HomeMy WebLinkAboutNB06-City Administrator
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" Clt~f OF SAN BERNARD("':'O - REQURT FOR COUNCIL AC"''''ON
From: RAYMOND D. SCHWEITZER
Acting City Administrator
Subject: Summer Youth Employment Proposal
Dept:
Date: 7/3/86
Synopsis of Previous Council action:
6/30/86 -- At Council Budget Retreat, Acting City Administrator directed
to develop Summer Youth Employment program for City of San Bernardino.
Recommended moti.on:
That the attached Summer Youth Employment Program proposal developed by
the Acting.City Administrator be affirm,ed, modified or rejected.
Contact person:
Ray Schweitzer
Ph 5122
one:
Supporting data attached: yes
Ward:
Amount"to be determined Source', FYR6/87 C t' A t
_______ on 1n~ency ccoun
FUNDING REQUIREMENTS:
by city Council
Finance:
FUNDS HAVE NOT BEEN ALLOCATED FOR THIS PROJECT.
Council Notes:
7S.0262
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PROPOSAL
YOUTH EMPLOYMENT PROGRAM
CITY OF SAN BERNARDINO
It is the intent of this program to provide opportunity and
training in basic job skills and work ethic to all youth
within the City of San Bernardino. It is designea--to com-
plement and supplement existing programs in the federally
funded Employment and Training Act and summer recreation
area, rather than compete or conflict with them. The program
basically allows all youth, regardless of economic situation
or specific interests, to participate in projects which
benefit the City and themselves, and still encourages con-
tinued educational development. The number of participants
and length of program will be determined by the Mayor &
Common Council.
ELIGIBILITY
1. Resident of the City of San Bernardino. (recom-
mendation)
2. Minimum age of 14 and maximum age of 19. (recom-
mendation)
Alternatives: Depending on the targeted age group set by
Council, there should be conditions set to safeguard the
stated goal: such as, school issued work permit for youth
under the age of 18: verification by parent or legal guardian
of consent: residence with the parent or legal guardian:
satisfactory grades in school: etc. The ETA program requires
minimum age of 14 and maximum age of 21. Recreation has 16
as minimum, no maximum. (Note - ETA established 400 jobs,
all at minimum wage, on their summer program which runs from
6-30-86 to 8-22-86 and could only recruit 650 applicants, 80%
of which were under age 19).
HOURS AND PAY
$3.35 per hour
20 to 35 hours
Program . begins
mendation)
(Certain apprenticeship and vocational programs may be
submitted to the Department of Labo~ which may authorize
pay below minimum wage under certain very restrictive
conditions. However, the required conditions and time
necessary for approval makes it impractical to apply for
this summer's program)
1-
2.
3.
(legally
per week.
7-14-86
mandated minimum wage)
(recommended)
and ends 8-30-86. (recom-
Alternatives: Rate of pay and number of hours to be worked
could be manipulated depending on amount authorized to fund
the program. As can be seen in the example below the alter-
natives are many, however it is recommended at minimum wage
so as not to conflict with the ETA program and possibly draw
those participants into this program. It also allows for
maximum participation if program interest can be generated.
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The minimum pay in the recreation is $3.75 per hour. It is
also recommended that the program end prior to the start of
school so as not to encourage drop outs, although an on-going
cooperative program is possible.
EXAMPLE
Funding Authorized By Mayor and Common Council:
Total Work Hours funded at Minimum Wage:
Total Work Hours Available Thru Summer:
(Given start of 7-14-86 & end of 8-30-86)
At minimum Wage ($3.35 hour) and;
40 Hours Per Employee, # of Employees possible: 10
($938.00 each total program)
10,000
2,985 hours
280
35 Hours Per Employee, # of Employees Possible: 12
30 Hours Per Employee, # of Employees Possible: 14
20 Hours Per Employee, # of Employees Possible: 20
At $4.00 per hour and;
r
40 Hours Per Employee, # of Employees Possible: 9
30 Hours Per Employee, # of Emp~oyee Possible: 12
20 Hours Per Employee, # of Employee possible: 17
(100 employees at minimum wage & 40 hours per week costs
$13,400 per week)
TYPE OF WORK OR PROJECT
The type of work to be accomplished is intended to be
meaningful and contributing to improvement of skills and
work habits. A survey of the city departments was
accomplished and the following list is representative of
the intention of the program.
1. Office Aides Many departments are willing to
provide training in public relations, clerical
skills and office procedure.
2. Technical Aides in Public Buildings, Garage,
streets, Park, etc., the participants would assist a
journey level craftsman such as a mechanic, painter,
carpenter, plumber, etc., and learn basic skills
under close supervision.
3. Recreation Aides to supplement the recreation
program wh7retraining under supervision would be
provided 1n areas of playground activities, arts
and crafts, special events.
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4. pro;ect Aides - Programs and projects such the MAC
team, animal licensing program, fire watch, and com-
munity improvement programs could be staffed by
these participants. .
5. Special programs could be developed specifically for
these participants, for example address-curb
painting, park patrols and maintenance of playground
equipment, aluminum recycling projects, bicycle
repair and sale of abandoned bikes through police
department, or even fundraising or promotional
activities for community service projects.
ADMINISTRATION OF PROGRAM
The program should be flexible without undue built-in
delays, and, because of current workload of regular City
staff, the administration of a program of this nature
should be decentralized with administrative control
placed in the Mayor's Office, under its special Projects
Coordinator (Greg Garcia) or in the Administrative
Office.
r
Recruitment of participants: The Personnel Office
should be delegated to accomplish recruitment through
advertisements, referrals from schools, ETA and Rec-
reation; also to accept application forms and check for
eligibility requirements.
Selection of Participants: A committee
representatives from the Mayor's Office,
Administration, ETA and Recreation should be
to review applications, select participants
assignments to particular depart-ments and/or
composed of
Personnel,
delegated
and make
projects.
Proqram Oversight: Authorized Funds to be placed in a
city Administrative's Office Account (Special Projects)
and guidelines issued to departments and individual
supervisors. Person designated by city Administrator
will oversee daily operations, monitor time keeping and
records, provide overall supervision of the program, set
up an orientation, and prepare end-of-program evaluation
report.
Implementation Procedure: Individual Departments which
have youth program participants assigned will be
responsible for the supervision, recordkeeping and time
sheets on each participant. The procedures outlined in
the Worksite Operator's Handbook (attached) for the ETA
program with some modification will be followed. Time
sheet will be turned in weekly to the Finance
Department, and checks issued on that basis. The
Program Coordinator assigned by the city Administrator
or the Mayor will be responsible for any changes
necessary to facilitate the program as authorized by
Mayor & Common Council.
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SUMMARY OF RECOMMENDATIONS
The amount of funds authorized by the Mayor & Common
Council will determine the other elements of the
program. However, it would seem to be most beneficial to
the City that there be between 50 and 100 participants
paid at minimum wage $3.35, working about 35 hours per
week for a period of seven (7) weeks starting July 14
and ending August 30, 1986. The maximum cost of the
program for 50 youth in the plan described above would
be $41,038 and 100 participants would double the cost.
The program properly administered should have very
positive effect on the majority of people within the
city of San Bernardino.
LOCAL SURVEY
The cities of Rialto, Colton, Fontna, Redlands, and Riverside
were contacted to determine whether they were operating
programs similar to the one proposed. None of these cities
funded a summer youth employment program aside from ETA
program for the economically disadvantaged and their normal
summer recreation programs.
The "ETA" Summer Youth Employment Program
The ETA program is funded for $350,"000 by the federal gov-
ernment, which allows ETA to hire 400 participants at minimum
wage ($3.35) for 35 hours per week for a period from June 30,
1986 to August 22, 1986. These participants must be 14 to 21
years of age, residents of the City of San Bernardino, and
economically disadvantaged. The determination of econom-
ically disadvantaged is based on a poverty line approximately
$7,000 for a family of two and approximately $2,000 for each
additional dependent. However, this eligibility requirement
is complicated by other factors such as physical handicap,
being in receipt of other. aid sources like AFDC, ethnic race
and sex. There are maximum limits for hiring from any part-
icular race and sex. For example, the program will not allow
hiring all blacks males. Therefore, even if the applicant
qualifies, he/she may not be hired if that limit would be
exceeded.
The ETA program, despite intensive recruitment efforts, had
only 650 applicants for the 400 jobs available, and the ones
not selected have good possibility of employment by replacing
those who terminate for various reasons. Of the 400 jobs,
133 are located to City departments, which had requested 175
positions, leaving 42 requests unsatisfied. The independent
City program could supplement this need. (see attachment-ETA
Allocation List)
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SYEP WORKSITE EVALUATION
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NAME OF SITE POSITION
Ii'S.B. City Cemetary , Grounds keeper
(S.B. \.
City Fire Department Office Aide
Mechanic's Aide
# of SLOTS f# of SLOT,
, 'REqUESTED Jf"Att>~b
2 Z
2 :z.
1 I
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3
" S.B. Public Library
.
Main
. .,.... ~~55 W. 6th Library Page 2 Z
" . ,', Villas~nor
525 N. Mt. Vernon Library Page 3 ,
, /(Rowe
ro., . /108 E. Marshall Library Page 2 :L
~1'Inghram
" ,1505 W. Highland Library Page 1 I
' ;J.'Coddington
, , 1003 E. Highland Library Page 1 I
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S.B. City Rec. Dept.
15 Sites (1 each) Summer LUla'ch Aid 15 ,4~ ,
:
, . , , 17 Sites (2 each) Playgrounds I
- Recreation Aids 34 2.1/
'~ohnson Hall Rec. Aid 2 :l
.
Wading Pool lloni er 2 ~
Aquatics 6 Pools *Rotatin~ Locker Atttlndan 6 '(,
'. " Pool Mainter.ance 1 ,
. ;::380 S. "K" St. ,
Lyt~e Creek Community Recreation Aide 4 '2 . .-.. -.
>, , .'
, '''-1717 W. 5th St. " ...-....
~Ruben Campos Center Z ~. ~. ~
Recreation Aide 4 "
. ...
tY~969 N. Flores . " '
Recreation Aide 5 ''5-;' , .
Delmann Heights Center .
. " ~503 E. Central
"
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Mill Center Recreation Aide 5 3 "
Custodial Aide 2 , . .
;: 222 N. Lugo , "
' Hernandez Center Recreation Aide 4 . 'Z
"
,536 W. 11th ,
.
.. : j- Cultural Center Recreation Aide 1 "
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, SYEP WORKSITE EVALUATION
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NAME OF SITE POSITION # of SLOTS f# o.t SLOT~
- REqUESTED .4PI'.&1"I1>
.
S.B. City Police Dept. File Clerk 5 ~
Auto Maintenance 2 2-
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S.B. City Engineering
Traffic Division Engineering Aide 1 I
.
S.B. City Animal Control Kennel Asst. 4 4
. Animal Health Asst. 1 I
5 -
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S.B. City Redevelopment File Clerk 1 I
'Agency .
.
S.B. City Engineering
"
Construction Division Draftsman 1 I
Clerk Typist 1 .J-
2 2-
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S.B. City Public Works .
Public Buildings Shop Shop Helper 2 ~
Painter's Helper 2 ~
City Hall Custodial Aide 4 4-
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S.B. City Street Division Weed Abatement 50 .36'
S.B. City Personnel Personnel Clerk 2 ~" .
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irain1ng
WORKSITE OPERATOR
HANDBOOK
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S YEP
TAB LEO F CON TEN T S
Pa~e
LETTER OF INTRODUCTION 1
WHAT IS SYEP? 2
SBETA STAFFING 3
WORKSITE OPERATOR'S/SUPERVISOR'S GUIDELINES 4
PERSONNEL PROCEDURES/PAYROLL INFORMATION/PAYROLL SCHEDULE 5-6
GRIEVANCE/COMPLAINT PROCEDURES 6
PARTICIPANTS AGREEMENT . .
SYEP TIME SHEET PROCEDURE
SYEP TIME SHEET (EXAMPLE)
TERMINATIONS AND TRANSFERS
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8
9
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STEPS TO TAKE IN CASE OF AN ACCIDENT
10
11
12
13
14-15
OCCUPATIONAL INJURY OR ILLNESS REPORT
OCCUPATIONAL INJURY OR ILLNESS REPORT MODEL
MONITORING
CHILD LABOR LAWS
16-28
Cover Logo Courtesy of
Teri Adams Graphic Design
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Dear Worksite Supervisor,
The staff of San Bernardino's Summer Youth Employment Program
(SYEP) is pleased to welcome you as a colleague in the SYEP Pro-
gram. In cooperation with each of you, we intend to provide our
youth with what we consider to be one of the finest work ex-
perience programs in the area. We have prepared this manual to
provide you with an overview and to offer suggestions which
might enhance your participation in the program.
~
Realizing that the youth are the core of the SYEP, our goal is
to provide them with realistic and professional services that
will assist them in the development of positive career and
educational goals
As a worksite supervisor, you are now a part of the Summer Youth
Employment Program. We consider your ideas, concerns and sug-
gestions important and, therefore welcomed. By working and
sharing ideas together, we hope to achieve the highest level of
success possible in guiding and directing our youth.
Sincerely,
~~~i::::-
Executive Director
SAN BERNARDINO EMPLOYMENT
AND TRAINING AGENCY
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JTPA SUMMER YOUTH SPECIALISTS
JTPA's Summer Youth Specialists will be responsible for the
smooth functioning of the Summer Youth Program. They will each
have an assigned caseload of 80 participants. Their responsibil-
ities include:
1.
2.
3.
4.
5.
6.
7.
8.
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Assisting the participant in enrolling in the program.
Placement of participants at the worksite.
Conducting participant orientation
Counseling participants on an individual basis.
Resolving minor disputes or problems at-the worksite.
Reporting significant incidents to the Summer Youth
Coordinators.
Distributing, retrieving and processing time sheets.
Monitoring worksites for compliance with State and
Federal Regulations.
1986 SUMMER YOUTH STAFF
Coordinator . . . . .
Assistant Coordinator
Janet Schumacher
Paula Messer
Summer Youth Specialists:
Elaine Irwin
Milton Washington
Gerry Young
Sadie Evans
Judith Rose
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PERSONNEL PROCEDURES
Payroll Information
1. Work Hours: Participants are to work 35 hours per week
for the 8 wee~of the program. Participant hours should
be between 8 a.m. and 5 p.m., Monday through Friday.
Sites requiring other time schedules must request per-
mission, in writing, from the Summer Youth Coordinator.
2. Pay Rate: $3.35 per hour.
3. Time Keeping: SBETA will provide all worksites with
time sheets and sign-in sheets for each participant.
The official SYEP time sheet may only be completed by
the worksite Supervisor. Never allow a participant to
complete their own time sheet. All information on the
time sheet must be completed in INK! Time sheets
completed in pencil will not be accepted.
Time sheets will be collected by the Summer
Youth Specialists every other Friday. Please be sure to.
have them ready (including, being signed by the super-
visor and the participant). Late time sheets will not
be processed until the next pay period.
4. Breaks and Lunch periods: As all participants will be
working 7 hours a day they will require 2 breaks and
a lunch period daily. The participants should be given
a paid 15 minute break in the morning and in the after-
noon. The lunch period must be at least 30 minutes ~ong
and is not paid time.
5. Participants are not entitled to; vacation, sick
leave, overtime or holiday pay.
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PARTICIPANT AGREEMENT
San Bernardino Employment and Training Administration Summer Youth Program.
Participants Agreement
I will report to work on time and follow all worksite rules.
I will call my worksite supervisor when I expect to be absent or late.
I understand that I will not be permitted to make up lost time due to
an unexcused absence or unexcused tardiness.
I understand that 3 consecutive absences or four absences for any reason
or at any time, will result in my termination from the SYETP Program.
I will wear appropriate clothing to work.
Friends will not be allowed to visit me during my work hours.
I will conduct my attitude and behavior in a mature and responsible
fashion.
I will insure that my time card is signed and is accurate.
I will report any injury immediately to my worksite supervisor.
I am aware that any useage, possession or activities involving drugs,
alcohol, weapons or other forms of contraband will be cause for dismissal.
I am also aware that incidents involving physical or verbal abuse will
be cause for dismissal.
12. I will contact my SYEP Counselor if at any time I feel that my personal
rights have been violated.
13. I will complete and submit, on time, all Youth Competency assignments.
14. I understand that refusal to work or failure to follow S.B.E.T.A. and
worksite rules will be cause for dismissal.
PARTICIPANT'S NAME:
DATE:
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STEPS TO TAKE IN CASE OF AN ACCIDENT
1. All injuries should be reported immediately to the SYEP
staff at 888-7881 and the participant's parent or legal
guardian.
2. If the injury requires medical attention:
-City Department Worksite: Follow the City Risk Management
Procedures.
-Other Agencies: If the injury is serious, call the
Paramedics at 911. For nonserious injuries, the SYEP staff
will check the client's file and refer you to the appropriate
facility for treatment.
-Should an injury occur after 5 p.m. or on a weekend, the
participant should be taken to the Emergency Room at Saint
Bernardine Hospital.
-Be sure to inform the service provider that this is a
Worker's Compensation work-related claim through the City of
San Bernardino's Risk Management Department.
(
3. An Injury Report (State Form 5020) and a Performance Failure
Reportl Supervisor's Incident Investigation must be completed
and returned to Paul Collette at the SBETA office within 24
hours. These forms may be obtained from your SYEP Counselor
4. The attending physician will issue a Return to Work Order
for the injured youth. The Worksite Supervisor should
request this order before allowing the participant to
return to work.
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,nOYi:E - a: THE CITY OF SAN BERNAROINO
REPORT w L.OSS PREVENTION DIVISION W"'i~. - EElS CI.."":U
> Grnn - !-on Prt'''. Cc.o.e
OF OCCUPATIONAL 0 2. 100 NORTH "0" STREET C.n.ry - State of C~lif..
INJURY nR ILLNES~ ...J SAN BERNARDINO. CA. 924" Pink -. Orig.Oept.;OI\".
Q. J. TEl..EPHONE 3.3-530' Goldenrod - Ir'ljured E"'pl=-...~e
:2: 4. ... MUNICI~AL. GOVERNMENT Employer
Number
10 t'le ~.llec 0..\ !;I'll the injUI~d W LEGALLV UNINSURED OSHA CU. or File No. ..
e","o~ :!:;~~ w"'l!'ne\ e. po~si=,'e S. EMPl.OYER NO. 3-0124-2'
Nit!"',.. ;;:.: "C.ilIS ~! the ;"Ju,-,'
II'RITE FIRM!. Y . YOU ARE MAKfSG FOUR COPIES
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JOHN R. S~lITH 111-00-9999 U-se This Coh..mn
;. '1,"O'=.~ ~,j,!,ss j'~ .r:U'~' olno s~reet. cin. zip) IA. Phone Number
-' 123 W'3st 9th Street, San Bernardino, CA 92410 (714) 888-4567
- Case No.
