described premises Form 3000T Factory Mutual Serwce Bureau PAGE 1 OF 7 Edd~on May 1985 Norwood Massachusells PROPERTY 3 Thru Pohcy covers properly of the Insured at any Iocabon w~thm the Continental REMOVED Umted States Hawa~ Alaska Puerto R~co or Canada when removed from the FROM descnbed premises for the purpose of being repaired serviced or ~n order to avoid DESCRIBED threatened damage from flood excluding PREMISES (a) property otherwise insured (b) property excluded from the ~nsurance under th~s Pohcy or (c) property removed from the descnbed premises for normal storage or proces s~ng or preparation for sale or dehvery Th~s Pohcy also covers pro rata for ninety days at each proper place to which property of the Insured shall necessarily be removed fo~ preservabon from loss insured against in th~s Pohcy DEMOLITION 4 If at the hme of any physical loss or damage ~nsured against by th~s Pohcy there ~s AND ~n force any law or ordinance regulabng the construcbon repair replacement or use INCREASED of bulld~ngs or structures then th~s Pohcy shall cover as a result of enforcement of COST OF such law or ordinance CONSTRUCTION (a) the add~bonal loss sustained In demohshmg any undamaged porhon of the buddings or structures (b) the cost ~ncurred m actually rebuddmg both the damaged and demohshed portions of such buildings or structures w~th materials and ~n a manner to satisfy such law or ordinance The total habd~ty hereunder shall not exceed the actual expenditure ~ncurred m demohshlng the undamaged porbon of the building(s) or structure(s) ~nvolved plus the lesser of the following (a) the actual expenditure recurred not ~ncludlng the cost of land m rebuddmg on another s~te or (b) the cost of rebuilding on the same s~te Thru Policy shall not be hable for any cost of demoht~on or ~ncreased cost of reconstrucbon repair debris removal or loss of use necessitated by the enforcement of any law or ordinance regulating any form of pollubon AUTOMATIC 5 Unless otherwise insured on an all r~sk bas~s th~s Pohcy also covers property up ' COVERAGE to a hmlt of $ at any Iocabon ~n the Umted States Puerto Rico or Canada rented or purchased by the Insured after the ~ncepbon date of th~s Policy for a period of 90 days from date of acqu~s~bon of such Iocabon ERRORS AND 6 In the event of loss or damage to property of the Insured located m the Umted OMISSIONS States Puerto R~co and Canada and such loss ~s not payable under th~s Pohcy solely because of (e.) any error or umntent~onal omission ~n the description or Iocabon of property ~nsured under this Policy whmh error or omission existed at the Incepbon date of th~s Pohcy or (b) any error or umntent[onal omission ~n the description or Iocahon of property insured under this Pohcy ~n any subsequent amendments to th~s Policy or (c) fadure through error or umntentlonal omission to ~nclude (1) any Iocabon owned or occupied by the Insured at the mcepbon date of th~s Pohcy or (2) any location newly acquired or occupied dunng the term of th~s Pohcy or Form 3000T PAGE 4 OF ? rd~on May 1985 Factory Mutual Servme BtJreau 10 any earth movement ~ncludmg but not hmlted to earthquake landshde or subs~ dence whether or not caused by resulting from or contributed to by loss or ' ~ damage of the type ~nsured under th~s Pohcy unless damage by fire or explosion results and then the Company shall be hable for only such resulbng damage GROUP B Th,s Pohcy does not insure against md~rect or remote loss or damage 2 mechanical or electrical breakdown (except hghtmng damage) of any equip ment unless physical damage not otherwise excluded results ~n which event th~s Pohcy shall cover only such resulbng damage 3 mysterious d~sappearance or loss or shortage d~s,closed on taking ~nventory or any unexplained loss 4 faulty workmanship material construction or design from any cause unless physical damage not otherwise excluded by this Policy results in which event th~s Policy wdl cover only such resulting damage 5 loss attributable to manufacturing or processing operations which result in dam age to stock or materials whde such stock or materials are being processed manufactured tested or otherwise being worked upon all unless physical dam- age not otherwise excluded by th~s Pohcy results ~n which event th~s Policy shall cover only such resulhng damage 6 deterioration deplebon rust corrosion erosion wear and tear ~nherent wceor latent defect unless physical damage not otherwise excluded by this Pohcy results ~n which event th~s Policy shall cover only such resulting damage 7 contamlnabon shrinkage or change in color flavor texture or finish unless such damage results d~rectly from other physical damage not otherwise excluded by th~s Policy 8 settling cracking shrinking bulging or expansion of pavements foundabons walls floors or ceilings unless physical damage not otherwise excluded by th~s Pohcy results ~n which event thru Policy wdl cover only such resulbng damage 9 ~mpact damage to docks p~ers and wharves 10 increase ~n loss attr,butable to any law or ordinance which regulates construc hon repair replacement debris removal use orwhmh necessltatesdemohhon of any undamaged portions of property on the premmes described here~n D ADDITIONAL COVERAGES CONSEQUENTIAL 1 Th~s Pohcycovers reducbon m value of insured components or parts of products REDUCTION due to physical loss or damage ~nsured against by th~s Pohcy to other ~nsured IN VALUE components or parts of such products "'- DEBRIS 2 Th~s Pohcy covers expense of removal from the described premises of debris REMOVAL remaining after any loss hereby ~nsured against Form 3000T Faclory M~lual Service Bureau PAGE 3 OF 7 Edition May 1985 Norwood Massachusells VALUATION (e) on media data and programs for electronic and electromechamcal data (Cont d) processing and production equipment the cost of reproducing such media data and programs from duphcates or from originals of the previous generabon of the data (f) on jigs and hxtures dies small tools patterns contractors equipment em ployees personal property and personal property of third parbes the actual cash value with proper deducbon for depreciation but not to exceed the cost to repair or replace the property w~th material of hke kind and quahty (g) on leasehold ~mprovements and betterments the replacement cost less physical deprec~abon If actually replaced at the Insured s expense w~th~n two years from the date of loss d not so replaced the unamortized value (h) on all other property the actual cash value w~th proper deduction for depre clabon but not to exoeed the cost to repair or replace the property w~th mater~al of hke k~nd and quahty all to be computed at the time and place of loss CONSEQUENTIAL 4 In the event of physical damage insured byth~s Pohcyto any property situate on DAMAGE the described premises and such damage w~thout the ~ntervenbon of any other independent cause results ~n a sequence of events which causes physical damage to other property ~nsured by th~s Pohcy then th~s Pohcy wdl cover such resulhng loss or damage Nothing in this clause shall be deemed to extend th~s insurance to property which ~s otherwise specdlcally excluded from coverages by the terms of th~s Pohcy The hablhty of this Company includes only the physical damage ~ncurred during such period as would be required w~th the exercise of due dd~gence under normal cond~bons to repair or replace the damaged property and does not include any habdlty resulting from mabd~ty of the Insured to make repairs or replacements because of strikes or labor d~sputes BRANDS AND 5 If branded or labeled merchandise covered by th~s Pohcy ~s damaged and th~s LABELS Company elects to take all or any part of such merchandise at the value estabhshed by the terms ofth~sPohcy the Insured may atthe~rownexpense stamp salvage on the merchandise or its containers or may remove or obliterate the brands or labels ~f such stamp removal orobhterabon will not physmally damage the merchandise but the Insured must re label the merchandise or containers m comphance w~th the requirements of law SUBROGATION 6 Th~s Company may require from the Insured an assignment of all right of recovery against any party for loss to the extent that payment therefor ~s made by th~s Company but th~s Company shall not acquire any rights of recovery which the Insured has expressly waived prior to loss nor shall such waiver affect the Insured s , rights under th~s Pohcy Any recovery as a result of subrogation proceedings arising out of a loss occurrence after expenses recurred m such subrogabon proceedings are deducted shall ' accrue to the Insured m the proporbon that the amount of deduchble and/or the amount of any provable umnsured loss bears to the amount of the enbre provable loss NO REDUCTIONI 7 Any loss hereunder shall not reduce the amount of th~s Pohcy BY LOSS DIVISIBLE 8 If the premises described m th~s Pohcy ~nclude two or more buildings or the CONTRACT contents of two or more buildings the breach of any cond~hon of th~s Pohcy m respect to any one or more of the buildings insured or conta~mng the property insured shall not prejudice