HomeMy WebLinkAbout2000-05-22 00-198 ORDERCOlmca AMON
Item No. 00-1911
Date: May 222000
Item/Subject: Public Officials out Employee Liability lusurance
Responsible Department: CityManager
The City has maintained public officials and employee liability resource through the Maine
Municipal Associffiion for several years. Maine Municipal has bmkered Oris insurance with various
insurance companies.
This year, Maine Municipal Association has established Public Officials Liability Insurance through
thelrpmperty and casualty risk pool. k order to obtain dais coverage, the City mustjoin tho risk
pool. we would only be obtaining coverage for the Public Officals Liability in ee doing.
Public Officials and P.mployee Liability Insurance for the Baagor bdernadonal Airport will still be
brokered though Maine Municipal Association with a separate company. The Auport did not
qualify order ibe treated terms m obtain the aware ceverage through the nadir pool.
I would recommend the Council authorize the City Manager to execme this agreement.
Department Head
Manager's Continents; i4-"dlq"
,fHffu C2,ar'
City Manger
Associated laformation: Order
Budget Approval:
iP 4 Finance ' ector
Legal Approval:
S dear
I!tpducW for
mmage
_First Reading page _ of _
Referral to lhiance
00-198
Assigwdrocouncilw 1t Ie Eay 22, 2000
V`S
' CITY OF BANGOR
(T E.) Order, Authorizing the Qty Manager W Execute an Agreement with the Maine Municipal
Association for Purposes of Obtaining Public Officials and Employee Liability Insurance.
Ey the Ory Cbt�ofbile CilyofBangm..'
ORDERED,TNAT
The City Manager is hereby authorized to execute an agreement wiM the Maine Municipal
Assoclatim to enter the Public Self -Funded Pool for the purposes of obtaining "Public Officials
and Employee Uability Insurance" for the City of Bangor
IA an COUNCIL
May 22, 2000
Passes
00-198
ORDER
VUe, Authorizing tM City Manager to
erecute an Agreement with the Msine
M nicipal Association for Purposes of
obtaining Public Officials and Euploy-
ee Liability lneut
MAINE ASSOCIATION
ATION
Management L ndice
W CommunityDave
P.O. Box 9101
Augusto Maine 04332A109
March 28, 2000
Charles Mitchell, Risk Manager
City of Bangor
73 Harlow Street
Bangor, ME 04401
Dear Charlie:
I thought you would be interested in an overview of changes being made in the
MMA Property and Casualty Pool and Public Officials Liability programs as of
July 1, 2000.
The Property and Casualty Pool was formed in 1987 during the period when
commercial insurance companies were withdrawing from municipal business.
The coverages written by MMA were the standard property and casualty
coverages and Public Officials Liability coverage was not included. Public
Officials coverage was available through, specialty markets and MMA sponsored
a program for members through National Casualty Company of Scottsdale, AZ:
As of July 1996, National Union Fire Insurance Company, a member of the AIG
group, became the carrier. At the same time, we were able to negotiate
Employment Practices Liability coverage at no additional cast to the members.
Over the years we have worked with both carriers to try to ensure the broadest
terms possible and avoid any gaps in coverage between the MMA P&C Pool
coverage and the ROL program.
During 1999 we completed a comprehensive review of both programs to
determine what changes and improvements we could offer our members. We
found that it was an opportune time for us to approach the reinsurance market to
consider a fully integrated property and casualty program.
We are very pleased to advise that, effective July 1, 2000, the Properly and
Casualty Pool will include Public Officials Liability, including Employment
Practices Liability. This removes the potential for a gap In coverage between the
liability coverages under the P&C program and the tennis of a separate POL
policy.. In addition, the POL coverage will be written on an occurrence basis
instead of on a'daims made" form. Limits of coverage will remain unchanged at
$1,000,000 per occurrence, $3,000,000 annual aggregate for each member. All
POL claims will be handled by MMA's fully licensed property andcasualtyclaims
representatives. Where it is appropriate, the immunities and limitationsof the
Maine Tort Claims Act will now be used to defend members against POL claims.
MAR 2 9 2000
ielapnone Mo.
(207)6265583
(800) 5905583 Maim Only
Fox No. (207) 6260513
Charles Mitchell, Risk Manager
City of Bangor
73 Harlow Street
Bangor, ME 04401
Dear Charlie:
I thought you would be interested in an overview of changes being made in the
MMA Property and Casualty Pool and Public Officials Liability programs as of
July 1, 2000.
The Property and Casualty Pool was formed in 1987 during the period when
commercial insurance companies were withdrawing from municipal business.
