HomeMy WebLinkAboutAgenda Report - February 4, 1981 (39)vo
CITY COUNGLL M.EETING
February 4, 1981
AWARD CARRIER
Following introduction of the
matter by Assistant
FOR EXCESS
City Manager Glenn, Council,
on motion of Council_
COVERAGE
man'Pinkerton, Murphy second,
accepted the offer
received for the City's Excess
Policy from
Transcontinental through the
City's Agent of
Record, Max Elson Insurance,
Inc., for excess
liability insurance, which would
increase the
City's limits to $30,000,000
at an annual pre-
mium of $63,000.
TO THE CITY COUNCIL
FROM Tk{ CITY MANAGER'$ OFFICE
SUBJECT:
DATE I NO.
anuary 30, 1981
The City has received u quatation through Mage Elson
Insurance for $5,000,000 limit over a $100,000 deduction.
At $60,000 this is less than the $65,250 for the same
coverage last year.
Also offered is an additional $25,000,000 coverage for
$3,000.
It is recommended that. the City accept this offer of
insurance and increase our limits to $30,000,000 at
an annual premium of $63,000.
- erry L. Glenn
Assistant City Manager
JG.- dg
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January 29, 1981
Mr. Jerry L. Glenn
Assistant City Manager
City of Lodi
Lodi, CA 95240
Dear Jerry:
We have received the renet:s' : vc.;ition for kthe City's
Excess policy from the Transcontinental.
t'he'ir premium, with a $59000,000 limit over a $100,000
Self Insured Retention, is $60,000 flat annual with no
provision for audit.
This compares to $65,250 for the same coverage and limits
last year.
We have also been offered a $25,000,000 Excess Policy
over and above Transcontinental's policy for an annual
premium of $3,0000
This would give the City a total limit of $30,000,000
for $63,000.
We also submitted an application to H&W Insurance Ser-
vices who are the representatives of the Admiral In-
surance Company. The Admiral, due to the reserves
they have set on four losses incurred, declined to
offer a quote.
H&W had another carrier that was interested, but when
they learned of these losses, also declined to quote.
With regard to these four losses, the enclosed letter
from H&W points out a potential problem from the stand-
point of under -reserving by R. L. Kautz.
Should the Admiral be correct in their reserving, and
considering our Self Insured Retention, we should set
aside another $91,300 to pay these potential claims.
B32 SOUTH FAIRMONT AVENUC ® L001. CA 95240 0 P.O. BOX 188 o 209/369.3633
4 ..
r Page 2
As these losses are all in litigation, the loss re-
serves of R. L. Kautz and the Admiral should be kept
in the strictest confidence so as not to prejudice
our position in these matters.
Please let me know if you need anything further.
regard
"4 LSQ
JE;bjd
Enda
January 23, 1981
e s
Max Zlwn Insurance, c ane, Inc.
Pu 00 BOX 188 0
Lodi, Cao 95241
Attentions Jim Elson
Res City of Dodi
}" We have just been advised by viral that they have outstanding
reserves excess of tAe City SIR on certain prior claims. They area
DOL _ CI.MTs RESERVE m. ►'.,.•
3./38/79. C$� f� Baumback A Sir $150,000.00
6/5/78 ,aa :aeo r,_,,. Vernon Shelley $ 30,000.00 is e.e,,a, o
5/29/77�Selina Stratton $ 10 000.00
4/6/77 � 6°`_ Robert Queris $ 25,000.00
I know the clam administrator, R. ha Kautz Company has not
raised reserves equaling the City retention on any of these claims,
sea there can be a legitimate question as to the evaluation of these
losses.
Admiral's clam department however, is pretty well qualified to. ..
judge the potential value of public entity losses and these are their
evaluations.
If the City of Lodi' has not planned to fund these losses to their
full SIR amount, they should do so as a pre -cautionary measure.
O
If you have any questions, please call me.
Best Regards,
a�
Alan Cooper
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