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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