the right to recover for loss occurring m any building insured or conta~mngthe property ~nsured where at thehmeofthe loss a breach of condlbOn does not ex~st Form ~0O0T Edd~on May 1985 Factory Mutual Service Bureau PAGE 6 OF 7 ERRORS AND (d) any error or umntenbonal ormss~on which results ~n cancellahon of property OMISSIONS insured under th~s Pohcy - (Cont d) such loss or damage shall be insured by this Pohcy only to the extent this Pohcy would have prowded coverage had the error or umntenhonal omission not been made up toahm~tof$ EXPEDITING 7 Thru Pohcy covers up to a hm~t of $ the reasonable and neces EXPENSE sary extra costs of temporary repair or damage to property and the extra costs of expediting the permanent repair or replacement of such damaged property resulting from physical damage insured against by th~s Pohcy In no event shall these Expediting Expenses ~nclude expenses recoverable else where m th~s Pohcy or the cost of permanent repair or replacement of the damaged property PROTECTION 8 In case of actual or imminent physical loss or damage of the type ~nsured against AND by thru Pohcy the expenses recurred by the Insured m taking reasonable and PRESERVATION necessary acbons for the temporary protecbon and preservation of property insured OF hereunder shall be ad ded to the total physical loss or damage otherwise recoverable PROPERTY under the Pohcy and be subject to the apphcable Deducbble and w~thout ~ncrease m the L~m~t provisions contained ~n th~s Pohcy E GENERAL CONDITIONS TITLES OF 1 The btles of the various paragraphs of th~s form (and of endorsements attached to PARAGRAPHS the Pohcy) are solely for reference and shall not m any way affect the provisions to which they relate DEDUCTIBLE 2 Ineachcaseoflossordamagecoveredbyth~sPohcy thm Company shall not be ~,~ hable unless the Insured sustains a loss ~n a s~ngle occurrence in excess of any applicable deduchble prowded elsewhere ~n th~s Pohcy and then only for ~ts share of such excess When th~s Pohcy covers more than one Iocabon the deducbble shall apply against the total loss or damage covered by th~s Pohcy ~n any one occurrence If two or more deduchble amounts prowded ~n th~s Pohcy apply to a s~ngle occur rence the total to be deducted shall not exceed the largest deductible apphcable unless otherwise prowded m th~s Pohcy If th~s Pohcy ~nsures against both Property Damage and T~me Element losses the deduchbles as shown ~n th~s Pohcy shall apply separately to each such coverage even ~f both are revolved ~n a s~ngle occurrence unless otherwise prowded in this Pohcy VALUATION 3 Unless otherwise endorsed hereon adjustment of loss under this Pohcy shall be - (a) on stock ~n process the value of raw materials and labor expended plus the proper proporbon of overhead charges (b) on brushed goods manufactured bythe Insured the regular cash selhng price at the location where the loss occurs less all d~scounts and charges to whmh the merchandise would have been subject had no loss occurred (c) on raw materials supphes and other merchandise not manufactured by the Insured the replacement cost (d) on exposed him records manuscripts and drawings the value blank plus the cost of transcription Form 3000T Factory Mulual Service Bureau PAGE 5 OF 7 Ed~bon May 1985 Norwood Maasachusetl$ INSPECTION 9 The Company at all reasonable t~mes during the Pohcy period shall be permit ted but not obhgated to ~nspect the property insured by th~s Pohcy Neither the ~ Company s r~ght to make ~nspecbons nor the making thereof nor any report thereon shall consbtute any undertaking on behalf of or for the beneht of the named Insured or others to determine or warrant that such property ~s safe or healthful COLLECTION 10 No loss or part of a loss shall be paid or made good hereunder to the extent the FROM OTHERS Insured has collected such loss from others ,. OTHER 11 The Company shall not be hable for loss under th~s Pohcy ~f at the bme of loss INSURANCE there ~s any other insurance which would attach if this insurance had not been effected except that thru ~nsurance shall apply only as excess and In no event as contributory Insurance and then only after all other ~n~urance has been exhausted CANCELLATION 12 Thls Pohcy shali be cancelled at any hme at the request of the lnsured Inwh~ch case th~s Company shall upon demand and surrender of th~s Pohcy refund the ~ excess of pa~d premium above the customary short rates for the expired bme Th~s Policy may be cancelled at any bme by th~s Company by g ivmg to the Insured a thirty (30) days written not~ce of cancellation w~th or without tender of the excess of pa~d premium above th~s Company s normal earned premium for the expired time which excess ~f not tendered shall be refunded on demand Nobce of cancellabon shall state that sa~d excess premium (d not tendered) wdl be refunded on demand However th~s Pohcy may be cancelled by the Company d the Insured falls to remit when due the payment of Premium for such pohcy by g~wng the Insured not less ~ than ten (10) days written not~ce of cancellation Form 3000T Edition May 1985 Factory Mutual Serwce Bureau PAGE 7 OF 7 Norwood Massachuselts PRIN~fED IN U SA REPAIR OR REPLACE ENDORSEMENT In conslderat;on of add;t~onal premium paragraphs (f) (g) and (h) of General Cond~hon No 3 VALUA TION ofpartE GENERALCONDiTiONSofthePohcytowhmhth~sEndorsement~sattachedareamended to mdemmfy the Insured for the cost of rebuddlng repairing or replacing the damaged or destroyed property subject to the following cond~bons 1 ifpropertydamagedordestroyed~suselesstothelnsuredor~sn°trepa~red rebudtorreplacedon the same or another s~te w~thm two years from the date of loss or damage th~s Company shall not be hable for more than the actual cash value (w~th proper deducbon for deprec~abon) of the property destroyed 2 The total habd~ty of th~s Company under th~s Pohcy for loss to p.roperty included under th~s Endorsement shall not exceed the smallest of the following a the cost to repair or b the cost to rebudd or replace on the same s~te w~th new matenalsof equivalent s~ze kind and quahty, or c the actual expenditure ~nourred in rebuddmg repairing or replacing the damaged or destroyed property on the same or another s~te but not to exceed the s~ze and operating capacity that ex~sted at the t~me of loss all as of the hme when, with due dd~gence and d~spatch rebudd~ng repairing or replacement of the damaged or destroyed property could be effected 3 If at the hme of loss covered under th~s Pohcy claim ~s made for the cost of replacement of the property damaged or destroyed, then this Company shall be liable under th~s Endorsement for no greater proportion of such loss than the amount of $ bears to 100% of the cost at the t~me of loss and at the same s~te of replacement in a new cond~bon w~th materials of equivalent s~ze k~nd and quahty of all the property ~ncluded under the terms of thru Endorsement The value of the foundations and other property located below the lowest basement floor or where there ~s no basement below the surface of the ground shall be d~sregarded m applying th~s co insurance provision In the event that the aggregate claim for any loss covered under the conditions of th~s Endorsement is less than $100 000 no special ~nventory or appraisement of the undamaged property shall be required For property located m the Commonwealth of Massachusetts or the State of North Carohna paragraph 2 c of th~s Endorsement ~s amended to read as follows 2 c the actual expenditure ~ncurred m rebuddmg repairing or replacing the damaged or des troyed property on the premises described ~n thru Pohcy or some other location w~thm the Commonwealth of Massachusetts or the State of North Carohna as the case may be mutually agreed upon between the Insurer and the insured but not to exceed the s~ze and operating capacity that ex~sted at the time of loss Form 3100 PAGE 1 OF 1 Edmon May 1984 Factory Mutual Service Bureau ~ AGREED AMOUNT ENDORSEMENT (Repair or Replace) Until the amount stipulated under Paragraph 3 of the Repair or Replace Endorsement represents at least 100% of the value of the property ~ncluded under the Endorsement Form 3101 Edition November 1984 Factory Mutua~ Service Bureau PAGE 1 OF 1 Replaces March 1984 Norwood Massachusetts PRINTED IN USA GENERAL CONDITIONS ELIMINATION The following exclusions Nos 8 and 9 ~n Group A of Part C EXCLUSIONS of this OF Pohcy do not apply to coverage under th~s Endorsement EXCLUSIONS 8 Floodwaters waves tldeorhdalwater the release of water thenslng overflow ~ng or breaking ot boundaries of natural or man made bodies of water or spray from any of the foregoing whether or not caused by resulting from or contributed to bylossor damage of the type insured under this Pohcy unless damage by fire or explosion results and then the Company shall be liable for only such resulbng damage 9 Any earth movement ~nclud~ng but not hm~ted to earthquake landshde or subsidence whether or not caused by resulting from or contributed to by loss or damage of the type ~nsured under th~s Policy unless damage by hre or explosion results and then the Company