HomeMy WebLinkAbout1996-06-24 96-294 ORDERCOUNCIL ACTION
Data: 6-24-96 Item No. 96-294
Item/Subject: ORDER, Authorizing the Renewal of the City's
Property antl Casualty Insurance with Coregis
Insurance Company
Responsible Department: Finance Department
Commentary: Charlie Mitchell has been working with our
agency, Dunlap, to receive quotes on the annual renewal of insurance
cthe City's
property and casualty i Dunlap has provided two quotes: one
from Coregis Company, our current insurer, and asand from the Great
American Insurance Company. copies of the quotes and information
provided from Dunlap are attached. The difference In price between the
two quotes is $143.00.
As the Council is aware, we have had some difficulty with Coregis in the
past in terms of their claim handling procedures and timeliness. As a
cult of our
eating thenconcerns to both Dunlap and Coregis
Coregis has indicated that they haveseta dedicated claims unit to
handle claims from the State of Maine only. In addition, the coverage
u
limits proposed by Coregis fall within the requirements of o riginal
request for proposal where Great American's does not. Great American
has offered higher coverage limits which aceed the limits set forth i
the Maine Torte Claim Statute. This i notn rily a advantage to
u
the city s such higher limits would supersede the limits imposed
under State Law.
At this time, Charlie Mitchell has recommended that we stay with
Coregis. He believes they have responded to our concerns and that their
price is competitive.
This item was reviewed by the Finance Committee at its last meeting. At
that time, the Committee referred Ne renewal to the full Council for
your review.
nrpauls('NT NRAD
Manager's Casemate: Based upon the a of Coregis Ina and
Charlie Mitchell's recommendation, 2 wouldarecnmmentl that
ewes.
PITY aMAGER
Associated Information:
Order, Memo from Charlie Mitchell with attachments
Budget Approval -. I
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Passage
First Heading Page__of
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96-294
A KLPM ro CuwCJw Leen Tune 24, 1996
CITY OF BANGOR
Authorizing the Renewal of the City's
(TIRE.) Mrkr, ....._ .. . 1-1. 1 ...
Property and Casualty Insurance with Coregis Insurance Company
By w aro Comm! arae City .rampn.:
OBD&BED,
TEAT
the City Manager is hereby authorized to
renew the City's Property and Casualty Insurance with Coregis
Insurance Company.
96-294
ORDER
Title, Authorizing the Renewal of the
City's Property and Casualty Insurance
with Coregis Insurance Company
......................................
. Assigned to
.....
.ong
Councilman
INCITYCOONCIL
eN
Tune 24, 1996
Mo Hon for Passage Doubted'
vote: 6 yes, 3, n
Councilorsvoting yea
k
Baldaccl.Blanchette, Soucy,
Li
Sullivan. Tyler 6 Woodcock
Councilors voting no:
Frankel. Lawn b opper
Passed
TY CL BR
96-294
ORDER
Title, Authorizing the Renewal of the
City's Property and Casualty Insurance
with Coregis Insurance Company
......................................
. Assigned to
.....
.ong
Councilman
2g/F9g2- m DW w lm 241 FR RAJ 14 '96
96-296
RENEWAL IMURANCE PROPOSAL
CITY OF BANGOR
June 1996
Pmposa4 Prepem l By:
Dunlap
Insurance s Bonding
David L. Roberts, CPCU
Associate Branch Manager
The p lap Cov oration
260 Xailox SCrQCt, P.O.Bou 1080
Bingo; Wine 04402-1080
THE OUNLAP CORPORATION
BANGOR, MAINE
CITY OF BANGOR
96-294
RENEWAL INSURANCE PROPOSAL
As immucted, we have obtained Renewal Quotations. The two most competitive are the
incumbent, The Coregis Insurance Company, and the Great American losuronce Company.
COREGIS
1. It is interesting to note that although Coregis suffered losses Nat now total more than
5400,000 (they may settle some Mss than "), they have agreed to renew the policy at she
same figure that they charged hot year, which Is $184,521.