~, ", ~.~.. ....... .,. , 110. Occupation (regular joO title, not specific activity at time of injury) SYEP 11. Date of Birtn 05 /15 /66
, : ;:::,'. Gen"ral Laborer / Office Aide / Grounc!keeping Aide Ao;e 16 Month D.y Ye.., Employ.r N~.
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: :.~. i.'l':iJoP ,,(!:"t ;'., w"ch I;.Qr,'"r1<y EntplrJ)'ed lZA. Date of Hire 06 /28 ,82 3
J ~arn..:: of ~;orksi te or City Department
~~s Month D.y Year Industry
I Height IweigMt I Marital Status S. f8r single Oriv.r's l.icens.e Numb.r
, (,7 (v') Cler wee... slalt 160 M for marn.e 1112346 (CA) or N/A
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1~. wner. aid A.:c.c:ent or EXPLrsur. Occur? (address, city and county) Worksite or place where --I; 5. On City Premises?
individual was workinq and complete address XX Ves 0 No
:6. What "'.ere Y";:.l lJ.,in~ '.',{nen Injured? (pl'lISe b. specific. Identify tools, eQuipment or material you were using) A"
EXi1 i'..J.. It: r:,: DE'I'.:l.IL WHAT EXPLCYEE WAS DOING AT TIME ACCIDENT OR INJURY AND WHAT
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napOJaned and how It Mappened. please use separate sMe.t If necessary)
I I I\I'.S ,':ALKIt;G TO\':ARD THE GATE, FAILED TO SEE A RAKE ON THE GROt~"D AND STEPPED ON THE County
WRONG END Of THE RAKE AND THE WOODEN HANDLE SNAPPED UP AND HIT ~~ IN THE FACE STRIKING
:.:Y NOSE OR I ~i;"S CARRYING A TRAY OF GLASSES AND TRIPPED OVER AN OBJECT LAYING ON THE
FLOOR (NAME THE OBJECT IF POSSIBLE) FELL TO THE GROUND AND SPRAINED BY LEFT ANKLE AND Accident T) De
J RECEIVED GLASS CUTS TO MY LEFT ARM AND FACE.
:p 0, ubjec:t or SUD$tance tnat Directly Injured Employ.. (e.g., the maeMlne employe. struck'ag,.linst or which struet him, tMB vapor or pollon
:1 RAKE HANDLE Inhal.d 0' .w.1I0w.d: thO Ch.mlc.' that Irrltat.d hl..kln, In c.... 0' ""'n., tho Agency
I tnln!J he was lifting, pulling, etc.)
I E~lPTY CI'.N r..r,YING ON FLOOR,
:, 3Lt\~ 5 At;n FLOOR Agency ;Iart
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:1.' 'J. ",""'ture of Injury or Illness and Part of Body Affected ankle, glass left and face
:\ Bloody Nose (Face) or Sprained left cuts to arm Supplemental
11:.0. Name and Address Of Pnys.iclan Name of attending 21. If Hospitaliud, Name of Hos;tital Bed Patient [ Agel'l~Y
'! ::loctor and location self explanatory Emero_ney Only I XX Nat\,!reo In;',,;'~
~'."~;:,~l:r! _~)' 11....r:~~'211:n.Hs I 23. TiiT.e of Day 2'. Were Vou Unable to Worl< 3C Ves, date lut worked 7/7/82
10:30 on Any Day After Day of o No
I:..",.., . v.... .m om Injury?
, ....ltn~U Name I ACldteSS Te'epnone Number Part of Bocy
L-.:e:_f explanatory self explanatory self explanatory
-
,. .. r,:" V....'.Jr I',jur)' r..r rllnc:s50? If sc, s,ye n,]"',~. ilu,j,e.s, ttllepr,(.Ine. arlver~ lIc.en50. I ~.;~r~' :::.::"
- :..;:,iA':.)ry
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....oC. ~ !:,one Anvtn;,"I", T:) PI ,ve"~ '1"'1,.Ir<y' !f ~", :"e..'lse e":"l.!:n. E...:e"~ t.. .
I c. .;. , . "' /:"~.J"otd ,~ ,]:'ly type of work, employment If "Yes", 01'" separ.lt! ,nee; st.;e name .and --
~. ;~ ~:,.. ..:'. .10": (. : '.e 'rlan y(.ur joe witrl t"e cit)., v~' b-l dojrf-U of e-.<p!oyen. t:,:ot: O~ WOI k, pCSition I r';~:':'~"C"':
, No XX .nd d3te I~st worwed. Carr.tr
~','iPI.O'I'!:F.S STATE:.':i::r"T Ar.;D MEDICAL RELEASE: The facts as I have stated tMem above are true and correct to the best of mv know. 70
'...d;,..; Ttotrs \":.il "uthoriZI:: at:olndln9 physic~ns; mediCOlI facilities. to furnish the bea,.r of ttn, document all medical information, without limit.tion R:eportu;
.e.l.t1dm~ my physic."il and Ml!rltal condition as revealed by their observation or treatment past, present and future. I authorize that. copy of this
document b. .cc.p.ed with tho ..me .utho,ny.. tho o,;.;n.,---; ~ '-/2. J,..,., J T~J 7/7/["8 Coded 8y
Date .
Employee's Signature
:!S. Has Err,oloyee Returr,ed to Work? 26. Did Employe. Ole? L..ost Time
::: No, S11ll eft warl< X)CVes, date returned 7/8/82 i19No o Ves, d.te
I I ....uc! f~OfmJJ~oIy Inve'litigated tl'l. aDOY' v.;~ TM. information as Sl'vltn Is complete and v..~ Medical
L- : '';~'', ~. No correct.
N
~ 1~""MfOI.A TE SUPERVISeR: You must fill out and accompany this report wjt~ the "Supltrvisors. Accident Investigation Report" ''''Ollna.
, :) /1. ./17 "..d ~~ \Ion
Supervisor 888-1234 7/7/82 SlJbro.
":'~~~7::~:':. .:.~~'l~.~~.~:.:.;.,.~~.;:::;~~..---....n.--..n.--____--.... - Oate w~lj:')n .
THo. Teleph.,,,.
~es~rve
.~ ';, '-.: 1=, . -.. . ,
&::11 rll.lr., nc TUIC: ::u=pnPT Ie:. NnT AN .10MISSION OF LIABILITY
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IN ADDITION
Participants may show certain traits that result from their
disadvantaged backgrounds, such as:
_ Tire easily and lack staying power due to physical
condition caused by years of improper diets.
_ Have a poor opinion of themselves, doubt the existence
of job opportunities and, therefore, sometimes lack
interest in training experiences.
_ Resent criticism, in part, because they have known
too much criticism and too little praise.
We hope you have a great summer and we welcome 'your questions
and comments.
SYEP STAFF
,
Paula Messer .
SYEP Program Coordinator
.Assistant SYEP Coordinator
Janet Schumacher
(714) 888-7881
Logo Courtesy of Teri Adams Graphic Design
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MINUlUM A:~E RESTRICTION ON
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EQUIPMENT AND ACTIVITIES
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The age within the brackets () is the age to follow; those not in brackets,
the ages are the same.
OFFICE EQUIPMENT
Large Paper Cutter, Hand or Electric
Small Desk Type Paper Cutter
(with Finger Guard)
Electric Stapler
Laminating }~chines
FEDERAL
(18)
(16)
(18)
14
No Restriction
Typewriter
Mimeograph Machines
AB Dick 360 CP Offset
AV-Film Repair Machine
r
KITCHEN EQUIPMENT
Power Dough Bra~~s (Dough Mixer)
Electric Bacon Slicer, Meat Cutter
Cheese Cutters
Air-Tight Walk-In Coolers
Cooling Short Orders
Deep Fryers
Industrial Dishwasher
CUSTODIAL
Power Waxers, Buffers and Polishers
Ammonia-Based Wax Stripper
Window S1ll Washing (Outs1de Ground Floor)
Power Buffers and Scrubbers
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14
16
14
{i8)
16
16
16
14
14
14
(16)
16
(16)
16
!iTATE
16
No Restriction
16
14
(14)
14
16
14
16
16
16
16
14
14
14
14
16
14
16
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AGRICULTURAL (CONT.)
Pesticides
Pesticides (Parathinan, etc.)
Falling or Cutting of Trees More
Than 6 Feet
Rotary Mower (Any Powered Lawn Mower)
Power Edgers With Exposed Rotary Blades
Gasoline Powered Weed Cutter
LABS
Pathogenic Material
X-Ray Room
Sterilizers
Denture Grinders
Sanitation Lab
Sanitation Land Fill
Sewage Plant, On Ground Level
Observation Only!
Maintenance Within Sewage Plant
AUTO MECHANICS
Hydraulic Auto Lifts
Overhead Cranes or Chain Hoist
Over I Ton
Under I Ton
MAINTENANCE
Truck Mounted Lining Machine
(White Line Painting From Moving Truck)
Flagman
Dropping Markers From Trucks
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FEDERAL
16
(IS)
(IS)
16
16
14
16
(IS)
(14)
(16)
14
(IS)
14
(16)
16
(18)
16
(IS)
16
(IS)
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STATE
16
. (IS)
16
16
16
(16)
16
16
16
14
14
14
14
14
16
16
16
16
16
16
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FOR MINORS
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PROHIBITED OCCUPATIONS
GUIDE
(Hazardous Occupations Orders in Nonagricultural Occupations)
HAZARDOUS OCCUPATIONS ORDERS
The Fair Labor Standards Act provides a minimum age of 18 years for any
nonagricultural occupations which the Secretary of Labor "shall find and
by order declare" to be particularly hazardous for 16 and 17 year-old persons,
or detrimental to their health and well-being. This minimum age applies
even when the minor is employed by the parent or person standing in place
of the parent.
The 17 hazardous occupations orders now in effect apply either on an
industry basis, specifying the occupations in the industry that are not
covered, or on an occupational basis irrespective of the industry in which
found.
THE ORDERS IN EFFECT DEAL WITH:
r
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(ll)
(12)
(13 )
(14)
(15)
(16)
(17)
Manufacturing and storing explosives
MotOT vehicle driving and"' outside helper
Coal Mining
Logging and Sawmilling
Power-driven woodworking machines
Exposure to radioactive substances
Power-driven hoisting apparatus
Power-driven metal forming, punching, and shearing macbines
Mining, other than Coal Mining
Slavghtering, or meat-packing, processing or rending
Power-driven bakery machines
Power driven paper products machines
Manufacturing brick, tile, and kindred products
Power-driven circular saws, band saws and guillotine sbears
Wrecking, demolition, and shipbreaking operations
Roofing operations
Excavation operations
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must not be under 16 years of age
private sector employer who deals
- and that
o
this act only applies to the
)
with federal contracts in excess of
$10,000.00.)
WORK PERMITS REQUIREMENTS FOR MINORS
EDDCATION CODE, SECTION 12785
A. No minor under the age of 18 years shall be allowed to work without
a work permit. Such a permit is also accepted as proof of age under
the Federal Fair Labor Standards Act.
B. Employers must obtain Permits To Employ when employing minors.
(Education Code Section 12785)
C. Permits to work and permits to employ are issued by the school
district/authorities. (Education Code, Section 12767 to 12710,
12776 and 12776.1)
D. Exception:
I
1. Special consent for the following areas must be obtained
from the State Labor Commissioner. Local school authorities
lack the power to issue these permits. (Labor Code, Section
1308.5, 1396 and 1397) Theatrical work, }Bode1ing, work in
motion pictures, radio and television, and other such acti-
vities.
2. Permits are not required for children employed in agricultural
work on farms owned or operated by the Parents or Guardians.
(Education Code, Section 12782) Permits are required for
children employed by their parents in industrial or mercantile
work.
3. Permits are not required for youth engaged in odd jobs in
private homes doing such work as leaf raking, lawn mowing,
baby sitting, etc., where the minor is not regularly employed.
(Attorney General Opinion No. 51/145)
E. LIMITATIONS ON HOURS OF EMPLOYMENT FOR MINORS
1. Minors under 18 years of age shall not be allowed to work
for more than eight hours a day nor more than 48 hours in
one week. (Labor Code 1394 (a) )
EXCEPTION:
Minors 16 years old and over may be employed in agricultural
horticultural, viticultural, or domestic labor for more than
eight hours in one day or forty eight hours in one week.
(Labor Code, Section 1394 (a) )
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12:31 A.M. to 4:59 A.M. Note: Any pubilc messenger service is limited
to '6:00 A.M. to 9:00 P.M.
FEDERAL - 18 YEAR OLDS
UTILIZE STATE REGULATIONS
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EXPERIENCE EDUg\rION PROGRAM
IN-SERVICE TI '~ING
CIIILD LfI!;IOH"~WS
.<
Bulletin #2
SUBJECT:
Occupations declared hazardous under Federal Regulations
(under 18 years of age)
HAZTIF,DOUS OCCUPATIONS ORDERS IN NONAGGRICULTURAL OCCUPATIONS
Those occupations declared to be particularly hazardous for minors between 16 and
18 years of age ( also for minors 14 and 15) are included in the seventeen Hazardous
Occupations Orders listed as follows:'
(1) Occupations in or about plants or establishments manufacturing or storing
explosives or articles containing explosive components.
(2) Occupations of motor-vehicle driver and outside helper.
(3) Coal-mine occupations.
(4) Logging occupations and occupations in the operation of any sawmill, lath
mill, shingle mill, or cooperage-stock mill.
. ,
(5) Occupations involved in the oper~tions of power-driven woodworking machines.
(6) Occupations involving exposure to radioactive substances and to ionizing
radiations.
.'
(7) Occupations involved in the operation of elevators and other power-driven
hoisting apparatus.
(8) Occupations involved in the operation of power-driven metal forming,
punching, and shearing machines.
(9) Occupations in connection with mining, other than coal.
(10) Occupations involving slaughtering, meat-packing or processing, or rendering.
.
(11) Occupations involved in the operation of certain power-driven bakery machines.
(12) Occupations involved in the operation of certain power-.driven paper-products
machines.
(13) Occupations involved in the manufacture of brick, tile, and kindred p;coducts.
(14) Occupations involved in the operation'of circular saws, band saws, and
guillotine shears.
(15) Occupations involved in wrecking, demolition, and ship-breaking operations.
(16) Occupations involved in roofing operations.
(17) Occupations in excavation operations.
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,,,,-.., OFCAN BER~
l".. C I T Y D I N 0
INTEROFFICE MEMO
8607-628 riY
e, ~
t;i'l :,c ....,1
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~Pl' "il; .: ..<: ",
uti 'zt u'/" ".1.,7"
VI 1/; "~ I~ r
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TO: Phil Arvizo, Executive Assistant to the Council ~44
FROM: Raymond D. Schweitzer, Acting city Administrator
SUBJECT: Insurance Pool JPA
DATE:
July 8, 1986
(6764)
COPIES:
At the very next Ways and Means Committee meeting, I respect-
fully request that the JPA establishing the insurance pool be
discussed and that you work with Bruce Gadbois to invite the
Robert Driver Company. It is my understanding that the cost
of the insurance program is $483,000 (one year premium) with
an SIR of $500,000. That premium will buy up to $10 million
of insurance with an additional umbrella of $5 million.
I feel it is essential that this m
of early.
.
TZE
AdmJ.nistrator
RDSjmd
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J.P.A. AGREEMENT
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JOINT EXERCISE OF POWERS
AGREEMENT TO PROVIDE
RISK MANAGEMENT AND INSURANCE SERVICES
FOR PUBLIC AGENCIES
IN THE STATE OF CALIFORNIA
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JOINT EXERCISE OF POWERS
AGREEMENT TO PROVIDE
RISK MANAGEMENT AND INSURANCE SERVICES
FOR PUBLIC AGENCIES IN
THE STATE OF CALIFORNIA
See. 1. 100
JQl~I ~X~B~12~ QE EQ~~B2
This Agreement is entered into pursuant to the
provisions of Chapter 5 (beginning with Section 65(0) of
Division 7 of Title 1 of the Government Code authorizing
specified local public entities to exercise jointly the power
to provide Risk Management, including insurance, pursuant to
the provision of Chapter 3 (beginning with Section 989) of
Part 6 of Division 3.6 of Title 1 of the Government Code.
~1I~~22~ItJ:
WHEREAS, the public interest requires and it is to the
mutual interest of the parties hereto to join together to
establish and operate a cooperative program of risk
management, and
WHEREAS, the operation of such a cooperative program is
of such magnitude that it is necessary for the parties to
this Agreement to ;Oln together to accomplish the purposes
hereinafter set forth, and
WHEREAS, each of the local public entities which is a
party to this Agreement has the power to establish and
operate a program of risk management, and
WHEREAS, Title 1, Division 7, Chapter 5 of the
Cal ifornia Government Code authorizes the joint exerC1se .by
two or more local public entities of any power which is
common to each of them, and
WHEREAS, each of the parties to the Agreement desires to
J01n together with the other parties for the purpose of
establishing methods of funding risk, through pooling of
risk, formation of a Captive Insurance Company, and jointly
purchasing excess insurance, re-insurance and administrative
services in connection with a cooperative program of risk
management;
NOW, THEREFORE, for and in consideration of the mutual
advantages to be derived therefrom and in consideration of
the execution of this Agreement by other local public
entities, each of the parties hereto does agree as follows:
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ARTl CLE 1.
QsEl~lIlQ~!2
The following definitions shall apply to the provisions
of this Agreement and its By-Laws:
(a) "Authority" - shall mean the California Agencies
Risk Management Authority (CARMA) created by this Agreement.
(b) "Risk ~lanagement Board" or "Board" shall mean the
governing body of the Authority.
(c) "Claims management" shall mean the process of
identifying, controlling and resolving demands by
individuals, public entities or private entities to recover
losses from an insured, otherwise indemnified, or self-
insured entity. Disposing of such demands for payment
requires skills in insurance, law, adjusting/investigation,
loss control engineering and general business. Claims
management is the function of supervising legal, adjusting,
investigation and engineering services to resolve such
demands.
(d) "Local Publ~c Entity" shall mean city, county,
public authority and such other governmental entities as the
Authority may determine.
(e) "Executive Committee" or "Committee" shall mean the
Management Committee of the Board of Directors of the
Authority.
(f) "Participation" or "Participating" shall mean a
Member Agency's action or state of taking part ih the
programs of the Authority by doing all of the following
throLtgh the Authori ty wi th respect to one or more ri sk areas:
(1) Purchase of risk management administrative
services.
(2) Purchase of excess insurance or re-
insurance.
(3) Purchase of claims administration services.
(4) Contribute to designated reserve,
operating and other funds or costs as
required under the Authority's program.
(5) Payor make provisions for payment of
assessments, defense costs, claim and
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judgment costs and othe~ ~elated costs
as ~equi~ed by this Ag~eement fo~
Autho~ity's By-Laws.
(6) Pa~ticipating in any pooling of losses o~
Captive Insu~ance p~og~am established by
the Autho~ity.
(g) "Rating St~uctu~e" shall mean the means by which
p~emiums, cont~ibutions to a fund, o~ allocated expenses a~e
established fo~ a ~isk a~ea on the basis of conditions which
affect the p~obability of loss.
