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Home My WebLink AboutResolution - 2003-R0015 - Terrorism Coverage - Common Wealth Insurance Company & Royal Indemnity - 01_09_2003RESOLUTION Reso1ution No. 2003-ROOlS January 9, 2003 Item No. 34 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to purchase terrorism coverage for and on behalf of the City of Lubbock, to be added to the existing property coverage, by and between the City of Lubbock and Common Wealth Insurance Company and Royal Indemnity Insurance Company, and related documents. APPROVED AS TO CONTENT: APPROVED AS TO FORM: ml:/ccdocs/Royal Indemnity Ins. Co.res December 27, 2002 • . ~ Resolution No. 2003-R0015 . Co~m~nwealth Insurance. Company December 24, 2002 CERTIFIED MAIL City of Lubbock, TX P .0. Box 2000 Lubbock, Texas 79457 Dear Sir/Madame: RE: CITY OF LUBBOCK Policy No.:· US 4062 POLICYHOLDER DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE You are hereby notified that under the TerrorisfTI Risk Insurance Act of 2002, effective November 26; 2002, that you now have a right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in· Section 102(1) of the Act: The term "act of terrorism" means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States-to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage wi.thin the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States mi~sio.n; and to have been committed by an individual or individuals acting on behalf of any foreign . person or foreign interest, as part of an effort to coerce the civilian population of the · United States or to influence the . policy or affect the conduct of the United States Government by coercion. Coverage under your existing policy may be affected as follows: ANY ·IN-FORCE TERRORISM EXCLUSIONS FOR .ACTS OF TERRORISM; AS. DEFINED IN THE ACT, ALREADY CONTAINED IN YOUR POLICY OR INCLUDED IN ·AN ENDORSEMENT ARE NULLIFIED AS OF NOVEMBER 26, 2002. YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES' UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. UNDER THIS FORMULA, THE· UNITED .STATES PAYS 90% OF COVERED TERRORISM . LOSSES EXCEEDING THE. STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERFJ2 ~YCTJifi. v ED FEDERAL GOVERNMENT UNDER THE ACT. t( t: . I: E .. JAN 0 7 2003 595 Burrard Street Suite 1500 · Tel: 604 683 5511 US Mail: PO Box 3tl1JMAN RESOURCES Box49115 Bentall Tower Three Fax: 604 683 8968 Seattle Washington 98124 Vancouver BC V7X 1 G4 A FAIRFAX Company f Jr -2- SELECTION OR REJECTION OF TERRORISM INSURANCE COVERAGE UNDER FEDERAL LAW, YOU HAVE THIRTY (30) DAYS TO CONSIDER THIS OFFER OF COVERAGE FOR TERRORIST ACTS AND SUBMIT THE PREMIUM REQUIRED TO YOUR BROKER. IF WE DO NOT RECEIVE YOUR ELECTION TO PURCHASE COVERAGE BY January 29, 2003, THE TERRORISM EXCLUSION NULLIFIED BY THE ACT WILL BE REINSTATED ON January 29, 2003, AND YOU WILL NOT BE COVERED FOR LOSSES ARISING FROM TERRORIST ACTS THAT WERE PREVIOUSLY EXCLUDED. I hereby elect to purchase Terrorism coverage for a prospective premium of XXXX $6,353 for Commonwealth Insurance Com an 's artici ation. 1. hereby elect to have the exclusion for terrorism coverage reinstated. understand that I will h no coverage for losses arising from acts of terrorism . that were revious! ded. Marc McDougal. Mayor Print Name January 15, 2003 Date Commonwealth Insurance Company Insurance Company us 4062 Policy Number THIS NOTICE APPLIES TO U.S. EXPOSURES ONLY (AS DEFINED BY THE ABOVE REFERENCED ACT). Please return one signed copy by fax to (206) 382-6669 {with original to follow by mail) or certified mail. Address: Commonwealth Insurance Company 1700 Seventh Ave, Suite 1850 Seattle, WA, 98101-1397 ATTEST: Attention: US Manager Yours very truly, COMMONWEAL TH INSURANCE COMPANY cc: Napco LLC KM/jv Susan Skalaski I John Carlsen 333 Thoman Street Edison, New Jerey 08818 USCWTERRL TRONEMAINDOCUMENTX ~·Jb~ ~ecca Garza, City Secre"ii!ary ~R!2.: ED A~ 70 CONTENT: !7~~~~ Mary H~e, Dir. of HR APPROVED AS TO FORM: Re·cen1eo JAN 0 7 2003 HUMAN RESOURCES ·: :: :,· :: : ; ~ ;~ ; . . . ... · .. t-'HLl"ltt< & CHY Uf-I X Resolution No. 2003-R0015 Royal IJ>ecl illy UndarwrltlnQ, lne Pl'lone: Sc.11te 1800 404 :'31-2366 s11e East Pac• s Fer.ry Road Fax Atlanta. GA 3C G26-112S 404 231°3755 Date: Fax No: lnsun~d: Oeeemt:uar 17. 