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HomeMy WebLinkAbout6/18/2008 - STAFF REPORTS - 2.Q. Y AOAO pA MMSp� f, V N t k • �ab,nm���a k Cg4PORN�, City Council Staff Report DATE: JUNE 18, 2008 CONSENT CALENDAR SUBJECT: Insurance Renewals for the City's Property, Excess Liability, Crime, Airport Owners & Operators and Aircraft Hull Liability, and Excess Workers' Compensation policies in an amount not to exceed $620,308. FROM: David H. Ready, City Manager BY: Procurement and Finance SUMMARY The City is self-insured and annually purchases various lines of insurance coverage to minimize the adverse effects of accidental losses and claims against the City. This action would authorize the purchase of various lines of insurance for Fiscal Year 2008- 09. RECOMMENDATION: 1. Adopt Resolution No. _ "A RESOLUTION OF THE CITY COUNCIL. OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING KEENAN & ASSOCIATES, AS THE CITY'S BROKER OF RECORD, TO PURCHASE PROPERTY LIABILITY, EXCESS LIABILITY, CRIME, AIRPORT OWNERS & OPERATORS AND AIRCRAFT HULL LIABILITY, AND EXCESS WORKER'S COMPENSATION INSURANCE POLICIES, EFFECTIVE JULY 1, 2008. 2. Authorize the City Manager to execute the necessary documents. STAFF ANALYSIS: The City is self insured for major risk programs, such as general liability, auto liability and workers' compensation. In order to protect the assets of the City from potential loss, the City purchases various lines of insurance coverage, including general liability, automotive, property and excess workers' compensation insurance. To assist in the purchase of various lines of insurance, the City recently awarded a contract to Keenan & Associates for broker services. ITEM No. City Council Staff Report June 18, 2008 -- Page 2 Annual Insurance Renewals Keenan & Associates has solicited pricing on the City's insurance portfolio. The following is a summary of last year's premiums, and staff's recommendation (including options noted) for the July 1 renewals for FY 08-09: COVERAGE,: Premium FY 07-08 Premium FY 08-09 Options to consider PROPERTY Premium $350,481 $320,000 Deductibles $218,000 for Earthquake $250,000 for Earthquake $100,000 Flood $100,000 Flood $10,000 all other Losses $10,000 all other Losses Limits $336,127,802 $342,000,000 'TRIA(terrorism)coverage 'TRIA(terrorism)coverage not included included EXCESS LIABILITY GL&AUTO Premium $178,422 $160,800 $235,800 Self-Insured Retention $400,000 Employment $400,000 Employment $400,000 Employment Practices,$400,000 all other Practices, $400,000, all other Practices$400,000,all other Limits $10 000,000 $10,000,000 $25,000,000 CRIME Premium $3,532 $4,415 Deductibles $10,000/$1,000 $10,000/$11000 Limits $1,000,0001100,000/$300,000 $1,000.0001$100,000/$300,000 AIRPORT LIABILITY Premium $53,008 $48,430 Deductible $1,000 $1.000 Limits $50.000 000 $50,000,000 AIRCRAFT HULL Premium $7,699 $5,240 Deductible $500 In Motion/$1,000 Static $500 In Motion/$1,000 Static Limits $5,000 000 $5,000,000 EXCESS WORKERS' COMP ''recommended Premium $75,037 $72,420 $81,423 SIR-Police&Fire $1,000,000 $1.000,000 $1,000.000 SIR-allotheremployees $1,000,000 $1,000.000 $1,000,000 Limi[s $25,000,000 per occurrence $25,000,000 per occurrence $50,000,000 er occurrence Total Premiums $668,179 $611,305 5695,308 w/o bons PROPERTY PROGRAM: Under the Property insurance program the quote of $320,000 is offered by Travelers as one comprehensive policy and represents a savings of $30,481 compared to last year. This is especially noteworthy because TRIA (terrorism) coverage was not included last year, and it is included in the premium this year- EXCESS LIABILITY PROGRAM: The cost quoted for Excess Liability (which includes the City's comprehensive General Liability and Auto Liability insurance) of $160,800 represents a savings of $17,622 compared to last year. However, litigation against public agencies has been increasing due to the Joint & Several Liability law created by Prop 51 ("aka: the deep pockets rule"). As a result, an option is included for Council's consideration to increase our coverage from $10 million