(h) "Ret~ospectively Rated" shall mean a technique
which pe~mits adjustments of the final p~emium o~ fund
cont~ibution fo~ a ~isk a~ea based on the loss expe~ience of
the insu~ed du~ing the pe~iod of p~otection. No~mally the~e
a~e maximum and minimum limits between which such adjustments
can be made.
(i) "Risk A~ea" shall mean an a~ea of exposu~e to pu~e
~isk of financial loss. As used in the Ag~eement and By-Laws
this te~m ~efe~s to one of the following fields of exposure;
worker's compensation, public liability, accident and health,
unemployment compensation, property damage and such othe~
a~eas as the Board shall agree upon.
(j) "Risk Management" shall mean the process of
identifying, evaluating, reducing, transferring, and
eliminating risks. Risk management includes various methods
of funding claims payments. Risk management includes
elements of insurance, law, administ~ation, technology and
general business utilized to effectively manage risks.
(k) "Eligible Member" shall mean a public entity repre-
sentative eligible to vote on a matter coming before the
Board in a given a~ea of ~isk, due to the ~epresentative's
public entity participating. In the case of new a~eas of
~isk that CARMA is considering, "eligible members" shall be
all membe~s who reasonably expect to participate in that area
of risk.
ARTICLE 2. 2sEBBBIs s~IIIt
There is hereby c,-eated a separate publ i c enti t y, the
full legal name of which shall be "California Agencies Risk
Management Authority", and may be referred to herein as
"CARMA" or the "Authority". The Authority is a public entity
sepa~ate from the parties to this Agreement.
ARTICLE 3. 2t~Ig~ s~IB~bl~HsQ
A risk management system consisting of the parties to
this Agreement is hereby established. This system represents
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a coooerative program of risk management which may encompass.
but is not limited to, the following risk areas: Public
liability, worker's compensation, accident and health,
property damage and unemployment compensation and such other
areas as the Board shall agree upon. Each party to this
Agreement agrees to comply with and be bound by the
provisions of the By-Laws as the same may be amended from
time to time.
AF:TICLE 4.
~eBtja E:Q~!;;B~
(a) CARMA shall have the power and the duty to
establish and operate a program of risk management and for
it's execution either directly by CARMA or bv contract.
(b) CARMA is aLlthorized: to make and enter into
contracts; to employ agents and employees; to acquire,
construct, manage, maintain or operate any building, works or
improvements; to acquire, hold or dispose of property,
liabilities or obligations; establish risk management related
lines of credit within the State of California, and to sue
and be sued in its own name. The foregoing powers include,
but are not limited to, those relative to contracting for
excess insurance or re-insurance, captive insurance company
rental, captive insurance company formation, claims
administration services and consulting services.
(c) The debts, liabilities and obligations of the
Authority shall not be the debts, liabilities or obligations
of the parties to the Agreement.
(d) CARMA shall be subject to, and shall be governed by
the By-Laws, a copy of which is attached hereto and, by this
reference, made a part of this Agreement.
itl Be
A~'
(e) The powers e:<ercised by the Authority are subject
to the restrictions upon the manner of e:<ercising such powers
of the City of _____________________, a general law
city.
W~ ,,,,c,..~r,o,.J -- ~e-'. t.~ c-.~ ~ ~, lS/t. ~-+-TE
ARTICLE 5. tj5tj~5B~
(a) Each local public entity which is a party to this
Agreement is a "Member Agency" of CARMA and is entitled to
the rights and privileges and is subject to the obligations
of members, all as provided for in this Agreement and the By-
Laws.
(b) After formation of CARMA by the initial membership
group, new members may be accepted upon application to CARMA
and upon acceptance by the Board by three-fourths vote, and
subject to acceptance by the prospective member of the
financial arrangements and fund contributions specified by
the then current members.
.
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AfHICLE 6.
sBB!:::!B E!,1t::!Q~
The T~easu~e~ of the Authority shall be the depositary
oi the funds of CARMA. The T~easurer's selection,
~esponsibilities, compensation and ~elated matters shall be
gove~ned by the By-Laws. The audito~ shall be the disbu~sing
officer of CARMA and shall draw warrants against the funds of
CARMA in the t~easu~y when demands are presented and
authorized as designated in the By-Laws and CARMA actions
taken pursuant to the By-Laws.
ART! CLE 7.
I~B!:::! QE B~B~~!:::!~t::!I
This Ag~eement shall continue in effect until it is
~escinded by mutual consent of the parties o~ terminated in
the manner provided herein or in the By-Laws.
ARTICLE 8. !:::!~!:::!~~B~~lE I~B!:::!~ ~lI~QBB~Bb
(a) A pa~ty to this Agreement shall remain a Me~ber
Agency for three years; thereafter the Member Agency may
withdraw by:
(1)
'7
Givin..::-written notice to the-CI"~-
or before 1:ne nex l. ~l."H_t..t::eOl ng March 1,
of the intent to withdraw as of 12:01 a.m.
on the next July 1, and
(2) Fully performing its obligations as a
Member Agency.
(b) On the July 1 specified in the notice pursuant to
sLlbdivision (a) (1), above, and upon fully performing it's
obligations as a Member Agency, whichever is later, the
Member Agency shall cease to be a party to this Agreement.
ART! CLE 9.
Ql~EQ~lIlQt::! QE ~BB!:::!B EBQE~BIY B~Q E!,1~Q2
If a party withdraws as a member of CARMA, any prope~ty
interest of that Member Agency remaining in the funds of
CARMA following a discharge of all obligations attributable
to that party, it's officers and employees, shall be disposed
of as provided in the By-Laws. If this Agreement is finally
terminated as to all parties who are then members, any money
or assets in possession of CARMA after the payment of all
liabilities, costs, expenses and charges incurred pursuant to
this Agreement shall be returned to the parties in proportion
to their contributions to CARMA determined as of the date of
termination.
ARTICLE 10. ~~EQB~5!:::!~t::!I
CARMA shall have the authority to enforce this
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Agreement. I f sui tis br'ought by CARMA ag81 nst any
defaulting member and CARMA prevails in the action, the
defaulting party shall pay reasonable attorney's fees to
CARMA as adjudicated by the Court.
AF:TICLE 11.
l!:!~eblQlI1:
Should any portion, term, condition or provis1on of this
Agreement be determined by a court of competent jurisdiction
to be illegal and in conflict with any law of the State of
California or be otherwise rendered unenforceable or
ineffectual, the validity of the remaining portions, terms,
conditions and provisions shall not be affected
thereby.
ARTICLE 12.
eBIl~b~~~ ~WeQl~l~lQ!:!~ 8!:!Q EeBe~B8E~~
(a) The principal divisions of this Agreement are
~cti~l~~ followed by Arabic numerals not in parenthesis.
(b) The principal divisions of articles are ~~QQi~i~gQ~
identified by lower case letters in parenthesis.
(c) The divisions of subdivisions are g~C~gC~gba
identified by lower case Arabic numerals in parenthesis.
ARTICLE 13. 8~~!:!Q~~!:!I~
No amendments to this Agreement or to any By-Laws
enacted pursuant to it shall be effective unless accomplished
by written agreement e:<ecLlted by the governing bodies of at
least three-fourths of the parties to this Agreement.
Reasonable prior notice of any Board meeting in which
amendments are to be voted upon must be given to each member
in writing. Such notice must include mention of the nature
of the amendments to be voted upon.
ARTICLE 14.
EBQ~lelIlQ!:! e~el!:!~I e~~l~!:!~s!:!I
No Member Agency may assign any right, claim or interest
it may have under this Agreement, and no creditor, assignee
or third party beneficiary of any member shall have any
right, claim or title to any part, share, interest, fund,
premium or asset of the Authority.
ARTICLE 15. 8~Bs~~~~I ~Q~Eb~Is
The foregoing constitutes the full and complete
Agreement of the parties. There are no oral understandings
or agreements not set forth in writing herein or in the By-
Laws.
ARTICLE 16. QeIs e~B~s~s!:!I sEE~~Il~~
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This Agreement
it has been adopted
entities.
shall become effective immediately after
by the last of at least ~ +6-l- public
f?6VIL ('I)
Executed by the undersigned local public entities upon
the respective dates set forth after the signatures of their
duly authorized officers.
City of _______________________
8'1_____________________________
Mayor
Executed before me this
___ day of __________, 1986.
City Clerk
City of
8'1____________________________
Mayor
ExecLlted before me thi s
___day of ___________, 1986.
City Clerk
City of ______________________
8'1____________________________
Mayor
Executed before me this
___day of ____--------, 1986.
City Clerk
City of _____________________
8'1___________________________
Mayor
Executed before me this
___day of _____________, 1986.
City Clerk
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City of
By__________________________
Mayor
Executed before me this
___day of ____________. 1986.
City Clerk
City of_____________________
By__________________________
Mayor
E:<ecuted before me this
___day of______________. 1986.
City Clerk
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J.P.A. BY-LAWS
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BY-LAWS
TO THE
JOINT EXERCISE OF POWERS
AGREEMENT TO PROVIDE
RISK MANAGEMENT AND INSURANCE SERVICES
FOR PUBLIC AGENCIES
IN THE STATE OF CALIFORNIA
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BY-LA"JS
CALIFORNIA AGENCIES RISK MANAGEMENT AUTHORITY
(CARMA)
F'F:EAMBLE
The Cali~ornia Agencies Risk Management Authority
(hereinafter referred to as CARMA) is established for the
purpose of operating and maintaining a cooperative program of
self-insurance and risk management and to provide a forum for
the discussion, study, development and implementation of
procedures of mutual benefit in risk management programs.
Sec. 1. 100
EkiBEQ9S9
(a) The purposes of CARMA are:
(1) To provide a self-insurance and risk
management program and system which will
achieve the following objectives for the
benefit of CARMA's Member Agencies in all
risk areas handled by CARMA:
(i) Reduced costs of insurance coverage
through effective loss control
practices and combined purchasing
power;
(ii) Reduced costs of claims administratlon
services through central management,
volume and combined purchasing power;
<iii) Greater stability of insurance markets
through size of combined membership,
longer duration of insurance agreements
and effective loss control practices;
(iv) Reduced amount and frequency of losses
of Member Agencies;
<v) Improved control of sources of rlsk
through the application of risk
management - loss control techniques;
(vi) Improved recovery from responsible
third parties;
(vii) Funding of adequate reserves by members
to ease the impact of heavy losses;
(viii) Monitor local, state, and federal
legislative and agency risk management
activities with the intent of advocating
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CARMA's position through coordination
with appropriate representatives.
(2) To provide a self-insurance and risk manage-
ment program and system: for payment of
claims and benefits as authorized by CARMA's
Member Agencies; to administer a program
,..herein t1ember Agencies subscribe to a
funding plan designed to relieve the impact
of heavy losses; to jointly purchase
reinsu~ance or excess insurance; to jointly
purchase administrative and other services
including risk management, consulting,
brokering, claims administration, claims
adjusting, loss prevention, data processing
legal and related services.
(3) To acquire, hold and dispose of property,
real and personal,. necessary or desirable for
the purpose of providing the members of
CARMA with a complete self-insurance and risk
management program, including but not limited
to the formation of a captive insurance
company, acquisition of necessary facilities
and equipment, the employment of personnel,
and the operation and maintenance of a system
of risk management.
Sec. 2.100 Bl~~ ~e~e~~~~~I ~QeB~
(a) The governing body of the Authority shall be the
"Risk Management Board" and may be referred to
herein as the "Board".
(b) Voting members of the Board shall consist of one
representative from each participating Member
Agency. Each member's representative shall be so
designated by appointment by the member agency's
governing board. Eac~~~p~~~s governing board
al s'/~ appoi nt one;{.ffre!i"i'ilite who may at tend
meetings and vote in the event of absence of the
representative. Each representative or alternate
must be a public agency staff member. Repres-
entative shall take each year's proposed Authority
budget to the representative's City Councilor
governing board for review.
(c) The Risk Management Board shall meet at least
quarterly to review all operations of CARMA con-
ducted pursuant to the CARMA Joint Exercise of
Powers Agreement and these By-Laws. The Board
shall provide policy direction for the Executive
Committee. Other functions of the Board shall
include, but not be limited to, final approval of:
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(1) All matters wi th respe.ct to elh i ch it is
m.D~.lgC~ that the Executive Committee make
recommendations to the Board, and
(2) The following matters not covered by
paragraph (1) above:
(i) Formation or rental of a captive
insu~ance company;
(ii) Admission of new Members;
(iii) E'''pulsion of present Members;
(iv) Loans to Members from appropriate funds;
(v) An operating budget for CARMA, to be
approved in advance of the commencement
of each fiscal year;
(vi) Arrangements, if any be made, with out-
side agencies for establishment of risk
management related lines of credit;
(vii) Selection of claims administrators;
(viii) Selection of a broker.
(ix) Selection of excess insurance policies~
(,d Determine, by majority vote, reductions
in participation in services or costs of
claims administration or risk management
due to special circumstances.
Sec. 2.110
~~~Il~gg QE I~~ ~Q8B~
tJbTlCE; ?
The Board shall establish a time and place to hold
regular meetings not less often than quarterly. The Board
President shall mail notice of all Board meetings to each
representative and each alternate on the Board. Meetings
shall be conducted pursuant to the most current edition of
Bg~~Cia B~l~a gf QCg~C or such other procedural guide as the
Board shall designate.
Sec. 2.130
Q!dQB!d~l ~QIl~g
(a) A quorum for the transaction of business by the
Board shall consist of a majority of the representatives, or
their alternates, of members of CARMA.
(bl All matters within the purview of the Board of
Directors may be decided by majority vote of a quorum of the
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Board. Except, those matters which the Agreement or By-Laws
specify as requiring a three-fourths vote of the Board must
be decided by a vote of three-fourths of all members of the
Board.
(cl Each representative on the Board may vote on each
matter brought before the Board for decision. Except, if the
Board by majority vote designates a particular matter as one
which pertains only to a given risk area (e.g., workers'
compensation), then only th. representatives of those members
who are participating members with respect to the given risk
area may vote upon the matter. This limitation respecting
who may vote on certain matters is not intended to prohibit
any member from expressing their opinion as to how those
qualified to vote should vote.
Sec. 3.100
~f~~~Il~~ ~Q~~lII~~
(al An E,-:ecuti ve Commi ttee is hereby establ i shed for
CARMA.
(blMembership in the Executive Committee shall be
established by vote of the Board.
(c) The Exe~utive Committee shall be responsible for
the administration and operation of the risk
management programs of CARMA subject to the policy
control and direction of the Board.
(dl The Executive Committee shall implement general
policy and monitor operations of the Treasurer and
Auditor.
(el The Executive Committee shall have such other
powers and functions as are provided for in the
Agreement and By-Laws.
(fl The President of the Authority, or the Vice
President in the President's absence, shall serve
as the Chairperson of the Executive Committee.
Sec:. 3.120
8~~EQ~~1~lblIl~~1 Q~b5~a~lblIX
(a) The following Executive Committee functions may
not be delegated:
(1) Implementing policy and monitoring activities
of the Treasurer and Auditor.
(2) Maintaining an awareness of major risk man-
agement field developments which may affect
CARMA handled California public entity risks.
(3) Adopting a set of procedural rules for
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Committee meetings.
(4) Performing those mandatory advisory
responsibilities set forth in Section 3.130
of these CARMA By-Laws.
(5) Retaining overall supervisory responsibility
respecting delegated functions.
(b) The Executive Committee shall perform, delegate or
contract to have performed the following
functions:
(1) Establish criteria for selection of insurance
brokers or companies and other risk manage-
ment services. Interview candidates. Make
selection recommendations to the Board.
(21 Establish criteria for selection of claims
administration and claims adjusting services.
Interview candidates. Make selection recom-
mendations to the Board. Selection criteria
shall include a requirement that claims
persons show knowledge and understanding of
the laws regarding claims against public
entities.
Sec. 3.130
B~~EQ~~l~lblIl~~~aQ~l~QB~
(a) The Execut i ve Commi ttee shall make recommendat i ens
to the Board respecting the following matters
which must be approved by the Board before
becoming effective.
(1) Recommend to the Board risk management
programs, claims administration services,
adjusting services, loss prevention services
and other risk management services which can
help the Authority carry out its risk man-
agement objectives and its obligations to
Member Agencies.
(2) Recommend to the Board each Member Agency's
share of operating costs.
(31 Recommend to the Board appropriate insurance
broker(sl.
(4) Recommend to the Board such taxes and
assessments as may be levied by each Member
~ency pursuant to paragraph (il of Sec.
.5.110.
(5) Recommend authorizing payment of proper
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charges for costs of administering this
Agr-eement.
(6) Recommend whether to approve payment
requests from Member Agencies when the
requests are in excess of the Auditor's
authorization.
(7) Recommend a Conflict of Interest Code for
adoption by the Board, Committee and
Officers.
Sec. 3.140
~ssIl~~~ QE IDS ~Q~~lIIss
The Executive Committee shall establish a time and place
to hold regular meetings not less often than monthly. The
meetings of the committee shall be held, noticed and
conducted in the same manner as the meetings of the Risk
Management Board.
Sec. 3.150
BsEQBI~
The Committee shall report to the Board not less than
quarterly in order to advise the Board of its decisions and
activities concerning implementation and operation of the
Authority's cooperative program and system of self-insurance
and risk management.
Sec. 3.160
eEEseb IQ ~QeB!l
Any decisions of the Executive Committee may be appealed
to the Board by any Member Agency subject to such re-
strictions as the Board may adopt.
Sec. 4.100 QEEl~sB~
(a) The officers of the Authority shall be:
(1) Presi dent
(2) Vice President
(3) Clerk
(4) Treasurer
(5) Auditor
(b) The Board shall elect the President and Vice
President of the Authority for such terms and in such manner
as the Board shall provide.
(c) The Board shall designate the Clerk, Treasurer and
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Auditor in the manner provided for in these By-Laws.
(d) Each Officer shall hold his or her position until
relieved of functions as an Officer by either:
(1) E,,,piration of his or her elected or
appointed term, or
(2) removal by two-thirds vote of the Risk
Management Board.
Sec. 4.110
E:m;~lQs~I
(a) The President shall be elected by the Board from
its membership.
(b) The duties of the President are to:
(1) Preside at and conduct meetings of the Board.
(2) Preside at and conduct meetings of the
Executives Committee.
(3) Execute documents on behalf of the Authority.
Sec. 4.120 ~l~s EBs~lQs~I
(a) The Vice President shall be elected by the Board
from its membership.
(b) The Vice President shall exercise the duties of
the President in the absence of the President.
Sec. 4.130 ~bs8~
(a) The Clerk shall be designated by the Risk
Management Board by majority vote or by
resolution.
(b) The duties of the Clerk are to:
(1) Attend the meetings of the Board and of
the Executive Committee, and make
minutes thereof.
(2) Keep all official records of the Authority
not required to be kept by the Treasurer.
(3) File such notices and statements as are
required by Sections 6503.5 and 53051 of
the Government Code.
(4) Give notice of meetings as required by the
Ralph M. Brown Act.