The coverages written by MMA were the standard property and casualty
coverages and Public Officials Liability coverage was not included. Public
Officials coverage was available through, specialty markets and MMA sponsored
a program for members through National Casualty Company of Scottsdale, AZ:
As of July 1996, National Union Fire Insurance Company, a member of the AIG
group, became the carrier. At the same time, we were able to negotiate
Employment Practices Liability coverage at no additional cast to the members.
Over the years we have worked with both carriers to try to ensure the broadest
terms possible and avoid any gaps in coverage between the MMA P&C Pool
coverage and the ROL program.
During 1999 we completed a comprehensive review of both programs to
determine what changes and improvements we could offer our members. We
found that it was an opportune time for us to approach the reinsurance market to
consider a fully integrated property and casualty program.
We are very pleased to advise that, effective July 1, 2000, the Properly and
Casualty Pool will include Public Officials Liability, including Employment
Practices Liability. This removes the potential for a gap In coverage between the
liability coverages under the P&C program and the tennis of a separate POL
policy.. In addition, the POL coverage will be written on an occurrence basis
instead of on a'daims made" form. Limits of coverage will remain unchanged at
$1,000,000 per occurrence, $3,000,000 annual aggregate for each member. All
POL claims will be handled by MMA's fully licensed property andcasualtyclaims
representatives. Where it is appropriate, the immunities and limitationsof the
Maine Tort Claims Act will now be used to defend members against POL claims.
MAR 2 9 2000
C. Mitchell Page 2 March 28, 2000
Other improvements in the program include the ability to offer crime coverage up
to a $1,000,000 limit within the program, as well as excess liability limits to $10
million callers 0 needed. We are also adding mechanical crackdown coverage
for computers and coverage for rental of mobile equipment.
Equipment BmakdownlBoiler and Machinery insurance has been integrated into
the new Property and Casualty coverage document as of July 1, rather than as a
separate coverage pad. Required boiler inspections by a licensed inspector will
continue to be done, as in the past.
These are the major changes to be included in the revised coverage comment.
In addition, we have made a number of small language changes to darty or
improve coverage for our members.
We are very pleased to offer this fully integrated property and casualty coverage
program effective July 1. We believe it offers our members the best and most
comprehensive coverage available for municipalities and other quasFpublic
entities.
We are aware that the commercial insurance market for municipalities is
changing in the state of Maine, with Great American Insurance Company
withdrawing from the market. While other companies may apply to the Bureau
of Insurance to provide specific programs for municipalities, there are no
approved programs yet available at the Bureau for public review. MMA Risk
Management Services would be very pleased to either participate in a new bid
process with the City of Bangor or to offer you a quotation for the renewal of your
coverage on July 1. I would be happy to me rt with you at any time at your
convenience to discuss our new program and how 0 might meet the City's needs.
Sincerely,
J Conner,CPCD, AIM
Director, Risk Management Services
® MAINE MUNICIPAL ASSOCIATION
Risk fViCrMUNI nt MUNICIPAL
raepnaa xa
60 Community Drive (W7)6866583
p0. Box 91M (8DO) 5906583 Maine Only
Augusta Mclm W32-91 W Fox No. 07)6260513
April 27, 2000
Edward Barrett
City Manager p1aY 2 Y'0's
CityofBangmsOFFICE
73 Harlow St CITYh'.IAGEB
Bangor,M 04401
1tE: Rrblk Officials and Employees Liability Renewal
Deer Edward Barrett:
We have received your renewal application for the public Officials and Employeas
Liability program. As you know, the public Officials and Employou Liability Program will be
integrated imo the property and Casualty Pool as of July 1 this year. In order to enter the Pool,
your governing Bth
Board must execute e enclosed contract Please review the contract. sign it, and
renes it to us within the next 30 days.
The signature section of the contract is on tksbottom of the last page. please write in the
date that you mosigning the contract in the first sPee(execution). Thesecondspeoeistbedate
on whish the Board adopted the resolution which may or may not be the same day they sign the
contract. We have filled m the name of your entity. The person authorized to sign is the person
the Board mmmed in the resolution. The ExecutiveDirector of MMA, Chris Lockwood, is also
the Pool Administrator. He will sign the counsel atter you return it to as. We will then send you
a fully signed copy for your records.
Thank you very much for your continued participation in the Risk Management programs
ofMaireeMunicipal Association. WesreplemedwbeabletoprovideyonwiNthismuch
improved roverage.
Please call Madeleine Holley or Kathryn Norton 91-800-590-5583 with any questions
about this process.
Sincerely yours,
0.�+ti Ciq Vialou Az.
Patricia A. Kablitz, CPCU
Underwriting Manager