HomeMy WebLinkAboutR-2001-147 RESOLUTION NO. 2001-147
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA
AUTHORIZING THE CITY MANAGER TO CONTRACT FOR
THE PURCHASE OF VARIOUS PROPERTY AND CASUALTY
INSURANCE SERVICES IN THE AMOUNT OF $385,242
FROM COREGIS INSURANCE THROUGH RISK
MANAGEMENT ASSOCIATES; AUTHORIZING THE PROPER
CITY OFFICIALS TO EXECUTE APPROPRIATE
DOCUMENTS TO BIND COVERAGE THROUGH RISK
MANAGEMENT ASSOCIATES FOR REAL AND PERSONAL
PROPERTY COVERAGE, BOILER AND MACHINERY
COVERAGE, MISCELLANEOUS PROPERTY COVERAGE,
ELECTRONIC DATA PROCESSING COVERAGE, CRIME
COVERAGE, GENERAL LIABILITY COVERAGE,
AUTOMOBILE LIABILITY AND PHYSICAL DAMAGE
COVERAGE, PUBLIC OFFICIALS ERRORS AND OMISSIONS
COVERAGE, AND EMPLOYMENT PRACTICES LIABILITY
COVERAGE; PROVIDING FOR CONFLICT; FURTHER,
PROVIDING AN EFFECTIVE DATE.
® WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4,
Subsection (J), provides that contracts for the purchase of supplies, services,
equipment and materials for the city government in excess of fifteen thousand dollars
($15,000.00) shall not be entered into or let except by authorization and approval of the
city commission, after advertisement for bids in a newspaper published in Broward
County, Florida, with such publication to be published weekly for two (2) consecutive
weeks with the first publication to be not less than fifteen (15) days prior the reception
of bids; and
WHEREAS, the city manager has determined that certain municipal insurance
coverages will expire on September 30, 2001, and
WHEREAS, the city manager, after having followed the Charter bid requirements,
has determined that replacement of certain insurance policies can be made at the least
cost to the city by awarding the bid to Risk Management Associates, Inc. in the amount
1 RESOLUTION NO. 2001-147
of Three Hundred Eighty-Five Thousand Two Hundred Forty-Two Dollars ($385,242.00)
and the city manager is hereby authorized to pay the total sum from general funds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. That the proper City officials are authorized to execute appropriate
documents to bind coverage on behalf of the City of Dania Beach, Florida fromn Risk
Management Associates for various insurance coverages as specified in the bid
identified above.'
Section 2. That this resolution shall be in force and take effect immediately upon
its passage and adoption.
PASSED and ADOPTED this 28'h day of August, 2001.
® PAT FLURY
MAYOR - COMMISSIONER
ATTEST: ROLL CALL:
COMMISSIONER BERTINO -YES
COMMISSIONER MIKES-YES
COMMISSIONER MCELYEA -YES
VICE-MAYOR CHUNN- YES
CHARLENE JO NSON MAYOR FLURY - YES
ACTING CITY CLERK
APPROVED AS TO FOM AND CORRECTNESS:
BY:
TRIO AS J. ANSBRO
CITY ATTORNEY
2 RESOLUTION NO. 2001-147
Insurance
Consultants
S,V ER
•9400 Fourth Street North,Suite 119
St.Petersburg,Florida 33702-2525
Post Office Box 21343
St.Petersburg,Florida 33742-1343
Telephone:(727)577-2780
Fax:(727)579-8692
E-mail:siver@siver.com
Website:http://www.siver.com
August 23, 2001 SENT VIA FAX & FEDERAL EXPRESS
Ms. Sheryl Chapman
Administrative Services Director
City of Dania Beach, Florida
100 West Dania Beach Blvd.
Dania Beach, Florida 33004
Subject: City of Dania Beach - Request for Proposals for Various
Property and Casualty Insurance Coverages - October 1, 2001
® Siver Recommendation
Dear Ms. Chapman:
At the request of the City of Dania Beach, Florida (the City), a Request for Proposals
(RFP) for Various Property and Casualty Insurance Coverages was prepared and
distributed in July, 2001, for coverage effective October 1, 2001. The RFP and an
addendum providing additional requested information were distributed to a number
of agents/brokers. Two firms submitted proposals for Workers' Compensation and
Package policies which included most of the coverages requested on an all or nothing
basis. Two other firms submitted proposals for Boiler and Machinery, Crime,
Automobile, and Statutory Death Benefits coverages on a"stand-alone" basis.