to $25 million per occurrence at a premium of $235,800, which would be an additional $75,000 in cost, or$57,378 more than last year. The cost to purchase this additional coverage is not included in the Resolution. ---- ------- 0® a 0 2 2 City Council Staff Report June 18, 2008 -- Page 3 Annual Insurance Renewals AIRPORT PROGRAM: Airport Liability covers incidents such as injury to a person (ie: passenger slip and fall in terminal) or damage to a plane (ie: airport equipment hits a plane) that occur on the premises, Aircraft Hull Liability is specifically for the 1974 Cessna Aero Squadron plane, covering the property itself and our liability in the event of an accident. Quotes are provided by both the previous carrier, ACE USA and National Union (AIG). Keenan & Associates has researched both firms and is confident that they are equal. In addition, due to the sheer size of AIG and their broader knowledge and experience with writing this type of specialized coverage, they are able to offer the City the same (combined) coverage at $53,670, which is a savings of$7,037 compared to last year. EXCESS WORKERS' COMPENSATION PROGRAM: Finally, maintenance of Excess Workers' Compensation insurance is important to protect the City from the negative financial consequences of potential catastrophes involving multiple employee injuries or deaths from occurrences, such as major fires, police activities, terrorist attacks and earthquakes during work hours. The renewal for the same $25 million in coverage is $72,420 which is a savings of $2,617 compared to last year. Staff and our broker recommend that Council consider the option to better protect the City's assets and double our coverage to $50 million per occurrence at a premium of $81,423, which would be an additional $9,003 in cost. The cost to purchase this additional coverage is included in the Resolution. In summary, should Council decide to maintain the same coverage, the total premium would be $611,305, which is a savings of $56,874 (-8.5%)(compared to last year. The total cost, including the recommended option included in the Resolution for additional Excess Workers Compensation insurance is $620,308, which is a savings of $47,871 (-7.0%) compared to last year. However, should Council elect to approve both options, increasing the coverage in Excess Liability and Excess Workers Compensation, the total premium would be $695,308, which would be an increase of $27,129 (+4%) compared to last year. FISCAL IMPACT: This is a budgeted expense. Sufficient funds are available in the Risk Management Fund and will be allocated to the following accounts: 48640 (General Liability Insurance); 48665 (Aircraft Liability); 48670 (Crime/Fidelity Insurance); 48675 (Airport Liability); 48655 (Earthquake Insurance); 48690 (Property Insurance); 48410 (Workers' Compensation). Geofffr y . Kiehl, Finance Director David H. Ready, er 071 Craig L. GI rs, Procurement Manager Attachments: Resolution (1) and Keenan &Associates Renewal Proposal MON_ RESOLUTION NO, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING KEENAN & ASSOCIATES, AS THE CITY'S BROKER OF RECORD, TO PURCHASE PROPERTY LIABILITY, EXCESS LIABILITY, CRIME, AIRPORT OWNERS & OPERATORS AND AIRCRAFT HULL LIABILITY, AND EXCESS WORKERS COMPENSATION INSURANCE POLICIES EFFECTIVE JULY 1, 2008. WHEREAS The City is self insured for major risk programs, such as general liability, auto liability and workers' compensation; and WHEREAS, annually purchases various lines of insurance coverage to minimize the adverse effects of accidental losses and claims against the City; and WHEREAS, the City Council appoints a broker of record to purchase insurance policies for the City. