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 ~