2002 (732) 549-0221 ·.·.: . +: If S.UbJect: . . citi ~f L,uCbcck; Fiie No: .R21-10326446 . Company: : ~~a'.~f!_n~~~nity Company Our Fiaf. N~ City of J..ubbcck R2H032&446 ' ·.. j} \;: .:;:~ '. ~ . . This Offer of Tetro~m Coverage and Disclosure of l'remium must be forwarded to the Insured named below. It requires that the insured ac r:ept or reject the Company's otter of Terrorism Coverage. The Terrorism Risk Insurance Act of 2002 (HR3210) wae recently passed by CongreS& and · signed into Law by the President on November le, 2002. The Act establishes a program within the Department of the Treasury under which the federal government shares with the insurance industry the risk of future terrorist attacks. Th 1:t Act applies when the Secretary of the Treasury certifies that an event meets the definiUon cf an aci of terrorism. The Act provides that in order to be certified, an act of terrorism must cause losses of at least $5 mllllon and must have been committed by an Individual o ~ individuals acting on behalf of any foreign person or foreign Interest to coerce the governmE nt or population of the United States. This Polley· referenced ebove ~ont1:1ins an exclu~lon of lo:;ses caused by terrorism. In accordance with the Terrorism Risk Insurance Act of 20C2, part of that exclusion is temporarlty void and wtthout effect, subject to the insurec 's decision. The insured must · 11 make a decision to pay an additional premium for the terrorism coverage described in this ~- offer of coverage, or not pay 1he premium and reject the :1ffer of coverage. if the insured accepts this offer of coverage, the additionill premium described below under DtSCL.OSURE OF PREMIUM, must be paid in the amou it and by the due data stated~ If the insured pays the premium described on or before the duo date, we will then endorse the Polley to amend the terrorism exclusion. The amended E·xc!usion Wiii contain an exception that coverage for losses resulting from an act cf terrorism that is certified by the Secretary of the Trea~ury D$ en act of terrorism is provided under this policy. Atl other policy provisions will still apply to such act of terrorism. DISCLOSURE OF PREMIUM If you accept this offer, the term premium to e)Cplratlon to~ terrorism coverage Is $10,,688. The premium is due on or before l/30/03. Failure to pay :he premium by the due date will constitute rejection of the offer and the terrorism excluslc n will be immediately reinstated ln Its entirety on 1/30/03. OtSCl..OSURE OF FEDERAL PARTJCIPATION JN PAViVIENT OF TERRORISM LOSSES RECEIVED DEC 1 9 2002 HUMAN RESOURCES Pen of me Royal & ~uAAmanee ln$uranee Group ~I J ... _ RSUI I I t'-1 "-'' g '-"n I UI I A Royal Sp•clllt~ Und•rwrltlns, Inc ~101000 945 East P1c1 s Ferry Road Atlanta, GA 31 '326-1125 Phone 404z:s1-~ee Fax '°' 231-375$ The United States Government, Department of the Trea;5Jry, will pey a share of terrorism lo$ses insured under the federal program. The federal st are equals 90% of that portion of . the amount of such insured losses that exceeds the appli ::able insurer retention. · .. ··::". ::: : ::'" if there is a problem with this transmission, please call our office at (•104) 2a1-2366. XXXX I hereby elect to J>urchase Terrorism coverage for a prospective premium of $10,688 for Roy ndemnity Company participation. Marc McDougal, City of Lubboc ATTEST: APPROVED AS TO CONTENT: Mary Hou Human Resources APPROVED AS TO FORM: RECEIVED DEC 1 9 2002 HUMAN RESOURCES Part cf 11\e Flc:iyal & Sl.IMJll111nce lns11rence Grcup TOTAL P.03 ..