RECOMMENDATION
RECOMMENDED PROGRAM
We recommend that the City accept the Package proposal from Coregis Insurance
through Risk Management Associates (RMA) for the proposed premium amount of
$3 85,242.
SIVER INSURANCE CONSULTANTS
Ms. Sheryl Chapman
August 23, 2001
Page 2
Coverages included in the recommended package include:
Real and Personal Property
Boiler and Machinery
Miscellaneous Property
Electronic Data Processing
Crime
General Liability
Automobile Liability and Physical Damage
Public Officials with Employment Practices Liability
We recommend the City continue their Workers' Compensation coverage with the
Florida Municipal Insurance Trust (FMIT)through the Florida League of Cities, but
accept a$25,000 deductible for an estimated premium (not including expected claim
costs within the deductible) of$347,008.
Further, we recommend that the City continue Statutory Death Benefits coverage
from AIG Life Insurance Company, through the Florida League of Cities, for $786.
• Under the recommended program, the City would pay an initial annual premium of
$733,036. With a$25,000 per claim deductible for Workers' Compensation, the final
cost of the recommended program will depend on the City's loss costs under the
deductible and audited premium basis (payroll, number of automobiles, etc.). In our
opinion, based on the current estimated premium basis, there is a reasonable
probability that the final cost will be in the $800,000 to $850,000 range.
For your information, we enclose a summary exhibit which briefly compares the
expiring program with the two complete Package proposals and the recommended
program.
BASIS OF RECOMMENDATION
Our recommendation is based principally on coverage, cost, and qualifications of the
insurer/trust. We will briefly discuss each element.
COVERAGE
Neither the FMIT nor RMA was particularly responsive to the Request for Proposals
as neither were willing to provide some of the endorsements requested in the RFP.
While, in our opinion, acceptable, we nevertheless considered FMIT's proposal for
Package coverages to be slightly less desirable than the RMA offer, which includes
SIVER INSURANCE CONSULTANTS
Ms. Sheryl Chapman
August 23, 2001
Page 3
additional coverage extensions and a 2% "named windstorm" deductible for all City
property subject to a maximum of$1,760,000 per occurrence. The RMA"named
windstorm" deductible, in our opinion, is better than FMIT's offer to provide a
$1,000 deductible for all property over 1 mile from the coast, a 2% "wind" deductible
for property '/z mile to 1 mile, and no wind coverage whatsoever for property less
than '/z mile from the coast. It is our understanding the City's IT Parker building, with
values in excess of$2,800,000, is located less than '/z mile from the coast.
COST
RMA offered the lowest cost for the City's Package coverages, and FMIT's Workers'
Compensation quote was the most competitive.
For both proposed programs, we compared the estimated cost of Workers'
compensation coverage with no deductible, a $10,000 deductible, and a $25,000
deductible. We compared each of these deductible options at both the expected cost
level(based on the City's historical losses) and the maximum cost which would result
if the losses were worse than expected. In our opinion, the $25,000 deductible option
• offered the best cost at expected loss levels. With an estimated premium of$347,008
for the$25,000 deductible option, compared to $509,920 for the guaranteed cost (no
deductible) plan, the City's deductible portion of total claims will have to exceed
$163,000 before the deductible option is more costly than the guaranteed cost plan.
For your information, with a $25,000 deductible, we estimate the City's expected
deductible cost to be approximately $81,000. This estimate is based upon the City's
average trended losses for the four year period from 1996 through 2000.
Although we compared the FMIT program against a proposal from Preferred
Insurance Governmental Trust (PGIT) provided by RMA, as we will subsequently
address, PGIT does not meet the minimum requirements for insurers/trusts specified
in the RFP.
Reason for Cost Increase
The expected cost of the recommended program this year($800,000 to $850,000) is
substantially higher than last year's premium of$453,439. There are several reasons
for the increase.
Expiring Two Year Program
The expiring FMIT program was a two year "guaranteed cost" plan. The
Package and Workers' Compensation premiums were developed with 1999
rates, factors and premium basis, and was not auditable for increases during
SIVER INSURANCE CONSULTANTS
Ms. Sheryl Chapman
August 23, 2001
Page 4
that two year period. During this two year period, the City enjoyed unusually
low insurance costs due to the fact that FMIT was unable to adjust their
program for changes in premium basis, rates or factors.