shall be hable for only such resulting damage NO BENEFIT This ~nsurance shall ~n no way ~nure d~rectly or ~nd~rectly to the benefit of any carrier TO BAILEE or badee VALUATION In case of loss the basis of adjustment unless otherwise endorsed hereon shall be as follows (A) Property sh~pped to or for the account of the Insured shall be valued at actual mvome to the Insured together w~th such costs and charges (including the commmslon of the Insured as selhng agent) as may have accrued and become legally due thereon (B) Property which has been sold by the Insured and has been shipped to or for account of the purchaser (if covered hereunder) ts valued at the amount of the Insured s selhng invoice ~ncludlng prepaid or advanced freight (C) Property not under invoice shall be valued at the actual cash market value at the point of destmabon on the date of d~saster less any charges saved which would have become due and payable under dehvery at destmabon BILLS OF Permission ~s hereby granted to the Insured w~thout prejudice to this insurance to LADING accept the ordinary Bills of Lading used by carriers including released and/or under valued Bills ot Lading and/or Shipping or Messenger Receipts and the In sured may waive subrogation against radroads under side track agreements and except as otherwise provided the Insured shall not enter ~nto any special agreement w~th carriers releasing them from their common law or statutory habd~ty FRAUD This Endorsement also covers loss of or damage OR DECEIT (A) Occasioned by the acceptance by the Insured Insured s agent customer or consignee(s) or others of fraudulent Bills of Lading Shipping or Messenger Receipts (B) Obtained by fraud or deceit perpetrated by any person(s) who may represent themselves to be the proper party or part~es to receive the property for shipment or to accept ~t for dehvery Form 3107 PAGE 2 OF 2 Edition March 1984 Faotory Mutual Serwca Bureau Norv~od Massacl~usetts PRINIED iN U S A TRANSPORTATION ENDORSEMENT In consideration of add~honal premium the Pohcy to which th~s Endorsement is attached is extended to cover Personal Property as described here~n except as otherwise excluded by this Policy while such property Is ~n transit PROPERTY INSURED Personal Property owned by the Insured 2 Personal Property shipped to customers on F O B C & F or s~mllar terms The Insured s contra gent Interest ~n such shipments ~s admitted 3 The ~nterest of the Insured m and legal habdlty for Personal Property of others ~n the actual or construcbve custody of the Insured 4 Personal Property of others sold by the Insured which the Insured has agreed prior to loss to ~nsure dunng course of dehvery ADDITIONAL PROPERTY EXCLUDED 1 Samples ~n the custody of salespersons or selling agents 2 Property insured under ~mport or export ocean marine pohc~es 3 Waterborne shipments wa Panama Canal and waterborne or a~rborne shipments to and from Alaska Puerto R~co and HawaH 4 Shipments made by a~r unless via regularly scheduled airlines 5 Property shipped by mad 6 Property of others including the Insured s legal hablhty therefor hauled on vehicles owned leased or operated by the Insured when achng as a common or contract carrier as defined by the Interstate Commerce Commission Regulations or state regulatory agencies LIMIT OF LIABILITY The habd~tyofth~s Company ~n any one loss d~saster or casualty e~ther ~n case of partial or total loss or salvage charges or any other charges or expenses or all combined shall not exceed the applicable hmlt of habd~ty as follows (A) $ on Personal Property in cron any one conveyance or individual umtthereof except (B) $ aggregate habdlty in any one loss disaster or casualty DEDUCTIBLE CLAUSE Each claim for loss or damage or expense under this Endorsement shall be adjusted separately and this Company shall not be hable unless the Insured sustains a loss in excess orS and then only for rts share of such excess ATTACHMENT AND DURATION OF COVERAGE Except as hereinafter prowded th~s ~nsurance attaches from the hme the property leaves the original point of shipment for the commencement of transit and covers thereafter conbnuously ~n the due course of transit within the Continental Umted States of America and Canada and Alaska w~th~n HawaH or within Puerto Rico unbldehveredatdesbnabon Coverage on export shipments not ~nsured under ocean manna pohc~es does not extend beyond the bme when the property ~s loaded on board overseas vessel or a~rcraft Coverage on ~mport shipments not ~nsured under ocean cargo pohc~es does not attach untd after d~scharge from overseas vessel or a~roraft ADDITIONAL COVERAGE Coverage provided by th~s Endorsement shall ~nclude general average and salvage charges on sh~p ments covered whde waterborne ADDITIONAL EXCLUSION This Endorsement does not ~nsure against loss or damage caused by or resulting from delay loss of market or business Interruphon Form 3107 Factory Mutual Se~wce Bureau PAGE 1 OF 2 Edition March 1984 Norwood Massachusetts ~ AUTOMATIC COVERAGE ~ f th~s block ~s checked the coverage provided by this Endorsement ~s extended to cover property ~nsured under th~s Pohcy by v~rtue of any Automat c Coverage Endorsement attached hereto subject to the L~m~ts of L~ab~l~tY set forth m the Automatic Coverage Endorsement FLOATER COVERAGE [] If th~s block is' checked the coverage provided by th~s Endorsement ~s extended to cover property ~nsL~red under th~s Pohcy by ¥~rtue of any Floater Coverage subject to the t_~m~ts of L~abH~ty apphcable to Floater Coverage Form 3300 PAGE 2 OF 2 Ed~hon March 1984 FactoP/ Mutuat Serwce Bureau Norwood Mass~cht~e~ts PRINTED IN U ~ EARTH MOVEMENT ENDORSEMENT In consideration of additional premium the Pohcy to which this Endorsement is attached is extended by deleting the following exclusion No 9 in GROUP A of Part C EXCLUSIONS 9 Any earth movement~nclud~ng but not limited to earthquake landshde orsubs~dencewhetheror not caused by resultmg from or contnbuted to by loss or damage of the type ~nsured under th~s Policy unless damage by fire or explosion results and then the Company shall be liable for only such resulting damage LIMITS OF LIABILITY This Company shall not be hable under the terms of th~s Endorsement for more than the hm~t specified elsewhere in this Policy for each single earth movement nor for more than the hmlt specified elsewhere in this Policy during any twelve consecuhve months If this Policy includes T~me Element Coverage or Automahc Coverage or Floater Coverage the foregoing limits shall be the maximum amount collect~ble under th~s Pohcy ForthepurposesofthlsEndorsement the term s~ngleearthquake mcludesallshocksoccurrlngw~thma continuous 72 hour period DEDUCTIBLE CLAUSES APPLICABLE TO COVERAGE IN ALASKA CALIFORNIA HAWAII AND PUERTO RICO PROPERTY DAMAGE In case of claim for loss or damage under th~s Endorsement the Company shall not be hable as a result of a single earthquake or other covered occurrence m Alaska Cahforma Hawa~ or Puerto Rico unless the Insured sustains a loss ~n excess of per cent ( %) of the value of the property 0ncludmg foundations) insured under th~s Endorsement and then only for ~ts share of such excess It the ~nsurance prowded by th~s Endorsement covers more than one location th~s deduchble percentage shall apply separately at each location 2 TIME ELEMENT COVERAGES If this Pohcy is endorsed to include T~me Element coverage the Company shall not be liable under such Endorsement(s) as a result of a s~ngle earthquake or other covered occurrence ~n Alaska Cahforma Hawa~ or Puerto R~co for more than the amount by which such T~me Element loss shall exceed per cent ( %) of the tull annual Time Element value which would have been earned in the twelve month period following the occurrence by use of the fac~hhes at the Iocahon where the physical damage occurred and then only for ~ts share of such excess If the insurance provided by th~s Endorsement covers more than one location th~s deducbble percentage shall apply separately to each such location ADDITIONAL EXCLUSIONS 1 Th~s Endorsement does not apply to property ~n transit 2 This Endorsement does not insure against loss or damage caused by or resulting from flood waters waves tide or tidal water or by the nsmg overflowing or breaking of boundaries of natural or man made bodies of water or spray from any of the foregoing all regardless of cause 3 Unless otherwise ind~cated below this Endorsement does not apply to any property covered under this Pohcy by wrtue of any Automatic or Floater Coverages attached to this Policy Form 3300 Faclory Mutual Serwce BuCeau PACF I OF 2 Edition March 1984 Norwood Massachusetts FLOOD ENDORSEMENT In cons~derabCn of add~bonal premium the Pohcy to which th~s Endorsement ~s attached ~s extended by deleting the f~llowmg exclusion No 8 m GROUP A of Part C EXCLUSIONS 8 Flood waters, waves t~deorhdalwater the release of water the r~smg overflowing or breakmgof bound~,nes of natural or man made bodies of water or the spray from any of the forego rog, whether or not caused by resulting from or contributed to by loss or damage of the type insured under