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, California authorizes Keenan & Associates, as the City's Broker of Record, to purchase of the following insurance policies for Fiscal Year 2008-09: COVERAGE: Premium FY 08-09 PROPERTY Premium $320,000 Deductibles $250,000 for Earthquake $100,000 Flood $10,000 all other Losses Limits $342,000.000 "TRIA(terrorism)coverage included EXCESS LIABILITY GL&AUTO Premium $160,800 Self-Insured Retention $400,000 Employment Practices, $400,000,all other Limits $10,000,000 CRIME Premium $4,415 Deductibles $10,000/$1,000 Limits $1,000,000/$100,0001$300,000 AIRPORT LIABILITY Premium $48,430 Deductible $1.000 Limits $50,000,000 AIRCRAFT HULL Premium $5,240 Deductible $500 In Motion/$1,000 Static Limits $5,000,000 EXCESS WORKERS' COMP Premium $81,423 �IY�IY��X Resolution No. Page 2 M &Fire $1,000,000employees $1,000,000$50 000,000 er occurrence miums $620,308 ADOPTED THIS 18TW DAY OF JUNE, 2008. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) 1, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy as was duly adopted at a regular meeting of the City Council of the City of Palm Springs on June 18, 2008 by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California dl Vr'1 rA�'a6WR PROPERTY, LIABILITY AND WORKERS' COMPENSATION PROGRAMS RENEWAL PROPOSAL FOR THE 2008-2009 PROGRAM YEAR Presented to: CITY 4F PALM SPRINGS _ JUNE 10, 2008 Presented hy. Ken A cr John Stephens,Senior Vice President 901 Calle Armnecer#200 San Clemente,CA 92673 Phone: (949) 940-1760 Fax: (949) 369-0324 Email_jstcphens@kecnan.com www.kecoan.com License No- 0451271 00001�6 Table of Contents CoverLetter................................................................................ii Program Premium Cost Summary ............................................4 Market Summary by Coverage ...................................................5 Property Program ...................................................7 Excess Liability Program ...........................................12 Crime Insurance Program.........................................................13 AirportProgram—Part 1............................................................14 AirportProgram—Part 2 ...........................................................15 Excess Workers' Compensation Program.................................16 Lzm&e No. 0451271 i June 10, 2008 Mr-David H. Deady,City Manager City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, CA, 92262 ,Dear David: We are pleased to present the 2008-2009 Property&Casualty proposal. As you're aware,we were appointed the City's Broker of Record in May and have been diligently working to develop the most comprehensive and competitive program in a very short time. We approached over 30 markets and have several different options for the City to consider, including options to increase limits and significantly improve coverage terms. Most rates have decreased and the overall renewal decrease is approximately 11% for the same coverage as expiring, without options. Also, all quotations are "net of commissions" since we are compensated on a flat fee basis. Following is a summary of die various quotations, recommendations and areas we feel the City should consider: o Property—The City has been insured with Affiliated FM for several years. This year, Travelers has offered a quotation, including Terrorism coverage (TRIA.) for $30,481 less than your expiring premium Our understanding is the City has historically not purchased TRIA so if you choose to decline TIUA, the savings will increase an additional $17,442 for a total savings of $47,923, which is a 14% decrease from expiring. In addition, the Travelers quotation include your new airport renovation and the TIV has increased to $342,000,000, where the A.f5liated FM quotation limit is $336,127,802 and there would be an additional premium for the airport renovation coverage. o Excess Liability—Litigation against public agencies has been increasing due to joint & SeveralUability and as a result, the City's should consider increasing your current $10M policy limit Included is an option to increase your Excess Liability Limits from $10M to $25M which would increase your premium $57,378 from expiring. Based upon the City exposures, this is a very competitive premium for $25M of coverage and most of the additional premium can be paid for through the Property savings referenced above- 0 Crime — The premium has increased from $3,532 to $4,415 for