Update and Correction of Premium Basis
It appears the City's premium basis(against which premium rates are applied)
which includes property values and payroll estimates was much lower when
the FMIT premium was developed in 1999. For example, the City's total
insurable values for buildings and personal property may have previously been
underestimated at $8,986,092, and it is now estimated to be $15,951,662.
Total payroll was $4,386,868 in 1999, and is now $7,789,848. In addition,
the City's Workers' Compensation experience modification factor of.92 used
in 1999 has increased to 1.17 for 2001. We understand that much care has
been taken this year to assure that the City's coverages are provided with
accurate values and rating information.
Rate Increases
During the last few years, the market for most insurance coverages has
® become significantly tighter and, consequently, rate increases are expected for
most types of insurance. While the costs proposed do reflect some rate
adjustments, the increase is no greater than what we would expect for a
municipality of Dania Beach's size and location in today's market. Most of
the cost increase for the City appears to have resulted from the premium basis
adjustment.
QUALIFICATION OF INSURER/TRUST
PGIT Does Not Meet Minimum Requirements
We cannot recommend that the City accept the proposal offered by PGIT. PGIT does
not meet the minimum qualifications established in the RFP. The RFP required, in
part, that an insurer (trust) not having a specified minimum rating from a recognized
financial rating organization must have been successfully operating in the State of
Florida for a minimum of five consecutive years and have an audited financial
statement which indicates an unencumbered net worth of$25 million or more.
PGIT is not rated by any recognized financial rating organization, has been operating
in Florida only since October 1, 1999, and, according to the audited financial
statement, had a fund balance as of September 30, 2000 of$60,887.
•
SIVFR INSURANCE CONSULTANTS
• Ms. Sheryl Chapman
August 23, 2001
Page 5
We recognize that, because of the nature of its rather unique reinsurance program
under which all but the first $1 of each loss is reinsured, the need for unencumbered
net worth is substantially less than for the typical trust or insurer. However, even with
the reinsurance program in place, and even if the RFP had not specified the minimum
requirements, because of its limited operating experience and limited fund balance, we
would not have recommended PGIT.
FMIT
FMIT continues to meet the minimum requirements established in the RFP, although
their net worth has decreased considerably in the last three years.
FMIT's financial statement as of September 30, 1998, reflected a net worth of
$127,212,949 and a small profit (about $2.5 million) for the prior year's operations.
Over the last two years, FMIT had lost a total of $85,299,483 and, as of
September 30, 2000, had a net worth of$41,983,466.
Based on annual written premiums of approximately $89 million, with a surplus of
® approximately $42 million, FMIT would still be conservatively funded. But for the
magnitude of the losses in the two prior years, we would not be particularly
concerned.
We have been advised, and have no reason not to fully believe, that FMIT has taken
further, and as they describe it, unprecedented, corrective action. This corrective
action has included the non-renewal of coverage for certain members, the substantial
withdrawal from the writing of health insurance (which was particularly disastrous),
and the increasing of premium levels. They have also informally advised us that part
of the loss last year was the result of their changing actuarial firms and a resultant
increase in the reserves for prior losses.
We have recently been provided an interim, unaudited statement for the period
October 1, 2000 through June 30, 2001, which shows losses have slowed to
$2,449,469. In correspondence dated August 15, 2001, which accompanied that
interim statement, The Florida League of Cities' Director of Public Risk Services,
Michael P. Madden, advised that " . . . we feel confident that by year end we will be
in the black, absent any major catastrophe."
Even with their recent further assurances that the problems have been corrected and
that they expect to be profitable this year, we have to be concerned and will continue
to monitor FMIT's results.
•
SIVER INSURANCE CONSULTANTS
Ms. Sheryl Chapman
August 23, 2001
Page 6
We should note that FMIT is not assessable and, if they do become insolvent, the risk
to the City would be any unpaid claims rather than a risk of assessment. It is
unfortunate that the City was not offered a competitive proposal from an admitted
(Florida licensed)insurer. Unlike an admitted insurer, the claims obligations of FMIT
(and PGIT) are not eligible for the Florida guarantee fund.
Other Insurance Companies
Both Coregis Insurance Company and AIG Life Insurance Company meet the
minimum requirements in the RFP as those admitted insurers maintain financial ratings
of A IX (Coregis) and A++ IX (AIG Life Insurance Company) from A.M. Best, a
recognized rating organization.