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Sec. 4.140
IBg6~ldBgB
(a) The Treasurer shall be appointed by the Board as
permitted by Section 6505.5 of the California
Government Code.
(b) The duties of the Treasurer are to:
(1) Perform the dLlt i es of the TreasLlrer
prescribed in Section 6505.5 of the
Government Code.
(2) Attend meetings of the E:-:ecutive Committee
as a member thereof.
(3) To sign warrants or such other negotiable
instruments as may be used for proper
disbursement of monies from any CARMA fund.
(c) The Board may set minimum qualifications which any
such Treasurer or Deputy may be required to meet.
(d) In accordance with Section 6505.5 of the
California Government Code, the governing body of
the same entity as the Treasurer shall determine
charges to be made against the Authority for the
Treasurer's services if a Member Agency's
treasurer is used. If a certified public account-
ant is used as Treasurer, then his or her rate of
compensation shall be set by the Board.
Sec. 4.150 6ldQIIQB
(a) The Auditor shall be appointed by the Board of
Directors by majority vote or by resolution.
(b) The duti es of the Audi tor are to:
(1) Perform the duties of the Auditor prescribed
in Section 6505 and 6505.5 of the Government
Code.
(2) Attend meetings of the Executive Committee
as a member thereof.
(3) Issue warrants for the payment of claims of
Member Agencies after obtaining the member's
authorization.
(c) Any assistant or deputy of the chief financial
officer of the designated Member Agency is, ex
officio, a Deputy Auditor of the Authority.
(d) In accordance with Section 6505.5 of the
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California Government Code, the governing body
of the same entity as the Auditor shall determine
charges to be made against the Authority for the
Auditor's services.
Ie) Sections 4.140 and 4.150 shall not be construed
as prohibiting the Authority from designating one
qualified individual, office, or entity as both
Treasurer and Auditor so long as the arrangements
made are permissable under California law.
t;ec. 5.100
!::l!;;t!!2!;;B 8!2!;;!::!!;;I!;;ii
(a) Any party to the Agreement is a Member Agency.
Any local public entity in the State of California
may become a party to the CARMA Agreement by
agreeing to be bound by the Agreement and these
By-Laws and by complying with all of the following
requirements:
(1) Submit application for membership and obtain
Board approval.
(2) Execut~ the original of the CARMA Joint
Exercise of Powers Agreement as amended from
time to time, and
(3) Become a participating member with respect to
at least one risk area handled by CARMA, and
(4) Payment of an application fee to be
determined by the Board.
(b) Non-city local public entities may be admitted as
participating Member Agencies upon terms and
conditions, if any, approved by the Board.
Sec. 5.110
(a)
(b)
(c)
(d)
\(e)
i
Q~Il!;;ii QE I~!;; !::l!;;!::l!2!;;B 8!2!;;!::!!;;1!;;ii
Appoint a member to the Risk Management Board and
an al ternate.
Advise CARMA of any proposed or altered program
which may have significant impact on CARMA.
Maintain one person assigned full time to manage
the en~ity's Risk Management program.
Provide necessary data to assist in obtaining
reinsurance or excess insurance and claims admin-
istration services quotes.
Establish and maintain a risk management program
approved by the Executive Committee.
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(f) Establish and maintain a prudent claims management
program for the Member Agency's self insured
risks.
(g) Pay when due all assessments levied by the Board
pursuant to the CARMA Agreement or By-Laws, or
Board policies adopted in furtherance of the
Agreement or By-Laws.
(h) Enter into and maintain contracts of insurance or
reinsurance as required by the Board in risk
areas in which the Member Agency is participating.
(i) Pay from other funds or levy and collect taxes and
assessments to pay judgments pursuant to Chapter
2 (beginning with Section 970) of Part 5 of
Division 316 of Title 1. of the Government Code;
pursuant to Article 3 (beginning with Section
43720) of Chapter 4 of Divison 4 of Title 4; or
pursuant to Article 7 (beginning with Section
50170) of Chapter 1 of Part 1 of Division 1 of
Title 5 of the Government Code if necessary.
(J) Comply with the letter and spirit of the CARMA
Agreement and these By-Laws.
Sec. 5.120
81~~I2 QE ~~~~~8 e~~~~1~2
The rights of Member Agencies are to:
(a) Have the Board designate appropriate required
contracts of insurance with excess insurers or
reinsurers to provide coverage above the level
of risk retained by the Member Agency or the
Authority.
(b) Receive assistance from the Executive Committee
in establishing and maintaining a risk management
program compatible with the master risk manage-
ment program of the Authority.
(c) Appeal decision of the Executive Committee to the
Board, subject to such restrictions as the Board
may adopt by resolution or By-Laws.
(d) Withdraw iCQm membership as provided herein.
(e) Amend this Agreement or dissolve the Authority by
a tolll!! tl.l. J~ vote of all the Member Agencies.
$1'1
(f) Receive a refund of any credit balance of the
Member Agency's account or accounts in Authority
funds upon withdrawal of membership or dissolution
of the Authority. The timing and nature of such
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receipt of such refunds or credit balances shall
be governed by the Agreement ,:and By-Laws,
especially By-Laws Section 10.
See. 6. 100
E!,J~!H~f2
(a) The Authority and its participating Member
Agencies shall establish and maintain the follow-
ing operating, self-insurance and insurance funds:
(1) InQi~iQ~21 ~i~~ ~~li=ln3~~~n~~ E~ng
Each participant, with the assistance of
CARMA, shall establish for each area of risk
participation a fund for the predicted and
expected first layer of losses. This fund
will be maintained by each agency for its
own use.
(2) eQmini3~~2~i~~ e~~Q~n~
A separate bank account for the collection of
fees from members and the payment of admin-
istrative expenses shall be established and
maintained by CARMA.
(3) I~~3~ e~~Q~n~3
Trust Accounts shall be established by the
Board for funding of pooled losses as
necessary.
Sec. 6.110
Q~EQ~lI e~Q l~Y~~I~~~I QE e!,JI~Q81IY E!,J~Q~
The Treasurer may deposit and invest Authority funds
subject to the same requirements and restrictions that
apply to deposit. and investment of the general funds of
the public agency designated in Art. 4 sub. (e) of the
CARMA Agreement.
Sec. 6.120
e!JQlI
An annual audit of the financial affairs of CARMA shall
be made by a certified public accountant at the end of
each fiscal year in accordance with generally accepted
auditing principles. A copy of the annual report shall
be delivered to each member. The cost of the annual
audit constitutes an administrative expense of CARMA and
shall be paid for in the same manner as other adminis-
trative expenses are paid.
Sec. 7.100 Q~E~~3~ QE ~bel~~ e~Q e~IIQ~~
(a) As to any claim or action against the Authority
which is based on or arises out of an occurrence
involving an officer or employee of the Authority
who is also an officer or employee of a Member
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Agency such claim or action against the Authority
will be defended by the Authority and its appro-
priate coverage or insurance provisions protecting
the entity and/or Member Agency against such
claims or actions, except where the Member Agency
is a claimant or plaintiff, or has some other
conflict of interest which makes such defense
improper. This permits the Authority to secure
workers compensation, liability, bonds or other
appropriate policy issued on its own activities
rather than on those of the respective Member
Agencies.
(b) In other situations in which there is a claim or
action against the Authority, the Authority
provides for the defense by the Authority of any
Member Agency inclL\ded .in the claim or action.
Sec. 7.110
t;;mn QE: R~:E:gtlgg
A Member Agency's cost of defense pursuant to Sec.
7.100 Ca) shall be paid from such funds of the Authority
as the Board shall designate, but shall not be charged
to the account of the Member Agency.
Sec. 7.120
t;;bel~~ etlQ JWR~~gtlI e~eltl~I I~g eWI~QBIIY
Claims and judgments against the Authority shall be
paid from, or charged to, the appropriate coverages or
self-insured funds the Authority has established against
such claims, judgments, or losses. Such amounts shall
be paid from the Authority's own coverage or self-
insured funds rather than from funds contributed by a
Member Agency.
Sec. 8.100
Ql~EWIg~ QB t;;bel~~ ~gI~~~tl ~g~~gB~
(a) Arbitration. Any differences, claims or matters
in dispute arising between or among members
shall, if such differences arise out of the CARMA
Agreement or By-Laws, be submitted by such members
to arbitration by the American Arbitration
Association or its successor. The determination
of the American Arbitration Association or its
successor shall be final and absolute. The arbi-
trator shall be governed by the duly promulgated
rules and regulations of the American Arbitration
Association or its successor and the pertinent
provisions of the laws of the State of California
relating to arbitration. The decision of the
arbitratorCs) may be entered as a judgment in
any court of the State of California or else-
where.
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ib) Authority Representation Conflicts. Any differ-
ences, claims or matters in dispute arising
between or among members shall, if such differ-
ences do not arise out of the CARMA Agreement or
By-Laws, be handled as follows:
il) After being notified in writing that one
Member Agency has filed a formal claim
against another in accordance wlth provi-
sions of the California Government Code, the
Authority can no longer act on behalf of
either member insofar as the case giving
rise to the claim is concerned if the claim
involves a risk area or areas in which each
of the involved members is a participating
member.
(2) Conversely, the Authority may continue to act
on behalf of a participating member, even
after receipt of written notice of a formal
claim filed by one Member Agency against
another, provided the claim only involves a
risk area or areas in which only one of the
involved Member Agencies is participatihg.
(c) In any case falling within the scope of (1) or (2)
above, the Authority may, in its discretion, act
on behalf of one or all involved members, provided
that the Authority first obtains the written con-
sent of all such members.
Sec. 9. 100 1QB1 ble!HblIY
Section 895.2 of the Government Code imposes certain
tort liability jointly upon public entities solely by
reason of such entities being parties to an agreement as
defined in Section 895 of said Code. Therefore, the
parties hereto, as between themselves pursuant to the
authorization contained in Sections 895.4 and 895.6 of
the Government Code, each assumes the full liability
imposed upon it or any of its officers, agents or
employees by law for injury caused by a negligent or
wrongful act or omission occurring in the performance of
the Agreement, to the same extent that such liability
would be imposed in the absence of Section 895.2 of said
Code. To achieve this purpose each party indemnifies
and holds harmless the other party for any loss, cost or
expense that may be imposed upon such other party solely
by virtue of Section 895.2 of the Government Code.
Sec. 10.100
~~~~~B ~l1~~Be~eb~ ~eB~e ~122Qb~1IQ~
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(a) A Member Agency of the Authority may withdraw as a
member upon complying with Articles 8 and 9 of the
Agreement and with these By-Laws.
lbl In the event of the dissolution of CARMA or the
complete recession or final termination of the
Joint Powers Agreement by all of the then parties
thereto, any property of CARMA remaining after all
claims and obligations have been paid, or pro-
vision made for the payment of the same, shall be
returned to the then current members of CARMA in
proportion to their current deposits.
lcl If a Member Agency withdraws from CARMA the
following formula shall be utilized to determine
refund or obligations due and timing of payments.
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A sum shall be arrived at by calculating the
cumulative paid in fund contributi
any investment income of lthdrawing
member and prorat are of any assets of
CARMA less cumulative losses and expenses
of the drawing member and prorata share
o erating costs of the Authority.
If as a result of the above calculations,
CARMA owes the withdrawing member a sum,
CARMA has the right to defer payment of all
or any ~rt of the sum for a period of not to
exceed ~ years so as to assure CARMA of con-
tinued financial stability.
Should the withdrawing member owe CARMA a
sum, CARMA has the right to grant a deferral
of payment of all or par~of this sum for a
period of not to exceed ~ years, except
where CARMA and the withdrawing member have
agreed to a different repayment schedule.
After receiving advice from the Executive
Committee the Board shall determine wh er
the obligation to pay a withdraw' member's
reimbursement shall be disc ed through a
transfer of property 0 rough a payment of
funds. T ma e
current fair value of CARMA
proper shall be determined by the Board
af receiving advice from the Auditor. If
e withdrawing member disagrees with the
determination of the current fair value of
CARMA, value of properties shall be
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d~terminc~ Br dn lndependent appraiser.
Sec. 11 . 100
~rE~b~IQU QE ~~~~5B~
-
(OIl A party to this Agreement may be excluded from
membership when its actions:
(1) Cause the member to not substantially comply
with the terms of the Joint Powers Agree-
ment or
(21 Cause the member to fail in substantially
complying with a written and acknowledged
term or condition imposed on the member by a
Sl:t-n!f",l~ majority vote of the Board:
;/" .
(3) Cause an adverse effect on CARMA"s relations
with the insurance market and the member
fails to remedy the adverse effect within a
reasonable time after receiving written
notice from the Board as to appropriate '2
corrective action.~
.
(b) The Board may, by 1!-..~ L1,~. e/- lGPte, terminate
and exclude the offe om any and all
benefits of membership in CARMA.
Sec. 12.100
bs~6b BsEBs~s~I6IIQ~
Legal counsel to advise on matters relating to the
operation of CARMA may be recommended by the Executive
Committee and approved by the Board. CARMA shall have
the right to pay such legal counsel a reasonable compen-
sation for said services under a contract.
Sec. 13.100
~QIl!;s~
(a) Notice to the Authority shall be given by delivery
of such notice to the Clerk at the office of the
Clerk so designated by the Board.
(b) Notice to Member Agencies shall be given by
delivery of such notice to the Clerk of each
Member Agency.
(c) Claims against the Authority shall be presented to
the Clerk designated in subdivision (a) of this
section.
Sec. 14.100 ~s!;IIQ~2~ ~~~~1~12IQ~2 6~~ E6B6~BaE~2
(a) The principal divisions of this Agreement are
a~!;;iiQOa identified by the abbreviation "Sec." and
followed by Arabic numerals not in parenthesis.
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(b) The principal divisions of sections are
~~ggi~i~iQQ~ identified by lower-case letters in
parenthesis.
(c) The di vi si ons of subdi vi si ons are I25!C5!9C5!I2b.2
identified by Arabic numerals in parenthesis.
Sec:. 15.100
I;;EEI;;GIl':r:1;; QeI~
These By~Laws shall be effective immediately upon the
effective date of the Joint Powers Agreement.
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POLICY FORM
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CALIFORNIA AGENCIES RISK MANAGEMENT AUTHORITY (CARMA)
CAPTIVE (POOL) INSURANCE PROGRAM
PLAN DOCUI1ENT
g~~~Beb ~IBI~~s~I:
On July 1, 1986, cities of the California Agencies Risk Management
Authority (CARMA) entered into a Captive Insurance Company Program funded
throclgh "pooled" premium assessments. The pClrpose of this docctment is to
formally summarize general understanding and guidelines as respects the
admin.stration of this program. It is intended that this document shall
not:
1. Limit the authority of the Board of Directors of CARMA except as
specifically agreed.
2. Infringe on rights and authority of individual Member Agencies
except as specifically agreed.
3. Modify in any way, the terms and conditions of the insurance polic'
issued through this Captive program.
EWBEQg~ QE EBQ~BB~:
It is the recognized interest of all participants in the program that i
method of pooled self-insurance is a desirable alternative to the "standard'
insurance markets (coverage from same being unavailable or unacceptable) anc
that this program represents such desirable alternative. By entering into
this program, participants recognize that the only source for payment of
claims against the program may be the pooled assets of Member Agencies. It
is also recognized that this entails an exposure to members above and beyon,
premium payments.
~bl~l~lblIY ~WIQsbl~sg:
Any public agency domiciled in the State of California shall be
eligible for participation in this program. This in no way modifies any
other limitations for eligibility as outlined by CARMA or limitations
imposed by underwriting guidelines or the Board of CARMA.
W~QsB~81Il~~ ~WIQsbl~sg:
The following represent general guidelines of risk acceptability:
1. Members shall be of general size, geographical location and qual it'
of risk as to be comparable to existing membership. It is the intent to
limit eligibility of cities to a minimum population of 75,000.
2. It is not the intent to offer membership to any county governments
or school districts.
3. This program does not allow for the inclusion of any agencies with
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4. Financ.al condition of prospective members must be such as to
ensure ability to pay premiums and assessments.
5. Risk management attitude of each member will be
other members as well as generally accepted guidelines.
be reviewed by the underwriting committee.
consistent with
Such attitude shall
6. Members must have one person assigned on a full time basis to
manage a comprehensive risk management program.
W~Q~B~BIIl~~ kBII~Bla:
Overall premium levels as well as individual (member) premium
allocation shall be the responsibility of the program underwriter. However.
all such sums shall be reviewed and approved by the underwriting committee
and may, with justification, be modified, rejected, or accepted by same.
Once accepted, such premium levels and allocations shall be deemed
"fi~.'ed" and shall be an obligation of individLlal members (and CARMA
collectively) in order to retain or be admitted to membership in the
program.
Such premium levels shall be reasonably calculated in accordance with
general insurance practices by a qualified underwriter retained by CARMA.
The underwriter shall consider the following in arriving at QY~C~ll Qc~mi~m
l~ygl~ (such consideration shall not be limited to these factors alone):
1. Past loss experience
2. Projected loss exposure potential based on overall group e'~posL'res.
~. A "safety factor" in order to build or maintain reserves at an
acceptable level. It is the intent of CARMA that this funding basis be
~QO~~Cy~tiy~ to establish reliability in the solvency of the program.
Such individual premium allocations shall be reasonably calculated in
accordance with general underwriting priorities by qualified underwriters
retained by CARMA. The underwriter shall consider the following in arrivins
at individual premium allocations (such considerations shall not be limited
to these factors alone):
1. Past loss experience (minimum 5 years currently valued)
2. Size of self insured retention
~. Underwriting factors relating to:
..P~~ll
a. F:-.spulation
b. Miles of streets
c. Police exposure
d. Automobile exposure
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e. Unusual exposures (beaches, utilities, risk management
attitude, etc.)
f. Fire department exposures
g. Ne", constrLlction in City.
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B~~~EIe~~~ QE ~~~ ~~~~~B~:
It is generally accepted that program growth through the acquisition OC
new members of "like kind and quality" is good for program stability.
Prospective new members shall make application on a form provided by
the program broker, and shall work with said broker in accurately and
completely completing same. Such application shall contain any and all
information deemed necessary by the program underwriter and underwriting
committee and shall furnish, as a minimum, the information described under
"Underwriting Guidelines" as well as complete financial information to
establish the financial capabilities to meet potential program obligations.
It is the intent that all program members be members of CARMA and shall
make concurrent application for same, fulfilling any financial obligations
of membership. A non-refundable application fee may be assessed by the
Board of Directors.
Such program application shall be reviewed by the program broker and
presented to the program underwriter. The program underwriter shall perforn
the underwriting task in a fashion consistent with "Underwriting Guidelines'
and with methods used on all e}~isting members. 0_"- ~ ~--'/_... crc-..:.t.n_ ...L~l
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The program underwriter shall make written submission to the
underwriting committee to establish recommended premiums, self-insured
retention, specific exclusions and other considerations. The underwriting
committee shall have available any underwriting data used in the program
underwriter's evaluation.