2. Coregh did have problems settling claims in a timely fashion. This was most obvious in the
"back up" chums. On thew behalf, Nem were extenuating circumstances in Nat May bad
hundreds of such claims all over the East at the same time. They did spend a ht of time with
legal research and as a result eaded up paying almost all ofthe chums. The Great American
has stated that they will pay back up claims only when there is strict Liability. Coregis has
changed their claims handling stmctme m you will deal with only one unit in Chicago. This
will consist of out adjuster and [coo assishats Previooaly, claims were sometimes handled in
New York and sometimes in Chicago, with no specific people aedgoed to your account They
have told me that they believe Ney will have a claims office in Maine or have an arrangement
with a Third Party Admioistmtor located h Main, within three or four months There is,
however, no limestone Nat this will Occur.
3. To swilth from Coregis to Great American could damage the Integrity of the bidding process.
Especially wish accounts of this sin and as complex as the City ofBangur. hhimpormntfor
a carrier to know that they will have the coverage for Ne three year period as set forth in the
Bid Specifscatems.
96-294
THE DUNLAP CORPORATION
BANGOR, MAINE
CITY OF BANGOR
RENEWAL INSURANCE PROPOSAL
GREAT AMERICAN INSURANCE COMPANY
The Great Americas is a strong carrier and Is "A" Rated by -A.M. Rot". They are
quoting $184,373.
1. Limit Diifmentiais: The Great American is quoting an Auto Liability Limit of $1,000,000
and an Uninsured Motorists Limit of $300,000. Coregis is quoting an Auto Liability Limit of
$300,000 and an Uninsured Motorists Limit of 5300,000. Coregisbasa Liabltylimit of
SI,000,000 for Federal and Out -Of -State exposure.
2. Great Americas is quoting a General Liability Limit of 57,000,000 Per Occurrence and a
$1,000,000 General Aggregate. Coregis bas an Occurrence limit of $300,000 and a $900,000
General Aggregate with so Out -of -State or Federal Limit of $1,000,000 Per Occurrence.
3. Great American is quoting a Police Professional Limit of 53,000,000.
4. The Gnat American quote has a Dom and Trampoline Liability Exclusion,
S. Great American is quoting Valuable Papers with a 3400,000 fruit Coregis has a $1,000,000
Omit. (This can probably be resolved at a minimal cost)
6. I will have a Great American form book in my office ifyou wish to review.
7. All Grant American claims wi0 be reported to PZ Massachusetts once in Greenfield, Mass.
They have Property Damage Authority up to $25,000. Offer claims wl be refund to the
Gnat American office in Windsor, Conuenicut They will we adjusters you desire, as long
as they appears. They will pay sewer back up claims only on a strict liability basis.
lo
f �i
96-294
THE OUNLAP CORPORATION
BANGOR, MAINE
CITY OF BANGOR
RENEWAL INSURANCE PROPOSAL
This is meant to be a quote and summary or major differences. Again, the forms are
available for your review and f would be glad to answer any questions.
ally submitted,
S LY
p; r"
PCU
Associate
Rana aM
Assomivce Branch Manager
96-294
(Untitled)
.SUNS 17, 1996
TO: FINANCE COMMITTEE
FROM: C. MITCHELL
RE: PROPERTY AND CASUALTY INSURANCE RENEWAL
DUNLAP INSURANCE AGENCY HAS PROVIDED QUOTES FROM COREGIS INS. CO.
THE INCUMBANT AND GREAT AMERICAN INS. CO.COPIES OF THE QUOTES ARE
ATTACHED. THE DIFFERENCE IS $143 BETWEEN THE TWO. COREGIS HAS
INDICATED THEY HAVE SET UP A DEDICATED CLAIM UNIT TO HANDLE MAINE
CLAIMS ONLY. COREGIS LIMITS FALL WITHIN OUR RFP AND GREAT
AMERICANS DO NOT.
I WOULD RECOMMEND WE STAY WITH COREGIS. THEY HAVE RESPONDED TO OUR
CONCERNS AND THE PRICE IS COMPETITIVE,
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