SUMMARY AND CLOSING
We recommend that the City accept the Package proposal from Coregis Insurance
through Risk Management Associates for the proposed premium amount of
$385,242. We also recommend the City accept the Workers' Compensation coverage
proposal, with a $25,000 deductible, from the Florida Municipal Insurance Trust
through the Florida League of Cities for an estimated premium (not including
expected claim costs) of$347,008. Further, we recommend that the City continue
their Statutory Death Benefits coverage with AIG Insurance, through the Florida
League of Cities, for $786.
We appreciate this opportunity to be of service to the City of Dania Beach, Florida.
We plan to attend the meeting of the Board on August 28, 2001. In the meantime,
if you have any questions, please let us know.
Very truly yours,
SIVER INSURANCE CONSULTANTS
A clLZ..
Kathy V. Doak, ARM, AAI
Reviewed by: George W. Erickson, JD, LLM
KVD/kk
Enclosure
J:\P&C\CORR\DANIA01\DAAII022R.W PD
EXHIBIT
CITY OF DANIA BEACH,FLORIDA
RFP FOR VARIOUS PROPERTY AND CASUALTY COVERAGES
SUMMARY COMPARISON
Expiring Proposals Recommended
Agent/Broker: Florida League of Cities Florida League of Cities Risk Management Assoc. Combination
Property Insurer: FMIT FMIT Coregis Coregis
Limit: $8,986,092 $15,951,662 $17,979,722 $17,979,722
Deductible: $1,000/Various Wind $1,000/Various Wind $1,000/2%Wind $1,000/2%Wind
Boiler&Mach. Insurer: Not Covered FMIT Coregis Coregis
Limit: $3,000,000 per Accident Included in Property Limit Included in Property Limit
Deductible: $1,000/Various Same as Property Same as Property
Misc.Property Insurer: FMIT FMIT Coregis Coregis
Limit: $90,000 plus equipment $124,870 plus equipment $143,741 Misc.Equip. $143,741 Misc.Equip.
under$15,000 under$15,000 $90,000 Mobile Equip. $90,000 Mobile Equip.
Deductible: $1,000/$250 $1,000/$250 Same as Property Same as Property
EDP Insurer: FMIT FMIT Coregis Coregis
Limit: Equipment$210,200 Equipment$348,948 Equipment$348,948 Equipment$348,948
Media$40,000 Media$50,000 Media$100,000 Media$100,000
Extr.Exp. $25,000 Extr.Exp. $250,000 Extr.Exp.$250,000
Deductible: $1,000 $1,000 $1,000 $1,000
Crime Insurer: FMIT FMIT Coregis Coregis
Limit: M&S$5,000 In&Out M&S$5,000 In&Out M&S$5,000 In&Out M&S$5,000 In&Out
Forgery$25,000 Forgery$25,000 Forgery$25,000 Forgery$25,000
Honesty$5,000 Honesty$100,000 Honesty$100,000 Honesty$100,000
Deductible: None/$250/$100 None/$250/$100 $500 $500
General Liab. Insurer: FMIT FMIT Coregis Coregis
Limit/Deductible: $500,000 None $500,000 None $500,000 None $500,000 None
Automobile Insurer: FMIT FMIT Coregis Coregis
Limit: $500,000 $500,000 $500,000 $500,000
Deductible: Comp$250/Coll$500 Comp$250/Coll$500 Comp$500/Coll$500 Comp$500/Coll$500
PublOff./EPL Insurer: FMIT FMIT Coregis Coregis
Limit: $500,000 $500,000 $1,000,000 per loss $1,000,000 per loss
Deductible: None EPL$2,500 $2,500 $2,500
Package Total Premium: L $260,625 $465,124 1 $385,242 $385,242
Statutory Death Insurer: AIG Life Ins.Co. AIG Life Ins. Co. No Proposal AIG Life Ins.Co.
Limit: $25,000/$25,000/$75,000 $25,000/$25,000/$75,000 $25,000/$25,000/$75,000
Deductible: None None None
Statutory Death Premium: $707 $786 $786
Work. Comp. Insurer: FMIT FMIT PGIT FMIT
Limits: $1,000,000 Empl.Liab. $1,000,000 Empl.Liab. $1,000,000 Empl.Liab. $1,000,000 Empl.Liab.