th~s Pohcy I unless damage by fire or explosion results and then the Company shall be haLle for only such resulting damage LIMITS OF LIABILITY Th~s Company shall not be halle under the terms of th~s Endorsement for ~nore than $ each single opcurrence nor for more than $ . ~ dunng any twelve consecuhve months If this Pohcy indludes Time Element Coverage or Automauc L;overage or Floater Coverage the foregoing hmlt shall be~the maximum amount collecbble under th~s Pohcy ADDITIONAL EXCLUSIONS 1 Th~s Endorsement does not apply to property m transit 2 Unless otherw~se mdmated below, th~s Endorsement does not apply to any property covered under th~s Pohcy by v~rtue of any Automatic Coverage or Floater Endorsement(s) attached to th~s Pohcy AUTOMATIC COVERAGE [] If th~s block ~s checked the coverage provided by th~s Endorsement ~s extended to cover property insured dnder this Pohcy by v~rtue of any Automabc Coverage Endorsement attached hereto subject to the Limits of Lmbd~ty set forth m the Automabc Coverage Endorsement FLOATER COVERAGE [] If th~s block ~s checked the coverage prowded by th~s Endorsement ~s extended to cover property insured under th~s Pohcy by v~rtue of any Floater Coverage subject to the L~m~ts of L~ab~hty apphcable to Floater Coverage Form 3301 Factow Mutual Se ice Bureau PAGE 1 OF 1 Ed~bon March 1984 Norwood Massao usett$ PRINTED IN U $ ~ BOILER AND MACHINERY EXCLUSION The Pohcy to which th~s Endorsement ~s attached ~s amended as follows ADDITIONAL EXCLUSIONS 1 Th~s Pohoy does not insure against loss or damage caused by or resulting from explosion m or of steam bo~lers steam turbines gasturbmes steam engines and steam p~pes ~nterconnectmg any of the foregoing equipment owned operated or controlled by the Insured however hab~hty ~s assumed for loss or damage resulting from an explosion A of gases or fuel w~thm the furnace of a bo~ler or w~th~n the flues or passages therefrom B revolving the smelt bed w~thm the furnace of a bo~ler of th~ chemical recovery type C outside of any equipment 2 Th~s Pohcy does not insure against loss or damage caused by or resulting from rupture bursting cracking bulging burmng or change of temperature of steam bo;lers steamturbmes gasturbmes steam engines and pressure vessels or p~pmg or apparatus attached to any of the foregoing equipment owned operated or controlled by the Insured however hab~hty ~s assumed for loss or damage resulting from accidental d~scharge escape leakage backup or overflow to the open of any mater~al from confinement w~th~n p~p~ng plumbing systems tanks orequ~pment except from thatequ~pment~dentd~ed m paragraph 1 above located on the described premises 3 Th~s Pohcy does not insure against mechamcal or electrmal breakdown (except by d;rect hghtnmg damage) of any equipment unless physical damage not excluded results m which event this Pohcy shall cover only such resulting damage Form 3500 Factory Mulual Serv,ce Bureau PAGE 1 OF 1 Edition January 1986 Norwoo(~ Massach~seil8 PRINTED IN USA  ) ATTACHMENT B ARTHUR O GALLAGHER & CO DALLAS August 13, 1987 City of Denton Re Insurance Proposal/Renewals Sirs Essentially our renewal is on an "as is" basis with c&rrler$~ terms, and conditions remainm~ vtrtually the same You will note some changes in the retention, loss fund and exposures As always, we welcome your questions, and we look forward to having the opportunity to discuss our program and ail available options in depth Respectfully, Account Executive 3L mc Enclosure 1222' Me~t Drive Suite670 DJ[las Tex'~o 75~,.1 214991 3700.TWX 910861 4321 TLFX 214-991-4061 Ar,~HUR J GALLAGHER &CO Airport Liability Policy Global Aviation Insurance Cities Exposure $ l, 000,00 C S L Limit (Contingent Liability) $ 8,000 Premium Southeastern Aviation (Texas), Inc Limit - $1,000,000 C S L for premises - Products Liability $ 50,000 any one aircraft $ 150,000 any one occurrence Ground Hangar Keepers' Liability Annual Premium - $15,000 For $5,000,000 - $2%000 .0.. wo.~. 0..0T~CT,0. ATTACttMENT C En~PI. OY~RS CEISUaLTY ~O~P~Y E~PLOYeRS N~TIO~SL I~SUR~Ce CO~P~Y POST OFFICE BOX 2759 I DALLAS TEXAS 75221 August 12, 1987 Mr Harlan Jefferson, Risk Manager City of Denton 901-B Texas St Denton, Texas 76201 Re City of Denton Comprehensive Insurance Proposal Dear Harlan We are pleased to submit the attached proposal for the City's Property and Casualty Coverage You will notice that the coverage for your Airport is not includsd Your current carrier is our best market for this coverage We sent applications to ssveral other markets but received no quotations If we ars awarded the othsr coverages, we can have your current policy trans- ferred to our company with a lstter of record from the City Also we havs not included a quotation for the Money and Securities & Employee Fidelity We use the Fidelity and Deposit Company of Maryland for this coverags Although we were unable to obtain a quotation at this time because of lack of some information and ths time factor, this coverage is available at a minimal cost The physical damage coverags on your vehicles still needs to be worked out We have sevsrat options to chooss from but nons of them were exactly what your bid specifications called for so we felt that it would be better to discuss this coverage further with you before quoting it We feel we have an excsllent program and if you should have any questions about our quote pleass call me at (214)760-6616 Yours truly, Carolyn Osborn, CPCU, AAI Risk Management Services co/Jw EMPLOYERS INSURANCE OF TEXAS, CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PLAN Estimated Annual Standard Premium - $828,978 Contracted Services Cost i Claims Handling Services 7 5% of paid losses 2 Administrative Services 3 0% of first $i00,000 of Stud Prem 1 5% of next $400,000 of Stud Prem 0 757 of Stud Prem over $500,000 Not to Exceed Overall Charge of $25,000 3 Safety Engineering Services 1 57 of Standard Premium 4 Catastrophe Reinsurance (To indemnify the Fund Member of losses for any one accident or occurrsnce in excess of a pre- determined retention by the Member up to a maximum limit of $10,000,000 per accident or occurrsnce ) at $200,000 Retention 4 3% of Standard Premium Per Occurrence at $250,000 Retention 3 77 of Standard Premium Per Occurrence at $300,000 Retention 3 37 of Standard Premium Per Occurrence 5 Aggregate Stop Loss Reinsurance @ 100% 2 5% of Standard Premium (To stop aggregate losses from 10-1-87 through 10-1-89 at 100% of aggregate standard premium over same period up to a maximum liability of $5,000,000 ) Aggregate Stop Loss Reinsurance @ 125% i 67 of Standard Premium of aggregate standard premium from 10-1-87 through 10-1-89 CITY OF DENTON WORKERS' COMPENSATION CASH FLOW PROPOSAL Program Texas Political Subdivision Workers' Compensation Joint Insurance Fund Estimated Standard Premium -- $828,978 Contracted Services Annual Cost 1 Claims Handling Services 7 57 of paid losses 2 Administrative Services $11,467 3 Safety En~ineerin~ Services 12,435 4 Catastrophe Reinsurance @ $200,000 Retention 35,646 Per Occurrence @ $250,000 Retention 30,672 Per Occurrence @ $300,000 Retention 27,356 Per Occurrence 5 Aggregate Stop Loss Reinsurance 20,724 @ 100% of aggregate standard premium from 10-1-87 through 10-i-89 @ 125% of aggregate standard 13,264 premium from 10-1-87 through 10-1-89 Note Claims Handling Services and Safety Engineering Services will be provided by Employers Insurance Of Texas out of their Sherman District office Reinsurance will be provided by Employers Casualty Company CITY OF DENTON CASH FLOW PLAN COST ILLUSTRATION Standard Premium $828,978 Loee Ratio 30% 407 507 1 Losses 248,693 331,591 414,489 2 Claims Handling Expense 18,652 24,869 31,087 3 Administration Expense 11,467 11,467 11,467 4 Safety Engineering 12,435 12,435 12,435 5 Catastrophe Reinsurance (Up to $10,000,000 Maximum Limit) @ $200,000 retention 35,646 35,646 35,646 per occurrence @ $250,000 retention per occurrence 30,672 30,672 30,672 @ $300,000 retention 27,356 27,356 27,356 per occurrence 6 Aggregate Stop Loss Reinsurance 20,724 20,724 20,724 @ 100% TOTAL ULTIMATE COST @ $200,000 $347,617 436,732 525,848 RETENTION TOTAL ULTIMATE COST @ $250,000 342,643 431,758 520,874 RETENTION TOTAL ULTIMATE COST @ $300,000 $339,327 428,442 517,558 RETENTION tEXAS POLITICAL SUB'DIVISlON-S WORKER-q ~-O-MPENSATION JOINT INSURANCE FUND 'R"MIUM WORKSHEET FOR C±t¥ nf Denton co.'r.*.T ~o ~ltl~ Effective 1-i-87 Fund Year 10 1 861 10 1 87 Em~ Payrolls $100 Payroll I 19.444 4 50 875 ~ 135,608 1 80 2~441 ~91 Automobile Ga~ 271,720 4 80 13~043 7380 B~kmobHe Dr~rl 7 14 ~1~ Bu,~m, O~mt~on, 89,864 5 54 4,978 9 78 9220 Ceme~O~r,t,on, I 4,310,836 36 15~519 7~g El~tr,c D~m,,~t,on 2,974,668 lt96 58~303 ' 2,940,168 2 49 73,210 ' 2 03 .... i ...... 488 ~33 H~l,ng Authority OD~rltmns 4 ~ 39 5 93 ~38 ~i~mr,e~ ~.~ Mu~um~ 520,744 44 2 ~ 291 7520 ~e~orkt Ogerenon ~ 3 7 2 ~ 45 2 ~ ~ 9102 Plrkt Ind Re~reetson 1 s 000 s 308 ~ ~ ~ nefu. CoI~K~,~ ~c D,~e~' - Conwntion~i 414 ~ 668 ~5.18 62 · 947 ~ Refum Collect,on em D,I~o~I - ~utly Gont.,ne~,ze~ 309 ~ 148 7.14 22. 