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clT-l':()F SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
EDWARD RAYA
Subject:
AUTHORIZING THE RENEWAL
OF THE CITY'S WORKERS'
COMPENSA nON EXCESS
INSURANCE
Dept:
RISK MANAGEMENT
JUN 2 5 ~9j7
C~JGINAl
Date:
JUNE 25, 1997
Synopsis of Previous Council Action:
JUN 26 1997
Recommended Motion:
1. Authorize the renewal of the Excess Workers' Compensation insurance for a term of July 1, 1997
through June 1, 1998 at a cost of $40,777.
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Contact person:
Edward Raya
Phone:
909-384-5103
Supporting data attached:
Ward:
FUNDING REQUIREMENTS: Amount: $40.777
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Source: (Acct. No.)
678-452-5161
Council Notes:
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Finance:
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Agenda Item No.
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
STAFF REPORT
Since 1988 the City of San Bernardino has obtained excess liability insurance through its
participation in the Big Independent Cities Excess Pool (BICEP). In 1993, the BICEP Board
of Directors agreed to participate in a joint purchase arrangement to produce Excess Workers'
Compensation Coverage. The Board felt that the strength of BICEP's five member cities
negotiating together would produce favorable premium discounts.
In 1993, the Board entered into a three year policy agreement with National Union Insurance
Company for Excess Workers' Compensation. In 1995, that agreement was renegotiated for
another three years. The third and final year of the agreement will commence on July 1, 1997.
The City's current policy which will expire July 1, 1997, provides statutory coverage above
$500,000 per claim deductible. The cost of this coverage was $60,546.
We have been successful in negotiating a renewal of the coverage with a lower per claim
deductible of $300,000, and reducing the premium to $40,777. The renewal premium represents
a decrease of $19,769.
Recommendations:
1. Authorize the renewal of the Excess Workers' Compensation insurance fora term of July
1, 1997 through June 1, 1998, at a cost of $40,777.