Deductible: None $25,000 $25,000 $25,000
WPayroll/Mod Factor: $4,386,868 .92 $7,789,848 1.17 $7,789,848 1.17 $7,789,848 1.17
rk.Comp.Premium: $192,107 WC w/Pkg $362,007 $366,729 $347,008
C Alone $347,008
TOTAL $453,439 $827,917 w/o Star. $751,971 $733,036
SIVER INSURANCE CONSULTANTS
SECTION VI-H
WORKERS' COMPENSATION COVERAGE
CITY OF DANIA BEACH FLORIDA
PROPOSAL FORM
A. AGENT/BROKER
Name of Firm: FLORIDA LEAGUE OF CITIES
Address: P.O. BOX 53006S
ORLANDO, FL 32853-0065
Account Executive: CHUCK WILDE
Telephone Numbers
Daytime: (800) 445-6248
After Hours: SAME
Facsimile: (407) 425-9378
B. INSURER
Name: FLORIDA MUNICIPAL INSURANCE TRUST
Address: P.O. BOX 530065
ORLANDO, FL 32853-0065
Contact Person: CHUCK WILDE
Telephone Numbers
Daytime: _(800) 445-6248
After Hours: SAME
Facsimile: (407) 425-9378
C. RATING BY RATING FIRMS
For the insurer identified above, indicate below the latest rating by each of the
following rating firms. If a rating firm has not rated the insurer, indicate "None" in
the column titled "Rating." All blanks under the column titled "Rating" should be
completed with either tfie latest rating by the rating firm or"None" if the rating firm
has not rated the insurer.
PF-37
SIVER INSURANCE CONSULTANTS
Rating Firm Rating
A. M. Best N/A
Duff& Phelps N/A
Moody's N/A
Standard & Poor's
Claims-Paying Ability —N/A
Qualified Solvency Rating N/A
Weiss Ratings, Inc. N/A
If the insurer or organization identified is not rated by any of the above rating firms,
provide the following:
1. Include, as an attachment to this proposal, its last audited financial
statement issued by a certified public accountant, which is dated no
earlier than 18 months prior to the proposal return date specified in
the RFP; and
2. Specify the number of consecutive years the insurer or organization
has been successfully operating in the State of Florida. 24
D. ORGANIZATIONS PROVIDING COVERAGE/SERVICES
Indicate below, the name, address and telephone number of the specific
person or organization that will be providing the described service if your
proposal is accepted. If the service is not contemplated in your proposal,
indicate "Not Applicable."
General Administration - What person or organization will serve as liaison
with the Insured and will have the primary responsibility for coordination and
overall management of the program?
Name: FLORIDA MUNICIPAL INSURANCE TRUST
Address: P.O.__BOX 530065
ORLANDO, FL 32853-0065
Contact Person: (HICK WTI DF
Telephone Number: (800) 445-6248
PF-38
SIVER INSURANCE CONSULTANTS
fry
I
Managed Care Arrangement - What person or organization will provide the
manag
ed care?
i Name: CHOTCF MANAGED NETWORK
Address:
Contact Person:
3:
Telephone Number:
I-
Has the above Managed Care Arrangement been certified by the Florida
Agency of Health Care Administration? (Yes, No) YES
ll 4 -
Claims Administration - What person or organization will provide claims
administration (i.e., adjusting) services?
Name: FLORIDA MUNICIPAL INSURANCE TRUST
Address: P.O. BOX 530065
ORI ANDO, FI -12R -0065
Contact Person:
Telephone Number:
Loss Prevention/Engineering Services - What person or organization will
provide loss prevention and engineering services?
Name: FLORIDA MUNICIPAL INSURANCE TRUST
Address: P_O_ BOX 530065
ORI ANOO, FI 3?853-nnfj1j
Contact Person:
Telephone Number:
T} f. Loss Statistics Services - What person or organization will provide loss
statistics services?
Name: FLORIDA MUNICIPAL INSURANCE TRUST
Address: P.O. BOX 530065
ORLANDO. FL 32853-0065
i� Contact Person:
u Telephone Number:
Y
t
PF-39
SIVER INSURANCE CONSULTANTS
E. DESCRIPTION OF COVERAGE
I
Scope of Coveraee
All proposals should cover the Insured for all sources of liability for
which the Insured would be covered by the standard Workers'
Compensation Policy filed for use in the State of Florida, without
restrictive endorsements and including:
Part I - Statutory Workers' Compensation
Part 2 - Employer's Liability
Part 3 - Other States Insurance - All states except Nevada,
. North Dakota, Ohio, Washington, West
Virginia, and Wyoming
No Coinsurance
Voluntary Compensation
2. Amount/Limits
Part One - StatutoryWorkers' Compensation pensation
Part Two - Employer's Liability
$ 1 MILLION each Accident Bodily Injury by Accident
$ I MII I TON each Employee Bodily Injury by Disease
$ 1 MILLION Policy Limit Bodily Injury by Disease
F. DEVELOPMENT OF ESTIMATED COST
For each proposal, complete the attached Exhibit I - Development of Estimated
Cost.