073 110,392 ~ 10 277 ~85 T~n,,tGem~ ~ 727 968 ~ ~ Z~ An~melmenm ~ ~n Ins ectors& En ieer ~ ~~m O.erations -- ~ ~ ~ ~*11 ~ ~mN to ~ for ~len~ ~Iv md it nm to ~ e~ttme~ et 2 YOUR EXPERIENCE MODIFIER BYLAWS OF TEXAS POLITICAL SUBDIVISIONS WORKERS' COMPENSATION JOINT INSURANCE FUND Board of Trustees The Texas Political Subdivisions Workers' Compensation Joint Insurance Fund (hereinafter referred to as "Fund") shall be governed by a Board of Trustees The Board shall operate the Fund on behalf of the Fund Members pursuant to bylaws and shall be composed of the members appointed in the manner hereinafter set out and shall have the further functions, powers and duties as herein set forth Original Board The original Board of Trustees shall consist of nine (g) members So shall be appointed by the political subdivisions originating the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund at the same time the Fund is created The original Board shall serve for a period of sixty (60} days or until their successors are qualified A permanent Board of Trustees, as herein described, shall be elected by the Fund Members at an ~ection set by the original Board, to begin serving terms on December l, 1983 Permanent Board qualifications The majority of members of the permanent Board must be either an employee or elected official of a political subdivision within the State of Texas Which Is a Member of the Fund Any Board member that ceases to be an employee or elected official of a He~ber of the Fund shall autometically be disqualified to serve as a member of the Board, and his position shall become vacant Number and Tem of Permanent Board The permanent Board of Trustees shall consist of nine (g) members elected by the Fund Members Each member of the permanent Board shall be elected to occupy a designated place Those initially occupying Places Nos l, 2, and 3, shall be originally elected for a term to expire on Dec~nber 31, lgB4, or until their successors are qualified Those initially occupying Places 4, 5, an~ 6, shall be originally elected for a term to expire on December 31, lg85, or until their successors are qualified Those initially occupying Places 7, 8, and g shall be originally elected for a iterm to expire on Pecember 31, lg86, or until their successors are qualified After the initial election of the permanent Board, the Fund shall conduct a regular election annually by means of a mail ballot involving all Fund members Each election after the initial election shall be for a three,year term No person shall serve for more than two (2) consecutive three,year terms At the time of the election, the Place to be filled shall be designated When a Board Member vacancy occurs due to death, resignation, dis- qualification or inability to act, the Board shall appoint a replacement to serveluntil the next regular election At that election, the Fund Members shall elect the permanent replacement wh? will serve the remaining period in the term of that designated Place 2 Election of Officers~ Meetings Within fifteen (15) days after the initial election of the members of the permanent Board of Trustees, and annually thereafter within ninety (90) d~ys after the regular election of Trustees on a specific date set by the Board, the Board shall hold a meeting for the purpose of electing officers for the ensuing year, and the transaction of such other business that may come before it. The Board shall hold at least three meetings annually and such other meetings as may be necessary for the transaction of its general business, when called by the Chairman or requested in writing by any three (3) Board members The meetings shall be held at any convenient place in the State of Texas according to proper resolution of the Board designating same Officers Quorum The Board shall organize by electing one of its members as Chairman, and another of its members as Vice-Chairman The Board shall designate a Secretary to keep the minutes and records of the Board, who may or may not be a member of the Board itself A majority of members of the Board shall constitute a quorum Concurrence of a majority of the Board shall be necessary for any official action taken by the Board Members Compensatto% Reimbursement The duly elected, qualified and acting members of either the original or pemanent Board shall serve without compensation, but shall be entitled 3 to reimbursement of actual expenses incurred in the perfomance of their official duties upon the approval of such expenses by the Board B Powers and Dutte$ The Board, in addttton to other powers and duties heretn conferred and Imposed or authorized by law, shall have the following powers and duttes to-wtt A, The Board may contract for such professional servlces as tt may deem necessary and shall fix the ttme, manner and payment therefor B. It shall be authorized to contract with any oualified organization to perfo~n any of the functions necessary for the carrying out of a self-insured workers' compensation pool arrangement, including reinsurance, claims, administration, safety engineering services, administrative services and any and all other services that the Board shall deem expedient for the proper servicing of those Fund Members who use the services of the Fund C It shall make provision for proper accounting and reporting procedures for each of the Fund Members so that they shall be apprised at all times of the nature of the claims arising within their Jurisdiction, the manner in which these claims are being handled and the impact of the same upon the Fund D. It shall provide for annual audit of the books of the Fund to be supplied to each of the Fund Members as may be requested E. It shall carry out all of the duties necessary for the proper operation end administration of the Fund on behalf of the Fund Members and to that end shall have ell of the powers necessary and desirable for the effective administration of the affairs of the Fund It shall arrange for the investing of the monies of the Fund so as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the Fund Members It shall provide for the banking of the monies of the Fund and the proper security of any and all investments The Chairman of the Board shall appoint an Executive Committee of the Board to handle the affairs of the Eoard in between the regular Board meetings or any of the called Board meetings, with such functions as may be designated to the Executive Committee by the Board by resolution properly adopted It shall have the authority to terminate membership of any Fund Member that fails to abide by the reasonable requirements of the Board concerning payment of dues and contributions, installation of safety requirements, cooperation with the claims agents or attorneys representing the Fund or any of the Fund Members, or any other action that may be detrimental to the fiscal soundness or efficiency of the Fund on behalf of its Fund ~mbers It shall develop and prepare a contract to be signed by each of the Fund ~embers as they loin the Fund and shall determine the amount of reinsurance that shall be purchased by the Fund It may require the securing of a fidelity bond upon each and all of the employees of the Board or upon other persons charged with the duty of handling any of the monies or investments of the Fund K It may hire attorneys, accountants or such other professional persons that it may deem necessary for the proper protection of the Fund These persons shall be paid as provided in the contract for hire as executed by the Board It shall provide for a suitable seal with the following letters upon its face "TEXAS POLITICAL SUBDIVISIONS WORKERS' C~PENSATION ~OINT INSURANCE FUND" The seal shall be used for the authentication of legal documents, contracts and other instruments indicating the official action of the Board The Board shall have the general power to make end enter into all contracts, leases and agreements necessary or convenient to carry out any of the powers granted under these bylaws or by any other law All such contracts, leases and agreements or other legal documents herein authorized shall be approved by resolution of the Board and shall be executed by those individuals designated in such resolution In the absence of such designation they shall be executed by the Chairman or Vice Chairman and attested by the Secretary of the Board Fund Members Any political subdivision within the State of Texas is eligible to become a nember of the Fund Each of the Fund ~mbers shall be required to pay to the Fund the contribution as provided by the contract between the Fund and the Fund Member Failure to pay the contribution as end when due shall render the membership of the Fund Member subject to termination by action of the Board For the proper protection of the Fund each Fund Member shall be required to nmke such reasonable safety regulations and take such safety precautions as may be required by the contractor representing the Fund In the event that there is any disagreement between the Fund Member and the contractor, the Fund Member shall have the right to appeal to the Board and a decision of the Board shall be final 