The underwriting committee shall accept, reject or modify the
underwriter's recommendations and report same to the Board of Directors of
CARMA prior to quotation to the prospective member. The Board of Directors
of CARMA shall have final right of acceptance of prospective members by
a 3/4 majority vote.
e~~~~g~~~I EBQYlglQ~~:
It is acknowledged that the policy of insurance is fully assessible.
Such assessibility is necessary to provide for complete solvency of the
program. It is the intent of all members to adhere to these provisions.
It is the desire of all parties concerned that future claims and claim;
e:.'pense costs be funded through annual premiums determined as described
herein. Premium levels should be "conservative" so as to provide reasonable
confidence that all future claims obligations be met through this source
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alone. Assessments a~e agreed to be undesirable by program members.
However, in the event of eminent shDrt-fall Df funds SD that it may be
reasDnably cDncluded additiDnal mDnies will be needed tD assure solvency anc
maintain reasonable reserves, assessment provisions will be enforced as
follows:
The prDgram underwriter shall have primary respDnsibility in prDjectin,
future shDrt-falls. TD assist in this matter, with underwriting cDmmittee
apprDval, an actuarial study may be dDne by an Dutside licensed actuarial
firm tD recDmmend shDrt-fall amDunts. Such actuarilly determined amDunt ma~
be mDdified in the judgment Df the underwriter. The underwriter shall make
recDmmendation of assessment level to the underwriting committee fDr review
and action. The cDmmittee, with gODd cause, may amend the amount
recommended, reject the underwriter's recommendatiDn Dr accept same.
The assessment level shall be determined taking into consideration all
incurred losses and associated expenses, prDjected reserves and anticipated
payment dates as well as current reserve levels and using an acceptable
"IncLlrred BLlt Not Reported" (IBNR) factDr.
Once determined and accepted by the underwiting committee, the Board 0'
Directors Df CARMA shall be advised of same. RejectiDn of the underwriting
cDmmittee recDmmendatiDn may be dDne by a 3/4 majDrity vDte Df the Board Df
DirectDrs. HDwever, in the event Df such rejectiDn, an alternate funding
mechanism m~2i be implemented by the BDard Df DirectDrs to assure solvency
of the program.
Unless rejected by the Board Df DirectDrs, the assessment amount will
then be allocated based Dn the fDIIDwing:
1. All claims reasDnably cDncluded to have directly led to the short-
fall shall be identified.
2. The amount Df the assessment shall be appDrtioned by policy year
based Dn Q9ig gf g~~~CCgO~g in a ratiD which the claims from each year bear,
tD the overall claims being cDnsidered. Such percentage shall be applied tc
the Dverall assessment tD determine the assessible amDunt per pDlicy year.
~. That amDunt assessible fDr each pDlicy year will be appDrtiDned in
accordance with the ratio of non-subject premiums paid by members during
that pDlicy year bears tD tDtal non-subject premiums paid by all members.
This percentage may be increased Dr decreased up to 1001. based on
underwriter and underwriting cDmmittee approval. Such penalty (increase) 0;
up to 1001. shall be based solely on the cDntribution tD the overall short-
fall by individual Member Agency claims.
Such allocatiDn of assessment shall be made by the program
underwriter. The underwriter may be assisted by actuary study with
underwriting cDmmittee apprDval. Final allDcation will be submitted tD the
underwiting committee for actiDn of acceptance, rejectiDn or modification -
all with gODd cause. Once approved, the underwriting committee shall report
same tD the Board of Directors of CARMA. The Board may reject such
allocatiDn by 3/4 majority. However, if rejected the Board ~Y~I B~I tD
implement an allocation Df the agreed assessment amount in an alternate plar
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~~Jithin thir-ty (30) days.
All assessments are due and payable within 30 days of date of mailing
of notice of approval by the Board of Directors. Any agency not fulfilling
this or any other financial obligation shall be deemed to have breached an
obligation and agrees to pay all interest Cat prime + 3%1 and any court
costs assessed in enfot""cing this provision.
hk81~g ~8~Qkl~g EBQk~QWB~g
It is the general intent that all program CCaptive) claims be handled
in a fashion consistent with professional insurance company claims handling
procedures. Certain intentions as respects incurred claims are as follows:
1. It is the intent of CARMA to establish and maintain a data base of
.11 ~l.im~ reserved or paid at an amount of $25,000 or higher. A data base
management system will be established to maintain records in all such cases.
2. All claims falling within the self-insured retention of the
individual members shall be administered by such member until determined to
be an "e",cess claim" and even then shall be handled in ~QQ.ih!Q!;.j;j"!2Q \:!i1b. the
program claims manager.
3. It is not the intent of the program or the program claims manager
to assume control of or usurp any authority as respects an individual claim
from the Member Agency involved unless such excess claim is voluntarily
"tendered" to the program captive policy.
4. It is the intent of all Member Agencies that there be ihl11
~QQQ~~21iQQ between city claims handling personnel and program claims
personnel in the method and direction of claims management of "e:<cess
claimsll.
All claims with reserves or potential payments, including defense
costs, in e:<cess of $25,000 or involving any of the following, shall be
reported in writing to the Plan Broker or CARMA:
1. Deaths
2. Any paralysis
3. Multiple Claimants with a total value of $25,000 or more
4. Any amputation
5. Burn cases
6. Loss of sight/hearing
7. Brain Damage
8. Spinal Cord Injuries
A claim is one that has been made in writing by or on behalf of any
injured party to the Member Agency.
The report to the Plan Broker shall be in writing and contain all
particulars as determined by CARMA claims review committee, including any
summons or complaint. Additional facts requested shall not be withheld.
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Failure to report claims as required may be cause for denial by the
claims review committee.
No less frequently than quarterly, the claims review committee shall
meet to ,"eview all open reported claims. The program claims manager shall
make recommendations as to which claims shall be deemed "excess claims." ThE
claims review committee shall make such determination based on claims
potential to penetrate into Captive program excess insurance policy. All
claims labled "excess claims" shall be assigned to the program claims
manager for handling.
Handling by the program claims manager shall involve the assessment of
claims potential, recommended reserve level, quarterly report to the claims
review committee and working directly with Member Agency claims handling
personnel to assess the claims handling procedure and make appropriate
recommendations regarding same.
Questions of coverage shall be referred to the underwiting committee
for review and recommendations of acceptance, rejection or acceptance
subject to reservation of rights to deny at a later date due to just cause.
Such recommendations shall be acted upon by the claims review committee in
formally accepting, rejecting or reservation of rights. Member Agencies
shall be advised immediately of actions of underwriting and/or claims revie~
committees in this regard.
~gYIEl~eIlQ~ QE I~lg yQ~~~~~I
Modification of this document once adopted may be made with 3/4
majority vote of the members of the Board of Directors of CARMA.
~1~e~~IIQ~ QE e~~~eb e~~B~~eI~ bl~lI~
It is agreed by all Member Agencies that in the event of short-fall of
annual aggregate limits, all affected members shall share the short-fall
proportionally, based on the. ratio of total claims that would have been paie
by the excess ipool) policy had no short-fall occurred as bears to the total
amount collectible. If return funds are due from certain Member Agencies to
others, these funds will be due and payable within 30 days of determination
of short-fall claim.
~II~yBe~eb lIBlbl ~Q~~BB9~
In event of withdrawal of one or more Member Agencies, it is the intent
of the program to offer "tail" or extended discovery period coverage as
respects the claims made form of coverage. The length of such "tail"
coverage and premium charged for same shall be recommended by the program
underwriter and acted on by the underwriting committee. The Board of
Directors of CARMA shall be advised of underwriting committee action.
In no way does the offer or puchase of "tail" coverage waive any
assessment provisions of the policy or of this plan document.
Q~~BE!d~!;U~~
B~I~B~ QE EB~~l~~~
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It is the intent of this program to adjust for over or under funding
levels through the decrease or increase in annual premiums. In the event n?
2, 11 rett-o-return II of pr-emi urn in the form of cash or other negoti ab 1 e method
the return provisions may include an .~tY.ci.l ~ty~~ and return formula
similar to the assessment provision in reverse. Once the return amount is
calculated, the underwriter will determine the method most closely related
to the intent of the assessment provisions in reverse and will allocate 1n
such a matter to individual Member Agencies. This return of premium will b~
approvEd or disapproved by the Board of Directors and all such returns shall
not discriminate against members who have withdrawn.
It is noted that no such retro-return is required and that overfunding
may be neutralized by reduced premiums and withdrawn Member Agencies will
not benefit from same. However, this is offset by the possibility of
increased premiums to make up for underfunding and such withdrawn Member
Agency will not be subject to this method of raising funds.
Gb81t::!!2 Bid12lI!2
A claims audit will be required of an on-going Member or a prospective
Member Agency every two years. The firm will be selected bv the Board and
the audits paid for by each Member Agency. Such requirement shall be under
the authority of the Board of Directors of CARMA as recommended by e1ther
the underwriting committee or the claims review committee. Such
requirement shall not be more frequent than once in three years. The cost
of such audit shall be the responsibility of the individual Member Agency
and shall be a condition of membership in the program. Such requirement
shall be justified to the satisfaction of the Board of Directors of CARMA.
~Qb12 ~BBt::!b~!2~ e~B~~t::!~~I9
The following wording is made part of this Plan Document and is agreed
to be legal and binding as a contractual provision:
California Agencies Ris.k Management Authority agrees to indemnify,
defend and hold harmless the members of the claims review committee,
from any and all claims, demands, suits, actions or proceedings of
any kind or nature, of or by anyone whomsoever, in any way resulting
or arising out of the work done by said members while acting
pursuant to CARMA directives.
Q19EidI~9
It is agreed by all program Member Agencies and all withdrawn Member
Agencies that all disputes arising from enforcement of the terms of the
policy of insurance as well as agreements contained herein shall be
addressed and settled to conclusion as follows (in order):
1. Appeal to the appropriate program committee
2. Appeal to the e:<ecutive committee of CARMA
3. Appeal to the Board of Directors of CARMA
Following such appeals, decisions by the ~bove shall be made and
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affected parties notified of such decisions within seven (7) days of appeal.
If the matter remains unresolved, affected agencies shall participate
with CARMA in the process of aiQQio9 ecai1c~1iQo. Final ,arbitration to be
selected by legal counsel of CARMA and legal counsel of affected member or
withdrawn Member Agency.
No court proceedings other than the above shall be initiated by CARMA
or affected member or withdrawn Member Agency other than for the collection
of premiums and/or assessments or retro-return of premiums payable as
outlined in this document.
EQbl~X EQB~~~ ~~QQB~~~~~I~~ ~Q~~88~~ QW~gIIQ~g
It is the intent of CARMA that all matters dealing with coverage
provided under the Captive program be the sole responsibility of the
underwriting committee. The underwritin~ committee shall receive advice in
all suct1 matters from the program undenojri ter.
Decisions of the underwriting committee may be appealed to the full
Board of Directors of CARMA. A 3/4 majority vote is required to overrule a
decision of the underwiting committee in all policy matters.
bl~lI~ QE blB~lblIY
It is the intent of Member Agencies of the Captive program that the
limits of liability be established using the following general guidelines:
A) Per occurrence Li mi t shall appro:< i mate two times the anr,ual
premiums collected under the program.
B) Annual aggregate limits shall approximate four times the annual
premiums collected under the program. The purpose of this limitation is to
assure Member Agencies that potential assessments shall be limited to a
ma:: i mum reI ati ve to the annL~al aggregate exposure.
The limits of liability shall be established annually (at each
anniversary) and shall not be amended with the ~iJ . I m~ddition or deletior
of participating Member Agencies.
The limits of liability shall be recommended by the program underwiter
to the underwriting committee. The underwiting committee shall approve,
disapprove or modify such recommendation with just cause. However, final
limits shall be established by the underwiting committee sufficiently in
advance of policy anniversary so as to allow for final Board of Directors'
approval. The Board of Directors of CARMA shall have final authority in th,
establishment of the limits of liability by a 3/4 majority vote.
Limits of liability may be expanded above the general guide lines
established above based on:
,
1. Availability of e:<cess insurance or reinsurance
2. Accumulation of adequate reserves to justify same
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~8~Qbl~~LI~~~2I~~~I QE B~~~By~ EW~Q~
All Captive program reserve funds shall be held in a custodial (or
comparable) account in an appropriate financial institution.
Funds in such institutions shall be removed only for the following
CaLlSeS:
1. Payment of claims and related claims expenses.
~. Retro-return of premiums as described herein.
3. Liquidation of the Captive program (returns established as if
retro-return premiums)
Other than the above, the integrity of the reserve funds shall be
inviol~,te.
Investment of such funds shall be under the direction of the executive
committee of the Captive program.
8Q~1~lgIBeIl~~ e~~QW~I
A separate bank account for the disbursement of administrative fees
shall be established and maintained by CARMA.
EeBIl~lEeIl~~ ~~~~~B B~g~B~~ EW~Q b~~~bg
It is the intention of program members to establish and maintain
individual reserve fund levels. The level of such reserves shall be
reviewed from time to time by the claim review committee who shall make
recommendations for adjustments as necessary.
In general the following guidelines should be followed:
1. Maintenance of a reserve fund for the individual city self-insured
retention losses. The fund level should approximate three times the
individual city self-insured retention at any given time.
2. In lieu of the above, a current actuarial study of all open cases
will be accepted.
Full control of such reserve funds shall remain with the individual
Member Public Agency. \
hIt must be noted that the above fund levels are recommendations only.
However, lack of appropriate funding may be a cause for cancellation of
'7 coverage provided by the Captive program. Such review, recommendations fer
. U:djustment of funding levels, recommendation for cancellation shall be:.yth, e
responsibility of the claims review committee. Final action in all sue
cases shall be the responsibility of the Board of Directors of CARMA.
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Shall be made up solely of representatives of participating members of
the Captive program. Such members shall be elected by program participants.
Duties of the executive committee shall include:
.. Direction of the investment of reserve funds.
2. Review and assessment of all matters to be submitted to the Board
of Directors of CARMA and/or referred by the Board of Directors as may be
appt"opriate.
T Further duties as may be defined by the Board of Directors of
CARMA.
Qi;;EltllIlQt::!l2
1. i;;~~@aa ~l~iill - one which meets the guidelines contained herein and
has been labled an excess claim by the claims review committee and referred
to the programs claims manager for handling by such committee.
2. ECQgc~m ~l~ima ~sO~g@C - shall be an individual or legal entity on
contract or employed with or by the Board of Directors of CARMA for the
express purposes of representing the Captive (pool) program as respects
claims which may be expected to be paid within the Captive (pool) excess
insurance program.
-~. I@Og~C~g ~lsim - a claim may be tendered to the Captive for
handling by the program claims manager by an individual city. That city
thereby agrees to pay the full self-insured retention liability accruing
from any judgement or settlement arising from such claim.
4. ~~Q~i~@ EC9gCsill - a program established to.provide liability
insurance coverage to member public entitie~through a policy of insurance.
Such policy to be issued through a -licensed Captive Insurance Company.
Financial backing of such policy to be through "pooled" member assets andlor
acceptable farms of reinsurance.
""
5. Ec@mi~ill - the amount payable annually by participating public
entities to qualify as members of the "pool" and insureds under the policy
of i nS~trance issued under the program. Such premi um amounts wi 11 be
established by the program underwriter in accordance with underwriting
guidelines established in this document.
6. ECQgCsill WOg~C~cit~c - an individual or legal entity either on
contract with or employed by the CARMA for agreed purposes.
7. eaa@aaill~Ota - additional funds required to be paid from time to
time as is necessry through the assessment procedure to ensure the
"solvency" or ability to meet financial obligations of the program.
8. Siat ~sosg~m~ot - the process through which risk or loss is
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.t~ansferred, reduced, eliminated, or knowingly assumed to minimize the
overall 2:{pOSUre to a Member Agency.
9. ~Q~~C~Ci~iD9 ~Qmmiti~~ -- shall be comprised of a chairman (elected
from the CARMA Board of Directors), a member at large from CARMA, and
representatives of the following:
a. Program Underwriter
t. Program Broker
c. Captive Administrator
The purpose of this committee will be to act an recommendations
from the program underwriter as respects:
And any
under-~~riting
to the Board
..:.i.
b.
Acceptance of new members
Rejection of new members
Policy form changes
Notification of premium calculations
Establishment of self-insured retention levels
Levels of assessments
Allocation of assessments
Rule on questions of coverage as respects specific excess
claims or incidents
Recommend purchase or rejection of all excess insurance and
reinsurance
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other matters as may from time to time be necessary. The
committee shall submit actions through the executive committee
of Directors of CARMA for review or approval as necessary.
lQ~ ~lgim2 B~yi~~ ~gmmi11~~ - shall be comprised of a chairman (electec
from the CARMA Board of Directors), a member ."..t large from CARMA and
representatives of the following:
a. Program Underwrite~
b. F'rogram Broker
c. Program Excess (Captive) Claims Manager.
The purpose of the committee shall be to review all open claims
submitted through the reporting requirements contained herein and to:
a. Set and review reserve levels as respects potential Captive prograc
exposure
b. Report claims to the Captive claims manager as necessary
c. Review the specific "handling" of all potential program losses
d. Make recommendations to individual members for settlement or
defense and/or tendering of losses to the Captive program
e. Accept or reject claims based on existence of coverage
f. Set reserve levels on all excess claims
And any other matters as may from time to time be necessary. The
claims committee shall submit actions through the executive committee to
the Board of Directors of CARMA for review or approval as necessary.
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v
MAGNA CARTA INSURANCE (LTD)
A Bermuda Based Company
COMPREHENSIVE INSURANCE POLICY
EXCESS MUNICIPAL LIABILITY
THIS ~ ! CLAIMS MADE POLICY
~ THE POLICY CAREFULLY
I . INSURING AGREEMENTS
IN CONSIDERATION OF THE PAYMENT OF PREMIUM, THE COMPANY HEREBY
AGREES TO IDEMNIFY THE INSURED FOR THE ULTIMATE NET LOSS IN
EXCESS OF THE RETAINED LIMIT AS STATED IN ITEM 3 OF THE
DECLARATIONS BUT ONLY UP TO THE AMOUNT NOT EXCEEDING THE
COMPANY'S LIMIT OF LIABILITY AS STATED IN ITEM 4 OF THE
DECLARATIONS AS A RESUL~ OF CLAIMS FIRST MADE AGAINST THE INSURED
AND REPORTED IN WRITING TO THE COMPANY OR ITS DESIGNATED AGENT
DURING THE POLICY PERIOD FOR WHICH THE INSURED SHALL BECOME
L~GALLY OBLIGATED TO PAY BY REASON OF LIABILITY IMPOSED UPON BY
LAW, INCLUDING CHAPTER 1681 OF THE STATE OF CALIFORNIA INSURANCE
STATUTES OF 1963, OR LIABILITY ASSUM~D BY CO~~TRACT, INSOFAR AS
THE NAMED INSURED MAY LEGALLY DO SO, FOR ~AMAGES BECAUSE OF:
COVERAGE A
COVERAGE B
COVERAGE C
CCVE'?A:::E J
BODILY INJURY :'IABILITY
PROPERTY DAMAGE :'IABILITY
ER~ORS t\ND C~~1ISST::~lS LI~BTr~ITY
PERSONAL INJl:?Y I.IAEII.IT':
II. DEFENSE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS
THE COMPANY SHALL
WITH THE INSURED
PROCEEDING ARISING
INVOLVE THE COMPAWI.