identical coverage. There is no good explanation for this other than this is a small premium for a rather large exposure. Included are optional quotations to increase the limits detailed within the Crime section of our proposal. fl&Ap No,0451271 11 n o Airport/Aircraft Liability —The City has been insured with ACE for several years. This year National Union (AIG) has offered the most competitive program that would save the City$7,037, an 12% savings- There are options to purchase War and Terrorism coverage as well for additional premium. The limits are identical with both programs and National Union provides a few more coverage enhancements. I recommend the City consider malting the change to National Union (AIG)- o Excess Workers'Compensation—Great news as the renewal rate has decreased 17%. The City has carried$25M for this coverage and included are optional quotations to increase this limit to $50M and $100M- Due to the high risk exposures (Police & Fire) of the City, I recommend the City increase the aggregate to limit to a minimum of$50M and strongly consider the$100M option. o The DIC and Media Liability policies renew in November,so we will discuss strategy and how we recommend proceeding after we finalize the coverages that need to bind on July V" David, we have developed a very competitive renewal and feel the City can significantly improve your limits, terms and conditions for comparable pretniums to your expiring program. Please advise us which options you wish to select so we can bind coverage and issue Certificates of Insurance prior to July 1, 2008. Thank you and your entire team for your support,patience and confidence in our services as we begin our partnership together. John Stephens Senior Vice President Property&Casualty Thu insurance document is furnithed toyou ar a matkr of info=atian foryour convenience. It only summarikes the &kd proposed po/iy(icr) and it not intended to reflect all the terms and conditions or excImam of sveb proposed policy(zes). Moreover, the information contained in th s docwmcnt tsfkctr pmposed coverage ar of the effective dates) of the proposed poliyriet)and doer not include twBtequent changes Thu document it not an inruranee policy and does not amens, alter or extend the coverage afforded by the&kd pmpated poluyrIet). The inn nmm afforded by the Frted pmpo red pohgries) a subucl to all the terms, condiaonr and excltwolu of rwh paliy(w). Clceme No. 0451271 iii - Program Premium Cost Summary 2007-20082008-2009 Property Program: $ 350,481 $ 320,000 Comptehensivc General&Auto Liability Program $ 178,422 $ 160,800 Crime Insurance Program $ 3,532 $ 4,415 Airport liability Program (Part 1) $ 53,008 $ 48,430 Aircraft Property Program (Part 2) $ 7,699 $ 5,240 Workers' Compensation Program $ 75,037 $ 72,420 Multi-Media Professional Liability Progtam $ 8,750 TBD* Difference In Conditions Program $ 525,600 TBD* Above premiums are based upon a similar limits, terms and conditions of the expiting and proposed program. Premiums will vary depending upon the City's final sclection as the City may choose optional quotations or choose to waive certain coverages- Property Premium includes TR-TA- Should the City decline TRIA,the premium will. decrease$17,44,2. All quotes and/or indications are subject to all tectns and conditions included in other sections of this proposal and actual policies. *Coverages renew in November Licence Nu.0451271 4 ryry 5r -�.ZY-. -ryry ryry Market Sumirrlary by Coverage ResponsePropert�,Prog�ajn Market Summary Inqurance Carder Lo ds No response to date Pacific Insurance Company Ltd- No response to date Westchester Declined,not enough ca aci Insurance Company of the West No response to date Landmark/RSUI No response to date Arch Specialty No res onse to date United States Fire Insurance Co. No response to date Essex Insurance Co. No response to date Endurance American Specialty Ins Declined, Uncompetitive Axis Reinsurance Co. No response to date Chubb Custom Insurance Co. No response to date Travelers Quoted James River- Insurance Co. No response to date Allianz Insurance