10 Fund Year The fiscal or fund year for the Fund shall be from the 1st day of October of each year and ending on the 30th day of Septeflber of the succeeding year 11 Withdrawal From Membership Any Fund Member may withdraw from the Fund at the end of any fund year by giving at least sixty (60) days notice in writing to the Board of its desire to so withdraw The Fund Member withdrawing may not withdraw the reserves on any of the claims that are being paid from the Fund or will be required to be repaid from the Fund The Fund shall continue the servicing of any claim pending after the withdrawal of the Fund Member unless the Fund Member specifically assumes the liability and makes provision to tndamnify the Fund from loss by taking over the servicing of the claim Amendments to B~laws These Bylaws may be mnended by the Board of Trustees of the Fund after notice of the proposed amendment has been mailed to the members of the Board of Trustees at least ten (10) days prior to the day of the meeting to consider same The Board of the Fund shall recenmend such changes as tt deans necessary or desirable from time to time 7 TEXAS POLITICAL SUBDIVISIONS UORKERS' COMPENSATION JOINT INSURANCE FUND (Flexible Cost Plus/Cash Flow Plan For Large Political Subdivisions) INTEPLOCAL AGREEMENT This Contract and Interlocal Agreement entered into by and between the Texas Political Subdivisions Workers' Compensation Joint Insurance d to as "Fund") and the undersigned political Fund (hereinaft~? re~erre _._ fred to as "Fund subdivision of the State of Tex~s (hereinafter refe Member") for the purpose of providing the statutory benefits prescribed by Article 830gh of the Texas Workers' Compensation Act for employees of political subdivisions. ~ITNESSETH The undersigned Fund Member in consideration of the adoption of a plan of self-insurance as authorized in Article 8309h, Vernon's Annotated Texas Statutes, to provide Workers' Compensation benefits at a minimum cost and in further consideration of other political subdivisions executing similar interlocal agreements does hereby agree to become a self. insured workers' compensation employer by becoming one of the members of the Fund. The conditions of membership agreed upon by and between the parties are as follows 1 Definition of terms used in this Interlocal Agreement a. "Board" - refers to the Board of Trustees of the Texas Political Subdivisions Workers' Compensation Joint Insurance Fund. ,,----,..-,, -~, ,,r--*~bution" - are used interchangeab[y. in some parts of this Interlocal ~greem~n~.. _P~e? _. used to identify the rating fomu/as esta~/~sneo Dy the State Board of Insurance, which are used as guidelines to establish Fund Members' cash contributions to the Fund. Any reference at any time in this Interlocal Agreement to an insurance term not ordinarily a part of self-insurance shall be deemed for convenience only and is not to be construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretation such as but not l~mited to the reference to "reinsurance". c. "Servicing Contractor" - Texas Employers' Insurance Association d "Manual Rates" - the basic workers' compensation rates applicable to each classification of employees promulgated by the State Board of Insurance. e. "Manual Premium or Contribution" -the premium determined by applying the manual rate of each classification code to the payroll in that classification It is the oross premium before any modifiers or d~scounts are applied f. "Experience Modifier" - that factor which reflects the Fund Member's individual loss experience and is based on the State Board of Insurance experience rating plan g. "Standard Premium or Contribution" - the amount that is determined by applying the experience modifier of the Fund Member to the Fund Member's manual premium Uhile this premium figure under the Fund Member's self-insured "Cost Plus" plan does not reflect payments or charges made, it does serve as a desirable benchmark and allows the Fund Member to compare its results with other entities of comparable size. h. "Fund Year" - October 1 through September 30 2. This Contract shall commence at 12 O1 a.m on the date shown as "effective date" found on the signatory page of this contract, and shall remain in full force and effect until terminated as hereinafter Irovtded. This Contract may be terminated by mutual consent or by sixty 60) days prior written notice by certified mall of such termination by either party 3. Annually, each Fund Member shall submit to the Fund on a Premiun Worksheet form supplied by the Fund, its estimated payroll for each classification of employees. The rates established by the State Board of Insurance shall be applied to arrive at a manual premium If the Fund Member has established, through experience, a modifier, then the experience modification of that Fund Member shall be used to arrive at the standard premium In the absence of an earned experience modification for the Fund Member, the manual rate as established by the State Roard of Insurance will be used as a guide to produce a manual, as well as a standard, contribution The newly enrolling Fund ~ember who has not previously been a ~ember of this Fund or the Fund Member who has not previously operated under this "Cost Plus" plan, agrees to pay the Fund, on or before the inception date of this Interlocal Agreement, an initial deposit of one (1) month's estimated paid losses plus 1/12 of the administrative service charge, catastrophic excess of loss excess insurance/reinsurance charge, a re ate excess of loss excess insurance/reinsurance charge, and the gg g as set forth in Exhibit A safety engineering charge (if applicable) attached hereto. On or before the beginning of the second month after the inception date of this Interlocal Agreement, the Fund Member agrees to make an identical payment as determined above On or before the beginning of the third month after the inception date of this Interlocal Agreement, the Fund Member shall pay an amount equal to the actual paid losses of the first month times (x) the loss conversion factor as set forth in Exhibit A, for claims administration services plus 1/12 of the annual administrative service charge, catastrophic excess of loss excess rance reinsurance charge, aggregate excess of loss excess insurance/ ~)~ ..... ~ char-e and safety engineering charge (ii ~pp]icabl or before the beginning of the fourth month of this ~nter~oca) ~greemen~, a similar payment based upon the actual paid losses of the second month shall be paid to the Fund with subsequent monthly payments to be paid each and every month thereafter, based upon actual paid losses The Fund tiember who has previously been a member of this Fund prior to the inception date of this Interlocal Agreement and has operated under this "Cost Plus" plan agrees to pay the Fund for those services described in this Agreement and at the charges l~sted in Exhibit A attached hereto. Each month's billing will include 1/12 of the annual charge for administrative services, safety engineering, catastrophic excess of loss excess insurance/reinsurance, and aggregate excess of loss excess insurance/reinsurance as set forth in Exhibit A attached hereto Also included in this billing will be an amount equal to the actual paid losses of the Fund Member times (x) the loss conversion factor as set forth in Exhibit A as the claims administration charge The actual paid losses of the Fund Pember are those losses paid by the Fund on behalf of the Fund Member in the month which is two months prior to the billing month These payments are due at the beginning of the month, that is, for example, the December billing is due at the Servicing Contractor's office on December 1 It is further agreed that those charges (administrative services, catastrophic excess of loss excess insurance/reinsurance, aggregate excess of loss excess insurance/reinsurance, and safety engineering) that are based on standard contribution will be adjustable at the end of each Fund Year, based on audited standard premium which is calculated uslno actual payrolls, manual rates, and experience modifiers. At the end of each Fund Year there will be submitted by the Fund Member actual payrolls as reflected on the books of the Fund Member The Fund reserves the right to audit the payroll records of any Fund Member It is further agreed that the Fund Member will maintain a loss deposit with the Fund equal to two months estimated paid losses and this deposit will be adjustable periodically to accurately reflect realistic ~onthly loss payments After termination of this Agreement, the Fund will continue to handle claims with an accident date occurring durina the term of this Agreement until such claims are disposed of After termination of this Agreement, the Fund Member will pay the Fund each and every month, until all claims handled by the Fund are disposed of, only the monthly claims administration charge calculated as described above, and the nonthly reimbursement of actual claims losses pa~d on behalf of the Fund Member as determined above In the event that the Fund Member