SHALL COOPERATE FULLY,
~AVE '!'l-!E Fi':!~~HT AND :jFP(')p~n~t::~Y ~O ~SSOCIA~E
IN THE DEFENSE AND CONTROL OF ANY CLAIM OR
OUT OF AN OCCURRENCE REASONABLY LIKELY TO
IN SUCH EVENT, ~H~ :~ISURED .~ND THE CCI1PANY
SHOULD AWl CLAIM APPEAR L I~ELY TI~ E'{CEED T~JE RETAINED LIMIT, NO
LOSS EXPENSES OR LE'3AL EXPENSES '3H!>.LL BE INCURRED ON BEHALF OF
THE "COMPANY" WI~HOUT IT'S PRICR '::;)~!SENT. SUCH CONSENT SHALL NOT
BE UNREASONABLY WITHHELD, SHCULD ANY CLAIM ARISING FROM SUCH
:'05S BE ADJUSTED PRIOR ~O TRIAL COURT JUDG~MENT FOR A TOTAL
AMOUNT NOT MCRE THAN THE RETAINED LIMIT, THEN NO LOSS EXPENSES Oll.
LEGAL EXPENSES SHALL g~ PAYABLE BY THE "COMPANY". HOWEVER,
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SHOULD THE TOTAL AMOUNT FOR WHICH SUCH CLAIM MIGHT BE ADJUSTED
PRIOR TO SUCH JUDGEMENT EXCEED THE RETAINED LIMIT, THEN, :F THE
"COMPANY" CONSENTS TO FURTHER TRIAL COURT PROCEEDINGS, IT SHALL
CCNTRIBUTE TO LEGAL EXPENSES IN THE RATIO WHICH ITS PROPORTION OF
THE LIABILITY FOR THE JUDGEMENT RENDERED, OR SETTLEMENT MADE,
BEARS THE WHOLE AMOUNT OF SAID JUDGEMENT .OR SETTLEMENT, ~OWEVER,
IN NO EVENT SHALL THE INSURED'S PARTICIPATION IN SUCH LEGAL
EXPENSES EXCEED THE RETAINED LIMIT STATED AND MORE FULLY DEFINED
IN SECTION V OF THE POLICY PROVISIONS.
THE COMPANY SHALL NOT BE OBLIGATED TO PAY ANY CLAIM OR JUDGEMENT
OR TO DEFEND ANY SUIT AFTER THE APPLICABLE LIMIT OF THE COMPANY'S
LIABILITY HAS BEEN EXHAUSTED BY PAYMENT OF JUDGEMENTS,
SETTLEMENTS OR ALLOCATED CLAIMS EXPENSES.
III. PERSONS INSURED
EACH OF THE FOLLOWING IS AN INSURED TO THE EXTENT SET FORTH
BELOW:
A. THE NAMED INSURED;
B. WHILE ACTING WITHIN THE SCOPE OF HIS EMPLOYMENT AS
SUCH:
1. ANY OFFICER, SERVANT OR EMPLOYEE OF THE NAMED
INSUR.ED .
2. ANY MEMBER OF BOARDS OR COMMISSIONS OF THE NAMED
INSURED;
C. UNDER COVERAGE (A) AND (B), ANY PERSON WHILE USING AN
OWNED AUTOMOBILE OR HIRED AUTOMOBILE AND ANY PERSON OR
ORGANIZATION LEGALLY RESPONSIBLE FOR THE USE THEREOF,
PROVIDED THE ACTUAL USE OF THE AUTOMOBILE IS BY OR WITH
THE PERMISSION OF THE NAMED INSURED.
THE I:fSURANC;: WITH R;:SPECT TO ANY PERSON !~lR CR:3ANIZATION OTHER
THAN THE NAMED INSURED COES NOT APPLY UNDER DIVISION (C) OF THIS
INSURING AGREEMENT:
1. TO ANY PERSON OR ORGANIZATION, OR ~O ANY AGENT OR
EMPLOYEE THEREOF, ENGAGED IN SELLING, REPAIRING,
SERVTCIN'3, DELIVERIrlG, TESTHIG, ROAD TESTING, PARKING
'W 'ST'"lRING !\.TJTOMOBILES, WITH RESPECT TO ANY OCCURFl.ENCE
ARI'3ING enT CFANY SUCH OCCUPATION, IF THERE IS OTH;:R
'TALID AND COLLECTIBLE INSURANCE A'!AI~.ABLE TO SUCH
FER.SON AS :IAMED INSURED UNDER THE POLICY WITH LIMITS AT
SEAST EQUAL TO THE REQUIREMENTS OF THE APPLICABLE
FINANCIAL RESPONSIBILITY SAWS;
2.
WITH RESPECT TO ANY HIRED AUTOMOBILE,
~ L~SSEE ~~~REOF CTRER ~~AN THE ~AMED
.ANY AGENT OR EMPLOYEE OF SUCH OWNER OR
T'J THE OWNER, !jP
INSURED, OR T0
LESSEE.
2
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IV. LIMITS OF LIABILITY
REGARDLESS OF THE NUMBER OF (1) H1SUR"::-S tT~m":R THIS ;>:jLI:~'[, i.::
?E?SONS OR ORGANIZATIONS WHO SUSTAIN INJURY 'J? ~AI1AGE, ,jR : 3)
CLAIMS MA:-E OR SUITS BROUGHT ON ACCOUNT OF SUC:-! INJURY '::R :J,".~'A'~E,
THE COMPANY'S r.IABILITY IS AS FOLLOWS:
THE TOTAL LIABILITY OF THE COMPANY FOR DAMAGES BECAUSE OF
COVERAGE (A) BODILY INJURY LIABILITY, COVERAGE (B) PROPERTY
DAMAGE LIABILITY, COVERAGE (C) ERRORS AND 0'1MISSICNS LIABILITY,
COVl'!:RAGE (D) PERSONAL INJURY LIABILITY AND/OR ALLOCATED CLAIMS
l'!:XPENSES ARISING OUT OF ANY ONE OCCURRENCE SHALL NOT EXCEED THE
LIMIT OF LIABILITY STATED IN THE DECLARATIONS AS APPLICABLE TO
EACH OCCURRENCE.
SUBJECT TO THE ABOVl'!: PROVISIONS RESPl'!:CTING EACH OCCURRENCE, THE
TOTAL LIABILITY OF THE COMPANY FOR ALL DAMAGl'!:S BECAUSE OF ALL
COVERAGE (A) BODILY INJURY LIABILITY, COVERAGE (B) PROPERTY
DAMAGE LIABILITY, COVERAGE (C) ERRORS AND OMMISSIONS LIABILITY,
COVERAGE (D) PERSONAL INJURY LIABILITY AND/OR ALL ALLOCATED
CLAIMS EXPENSES ARISING OUT OF ALL OCCURRENCES DURING EACH ANNUAL
PERIOD WHILE THIS POLICY IS IN FORCE CO~ENCING FROM ITS
EFFECTIVE DATE SHALL NOT EXCEED THE LIMIT OF LIABILITY STATED IN
THE DECLARATIONS AS AGGREGATE.
FOR THE ?URPOSE OF CETER~INING THE LIMIT OF THE
LIABILITY, ALL DAMAGES ARISING OUT OF CONTINUOUS OR
EXPOSURE TO SUBSTANTIALLY THE SAME '"ENERAL CONDITIONS
CONSIDERED AS ARISING CUT OF ONE OCCURRENCE.
TtCOMPANY"
REPEATED
SHALL BE
V. RETAINED LIMIT PROVISION
A. THE NAMED INSURED SHALL BE LIAELE AT ITS OWN EXPENSE
F~R THE FIRST $ Ij~ ~~: gC~!LY I~JURY, PROPERTY
DAMAGE, ERRORS AND OMMISSIONS I,!~::",:::,":,:,:,.,t, AND PE~SONA:'
IN~TTJ~.V L~A.BIr.ITY ~;\l.IS!NG ':lUT ~:'F E~{~H ;~H:"~nPRE~lCE;
B. THE NAMED INSURED SHALL EE LI AB!:.": ;'1' I':'S 'J'tlN 'eXPENSE
FOR ALL ALLOIJATED ::;r.AI"lS EXPENSE3 FCR ANY ONE
OCCURRENCE WHICH IS SETTLED CR A~.::T:J'3E:) .~_T AllY AMCotlT
EQUAL TO OR LESS T~A~ THE ?E':'AINED LIMIT I~ IA) ABOVE;
C. THE ~AMED INSURED SHALL BE LIAELE ~T ITS OWN EX?ENSE
FOR TE~ S.~ME P?OP'::RT!a~ ()~ A.r.~:J"" .\~~:) ~~LA !MS ~XPE~rSES A'3
I~S ~ETAINED LIMIT I~ (~) ~B:JV~ 3F.ARS TO ~U~ ~~NAL
SETTLE~1ENT :-;R JUDG!1ENT F':'? .'I.:IY e::E OCCrr?RENCE WHICH IS
SETTLED OR ADJUDGED AT ANY AMOUUT ~10RE: ':'H,~N T:~!!:
?E':'AINED LIMIT IN (A) ABOVE.
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IV. EXCLUSIONS
THIS POLICY DOES NOT APPLY:
A.
TO BODILY
OWNERSHIP
UNLOADING
RENTED OR
INJURY OR PROPERTY ARISING OUT OF
MAINTENANCE, OPERATION, USE, LOADING
OF ANY AIRCRAF~ OWNED OR OPERATED BY
LOANED TO
THE
OR
OR
AWl INS~RED, OR ANY OTHER AIRCRAFT OPERATED BY ANY
PERSON IN THE COURSE OF HIS EMPLOYMENT BY AN INSURED;
B. TO ANY OBLIGATION FOR WHICH THE INSURED OR ANY CARRIER
AS HIS INSURER MAY BE HELD LIABLE UNDER ANY WORKERS
COMPENSATION, UNEMPLO\~ENT COMPENSATION OR DISABILITY
BENEFITS LAW, OR UNDER ANY SIMILAR LAW;
C. EXCEPT WITH RESPECT TO LIABILITY ASSUMED BY THE INSURED
UNDER CONTRACT, TO BODILY INJURY TO OR SICKNESS,
DISEASE OR DEATH OF ANY EMPLOYEE OF THE INSURED ARISING
OUT OF AND IN THE COURSE OF EMPLOYMENT BY THE INSURED;
D TO INJURY TO OR DESTRUCTION OF (1) PROPERTY OWNED BY
THE INSURED, OR (2) PROPERTY RENT!n OR LEASED TO THE
INSURED WHERE THE INSURED HAS ASSUMED LIABILITY FOR
~AMAGE TO OR DESTRUCTION OF SUCH PROPERTY UNLESS THE
NAMED INSURED WOULD HAVE BEEN LIABLE IN THE ABSENCE OF
SUCH ASSUMPTI:jN :jF LIABILITY, 01'1. (3) AIRCRAFT IN THE
CARE, CUSTODY OR CONTROL OF ANY INSURED;
E. UNDER C:"JVERAGE (C) TO (1) LIABILITY OF THE INSURED
ARISING IN WHOLE, OR IN PART, OUT OF ANY INSURED
OBTAINING REMUNERATION CR FINANCIAL GAIN TO WHICH THE
INSURED WAS NOT LEGALLY ENTITLED, (2) LIABILITY ARISING
OUT OF THE WILLFUL VIOLATION OF A PENAL CODE OR
:cRDINANCE C:jMMITTED BY 'JR WITH THE K~WWLEDGE OR CONSENT
:F ANY IN:URED; EXCEPT THAT ANY FACT PERTAINING TO ANY
M'E INSURED SHALL ~roT BE IMPUTED TO ANY OTHER INSURED
FCR THE PURPOSE OF DETERMINING THE APPLICATION OF THESE
EXCLUSIONS;
F. UNDER COVEFAGE C TO (1) LIABILITY OF ANY INSURE:J
ARISING OUT OF ESTIMATES OF PROBABLE COSTS OR COST
ESTIMATES BEING EXCEEDED OR FAULTY PREPARATION OF ~
SJ'''''''O, Tl4'Tf"}\'T'-r'it-I.:,: i:1R PLANS, OR (2) TO INJURY TO,
DESTRUCTION OR DISAPPEARANCE OF ANY TA~:GIBLE PROPERTY
(INCLUDING MONEY) OR THE LOSS OF USE THEREOF;
G. TO ANY LIABILITY ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THE :PERATION CF THE PRINCIPLES OF EMINANT DOMAIN,
CONDEMNATION PROCEEDINGS, OR !NVERSE CONDEMNATION, BY
WH~TEVER NA~4E G~Lr.ED, I,jHETHER SUCH LIABILITY ACCRUES
DIRECTLY ~GAINST THE INSURED OR BY VIRTUE OF ANY
II.GREEMENT ENTERED INTO BY OR ON BEHALF OF THE INSURED.
.
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H _ TO BODILY INJURY OR PROPERTY DAMAGE AP.ISING O'eT :JF TP.E
DISCHARGE, DISPERSAL, RELEASE OR ESCAPE C:;O SMOKE,
VAPORS, S80T, FUMES, ACIDS, ALKALIS, TOXIC CHE~HCAc,S,
LIQUIDS OR GASES, WASTE MATERIAL OR OTHER IRRITANTS,
CONTAMINANTS OR POLLUTANTS INTO OR UPON LAND, ~
A~ WATER COURSE OF BODY OF ~ATER.
9'
I. ANY LIABILITY ARISING OUT OF THE PROVISIONS OF THE:
1 .
EMPLOYEE RETIREMENT INCOME
(ERISA), PUBLIC LAW 93-406;
AS THE PENSION REFORM ACT OF
SECURITY ACT OF 1974
COMMONLY REFERRED TO
1974.
2. SECURITIES ACT OF 1933 OR THE SECURITIES EXCHANGE
ACT OF 1934; AND ANY AMENDMENTS THERETO; OR THE
PROVISIONS OF AWl SIMILAR FEDERAL, STATE OR LOCAL
STATUTE, OR COM!~')N LAW.
J. ARISING OUT OF OR CAUSED OR CONTRIBUTED TO BY ANY
OWNERSHIP, MAINTENANCE, OPERATION, USE OR CONTROL OF OR
RESPONSIBILITY FOR ANY AIRFIELD, AIRPORT, RUNWAY,
:iANIJAR, BUILDING OR OTHER PROPERTY OR FACILITY DESIGNED
FOR, USED CONNECTED, ASSOCIATED OR AFFILIATED WITH OR
IN ANY WAY RELATED TO AVIATION OR AVIATION ACTIVITIES.
K, FOR INJURY, SICKNESS, DISEASE, DEATH OR DESTRUCTION DUE
TO THE RENDERING OF OR FAILURE TO RENDER ANY
PROFESSIONAL SERVICE BY ANY DOCTOR, SURGEON, DENTIST,
HOSPITAL OR CLINIC.
L. ARISING OUT OF OR CAUSED OR CONTRI3UTED TO BY ANY
A.
B.
~ WHETHER OR NOT DECLARED,
CIVIL WAR.
INSURRECTtON, P~BELLION OR REVOLC~ION
.~
'-'.
')'P. A.NY ACT I ERP'lJR, (jr,1I::;:3IO~f C!t C':::tr~'ITTON INCIDEN':' TO
ANY
1. OF THE FOREGOING OR
2. SUPPRESSION OF ATTEMPT TH?EA: WITH RESPECT TO ANY
OF THE FOREGOING.
M.
ARISING CUT OF, IN CONNE8~!ON
CONTRISUTED TO BY ANY FAILURE OR
.~NY ADEQUATE QU.~NTITY OF F':.WER,
FUEL, OR WAT~R.
WITH OR CAUSED OR
INABILITY TO SUPPLY
STEAM, PRESSURE, OR
N. ARISING OUT OF OR CAUSED OR CONTRIBUTED TO BY ANY
ACTUAL OR ALLEDGED ILLEGAL DISCRIMINATION.
c. TO ANY c, IABILITY, CLAIM, DEMAND OR CAUSES OF ACTION
ARISING OeT OF OR RESULTING FROM EITHER SEXUAL ABUSE OF'.
LICENTIOUS, IMMORAL OR SEXUAL BEHA'JIOR, WHETHER CAUSECl
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BY, OR AT THE INSTIGATION OF, 'JR AT THE DIRECTIOn OF OR
OMISSION BY, THE INSURED, HIS EMPLOYEES, PATRONS OR ANY
OTHER INSUREDS UNDER THIS POLICY,
p, TO ANY LI.!l.BILITY ARI:3ING onT OF' INJURY TO VOLUNTEER
:;'IREMEN.
VII. DEPINITIONS
"AUTOMOBILE", EXCEPT vIHERE STATED TO THE CONTRARY, THE WORD
"AUTOMOBILE" MEANS A LAND MOTOR VEHICLE OR TRAILER AS FOLLOWS:
A, OWNED AUTOMOBILE - AN AUTOMOBILE OWNED BY THE NAMED
INSURED;
B.
HIRED AUTOMOBILE - AN AUTOMOBILE USED UNDER CONTRACT IN
BEHALF OF, OR LOANED TO, THE NAMED INSURED PROVIDED
SUCH AUTOMOBILE IS NOT OWNED BY OR REGISTERED IN THE
NAME OF (A) THE NAMED INSURED OR (B) AN OFFICER,
SERVANT OR EMPLOYEE O~ THE NAMED INSURED WHO IS GRANTED
P.N OPERATING ALLOWANCE OF ANY SORT FOR THE USE OF SUCH
AUTOMOBILE;
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NON-OWNED AUTOMOBILE - ANY OTHER AUTOMOBILE.
THE FOLLOWING DESCRIBED EQUIPMENT SHALL BE DEEMED AN AUTOMOBILE
WRILE TOWED BY OR CARRIED ON AN AUTOMOBILE NOT SO DESCRIBED, BUT
NOT 'JTHEPWISE: IF' OF' 'rHE CRAWLER-TYPE, ANY TRACTOR, POWER CRANE
OR SHOVEL, DITCH OR TRENCH DIGGER; ANY ARM-TYPE TRACTOR; ANY
CON'~RETE MIXER. OTHER TI~~N ::"' THE MIX-IN T!lANSIT TYPE; ANY GRADER,
SCRAPER, ROLLER OR "'ARM IMPLEMENT; AND, IF NOT SUBJECT TO MOTOR
VEHICLE RE'3ISTRATION, ANY OTHER EQUIPMENT N':'T SPECIFIED BELOW,
WHICH IS DESIGNED FOR USE PRINCIPAL~Y OF~ PUBLIO ROADS.