Co- No response to date Steadfast Insurance Co. Declined,Underwritin Guidelines Homeland Insurance Co. No res onse to date Affiliated FM incumbent Quoted Mt.Hawley Declined,Uncm etittve City of Pally] Springs Insurance caftier , Response, Everest National Insurance Co. Quoted Insurance Company of the State of No response to date Penn Genesis Insurance Com an Declined,Uncompetitive RSUI Inderanky No response to date Arch Specialty Insurance Co. No response to date Am Specialty Insurance Co. No response to date Westchester Surplus Lines Insurance No response to date Great Lakes Reinsurance K PLC Declined,below their minimum premium Lex on Insurance No response to date Travelers No response to date Endurance American Specialty Ins No response to date AWAC 0110ted SlSMXS $lOIvI Lxerm No.0451271 5 -! - I Ciro*ofhadm 5priaads '' -:Cxaeina: Pnsvratace Pxograen P12axkex 5uaananary� '' Pnsurana~¢Carr}ca• Response . . . • ucted Ci¢}-of d�adm Spaa¢ags I National Union Fire Insumnce Ouoted tlir}tort P.iaGidutg•S:Ain•cPaft b?roreaa.}�,d'eo�rarxa li7ax•I�-ea 5uraaanarr- Ace Pnsaraucc Carrier _ Rcs}tva�sc Ci¢y o£PaPan Springs d;acess 1i'rtrl;eas' Coanapcatsatioaa Paxogratat APar'd:c[Sutntenaary' Paasnacaiycc Carrier � P2csponnse Safety National Casualty Corporation Ouoted Various Options Uncompetitive CompanyCompmy New York MAnne and General Uncompetitive to incumbent carder Insurance Comp!LiX Republic Rideranit),Insurance Uncompetitive to incumbent carrier A p. i, Y 1 A Property Program ,,. artrw:' Travelers y j'_y: • x Admitted—Best Rated:A + Vu(Nt J `f City of Palm Springs $342,000,000 Total fox all coverage combined *See schedule of sub-limits 320,000 Annual Premium* Includes charge of$17,442 for Certified Acts of Terrorism I rGl'YIIX.rS$; is Coveted Cause of Loss $ 10,000 per Occurrence Earthquake $250,000 per Occwence/5%per Emit EQST $ 10,000 per Occurtence Flood $100,000 per Occurrence Utility Services—Time 24 Flows Element .^: I i1SiS5, Cavere Si7I3-LIMi rs ONT Y Electronic Data Processing Systems, $10 Million Data&Media 'Sn''•',.`i";c; Accounts Receivable $10 Million ;:'';;,:ir. ,'• :..:„ Valuable Papers $10 Million Fine Ares $1.5 Million ?� Newly Constructed or Acquired $5 Million/120 Days Property Outdoor Property including Debris $100,000 Removal A Trees,Shrubs &Plants $1,000 per Item Liernn No. 0,53 2-i 7 . - T. Covered Property at Undescribed $5 Million Covered Property in Transit $1 Million 0,'i Pollutant Cleanup $100,000 Aggregate Ordinance or Law Loss to the Undamaged Portion $25 Million Demolition Included Increased Cost of Constructiot, Included Business Income $25,496,960 5+ '-•"' Ordinary Payroll Limited—30 Days Extended Business Income 60 Days Civil Authority 30 Days Dependant Property $250,000 y=s izr Ordinance or Law—Increased $250,000 Period of Restoration $500,00/120 Days '' ^r ;' Newly Acquired Locations $25,000 rV Claim Data Ewa Expense $5 Million Civil Authority 30 Days Dependant Property $50,000 :;;y,; Ordinance or Law—Increased $50,000 Period of Restoration $50,000/120 Days Newly Acquired Locations $25,000 Claim Data Eartbquake,Volcanic Eruption, Landslide&Mine Subsidence_ Not Covered Occtuxing in Alaska, Hawaii or $2.5 Ivlill:ion Aggregate Puerto Rico Not Covered Occurring in California Occurring in High Hazard Counties et MS C6 08 Earthquake Sprinkler Leakage: ,. Occurring in Alaska,Igawaii or Puerto Rico Not Covered Occurring in California $25 Million Aggregate Occurring in High Hazard Counties Not Covered er MS C6 08 Flood—Other than Zone V or $2.5 IvPi.Uion - Zones Prefixed with V Lime No. 0451 -7 8 _,- Boiler&Machinery. Property Damage,in g any one accident Included >-. Business Income,in any one 4;C .......,i,' accident Included ' ,'•f;' Extra Expense,in any one accident Included "i' hazardous Substance,in any one accident: 4:`_6; 't`• Ammonia Contamination $250,000 Any Other Substance $250,000 Water Damage,in any ono accident $250,000 Consequential Damage,in any one accident $100,000 Boiler&Machinery,all coverages !;'r± • :rj, combined $1 Million Nfaximum '•' .' ;'' Limited Fungus,Wet Rat&Dry 'I Rot: Direct Damage $1 NMon r.; In any one occurrence $1 Million Amite 30 Days "Z"; Business Income&Extra Expense ?' Builders Risk: Iviaximum at any one construction $2-5 Million Site $2.5 Million Maxitnutn at all construction Sites $50,000 Builders Risk Property at Temporary $50,000 `• Storage Location Builders JUsk Property in Transit soft Costs $100,000 Reimbursement of Master Key $100,O00 Expense ?, Utility Services—Combined Ducat $5 Million Damage&Time E including lement g Boiler&Machinery l' Quotation expires 6-30-08 i11'luias:' =6,;i • Replacement Cost basis. Replacement Cost shall be the cost to repair, rebuild or replace the damaged property (without deduction for depreciation) with materials of like kind,quality anal s capacity- . • Terrorism coverage is included unless otherwise noted. l'{ ' =✓ "'r' • The policy will be subject to all state-mandated endorsements Refer to POHCY£nr exclrrsioxrs I z"w No. N51�'-1 9 ' .r O do al QuQtation 1 Affiliated FM $336,127,802 M $324,153 Premiuni (Includes T'RTA$12,003 &Engineering Fce$2,000) DIA01121 QuOMt'9162LhjghtLEqghqpalr imi s Limit $5 Million Deductible: $250,000 per Occurrence/ 5%per Unit Annual Premium: $441,000 Limit $10 Million Deductible: $250,000 per Occurrence/ 5%per Unit Annual Premium: $633,000 LrccracNo.0457277 10 PROPERTY PROGRAM COVERAGE.COMPARISON�-,+ 1 RAVELERS V5.ATTILUITEA PM TRAVELERS AFM Policy Limit 100,000 101000,000 500,000 10,000,OD0 500,500 10,000,000 500,000 Policy Limit if 100,000 purchased 5,000,000 1,000,000 5,000,000 1,000,000 100,000 50,000 5,000,000 1,000,000 1,000,000 250,000 2,500,000 50,000 25,000,000-A/B/C A = Policy;B &C 1,000,000 25,000,000 Pohg Limit 10,000 per 1%of T1 V min occurrence 50,000 per location 5%per unit 1%Total TIV/ 250,000 minimum 50,000 minimum Per OCCUrieace Per location Per Occurrence $342,000,000 $336,127,802 $320,000 $324,153 -- Includes TRIA$17,442 Includes TRIA$12,003 9E Engineering Fee $2.000. Ilanrr Na 0451271 11 ^,- Excess Liability Program �rJSJ- u...• .tom 0.kFkP4^ �Y�y.'�f", Everest National Insurance Company } * Wa Admitted—Best Rated:A-1- `�3 Excess Liability Products&Completed Operations Ilazard-$10,000,000 per Occurrence Errors and Omissions Liability-$10,000,000 per Occurrence Other than "wrongful acts"of"personal o- injury offense"or"advertising injury offease" Employment Practice Liability Wrongful Acts-$10,000,000 Per wy Employment Practice 1` Wrongful Act Employee Benefit Liability-$10,000,000 Per Occurrence 5 O'i Comprehensive General Liability- $10,000,000 Per Occurrence $OWC —, Automobile Liability-$10,000,000 Per Occurreacq M1Mi Products&Completed Operations Lazard-$10,000,000 Aggregate a Errors and Omissions Liability-$10,000,000 Aggregate Other than`wrongful acts"of"personal jinjury offense"or"advertising injury offense" y' Employment Practice Liability Wrongful Acts -$10,000,000 Aggregate Employee Benefit Liability-$10,00%000 Aggregate 7 f 1 1�rMM , $400,000 $160,800.00 M&D • Quote is valid until 07/01/2008 I�pt��VD " 1ITC1T8: • TRIP, coverage is available for A/P of $3,216. Please retum signed TRIA form,if the Insured is rejecting this coverage=AT BINDING. • No flat cancellations Refer m p ql fox exclusions 1 Optional QuQmon 1. Optional Quotation 2 PT'xV7!N,�G tJVUAAG,1--, $9,000,000 XS of Retained Limit $25,000,000 XS of Retained Limit r $158,$00 Premium $235,800 Premium 1 '(MIA Add l Premium is$3,176) (I'RIA AdT1 Premium is$4,716) NOTE-$10M with Everest National &$15M with AWAC. Ijtexre No. 045127f Crime Insurance Program Hartford Fire Insurance Company Admitted—Best Ratcd:A + Crirtteshicld Policy for Government Entities Employee y Theft $ 1,000,000 Per Loss Depositors Forgery and Alteration-$100,000 11left,Disappearance and Destruction-$300,000 '_'L Mone ,Secutties and Other Pro $ 4,415 Employee Theft-$10,000 pet Claim +. Depositors Forgery and Alteration-$1,000 per Claim Theft,Disappearance and Destruction Money,Securities and Other Property V�b�YCi ii'.M • Quote is valid until 07/01/2008 • Quote does not include Robbery&Safe Burglary • Quote does not include Computer&Funds Transfer Fraud i 