fails or refuses to make the payments of charges as herein provided, the Fund reserves the right to terminate such Fund t4ember by giving ten (10) days written notice by certified mail and to collect any and all payments that are earned pro rata for the period preceding contract termination 4. The Fund has obtained specific excess of loss excess insurance/ reinsurance and aggregate excess of loss excess insurance/reinsurance on behalf of its Fund Members. The excess insurance/reinsurance protection is, however, optional with the Fund Member. If the Fund Menber elects th~s protection, its election shall be indicated on Exhibit A 3 5, The Fund has contracted with the Servicing Contractor to supply safety engineering services to the Fund Member to assist them in following a plan of loss control that may result in reduced losses. The Servicing Contractor shall provide all of the services as provided in the service contract entered into by and between the Servicing Contractor and the Fund or as may be modified for the individual Fund Member The Fund Member agrees that it will cooperate in instituting any and all reasonable safety regulations that may be recommended for the purpose of eliminating or minimizing hazards that would contribute to workers' compensation losses In the event that the recommendations submitted by the Servicing Contractor on behalf of the Fund seem unreasonable, the Fund Member ha~ a right to appeal to the Board of Trustees The Board shall hear the objections of the Fund Member at its next regularly schedulled meeting and its decision will be final and binding on all parties. The safety engineering services provided are, however, optional with the Fund Member If the Fund Member elects this service, its election shall be indicated on Exhibit A 6. The Fund tlember agrees that it will appoint a workers' compensation coordinator of department head rank, and that the Fund and its Servicing Contractor shall not be required to contact any other individual except this one person Any notice to or any agreements with the workers' compensation coordinator shall be bindino upon the Fund Member The Fund Member reserves the riqht to change the coordinator from time to time but when doing so agrees to give written notice to the Fund 7. The Fund, through the Servictno Contractor employed by the Fund, agrees to handle any and all claims after notice of in3ury has been ~tven, to prepare all required Industrial Accident Board forms, and provide a defense The Fund Member hereby appoints the Servicing Contractor as its agent to act in all matters pertaining to processing and handling of workers' compensation claims and shall cooperate fully in supplying any information needed or helpful in such defense They shall carry on all negotiations with the injured employee and his attorney at the preheartng conference and negotiate within authority previously oranted by the Fund If a personal appearance by a representative or a co- employee is necessary, the expense of this appearance will be paid by the Fund Member. The Servicing Contractor will retain and supervise legal counsel on behalf of and at the expense of the Fund necessary for the prosecution of any litigation All decisions on individual cases shall be made by the Fund through the Servicing Contractor. which includes the decision to appeal or not to appeal an Industrial Accident Board's final ruling and decision However, any Fund ~lember shall have the right in any case involving one of their employees, to consult with the Fund on any decision made by the Servicing Contractor The Board shall hear the objections of the Fund Member at its next regularly scheduled meeting and their decision will be final and binding on all parties Any suit brouqht or defended by the Servicing Contractor and the Fund shall be in the name of the political subdivision Notwithstanding any provisions of this paragraph, all reports and filings required by the 4 Workers' Compensation Law and the Industrial Accident Board of any lo Ir will be the responsibility of the Fund Member. It is further em~ y~ ................. * ~^~ not cover discrimination suits un~er a rs ooo tna~ ~nls ~gr~m.~nu ~t~cl~ 8307c. There shall be supplied periodically to each Fund Memoer a compqter printout involving a statement of claims, claims status, and activity report cumulative for each Fund Year 8~ The Fund Pember acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any amendments thereto. gl The Fund agrees that all Fund transactions will be annually auditeU by a nationally recognized, certified public accounting firm lO. The Fund t~ember agrees to pay any Industrial Accident Board maintenance tax that may be imposed and the Fund agrees to file the necesslary tax forms with the Internal Revenue Service lll Any party hereto paying for the performance of governmental functilons or services shall make payments therefor from current revenues available to the paying party. 12. The Fund further agrees to provide a complete range of admini- strative services to include, by way of example, but not of ltnitatton, the following a. Statement of claims printouts rendered monthly and keyed by designated functions or departments. b. Monthly billing statements for reimbursement of current payments plus contracted fees c. Semi-annual printouts of all claims including prior Fund Years indicating current incurred loss valuation. d Maintenance of loss and payroll statistics for dete~mlnation of the Fund Member's experience n~dtfier 13. The Fund agrees to provide Employers Liability Insurance coverage (commonly called coverage B), in accordance with and to the same extent as, the provisions of Part Two-Employers Liability Insurance f t e standard ~orkers Compensation and Employers Liability Insurance o ~ .......... ~-d of Insurance, tncludina the Poll , as approvea oy the mexas :~a~e TexalYAmendatory Endorsement as it is applicable to such Part Two, except as follows a. In Part Two, paragraph A, 2, the state or territory listed is to be Texas. b. In Part Two, paragraph G, the limits of liability of this coverage are to be as follows Bodily Injury by Accident $100,000 each accident Bodily Injury by Disease $100,000 each accident Bodily Injury by Disease $500,000 policy limit c. It is understood that this Employer Liability coverage does not cover discrimination suits under Article B307c d References to "workers' compensation" in this Interlocal Aqreement shall include Employers Liability Coverage unless the context clearly shows otherwise. All other provisions of this Interlocal Agreement shall apply to this Employers Liability Coverage unless the context clearly shows otherwise. e The Fund agrees to provide at no additional charge Employers Liability Coverage at the following limits Bodily Injury by Accident $100,000 each accident Bodily Injury by Disease $100,000 each accident Bodily Injury by Disease $500,000 policy limit If the Fund Member elects higher limits than this, the Fund Member agrees to pay an additional charge for the higher limits at a mutually agreeable rate The higher limits and corresponding charge, if so elected, shall be indicated on Exhibit A. 14. No accidental errors or omissions upon the part of either party shall relieve the other party of its responsibilities under this Agreement, provided such errors or omissions are rectified as soon after discovery as possible The Fund shall not be held accountable for any increased cost or expense to the Fund Member under any contention that a claim, safety engineering, or an administrative service could have been handled differently except that the Fund may be held accountable for any deliberate or willful failure to carry out reasonable instructions of the Fund Member w~th respect to a specific matter 15. The Fund Member will be solely responsible for future benefits payable and for funding its net reserve The Fund Member agrees to hold the Fund harmless from any and all claims (includinq attorney fees) that may be asserted against the Fund for the non-payments of any claim due to the failure of the Fund Member to maintain adequate reserves for the payment of claims. 