THE FOLLOWING DESCRIBED EQUIPMENT SHALL BE DEEMED AN AUTOMOBILE
vIHJ:t~ ':'C:NE~ BY OR CA.RRIED ON .~N AU,!,(1M('~,!LE AS ABOVE DEFINE:)
,;("r.ELY F(lP PUP:P'JSES OF TRANSFOF'.TATION (:~. WHILE BEING I)PERATE:J
SOLELY F'OR LOCOMOTION, BUT NOT ~THERWISE. I"' C~ THE ~ON-CRAWLER
':'Y?E, ANY POWER CRANE (IR SHOVEL, DITe:! r:\~ '!''fJ.~N(jH DIGGER; AND ANY
.!l.IR COMPRESSING, BUILDING OR VACtlUM '~':.EA~Jn!'3 SPRA'lING OR WELDING
EQUIPMENT OR WELL DRI:LING MAC~INERY.
"USE". USE OF AN At:TGMC3ILE OR A~P':'RAF'!' :~r::'L!JDES THE LOADING AN')
UNLOADING TEERECF.
"COMPLETED OPERATIONS HAZARD", "C:J~''='T.ETF~ '-'PERATIONS HAZARD"
rJ1EANS E,')DILY INJ'TJF':! A.ND PP'r")~EP.'!'Y DAMA~~~ :'.?ISING OUT OF OPERATIONS
OR RELIANCE UPO~! A ?E?RESENTATI:JN OR WARRA~JTY MADE AT ANY TIW::
WITH RESPE~T THERETO, EUT ONLY IF THE 91)S:L? INJURY OR ?~O?E?TY
DAMAGE OCCURS AFTER 'ollCH ()P1"R.~TIONS EA'!E BEEN COMPLETED OR
~BANDONED AND OCCURS Ii.WA'l FROM PREMISES ':.NNED B'1 OR REtITED TO THE
NA.MED INSURED. lI()PERATTC~sa T~rl:LlTD:: ~.u,.,!,'Z:?:!:A.:S, PA~_TS n?
EQnIPMENT FCRNISHED IN CONNECTION TqEREWITH. OPERATIONS SHALL EoE
n~EMED ~:)MPtETED AT ~~~ EA~LI~ST 0~ ~~! F~LLCW!NG TIMES:
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A.
WHEN ALL :=:FERATTONS
THE NAMED :~ISURE~
COMPLETED.
TO 9E PERFORMED BY ~R ON EEHA~F ~F
UNDER THE CONTRACT EAVE BEEN
B. WHEN ALL OPERATIONS TO BE PERFORMED BY ()R ON BEHAi.F CF
~~! NAMEO INSURED AT THE SITE OF THE OPERATIONS HAVE
BEEN COMPLETED, OR
C. WHEN THE PORTION OF THE WORK OUT OF WHICH THE IN3URY OR
D~MAGE ARISES HAS BEEN PUT TO ITS INTENDED USE BY ANY
PERSON OR ORGANI:':ATTCN OTHER THAN OTHER CONTRACTOR OR
SfJBCGNTRACTOR ENGAGED IN PERFORMING OPERATIONS FOR A
PRINCIPAL AS A PART OF THE SAME PROJECT.
OPERATIONS WHICH
OR 'J:JRRECTION,
DEFICIENCY, BUT
COMPLETED.
MAY REQUIRE FURTHER SERVICE OR MAINTENANCE "GRK,
REPAIR OR REPLACEMENT BECAUSE OF ANY DEFECT OR
WHICH ARE OTHERWISE COMPLETE, SHALL BE DEEMED
THE COMPLETED OPERATIONS HAZARD DOES NOT INCLUDE BODILY INJURY OR
PRGPERTY DAMAGE ARISING OUT OF:
.~.
OPERATIONS IN CONNECTION WITH THE
P?CPERTY, ~,~fLESS THE BODILY INJURY
ARISES OUT OF A CONDITION IN OR ON A
THE LOADING OR UNLOADING THEREOF,
TRANSPORTATION OF
OR PROPERTY DAMAGE
VEHICLE CREATED BY
B, THE EX:r'3TE~ICE OF TOOLS, UNINSTALLED EQUIPMENT OR
ABANDONED OR UNUSED MATERIALS, OR
,~
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OPER!\.TIC~lS FOR WHICH THE :JLASSIFICATION STATED IN THE
":::'OMPA~Y':3" MANUAL '3PEC!FIEIJ II :~GtUD!NG COMPLETED
CPERATIONS",
"ERRORS AND OMMISSIONS". "ERR:JRS
MISFEASANCE, MALFEASANCE OF NONFEASANCE
AND '~r--'M~SSIONSII
MEA:~S
BY ~_~~y :::N'3C~.ED.
"INSURED". "!NSURED" MEANS ANY PERSON OR OR'JANI:::ATION QUALIPYING
,AS AN INSURED UNDER THE PERSONS :OR ENTITIES I~!StTRED SEC':'ICN 0"'
TH:S POLICY. THE WORD "INSURED" INCLUDES THE 'fAMED INSURED.
"NAMED INSURED I S PRODUCTS". "NAMED INSURED I S PRODUCTS" ~lEANS
'~CCDS OR PRODUCTS MANUFACTUR~D, SOLD, HANDLED 8R DISTRIBUTED BY
THE NAMED INSURED OR BY OTHERS TRADING UNOE? HIS NAME INe~UDING
~nY ::('~l'~AI~!~P T:~~?~'JF (OT!iEP. T~A~ ~ '\'..."EPICL~~ BUT Il~AMED INSUR~D
PPODUCTS" ',HALL NOT !tlCLUDE A VENDING MACHINE OR ANY PROPERT'!
':-T~~R T~_~N SUCH A C(;~J'!'~IN1!R / RE!J'!''E~ TO :)~. !.:1CAT~D FOR USE OF
OT~ERS BUT ~OT SOtD.
"OCCURRENCE". ~s ?ESPECTS C~JVE?AG~S A AND B, llOC:CURRENCE" MEAr-:S
,A:I A::C:DENT, OR EVENT INCLUDING CONTI~lJOUS OR REPEATED EXPOSUPE
TO 'J'='NDIT!ONS. r..;HI'c~ RESULTS :~I BCDILY INJ'JRY OR PROPERTY DA.MAGE
!-1EITHER EXPE'cTED NOR INTEN!:E!:' FP':M THE STANDPOINT OF THE INSURED;
A.S t:>,ESPECT C;OVERAGE (C), "oe'::URRENCE" MEANS ANY ACTUAL OR ALLEGE!:'
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ERRORS OR OMISSIONS BY AN INSURE~ WH:~H PES~~TS:N :NJURY ~R
~:'J.~A.I~E NEITHER EXPEC~E~ ~r~~R T~tTENDED FRO~1 '!'::~ '3TArrDPO!~1~ (:'~ THE
r,':;'JRED; AS RESPECTS '~OVERAGE (D) ",XCURRENCE" ~,1EANS Jl..NY nfJU,,"
OR DAMAGES SUSTAINED BY A~;Y PERSON '3R OR,:;A~II'ZATICN AND ARISING
:jUT OF' PERSONAL INJURY AS DEFINED HEP,EIN,
"PERSONAL INJURY". "PERSONAL DlJURY" MEA}!S (A) FALSE ARREST,
DETENTION, OR IMPRISONMENT OR MALICIOUS PROSECUTION; (Bl
PUBLICATION OR UTTERANCE OF' A LIBEL OR SLANDER OR OF <nHER
DEFAMATORY OR DEROGATORY MATERIAL, OR A PUBLICATION OR UTTERANCE
IN VIOLATI::N OF AN INDIVIDUAL'S RI'3R':' OF PRIVACY EXCEPT WHEN ANY
OF THE FOREGOING OF THIS PART (B) ARISES FROM PUBLICATIONS OR
UTTEP,ANCES IN THE GOUP'sE OF OR RELATED TO ADVERTISING,
SROADCASTING, OR TELECASTING ACTIVITIES CONDUCTED BY OR ON BEHALF
OF THE NAMED INSURED; (Ci WRONGFUL ENTRY OR EVICTION OR OTHER
INVASION OF THE RIGHT OF' PRIVATE OCCUPANCY; (D) ASSAULT .AND
BATTERY, NOT COMMITTED BY OR AT THE DIRECTII)N OF THE NAMED
INSURED UNLESS COMMITTED FOR THE PURPOSE OF PROTECTION OF PERSONS
OR PROPERTY; (E) RACIAL 13R RELIGIOUS DISCRIMINATION, NOT
COMMITTED BY OR AT THE DIRECTION OF THE NAMED INSURED.
"BODILY INJURY", "EODILY INJURY" HEANS BODILY INJURY, SICKNESS,
OR DISEASE, INCLUDING DEATH AT ANY TIME RESULTING THEREFROM AND
ALSO INCLUDES CARE AND LOSS OF SERVICES SUSTAINED BY ANY PERSON
OR PERSONS.
"POLICY TERRITORY".
t1C!'/,LD.
"POLICY TERRITORY" MEANS ANYWHERE IN THE
"PRODUCTS HAZARD". "PRODUCTS HAZARD" INCLUDES BODILY INJURY AND
;:'RCPE~T"l ~A.~1A(:;E ART'3Ir!G CTJ~ OF T~~ ~L~MED I~TSURE~ I S PRODUI:TS OR
R.ELIA~CE UPON A REPRESENTATION CF WAR!'.ANTY "'A~E AT ANY TIHE WITH
PESP~r.T THERETO, BUT ONLY IF THE BODILY :N~URY OR PROPERTY DAMAGE
'~cct;I'S AWA'! FROM FREHISES OWNED BY m' PENT ED ~.~ ~HE NAMED INS'.JRED
~~~ AFTF.~ P~Y~IC~L PCSSESS!ONS O~ SUC~ ?~~DUCTS HAS BE~N
?=::r..INQT]:'3H~n ':'0 eTHERS.
npROPERTY DAMAGEIt. "PROPEP.TY DA.~AGEII ~'~E~!r:::: ::) PHYSICAL IN.n~R"!
T;] !:-i'R :'~:::;~~:Jr':'TGN OF TANGIBLE PRCP~'RT"! rJJ:!Ic:r 'Jrj.~t"RS DUR'rNG pct:c"!
PER!O:>, INCLUDING THE LtJSS 'JF T.J3E: T!!E2EOF ;"7 _~NY TIME ~ESU!. T:~l-::
7HEREFROM I OR (2) !./JSS OF USE ()F TANGT3!.F. ~?_8P~~TY WHICH HAS !Slj'!,
BEEN PHYSICALLY INJtJP!D 'J? DESTROYED, S~!CH ~oss OF USE IS CAUSED
BY AN OCCURRENCE DU~T~l(; ~H~ ~c:::c"! ?E~'":'::~.
"ALLOCATED CLAIMS EXPENSES". ".'\LLOCATED '~:,~.I~~S 1':XPENSES" 'oHALL
MEAN ~L~ COPqT COSTS, FEES, AND EYP~~SFS; ?~ES FOR SERV!C! OR
PROCESS; F~ES TO ~TTOFNEYS; ~:CSTS OF ~J~~~RC::VER OPERAT!VE AND
DE'r'EC~IVE '3~RV!CES; ::":iSTS OF ~r.1PLOYI~rC ~~{P~~~'~ ?C~ PREPl\RATTo~r nF
MAPS, PHOTOGRAPHS, D!AGPAMS; CHEM:~AL OR P~~S~~A~ ANALYSIS OR F::?
ADVICE, OPINION C1R TESTTHO~TY .~:J~~r-:'F:?!l~~::"; CLA.I~S tTMDE?
!NVES~IGA~:ON; 8aS~S FGR L~G~L ~RAN3~?~~~S 8~ T~9TIMONY T~KEN A~
CORONER'S :NQCES~, ~~~~IN~r, O~ CTV!L FP~CEEDI~GS; COSTS ~OP
Cr~PTES OF A~l pnE~-,!~:' ~.:,r;C;~DS; COSTS '~lF '"::EP:~':;TT!ONS AND c~)upr!"
P~FliRT~R OR ~.~CCRD::D3T.~':'"S~E~r~S; A.ND A!!Y ()THE~ SIMILAR FEE j r:CST I
CR EXPENSE ."EJl..SONABL Y '~HARGEABLE TO T!!E INVESTIGATIO'f,
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SETTLEMENT, OR DEFENSE OF A CLAIM OR LOSS, OR TO THE PROTECTION
AND PERFECTION OF THE SUBROGATION RIGHTS OF T~E ~IAMECl Iusr_'~E'J.
ALLOCATED CLAIMS EXPENSES SHALL NOT INCLUDE FEES PAID T'e A~lY
COMPANY FOR ANY CLAIMS SERVICES WHICH CANNOT BE CHARGE~ TO A
SpeC!F!~ 8LAIM OF ~OSS.
"ULTIMATE NET LOSS". "ULTIMATE NET LOSS" MEANS THE SUM ACTUALLY
PAID OR ?AYABLE IN CASH IN THE SETTLEMENT OR SATISFACTION OF
LOSSES FOR WHICH THE INSURED IS LIABLE EITHER BY ADJUDICATION OR
COMPROMISE WITH THE WRITTEN CONSENT OF THE "COMPANY", AFTER MAKE
PROPER DEDUCTION FOR ALL RECOVERIES AND SALVAGES COLLECTIBLE, AND
INCLUDES ATTORNEY'S FEES, COURT COSTS AND INTEREST ON ANY
JUDGEMENT OR AWARD, BUT EXCLUDES ALL LOSS ADJUSTMENT EXPENSES AND
ALL SALARIES OF EMPLOYEES AND OFFICE EXPENSES OF THE INSURED THE
"COMPANY" OR ANY UNDERLYING INSURER OF SELF INSURER SO INCURRED.
VIII. CONDITIONS
A. INSPECTION AND AUDIT
THE "COMPANY" SHALL BE PERMITTED BY OBLIGATED TO INSPECT THE
INSURECl'S PROPERTY AND OPERATIONS AT ANY TIME. NEITHER THE
"COMPANY'S" RIGHT TO MAKE INSPECTIONS NOR THE MAKING THEREOF
NOR A.NY REPORT THE!'.EON SHALL CONSTITUTE AN UNDERTAKING, ON
BEHALF OF OR FOR THE BENEFITS OF THE INSURED OR OTHERS, TO
DETER~INE OR WARRANT THAT SUCH PROPERTY OR OPERATIONS ARE
SAFE OR HEALTHFUL, OR ARE IN COMPLIANCE WITH ANY LAW, RULE
OR <;>EGULATIONS, THE "COMPANY" MAY EXAMINE AND AUDIT THE
INSURED'S 300~S AND RECORDS AT ANY TIME DURING THE POLICY
PE<;>IOD AND EXTENSIONS THEREOF AND WITHIN THREE yEARS AFTER
THE FINAL TERMINATION OF THIS POLICY, AS FAR AS THEY RELATE
TO THE SUBJECT MATTER OF THIS INSURANCE.
B. SEV~?~E!L:TY OF INTEREST
THE TERMS "THE INSURECl" IS US":D SEVERALLY AND NOT
COLLECTIVELY, BUT THE INCLUSION HEPEIN OF MORE THAN ONE
INSURED SHALL N:)T 'JPERATE TO INCREASE THE LIMITS OF THE
"COMPANY'S" LIABILITY.
C. I~JS~~~E~ I >3 'J~..:''iT::S :~~ T~E EVENT lJF OCCURRENCE I CLA!~ OR SUIT
-
1. IN THE EVENT OF AN OCCURRENCE,' WRITTEN NOTICE
:J:JNTAINIHG PA:1.TICULARS SUFFICIENT TO IDENTIFY THE
INSUR.ED AND ALSO R.EASONABLY OBTAINABLE INFORMATION IHTH
RESFEST TO TEE TIME, PLACE AND CIRCUMSTANCE THEREOF,
AND THE NAMES AND ADDRESSES OF THE INJURED AND OF
AT:~!LABLE WIT~~SSES, SE~~~ B~ ~IVEN BY OR FOR THE
I~ISURED TO THE "C:)I4'C'ANY" OR ANY 'oF ITS AUTHORIZED
A3~NTS AS SC~~ ,~ ~RACT~CABtE.
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2. WHENEVER ':'HE :~lSt1~ED H'-.S INFORMATION FROM WHICH ':'HE
INSURED MAY ~E!UONAELY CONCLUDE ':'H_l\.T '-.N OSC'J?RENCE
COVERED HEREUNDER INVOLVES nlJl~~IES O~ :J'-.MAGE WHICH, 1:1
THE EVENT ':'HAT THE INSURED EE HELD LIABLE, IS LIKELY TO
INVOLVE THIS POLICY, NOTICE SHALL BE GIVEN BY OR ON
BEHALF OF THE INSURED TO THE COMPANY OR ANY OF ITS
AUTHORIZED AGENTS AS SOON AS PRACTICABLE, PROVIDED
HOWEVER, THAT FAILClRE TO GIVE NOTICE OF ANY OCCURRENCE
WHICH AT THE TIME OF ITS HAPPENING DID NOT APPEAR TO
INVOLVE THIS POLICY BUT WHICH, AT A LATER DATE, WOULD
APPEAR TO GIVE RISE TO CLAIMS HEREUNDER SHALL NOT
PREJUDICE SUCH CLAIMS.
'3. THE INSURED SHALL COOPERATE WITH THE "COMPANY" AND,
UPON THE "COMPANY'S" REQUEST ASSIST IN MAKING
SETTLEMENTS, IN THE CONDUCT OF SUITS AND IN ENFORCING
ANY RIGHT OF CONTRIBUTION OR INDEMNITY AGAINST ANY
PERSON OR ORGANIZATION WHO MAY BE LIABLE TO THE INSURED
BECAUSE OF INJURY OR DAMAGE WITH RESPECT TO WHICH
INSURANCE IS AFFORDED UNDER THIS POLICY: THE INSURED
?,HALL ATTEND HEARINGS AND TRIALS AND ASSIST IN SECURING
AND GIVING EVIDENCE AND OBTAINING THE ATTENDANCE OF
WITNESSES. THE INSURED SHALL NOT, EXCEPT AT HIS OWN
COST, VOLUNTARILY MAKE ANY PAYMENT, ASSUME ANY
OBLIGATION OR INCUR ANY EXPENSE; HOWEVER, IN THE EVENT
THAT THE AMOUNT OF ULTIMATE NET LOSS BECOMES CERTAIN
EITHER THROUGH TRIAL COURT JUDGEMENT OR AGREEMENT AMONG
':'HE INSURE:J, ':'HE CLAIMANT, AND THE "COMPANY", THEN THE
INSURED MAY PAY THE AMOUNT OF ULTIMATE NET LOSS TO THE
CLAIMANT TO EFFECT SETTLEMENT AND, UPON SUBMISSION OF
DUE PROeF THEREOF, THE "COMPANY" SHALL INDEMNIFY THE
INSURED FOR THAT PART OF SUCH PAYMENT WHICH IS IN
E:{CESS OF THE RETAINED LIMIT, OR, THE "COMPANY" WILL
UPON REQUEST OF THE INSURE:J, MAKE SUCH PAYMENT TO THE
CLAIMANT ON BEHALF OF THE INSURED.
