HomeMy WebLinkAboutAgenda Report - February 4, 1981February 4, 1901
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Followinq introduction of the
matter by AssistaA
FOR EXCESS
City Manager Glenn, Council,
on motion of Council -
COVRRAGE
man Pinkerton, Murphy second,
accepted the offer
received for the City's Excess Policy from
Transcontinental through the
City's Agent of
Record, M�zx Edson 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.
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TO THE CITY COUNCK
FROM THE CITY MANAGER'S OFFICE
SUBJECT
-XV *41111kwWWWWW %T"19
DATE I NO,
anuary 30, 1981
The City has received a quotation through Max Elson
Insurance for $5,000,000 lindt. 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.
rL,'7
erry L. Glean
Assistant. City Manager
JGadc.j
P,
January 29, 1981
Mr. Jerry L. Glenn
Assistant City Manager
Ci tv f Lodi
Lod:, CA 95240
Dear Merry:
We have received the renewal quotation for
Excess Policy from the Transcontinental.
Their premium, with a $5,000,000 limit over a $100,000
Self Insured Retention, is $60,000 fl,:t 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 $3,000.
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.
832 SOUTH FAIRMONT AVENUE 9 tODI. CA 95240 6 P.O. BOX 188 ® 209/369.3633
P&ge 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,
B regard
i
Its ELSON
JEQbJd
Encl.
V
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Max Elson Xnauranoso Inc.
P. 0. Box 188
Edi, Ca. 95241
Attentions Jim Elam
Reg City of i.Ddi
We have Just been &dvised by Admiral that they have outstanding
reserves excess of the City SIR on certairt prior claim. They ares
DOL CLKT RESERVE (Z)
1/28/79 P,IP-e Baumback & SpWr $150,000.00 °a . r -e
6/5/78 �, ;.ate it k Vernon Shelley S 30,000.00 07
5/29/777 i�.� h: Selina Stratton 5 10, 000.00 ��
4/6/77 j A srt Queri�r $ 25, 000.00 �
V.114 -UP v
Y know the claims administrator, R. L. Yeaut% & Coapany teas not
raised rese a equaling the City retention ca3 any of theme claims,
so there can be a legitimate question as to the evaluation of these
losses.
Admiral's claim t however, is pretty well qualified to
judge the potentia,.l, valvae of public entity losses and these are their
evaluations.
If the City of Lodi'has not planned to fund these losses to their
full SIS amount, they should do so as a pre -cautionary measure.
If you have any questions, please call rage.
Bast Legards,
.flan cooper