HomeMy WebLinkAboutResolution - 2003-R0288 - Contract For Consulting Services - Palmer And Cay Of Texas, LLC - 07_24_2003Resolution No. 2003-RO288
July 24, 2003
Item No. 37
RESOLUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, a contract for
property/casualty insurance broker and consulting services, by and between the City of
Lubbock and Palmer and Cay of Texas, LLC of Dallas, Texas, and Sanford Insurance
Agency, and related documents. Said contract is attached hereto and incorporated in this
resolution as if fully set forth herein and shall be included in the minutes of the City
Council.
Passed by the City Council this 24th day of July , 2003.
M rc McDoWAL Mayor
ATTEST:
XRebca Garza, City Secretary
APPROVED AS TO CONTENT:
Scott Snider
Interim Director of Human Resources
APPROVED AS TO FORM:
M. Knight, As
JK/ccdocs/Res-contract property casualty ins
July 14, 2003
Resolution No. 2003-RO288
k
Agreement Between
City of Lubbock,
Palmer & Cay of Texas, LLC and Sanford Insurance Agency.
For
Broker Services & A Letter of Understanding
THIS AGREEMENT, entered into as of the 24 h day of July, 2003, by and between the
City of Lubbock (hereinafter called "CITY") Palmer and Cay of Texas, LLC. (hereinafter
called "Palmer & Cay") and Sanford Insurance Agency to provide Broker of Record
services for the City's Property and Casualty insurance program as follows:
1. Meetings
a. Palmer & Cay and Sanford Insurance Agency will attend bi-monthly meetings to
discuss and review: analysis of coverage, loss control, benefit design, exposure
changes, claims, and general administrative matters with Human Resources/Risk
Management staff.
b. Palmer & Cay and Sanford Insurance Agency will attend annual property loss
control meetings with Human Resources/Risk Management staff.
c. Palmer & Cay and Sanford Insurance Agency will attend exposure identification
meetings with Lubbock Power & Light, Public Works, Civil Services and other
departments as requested by the CITY.
2. Coordinate
a. Palmer & Cay and Sanford Insurance Agency will facilitate insurance company
interface and coordination in the following areas:
• Renewal information format and market presentation
Marketing of existing coverage
• Possible preparation of request for proposals
Negotiate insurance contracts to assure best possible pricing
b. Palmer & Cay and Sanford Insurance Agency will assist with any special projects
requested by the CITY.
c. Palmer & Cay and Sanford Insurance Agency will develop coverage options on
coverages not currently purchased by the CITY for the CITY's review.
d. Palmer & Cay and Sanford Insurance Agency will analyze the CITY' S exposure
to loss and review adequacies of coverage contained in existing policies and make
appropriate risk recommendations.
e. Palmer & Cay and Sanford Insurance Agency will assist the CITY in reviewing
all insurance policies, contracts, leases, and bonds as necessary.
f. Palmer & Cay and Sanford Insurance Agency will provide service for day-to-day
contact and advise on insurance matters.
g. Palmer & Cay Sanford Insurance Agency will prepare certificate of insurance
forms as requested by the CITY.
h. Palmer & Cay and Sanford Insurance Agency will assist with or provide other
services as normally and customarily required of a municipal property/casualty
insurance broker.
i. Palmer & Cay and Sanford Insurance Agency will assist the CITY with their
evaluation and selection of a Computer Management Insurance System.
j. Palmer & Cay and Sanford Insurance Agency will assist and coordinate
information technology exposure, identification, and analysis.
k. Palmer & Cay and Sanford Insurance Agency will assist and coordinate
information technology exposure, identification, and analysis including Lubbock
Power & Light and Municipal Court internet exposures.
3. Time of Performance
The contract period shall commence on July 24, 2003 and shall continue for a
term of one year. After completion of the initial Contract term, the Contract may
be renewed for two additional one-year terms.
Either party may terminate this agreement at any time upon giving 60 days
written notice of its intention to do so and will be on a pro -rasa basis.
4. General Conditions
a. Palmer & Cay and Sanford Insurance Agency agree to comply with all applicable
federal, state, and local laws and regulations relating to the services provided
under this contract.
b. RFP 103-03/VK shall be attached hereto as Exhibit "A" and shall become part of
this Agreement.