;dery
.: PF-40
L
SIVER INSURANCE CONSULTANTS
EXHIBIT I
DEVELOPMENT OF ESTIMATED COST
Agent: FLC Insurer: FLORIDA MUNICIPAL INSURANCE TRUST
Description of Proposal:
,. Fully complete this exhibit to illustrate the development of the estimated cost of your
proposal. For each of the adjustments to Manual Premium and any additional cost
or credit of your proposal (other than losses under any deductible retained by the
insured): (1)describe the nature of the adjustment(i.e., experience modification, drug
free workplace credit, employer safety premium credit, managed care arrangement
credit, deductible credit, etc.) or additional cost or credit; (2) indicate the factor
applied; and (3) the resulting adjustment.
•_R For the purpose of comparison, all proposals should be based on-an Experience
Modification of 1.14 and the following estimated annual payrolls.
Classification Code Payroll Rate 100 Premium
Carpentry-NOC 5403 $162,415
Street or Road Maintenance 5509 574,568
Waterworks Operations,Salesl _
&Drivers
REFER TO FLC PROPOSAL
Firefighter&Drivers
Police Officers&Drivers 7720 80,566
i
Automobile Repair Shop 8380 69,578
Clerical Office Employees-NOC 8810 1,865,744
Buildings-NOC-Operation by Owner 9015 19,983
or Lessee
3.' Park NOC-All Employees&Drivers 9102 812,860
,
Cemetery Operation&Drivers 9220 216,429
Municipal,Township,County or State 9410 823,410
Employee NOC
t
PF-41
41
SIVER INSURANCE CONSULTANTS
Ole
Manual Premium
Adjustments to Manual Premium Factor Adjusted Premium
l.
2
3.
4.
5. _
6. _
7. REFER TO FLC PROPOSAL
8. _
TOTAL COST
tIf any of the foregoing adjustments to Manual Premium or additional costs or credits
t, are contingent or not yet applicable, describe in the space following, the nature of the
contingency and the anticipated date when the contingency will be eliminated.
T
�.Y
{k
LOSS SENSITIVE PROPOSALS
Complete this section only if the ultimate cost of your proposal to the insured is based
on losses incurred during the policy period (i.e., deductible programs, incurred loss
�p
retrospective program, paid loss retrospective program, loss-ratio dividend, etc.).
PF-42
SIVER INSURANCE CONSULTANTS
Describe Your Program - Include a listing of all factors used (Maximum Premium,
Loss Conversion, Basic Premium, Tax Multiplier, etc.).
k.
Indicate on the following page, the estimated cost of your program (including any
retained losses) based on the following assumed losses. For the purposes of this
illustration, assume that all losses shown below are under the amount of any
deductible or loss limit.
Incurred Loss Alloc. Clms. Exp. Total Cost of Program
�w
0 0
50,000 2,500
100,000 5,000
150,000 7,500
200,000 10,000
250,000 12,500
` 300,000 15,000
350,000 17,500
400,000 20,000
Maximum Cost
Sample Cost Calculation
ty.
Show the development of the Total Cost of Program at the following loss level:
$300,000 incurred/$15,000 Allocated Claims Expense. Identify below each com-
ponent in the calculation. If the Total Cost of Program at this loss level is either the
Minimum Premium for the Program or the Maximum Premium for the Program, also
show the development of the Total Cost of Program at a loss level that develops a
premium between the Minimum Premium for the Program and the Maximum
Premium for the Program.
r
PF-43
S[VER INSURANCE CONSULTANTS
G. PAYMENT TERMS
If payment terms other than full annual premium (or other costs) upon delivery of the
policy conforming to the proposal offered and accepted are offered, describe precisely
the payment terms offered; i.e. 12 equal monthly installments, etc.