6 IN WITNESS WHEREOF, the parties have hereunto set their hands by their representatives thereunto duly authorized this day of $ Contract Number TEXAS POLITICAL SUBDIVISIONS WOPKERS' COMPENSATION JOINT INSURANCE FUND BY Effective Date Fund Secretary Dallas, Texas FOR Fund Member Name BY Authorized Official Signature & Title ,,, Texas The Workers' Compensation Coordinator for the Fund Member is C OORD I NATOR NAME FUND MEMBER NAME ADDRESS~ CITY~ ZIP TELEPHONE SUPPLEMENT TO INTERLOCAL AGREEME[IT TEXAS POLITICAL SUBDIVISIONS WORKERS~ CO~1PENSATION JOINT INSURANCE FUND %n consideration of the Fund Members' request for payment of additional benefits and tn further constderatfon of the Fund s agreement to pay such benefits, the ]nterlocal Agreement ts enended by addtng thereto the following applicable coverages Volunteers - Ftrenen, Policemen and Emergency Medtcal Personnel - If any person wtthtn these groups of employees hereinafter described and for whtch a payroll classification ts checked below, shall sustatn tnJury, Including death resulting therefran, while acttng wtthtn the course and scope of thetr offlctal volunteer duttes, the Fund will pay on behalf of the Fund Member the full madtcal benefits and the mtntmum cempensatton payments provtded under the Texas Workers' Compensation Law. Other Volunteers -Instde and ~utstde - If the Fund Member specifi- cally names volunteers other than those tn categories set out above, registers such names wtth the Fund, and a payroll classification ts checked below for these groups of e~ployees hereinafter described, the Fund w~ll pay on behalf of the Fund Member the full redtcal beneftts and the mtntmum cempensatton payments provtded under the Texas Workers~ Compensation law for Injury, Including death resulting therefrem, sustained by such persons ,~htle acttng wtthtn the course and scope of thetr offtctal volunteer duttes. Elected Officials - If a resolution of the governing body has been adopted providing coverage for elected officials as requtred by law, and a payroll classification ts checked below, such elected officials whtle acttn'g wtthtn the course and scope of thetr offtctal duttes, shall be covered by the Interlocal Agreement as any other employee of the political subdt,vtston. The Fund Member agrees to pay premtum for the peyro11 classifications checked below Description of Group of Employees Volunteer Firemen Code 7704 '--Volunteer Policemen Code 7720 '--Volunteer EM Personnel Code 7720 ~Other Volunteers-Inside Code 8742 --Other Volunteers-Outside Code 3724 --Elected Officials Code 8742 The parties to thts agreement do not by Its use Intend to make applicable to themselves any provision of the Texas Workers' Compensation Law not already tn force and effect ss to them Thts agreement shall be subjedt to ell the terms, provisions and conditions of the Interlocal Agre~ent, end nothing heretn contained shall vary, alter or extend any term, iprovtston or condition of the Interlocal Agre~ent except as herein specifically stated. This agre~ent shall be effective on , - Fund Member Contract Number By _ Signature Title TEXAS POLITICAL SUBDIVISION WORKERS' COFIPENSATION JOINT INSURANCE FUNO By TPS Fund Secretary -2- Oity of Denton ~tabili~y Program Third Party Claims Administrative Services Proposal Preface The Smployera Insurance of Texas ~roup, by utilizing an affllia~ed comp&fly named ,,~mployers claims ServiCeS, lnc ", wishes to offer the City of Denton a self-funded liebill~y program with third party liability claims investigation, adJue~men~ and aanagement services Adminle~raftve 8ervAce Period The ~erm of ~he professional services offered in proposal shall ~ ~rom October 1,19~ ~ September ~0~ and annually ~hereaf~er Services To Be Provided A. Employers w~ll provide claim~ inve~iga~Aon, management, adminie~ra~ion~ and ee~lemen~ recommendation services ~o ~he Oi~y of Denton (hereafter called ~he "Ci~y") for ~he following coverage claeeifica~one ~emeral ~labil ~y ~u~o Police Professional Liability 4 Public Officials The Oi~y will repor~ all claims felling wi~hAn coverage clae~fica~one men~ioned in Section ~ A Employers and Employers shall establish claim tiles include claim codings, reserves, and record o~ payments ~or the reported claims O. Employers will investigate, adjust, make reco~end~ttons and ne~o~iate settlements on behal~ o~ the City with the injured third parties or their dul~ assigned representative D The lmploye~s settlement authority will not exceed mut~lly agreed value reached between Employers and the City previous to settlement negotiations wi~h ~he injured ~hird party or its duly assigned repre~en~a~ive The Ct~y ts to establish a Trust Accoun~ as a loss fund This TruO~ Account is ~o be funded by the Oily for pa~en~ of claimS. ! Employers will not be given the authority to issue drafts and/or checks in payment of claims incurred by the City. The City will be soley responsible for funding and will agree to maintain the loss fund at a level necessary to pay the claims and claims expenses incurred. a All cost in OOnnection with est&bliehing the Trust Account and with maintaining the lose fund will be paid by the 4 The cost of printing checks or check requisitions, administration and account reconciliation of the Trust Accounts loss fund will be the responsibility of the This proposal does not obligate Employers to providing the Otty with safety and loss control services Upon the request of the City, Employers will offer these services on an annuali~ed basis at the expense of the City The City will notify Employers cT any excess insurance applicable to any claim. It will be the responsibility to report claims which may fall within the excess carrier's level of coverage and to make any filings with the excess carrier as required Employers will supply to the City during the term in which these professional claim services are rendered, monthly loss reports These reports will include a detailed listing of all claims by areas or departments, loss payments, open reserves, code description by type of losses Employers will not be responsible for the failure of the City to notify Employers of any claims incident, payment or settlement, or other circumstance beyond Employers control Should the professional services be terminated for any reason, Employers will be under no further obligation to furnish the City with statistical reportS. Employers will nOt be obligated to prepare on behalf of the City any official reports or documents required by Federal, State or ~ocal authorities in connection with claims handling. Employers will furnish all s~andard claim forms necessary for proper claims administration K Employers will recommend and upon approval by the City retain end supervise legal counsel on behalf of the Otty for the defense of any litigation Any suit handled by Employers shell be in the name of the City This proposal for professional services does not require Employers to provide services to the City for losses or occurrences prior to the proposed commencement date of service mentioned in Section II In no event will Bmployere have any liability or obligation for work performed or expense incurred by others Appeal of any cese will be solely et the discretion of The claims Tiles, s~csptlng for the internal working papers of Employers, will be deemed to be owned by the Otty Employers will release to the possession of the City all closed claim files 0 Rmployere will furnish all labor required to perform the services and will have full control and direction over the method and manner of supervision of their employees P Employers will be in a~reement with the City appointing a coordinator and Employers working primarily through this individual for liaison purposes Compensation A Employers will be compensated by the City as invoiced Compensation will be payable within thirty (30) days of receipt of the invoice Fees shall be per Addendum I B Exclusions. The Tee schedule contetned tn Addendum ! does not included the following items 1 Attorney,s fees, reporter,s fees. bonds of any nature or type (including but not limited to appeal and supersedems bonds) and court costs ~sdioal examinations and witness fees $Official documents and transcripts Photographs, official reports and appraisals $ Expert's fees~ subrogation investt~atione and sub rosa investigation 6 Extraordinary travel expense, incurred at the City's request ? Safety and lose control expense 8 Any ®xtraordinary expense, and 9 Any other expense not expressly assumed by Rmployers The City will pay expenses of this nature from the City's loss fund and Employers will not be required to advsnce funds on behalf of the City for such expenses V Proposal Conditions Pricing for these third party claims administrative services are premised upon the assumption that the City will award its Workers' Compensation coverage to the Texas Political Subdivision Workers' Compensation Program, which ts serviced by Texas Employers' Should this assumption prove to be incorreo~ , , current proposal charges for the third party services could not be honored and would require adjustment, This proposal is only an expression or outline of service intent and will be subject to the finalization of a contract agreed upon by both parties prior to the proposed commencement date of service Addendum [ ~ees And Expenses $38 per hour for a field adjuster's service ~45 per hour for e home office adjuster's s~vice 25O per mile auto charge $30 ~or each claim Tile creation HonthlY computerized loss reports at ~600 annually for each line of coverage recorded A ~enera! 5lability Auto ~iability Police p~o~eeeional ~iahili~y Public Officials ~iab~lity Employers Claims AdjUStment Services has no copying charge and no separate administrative fees Special services, including hut not limited ~o~ out-o~-stats adjusting ~irms and services, recona~ruc~ive engineering reports, photocopy investigators and witness ~raneportation and lodging ~ees will bs charged to the City a~ actual coe~ Any sales tax, if applicable · ~ TOTAL p~GE OG ~