'i+j•''+ • Policy written on a "Disrovety" basis and applies to losses discovered during the policy period or within 60 days of termination or cancellation of the policy • Amend General Condition J-4 -- Employee Benefit Plans (Governmental) Endorsement amends the policy to insure ,r,ii; any Employee Welfare of Pension Benefit Plan fox loss due to 4: employee theft $cfer to aIi for exclusldns s'm. V. 17csc tion QpU2nLI Quatation 1 Qytiowd 0 I.Qratlon 2 Employee Theft 12,000,000 Per Loss $3,000,000 Pcr Loss F7�:, :.,,.,ae• Depositors P8cr1 $ 100,000 100,000 Theft73&D $ 300,000 $ 300,000 $ 8,597 $ 9,671 Premium Li eNo.0451,271 13 - 2'o Airport Program -- Part 1: Owner's & Operators GL ; h lli"ILIIc O he C Option 2 (MG) .. .. ACE Property&Casualty Ins. Co. National Union Fire Insurance(AIG) ` Admitted—Best Rated:A + Admitted—Best Rated A + - C>�??'i1u+ r -'"; Airport Owners and Operators General Liability •^ ^,;A Airport Prcmises - $ 50,000,000 Per Occurrence Products&Completed Operations-$50,000,000 Aggregate i::h:;'cj ? ,',,::j Personal Injury&Advertising Injury-$50,000,000 Aggregate Malpractice-$50,000,000 Aggregate Fire Legal- $100,000 pet Fire Ptexnises Medical- $5,000 each person I4angarkeeper- $50,000,000 per Occurrence/pet Aircraft Non-Owned Aircraft-$50,000,000 per Occuaence G:;{ Excess Auto- $50,000,000 Immunity Waiver Contingent Control Tower(National Union Only) `'� Damage to Autos (National Union Only) motion I (A OE Ootiori 2 (ATG) ��O' Each Occ. or Offense- $1,000 Each Occ. or Offense- $1,000 Aggregate Deductible- $5,000 Aggregate Deductible-$5,000 $52,933 (Airport Policy) $48,430 (Airport Policy) N:-`'': $29,890 (War Liability) $ 4,843 (War Liability) $44,835 (TRIA &War) $ 7,749 RTA&War j N/A (1ItI A—No War) $ 14,529 (IRIA—No War) Indication is valid unta 07/01/2008 la,.—SAND% •;` Subject to updated information Reler ro pokcyfor exclusions 7„ 'y 1lrenre,\ri 09>7^1 14 - Airport Program — Part 2: Aircraft Hull & Liability Aircraft Hull and Liability 1974 Cessna 182P N47PS Aircraft Liability. - $5,000,000 Medical Payments -$1,000 Hull Coverage- $75,000 Antion I C"F.l 0�1ion_2 (AIGI $100/$500 $100/$500 Sip on 1 AACQ Option 2 r $6,114 (Aircraft Liability) $5,240 (Aircraft Liability) $ 394 (War Coverages) $ 377 (War Coverages) $ 788 (War&TRIA) $ 598 (War&TRIA) $ N/A (I'R T A —No War) $ 688 (fRIA—No War) • Indication is valid until 07/01/2008 • Subject to updated information • Use accessary for the operations of the assured • Pilots ma be a Loved by the Named Insured's chief pilot 060G21 Licence No. 0451271 15 i .r Excess Workers' Compensation. Program ATt,1 Lary"�'::'� z,ii `"' `'' Safety National Casualty Corporation Admitted—Best Rated:A + Workers'Compensation-Excess (, Employers Liability "•7 " lr '`: 'i ;"` Workers'Compensation—$25,o00,000/$1,000,000 SIR Employer's Liability - $1,000,000 BpAccidmt—Bach Accident $1,000,000 By Disease—Policy Limit $1,000,000 By Disease—Each Employee ,;,fir°' •.-';•",•:�s. $31;045,202 Estimated Payroll FY 08-09 (subject to final audit) $72 420 Estimated Annual Premium (Includes $3 500 flat charge tar a1TCiaft) Premium Rate per$100 Payroll—0.222 ;.. (Expiring Rate pet$100 - $0,268) Mmimtun premium $72,420 includes $3,500 flat aircraft charge Subject to a brief description of losses over $100 000 for the previous five (5) years �ti'F,> � • Foreign Terrotism Endorsement ry"' =+i • Notice of Cancellation/Non-Renewal — 30 days except 10 '• days Non-Payment Subject to final payroll/premium audit on a rate pet $100 "i' ,'; `S' ,? • of payroll of$0.222 _'�','=°r�� •�.ii Refer to Pofievibif ea:clusians y" 1 y11 Qptional untation 1 Optional Quotation 2 ,-,•, Workers Compensation- Workers Compensation- 50,000,000/ $1,000,000 SIR $100,000,000/ $1,000,000 SIR r , Estimated Annual Ptexniu, - Estimated Annual Ptemiurn- 1`" $81,423 ❑eludes 3 500 flat ,500 flat T(7,NAr,`,Q'Uo'YP' � $ � $91,6G8 (Includes $3 n•...,; aircraft charge) aircraft charge) Atinimum.Pxetxiium_ $81,423 Minimum Premium- $91,668 Premium Rate per$100 Premium Rate per$100 Payroll—0.251 Payroll--0-284 O00022 Lieewe No. 04 51.'7 16 - 1