HomeMy WebLinkAboutAgenda Report - February 6, 1985 (66)_ t CITY COUNCIL ME EMNCi
,r r FEIBTUARY 6, 1985 }.
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pFi>SENTATICNS Council received a report from iEll Elson
ofRecN a Elson
son g that
Insurance, Inc., the City's am for the next twelve
AGWr OF RECCED the City's Self Insured Liability Progr u. ed $20,000,000
REPCM CN CITY'S months will cost $229,000.00 for the req
SELF' INSURED limit required, with a $2509000.00 Self Insured Retention.
LIABILITY PFCOM
FCR 1985
February 5, 1985
Mr. Jerry L. Glenn
Assistant City Manager
CITY OF LODI
Lodi, CA 95240
Re: Self Insured Liability Program
Dear Jerry:
To conclude our many discussions over the past few weeks,
I would like to confirm the placement of the City's Self
Insured Liability Program.
While we had all anticipated difficulty on this renewal,
no one was prepared for the final outcome resulting from:
the tightening of the marketplace.
Of the five surplus lines brokers contacted, all special-
ists in public entity business, only two responded with
quotations.
The better of these was from the Protective National with
a $5,450,000 limit over a $50,000 Self Insured retention
annual premium $143,000. The remaining $15,000,000 of
coverage had an estimated cost of X45,000 for a total
combined premium of $188,000.
On Friday, February 1st, we received a call informing us
the Protective had lost their reinsurance and was with-
drawing all outstanding quotations, including the City
of Lodi 's.
This 1ef-t--u-s=with one remaining quote for $229,000 for
the_�2 OOO,00011imit required. This quote contains a
$250;000 if Insured retention rather than the $100,000
Qs in th-e%past years.
Unfortunately, the prognosis is not good for the immediate
future. The market is going to remain in its current un-
stable condition through 1985 and possibly well into 1986.
We will continue to monitor the marketplace and the City's
program and if anything develops, I -will let you know.