~.
c.Jo
APPEALS
IN THE EVENT THE INSURED ELECTS NOT TO APPEAL A JUDGEMENT IN
EXCESS Oll' THE RETAINED LIMIT, THE "Cm~PANY" MAY ELECT TO DO
SO AT ITS OWN EXPENSES, AND SHALL BE LIABLE FOR THE TAXABLE
COSTS, DISBURSEt1ENTS !Um INTEREST INCI!:'ENT.!\.L ':'HERETO, BUT IN
NO EVENT SHALL THE LIABILIT'1 OF THE "CCMPANY" FOR ULTIMATE
NET ::'OSS EXCEED THE AMOUNT SPECIFIED IN THE LIMIT OF
LIABILITY SECTION OF THE DECLARA~ICNS P::'US THE TAXABLE
COSTS, 8IS3URSEMENTS, AND INTEREST INCIDENTAL TO SUCH
APPEAL.
E. ACTION AGA:NST THE '~ilMPA.NY_
!fO ACTION
cn!'lnTT,!:ON
COMPLIE
AMOUNT CF
SHALr. LIE _~GAINST THE "COr-1P~NY" UNLESS, AS A
pp"r."'1ENT THERETO, THE INSURED SHALL HAVE FULLY
, ~~" TERMS OF THIS PO ~, NOR UNTIL THE
THE INSr:RED' S OBLIGATION TO PAY AN AMOUNT 'JF
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ULTIMATE NET LOSS IN EXCESS OF THE RETAINED LIMIT SHA~L HAVE
BEEN FINALLY DETERMINED EITHER BY JUDGEMENT AGAINST THE
INSURED AFTER ACTUAL TRIAL OR BY WRITTEN AGREEMENT GF THE
INSURED, THE CLAIMANT, AND THE "COMPANY", THE INSURED SH.I\,LL
MAXE A DEFINITE C~AIM FOR ANY LOSS IN WHICH THE "COMPANY"MAY
BE LIABLE WITHIN A REASONABLE TIME AFTER SUCH FINAL
DETERMINATION, IF ANY SUBSEQUENT PAYMENTS ARE MADE BY THE
INSURED ON ACCOUNT OF THE SAME OCCURRENCE, THE INSURED SHALL
MAXE ADDITIONAL CLAIMS FROM TIME ':'0 TIME AND THESE CLAIMS
SHALL BE PAYABLE WITHIN THIRTY (30) DAYS AFTER PROOF IN
CONFORMITY WITH THIS POLICY. ANY PERSON OR ORGANIZATION OR
THE LEGAL REPRESENTATIVE THEREOF WHO HAS SECURED SUCH
JUDGEMENT OR WRITTEN AGREEMENT SHALL THEREAFTER BE ENTITLED
TO RECOVER UNDER THIS POLICY TO THE EXTENT OF THE INSURANCE
AFFORDED BY THIS POLICY. NOTHING CONTAINED IN THIS POLICY
SHALL GIVE ANY PERSON OR ORGANIZATION ANY RIGHT TO JOIN THE
"COMPANY" AS A CO-DEFENDANT IN ANY ACTION OF BANXRUPTCY, OR
THE INSOLVENCY OF THE INSURED SHALL NOT RELIEVE THE
"COMPANY" OF ANY OF ITS OBLIGATIONS HEREUNDER.
F. OTHER INSURANCE
IF COLLECTIBLE INSURANCE WITH ANY INSURER IS AVAILABLE TO
THE INSURED COVERING A LOSS ALSO COVERED HEREUNDER, THE
INSURANCE HEREUNDER SHALL BE IN EXCESS OF, AND NOT
CONTRIBUTE WITH, SUCH OTHER INSURANCE PROVIDED, HOWEVER,
THIS DOES no':' APPLY TO INSURANCE WHICH IS WRITTEN AS EXCESS
INSURANCE OVER THE "COMPANY'S" LIMIT OF LIABILITY PROVIDED
IN THIS POLICY.
WHEN BOTH THIS INSURANCE AND OTHER INSURANCE APPLY TO THE
LOSS ON THE SAME BASIS, WHETHER PRIMARY, EXCESS OR
CONTHmENT, THE "COMPANY" SHALL NOT BE LIABLE UNDER THIS
POLICY FOR GREATER PROPORTION OF THE LOSS THAN ':'HAT STATED
IN THE APPLICABLE CONTRIBUTION PROVISION BELOW:
1. CONTRIBUTION BY EQUAL SHARES. IF AL~ OF SUCH OTHER
'JAL ID AND COLLECTIBLE INSURA~ICE PROVIDES FOR
CONTRIBUTION BY EQUAL :,HARES, THE "COMPANY" SHALL NOT
BE LIABLE FOR A GREATER PROPORTION OF SUCH LOSS THAN
WOULD BE PAYABLE IF EACH INSURER OONTRIBUTES AN EQUAL
SHARE UNTIL THE SHARE OF EACH INSURER EQUALS THE LOWEST
APPLICABLE LIMIT OF LIABILITY UN~ER Any ONE POLICY OR
THE FULL AMOUNT OF THE LOSS IS PAID, AND WITH RESPECT
TO ANY AMOUNT OF LOSS NOT SO PAID THE REMAINING
INSURERS THEN CONTINUE TO CONTRIBGTE EQUAL SHARE OF THE
REMAINING AM:JUNT OF THE LOSS 'JNTIL EACH SUCH INSURER
HAS PAID ITS LIMIT IN FULL OR THE FULL AMOUNT OF THE
LOSS IS PAl:!.
2. CONTRIBUTION BY LIMITS. IF ANY OF SUCH OTHER INSURANCE
DOES NOT PROVIDE FOR CONTRIBUTION BY EQUAL SHARES, THE
"COMPANY" SHALL NOT BE LIABLE FOR GREATER PROPORTION OF
SUCH LOSS THAN THE APPLICABLE LIMIT OF LIABILITY UNDER
THIS POLICY FOR SUCH LOSS BEARS TO THE TOTAL APPLICABLE
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LIMIT OF ~IABILITY OF ALL VALID AND
INSURANCE AGAINST SUCH LOSS.
COLLECTIBLE
G. SURBOGATION
THE "COMPANY" SHALL BE SUBROGATED TO THE EXTENT OF ANY
PAYMENT HEREUNDER TO ALL THE INSURED'S RIGHTS OF RECOVERY
THEREOF; AND THE INSURED SHALL DO NOTHING AFTER LOSS TO
PREJUDICE SUCH RIGHTS AND SHALL DO EVERYTHING NECESSARY TO
SECURE SUCH RIGHTS. ANY AMOUNT SO RECOVERED SHALL BE
APPORTIONED AS FOLLOWS;
ANY INTEREST (INCLUDING THE INSURED'S) HAVING PAID AN
AMOUNT IN EXCESS OF THE RETAINED LIMIT PLUS THE LIMIT
OF LIABILITY HEREUNDER SHALL BE REIMBURSED FIRST TO THE
EXTENT OF THE ACTUAL PAYMENT. THE "COMPANY" SHALL BE
REIMBURSED NEXT TO THE EXTENT OF ITS ACTUAL PAYMENT
HEREUNDER. IF ANY BALANCE THEN REMAINS UNPAID, IT
SHALL BE APPLIED TO REIMBURSE THE INSURED OR ANY
UNDERLYING INSURER, AS THEIR INTEREST MAY APPEAR. THE
EXPENSES OF ALL SUCH RECOVERY PROCEEDINGS SHALL BE
APPORTIONED IN THE RATIO OF RESPECTIVE RECOVERIES. IF
THERE IS NO RECOVERY IN PROCEEDINGS CONDUCTED SOLELY BY
THE "COMPANY", IT SHALL BEAR THE EXPENSES THEREOF.
H. CHANGES
NOTICE TO ANY AGENT OR KNOWLEDGE POSSESSED BY ANY AGENT OR
BY ANY OTHER PERSON SHALL NOT EFFECT A WAIVER OR A CHANGE IN
ANY PART OF THIS POLICY OR ESTOP THE "COMPANY" FROM
ASSE?TING ANY RIGHT UNDER THE TERMS OF THIS POLICY; NOR
SHALL THE TERMS OF THIS POLICY BE WAIVED OR CHANGED, EXCEPT
BY ENDORSEMENT ISSUED TO FORM A PART OF THIS POLICY.
I. ASSIGnMENT
ASSI'~!JMENT OF INTEREST UNDER THIS POLICY SHALL NOT BIND THE
"COMPANY" UNTIL ITS CONSENT IS E~DCRSED HEREON; IF, HOWEVER,
THE NAMED INSURED SHALL BE ADJUDGED BANKRUPT OR INSOLVENT,
SUCH INSURANCE AS IS AFFORDED BY ':'HIS POL I':;Y SHALL APPLY (A)
TO THE NAMED INSURED'S LEGAL REPRESENTATIVE, AS THE NAMED
INSURED, BUT ONLY WHILE ACTING WI':'HIN THE SCOPE OF HIS
DUTIES AS SUCH, A~D (B) WITH RESPECT TO THE PROPERTY OF THE
NAMED INSURED, TO THE PERSON HAVING PROPER TEMPORARY CUSTODY
THEREOF,1\.5 PISURED, BUT ONLY UNTIL THE APPOINTMENT AND
QUALIFICATION OF THE LEGAL REPRESENTATIVE.
J. CANCELLATION
THIS POLICY MAY BE CANCELLED BY THE NAMED INSURED BY
SUP.RENDER THEREOF TO THE "'cOMPANY" OR ANY OF ITS AUTHORIZED
AGENTS OR BY MAILING TO THE "COMPANY" WRITTEN NOTICE STATING
WHEN THEREAFTER THE CANCELLATION SHALL BE EFFECTIVE. THIS
POLICY MAY BE CANCELLED BY THE "COMPANY" BY MAILING TO THE
NAMED INSURED, AT THE ADDRESS SHOWN IN THIS POLICY, WRITTEN
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NOTICE STATING WHEN ~OT LESS THAN FOR'!'Y-FT"1E (4:1) ':"~.~:.S
THEREAFTER SUCH GAN8Et~A~IO~ SHAI,t BE EFFEC~IVE. T~E
MAILING OF NOTICE AS AFORESAID SHALL BE SUFFICIE9T PROOF ~F
NOTICE. THE TIHE OF :'JURRENDER OR THE EFFECTIVE [ATE A~::::
HOUR OF CANCELLATION STATED IN THE NOTICE SHALL BECOME THE
E:-lD :jF THE P.")LIC'l PERIOD. DELIVERY OF SUCH WRITTEN NOTICE
EITHER BY THE NAMED INSURED OR BY "'!'HE "COMPANY" SHALL BE
EQUIVALENT TO MAILING.
IF THE NAMED INSURED CANCELS,
COMPUTED IN ACCOR~ANCE WITH THE
AND PROCEDURE. IF THE "COMPANY"
SHALL BE COMPUTED PRO RATA.
EARNED PREMIUM SHALL EE
CUSTOMARY SHORT RATE TABLE
CANCELS, THE EARNED PREMIUM
WHEN THIS POLICY INSURES MORE THAN ONE NAMED INSURED,
CANCELLATION MAY BE EFFECTIVE BY THE FIRST NAMED OF SUCH
NAMED INSUREDS FOR THE ACCOUNT OF ALL NAMED INSUREDS.
NOTICE OF CANCELLATION BY THE "COMPANY" TO THE FIRST NAMED
INSURED SHALL BE DEEMED NOTICE TO ALL NAMED INSUREDS AND
PAYMENT OF ANY UNEARNED PREMIUM TO SUCH FIRST NAMED INSURED
SHALL BE FOR THE ACCOUNT OF ALL NAMED INSUREDS.
PREMIUM ADJUSTMENT MAY BE MADE EITHER AT THE TIME
CANCELLATION IS EFFECTED OR AS SOON AS PRACTICABLE AFTER
CANCELLATION BECOMES EFFECTIVE, BUT PAYMENT OF TENDER OR
UNEARNED PREMIUM IS NOT A CONDITION OF CANCELLATION.
K. EXTENDED REPCRTI~G PERIOD OPTION
"';1! r'"=:~lPA~'l "~HALL PROVIDE AN EXTENDED REPORTING PERIOD
IF THE POLICY IS EITHER CANCELLED OR NOT RENEWED FOR
REASON EXCEPT NONPAYMENT OF PREMIUM.
ONLY
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2. A CLAIM F~RST MADE DtJRTNG THE EXTENDED REPrJ?TING PE~!O~ w:~:
BE CEEMED TO HAV~ BEEN MADE ON THE tAS~ ~~y OF T~E FO:IC~
F~~I~D. PROVIDED THAT THE CLAIM IS FOP DAMAGES THAT OCCURRED
BEF8?E ~HE END OF THE POLICY PE~~~~ ~~~ ~OT SE~ORE ANY
APPLICABLE RETROACTIVE DATE.
"3. THE EXTENDED REPORTING F'E?!CD ',lILL 'lCT RET!lSTATE OR INCREASE
THE LIMITS OF LIABILITY OR EXTEND THE PCLI'~Y ?ERIOD"
4. THE EXTENn~D P::::PO~.TI!r;:: PE?!OD WI!..!.. SF ~S SE".:' FORTH BELOW:
A, IF NO OTHER. INSURANCE 'lOti P'JRCHA"3E TO REPLACE THIS
POLICY A??~I~S "'~ ~HE CLAIM OR WOnLD APPLY BUT FOR THE
EXHAUSTION 0F ITS APPLICABLE ~T T S :JF tIAEIL!TY, AN~
EX"I'ENDED REPCRTTUG PER::C1J r)? I=' _:~YS FROM THE END C!i'
THE FOLICY PER.I'cD WILL A?PL' . ..1"3 EXTENDED REPORTING
PERIOD MAY ~OT BE CANCELLED AND REQUIRES NO ADDITIONAL
?R.EMIUM"
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B.
IF THE "INSURED" MAKES A WRITTEN REQUEST FOR AN
EXTENDED REPORTING PERIOD WITHIN 30 DAYS AFTER THE
EXPIRATION OF THE POLICY PERIOD AND P.ll.YS THE AD!:'ITI':'!lAL
PREMIUM WITHIN 30 DAYS AFTER SAID REQUEST, WE MAY AT
THE DISCRECTION OF THE COMP~NY OR IT'S AU'!'HORI'1:E!:'
AGENT(S) ISSUE AN EXTENDED RE~ORTING ENDORSEMENT FOR A
PERIOD OF THREE YEARS FROM THE END OF THE POLICY
PERIOD.
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THE EXTENDED REPORTING PERIOD ENDORSEMENT WILL ALSO
AMEND THE OTHER INSURANCE CONDITION SO THAT THE
INSURANCE PROVIDED WILL BE EXCESS OVER ANY OTHER VALID
AND COLLECTIBLE INSURANCE AVAILABLE TO THE "INSURED"
WHETHER PRIMARY, EXCESS, CONTINGENT OR ON ANY OTHER
BASIS, WHOSE POLICY PERIOD BEGINS OR CONTINUES AFTER
THE ENDORSEMENT TAKES EFFECT.
5. THE PREMIUM FOR THE EXTENDED REPORTING PERI ORSEMENT
(SECTION 4. (B) ABO OT EXCEED 200" OF THE
ANNUAL PREMIUM FOR THIS POLICY AND WILL BE FU ----- NED WHEN
THE ENDORSEMENT TAKES EFFECT. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO WAIVE THE ASSESSMENT PROVISIONS OF THIS
POLICY.
L. ASSESSMENTS
EACH INSURED SHALL BE OBLIGATED TO AND SHALL PAY AMOUNTS AS
HEREINAFTER PROVIDED WHICH AMOUNTS ARE HEREIN CALLED
"ASSESSMENTS." SUBJECT TO THE PROVISIONS HEREOF, THE
COMPANY OR ITS DESIGNATED AGENT(S), SHALL HAVE THE POWER AND
AUTHORITY TO DETERMINE ALL MATTERS IN CONNECTIONS WITH
ASSESSMENTS, INCLUDING WITHOUT LIMITATION, POWER AND
AUTHORITY TO DETERMINE WHERE, WHEN AND HOW ASSESSMENTS
SHOULD BE PAID AND EACH INSURED SHALL COMPLY WITH SUCH
DETERMINATIONS.
M. DETERMINATION OF ASSESSMENTS
THE COMPANY OR ITS DESIGNATEC: :'GENT(S) SHALL LEVY
ASSESSMENTS TO COVER ANY DEFICIENCY AT ANY TIME AND OR
WHATEVER REASONS THE COMPANY DETERMINES IN THE EXERCISE OF
ITS GOOD FAITH JUDGEMENT THAT THE AMOUNT OF FUNDS AVAILABLE
IS LESS THAN THE AMOUNTS REASONABLY ANTICIPATED TO BE
NECESSARY TO PAY CLAIMS COVERED UNDER THIS POLICY. COMPANY
OR ITS DESIGNATED AGENT(S) SHALL NOTIFY IN WRITING [THE
"ASSESSMENT NOTICE"} EACH INSURED OF THE LEVY OF ASSESSMENT
AND THE DATE FIXED FOR THE PAYMENT THEREOF.
N. APPORTIONMENT OF ASSESSMENTS
THE AMOUNT OF "IIY ASSESSMENT PAYABLE BY EACH INSURED SHALL
BE COMPUTED BY MULTIPLYI!'IG THE TOTAL Al10UNT TO BE RAISED E'l
EACH I!'IStTRED ORIGINAL PERCENTAGE TO THE ORIGINAL
CAPITALIZATION FOR THE POLICY TERM, DETERMINED TO HAVE :.
SHORTAGE OF FUNDS TO PAY CLAIMS AND EXPENSES.
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O. TIME FOR PAYMENTS OF ASSESSMENTS
THE AMOUNT OF ANY ASSESSMENT SHALL BECOME DUE AND PAYABLE AS
SPECIFIED IN THE ASSESSMENT NOTICE OR, IF NOT SO SPECIFIED,
WITHIN THIRTY (30) DAYS AFTER RECEIPT OF THE ASSESSMENT
NOTICE. ANY INSURED SHALL BE DEEMED DELIQUENT IN THE
PAi~ENT OF ANY ASSESSMENT IF SUCH !NSURED FAILS TO PAY THE
SAME WHEN IT IS DUE AND PAYABLE. DELINQUENT PAYMENTS SHALL
CARRY AN INTEREST PENALTY OF TWO PERCENT (2%) OVER THE
PREVAILING PRIME INTEREST RATE, BEGINNING ON THE DATE WHEN
THE ASSESSMENT IS DUE AND PAYABLE.
P. ACCEPTANCE
BY ACCEPTANCE OF THIS POLICY, THE NAMED INSURED AGREES THAT
THE POLICY EMBODIES ALL AGREEMENTS EXISTING BETWEEN INSURED
AND THE "COMPANY" OR ANY OF IT'S AGENTS RELATING TO THIS
INSURANCE.
ATTACHED TO AND FORMING PART OF POLICY NUMBER
OF THE MAGNA CARTA INSURANCE LTD
DATED AT:
THIS
DAY OF
19_
COUNTERSIGNED BY:
ACCEPTED BY:
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