QUARTERLY PAYMENT PLAN
H. DEVIATIONS FROM MODEL PROGRAM
Please indicate whether your proposal will or will not comply with the model program
_I with respect to the provisions listed below. The absence of any notation will be
presumed to indicate full compliance.
Will
Will Not
Named Insured Endorsement _ X
Contract Period X
Sole Agent Endorsement _ X
Termination&Non-Renewal Endorsement X
Rerating Endorsement X
Claim Reporting Endorsement X
Prohibition of Warranty Endorsement X
Subrogation Endorsement X
Scope of Coverage X
Amount/Limits X —
Loss Statistics X —
Additional Comments/Deviations from RFP
N
If your proposal does not fully comply with any term, coverage, endorsement,
provision, condition, or other requirement requested in this RFP, explain fully in the
space following the extent of non-compliance and the alternative term, coverage,
endorsement, provision, condition, or other requirement.
PF-44
SIVER INSURANCE CONSULTANTS
j Additional Comments/Deviations from RFP - (Continued)
I'm
I. MATERIAL TO BE INCLUDED WITH PROPOSAL
The original and all copies of your proposal should include, but not necessarily be
limited to, the following:
1. Completed and properly signed Proposal Forms.
2. If any addenda are issued, a copy of the addenda or acknowledgment of
receipt of the addenda.
{ 3. Complete copies of an contracts or olic ies including rates and all
P P Y ( ) P Y(� ) � g
forms or endorsements which would be made a part of your contract(s)
or policy(ies) if your proposal is accepted.
i
,'
PF-45
9
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SIVER IN_URAi CE 4 N CONSULTANTS
J. WARRANTY OF PROPOSER
The
undersigned person warrants that:
g
1. The undersigned is an authorized representative of the insurer(s) and any
other persons or organizations who will be directly contracting with the
City if this proposal is accepted:
2. The undersigned has been specifically authorized by the insurer(s) and
any other such persons or organizations to offer a contract in complete
compliance with this proposal;
3. This proposal is not subject to any mandatory loss prevention
recommendations other than those noted in this written proposal;
4. The undersigned is offering this proposal on behalf of the insurer(s) and
x any other such persons or organizations, and, as such, is acting on behalf
_ of the insurer(s) and such other persons or organizations and not the
City;
5. If this proposal is accepted, the contract(s) will be issued as proposed;
a` 6. The undersigned acknowledges receipt of the entire RFP and the
g g P
�. following addenda [indicate addenda numbers, or, if applicable, none].
! Signat�/r
of Authorized Representative
Byron Beard
Y Typed or Printed Name of Authorized Representative
Underwriting Manager
Title
August 3, 2001
Date
l
PF-46
AGENDA REQUEST FORM
CITY OF DANIA
Agenda Date: 08-28-01 Agenda Item #:
Title:
RECOMMENDATIONS FOR VARIOUS PROPERTY AND CASUALTY INSURANCE
COVERAGES
Requested Action:
Adoption of Resolutions approving Siver Insurance Consultants recommendations for various
Property and Casualty Insurance Coverages and for Workers Compensation Coverage.
Summary Explanation & Background:
On 7/3/01 the City issued a Request for Proposals for the following coverages: Real and Personal
Property, Boiler and Machinery, Miscellaneous Property, Electronic Data Processing, Crime,
General Liability, Automobile Liability and Physical Damage, Statutory Death Benefits, Public
Officials Errors and Ommissions, and Employment Practices Liability. Proposals were due and
received on 8 August 2001 from 4 respondents. The Beacon responded only for Crime, Statutory
Death Benefits, and Boiler and Machinery coverage. McKinley Financial Services responded
only for Crime and Automobile coverages. Comprehensive proposals were received from Risk
Management Associates and Florida Municipal Insurance Trust. Siver Insurance Consultants has
reviewed all proposals and developed the attached recommendation to provide a summary of the
proposals and analysis of the bids.
Exhibits (List):
1. 23 August Letter of Recommendation
2. FMIT Workers Compensation Proposal
3. Due to its volume, the RMA proposal is available in Administrative Services Department for
review.
Purchasing Approval:
Prepared By:
Sheryl Chapman
Source of Additional Information: (Name & Phone)
Kathy Doak, Siver Insurance Consultants, Tel: 727-577-2780
E-mail: kdoak@siver.com
Recommended for Approval By:
Sheryl Chapman, Administrative Services Director
Commission Action:
Passed ❑ Failed ❑ Continued ❑ Other ❑
Comment: