HomeMy WebLinkAboutAgenda Report - July 16, 1986 (68)CITY COUNCIL =IW;
JULY 16, 1986
REQUIRED MINIMUM
LIABILITY INSURANCE
LIMITS REDUCED FOR
LODI AMBLAANCE
SERVICE
City Clerk Reimche presented the follcnvina telegr.M
had been received regarding the Lodi Ambulance Servick_�
RES. 86-110
"Dear Certificate Holder,
CC --22 (a)
CC -21.1(a)
The above named corporation has a contractual. relatlor^;I�ip
CC --6
with you which requires evidence of insurance. !1;,�e to
reinsurance problems, we must at this ti l -e reluce the
liability limits provided by Tri -star Insurance t(11
$300,000.00 to be effective as of this date. Every ef""Ort
is being made to resolve what we consider to L)e a tc»:r.)orary
problem.
Thank you,
1
Glenn E. Miller, President
Tri -star Insurance Company
Gregg -Miller and Associates"
Mr. Michael N. Nilssen, owner of the Lodi Ambulance Service
was in the audience and addressed the Council advisLng that
i
"Tri-Star is a newly developed insurance ciarrxs, produc^d
by private ambulance providers in Calizornia on June 30,
1-:
1986. A total of 3.6 million dollars was generated during
the first stock release. With the California law of
1-
capitol surplus, in relationship to insurance companies,
Tri-Star could only provide a pr:alary coverage o€
$300,000.00 per company insurance, which is 10$ o€ the
i.
total assets.
The reinsurance was to be provided by two separate
canpanies, thus treaties were negotiated prior to the June
30, 1986 implementation date. Those insurance companies
are: The Florida Exchange and General Reinsurance. The
Florida Exchange was to reinsure for $200,000.00 and
General Reinsurance was to cover an excess reinsurance of
$500,000.00 to provide a total of $1,000,000.00 of general
liability, malpractice and auto insurance.
After the tinders were written by Tri-Star Insurance
Company, which is managed by Gregg/Miller Insurance
Brokers, the Florida a-cchange withdrew from the agreement
and did not sign the treaty w.th Tri-Star for the
$200,000.00 reinsurance. From that point, General
Reinsurance also withdrew from the treaty agreement because
we did not have the primary layer of $500,000.00 The
$500,000.00 primary laver was the agreement with General
,2einsurance to obtain an excess of '500,000.00 reinsurance
to canal a total of $1,000,000.00, thus we are back to
s...:rc one wit1, $300,000.00 rru:a;:iruun instarance, currently
,ir. Glen Miller, President of Tri-Star, has reason- ,le
confidence that we will obtain $1,000,000.00 insurance b,.
August 1, 1986. Currently, he has four broker
internediaries searching for reinsurance. Those
intermediaries are: Guy Carpenter, Inc., Intere, Inc., F.
11. Blonc and Andrew 1: t-jards. It is my understanding t:} at
these broker internediazy companies a e very large
companies with tremendous negotiating po%,,or! .
I request the City Council to bear with, 1,cx:.i ��iInal<?nc,
t
Service, during this crisis, and allow as to continue with
w
Tri-Star until the beginning of the month of Aucyist, as I
feel confident we will seek and obtain a naxinxnm of
�.
$1,000,000.00 medical liability, general liability and auto
t
insurance. Should we not obtain this by August 15th, 1
will then proceed to obtain insurance through the assigned
k
risk market to $500,000.00, as was requested at our last
%
Council meeting."
}
Following discussion with questions being directed to Mr.
Nilssen and to Staff, Council, on motion of Council Member
Pinkerton, Snider second, adopted Resolution No. 86-110
amending Resolution No. 86-87 and thereby reducing the
minimum limits of the permi,:tees liability insurance to
$300,000 until August 15, 1986. The motion carried by