S INS CE ENCY:
BY:
Douglas ford
Senior Cli t Executive
Co -CEO
APPROVED AS TO CONTENT:
� P
Scott Snider, Interim Director of
Human Resources
APPROVED AS TO FORM:
Knight ssistant City Attorney
City o Lubbock TX •
Property Insurance Conceptual and
Risk Assessment is
Renewal Effective:
October 1, 2003 to October 1, 2004
Prepared by:
1\ anco LLC
LI
We look forward to discussing our proposal with you in greater detail. Please contact us @ 806-
792-5564 or using our toll free number 800-531-2034. Thank you for your time and
consideration.
Sincerely,
R.S. Bookhammer III, ARM
Senior Client Executive
E
Douglas ford, CI
Senior Cli Executive
Mr. Victor Kilman
Purchasing Manager
Page 2
This interaction produces optimal results for the risk management program. A sample of our
valued clientele is included in our proposal response for your review.
Sanford Insurance Agency is the dominant insurance broker in Lubbock and West Texas area.
We have a substantial client portfolio of large (up to seven -thousand employees), multiple state
operations, and complex organizations. We have experience with contractors from residential
and commercial building construction to oilfield drilling and service work. Our versatility and
depth of experience with diverse clientele is unusual for most insurance agencies. We have
substantial clients in the medical field, including hospitals, doctor groups and clinics, attorney
firms and non-profit organizations.
Sanford works to become a financial partner with its clients. Insurance is often the second or
third largest expense of an entity. By implementing a meaningful risk and claim management
program, the insured controls it's loss and insurance cost. Lower cost means more work, profit
and flexibility for businesses, more opportunity for a city to provide the services it desires within
it's fixed income.
Public Entities are currently facing several key risk management issues in this turbulent
insurance environment. Some of these issues are proper property assessment and valuation,
workplace violence, crisis management & emergency response, catastrophic weather (windstorm
and flood) assessment, environmental impairment liability, indoor air quality measurement,
asbestos abatement policies & procedures and the pure cost of risk (retained plus transferred
incurred losses.) Many public entities are opting to retain frequency losses and purchase specific
& aggregate stop loss insurance products in order to reduce fixed costs, regain control over the
claims administration process and take ownership of their risk management program.
City of Lubbock has elected to engage the services of a Broker of Record to obtain proposals for
excess or surplus insurance that provides necessary coverage and adequate limits of coverage in
structuring layered excess programs in all areas of risk requiring special consideration, including
public official liability, police professional liability, and airport liability. Our partnership
approach is dedicated to the public entity discipline and offers a turnkey solution to City of
Lubbock. Our firms encourage and operate with the utmost of ethics. We base our professional
recommendations on objective factual information.
Our proposal contains the following elements: Executive Summary, Property Stewardship
Report, Technical Proposal, Sample Statistical Reports, Overviews of each partner firm, Palmer
& Cay Annual Review, Sanford Insurance Annual Review, Organizational Charts that contains
the members of your assigned account team, Resumes for your account team, Overview of
Claims Consulting Practice and Risk Control Practice, Current Client References and Marketing
Timeline. 0
INSURANCE AGENCY SINCE 1535
July 8, 2003
Mr. Victor Kilman
Purchasing Manager
City of Lubbock
1625 13'' Street, Room L-04
Lubbock, Texas 79401
Re: RFP ##103-03NK
Due on or before July 8, 2003 @ 2:00 p.m.
Dear Mr. Kilman:
Palmer & Cay and Sanford lnsurance Agency are pleased to present our consulting proposal for
your review as requested. We thank you and your associates for providing the information
necessary to the compilation of this proposal.
Our respective firms have elected to form a strategic partnership that will provide the City of
Lubbock the best possible package of Property & Casualty Brokerage Services. Our firms have
extensive experience in providing superior service to complex accounts. Both organizations are
or have been involved in major program placements with respect to the City of Lubbock's
insurance program.
This partnership will benefit the City of Lubbock as follows:
• Quality local representation
• Facilitate and coordinate service activities with appropriate City staff as provided by our
organizations
• Combined service team has in excess of 85 years of experience with complex accounts
• Global access to the public entity marketplace that is second to none
• Extensive public entity account experience
• Access to an exceptional risk management service team
Palmer & Cay is a significant public entity insurance and risk management services brokerage
firm. We offer consulting services, insurance brokerage services, risk management services, risk
control services, claims management & oversight services, technical & statistical services,
actuarial oversight services, employee benefit consulting and many others. We foster a
consultative approach with our public entity clients that allows for significant client interaction.
6303 INDIANA • P.O. BOX 64790 • LUBBOCK, TEXAS 79464-4790 • (806) 792-5564 • (800) 749-5564 • FACSIMILE (806) 792-9344
►SECTION I
•
Resolution No. 2003-RO288
Table of Contents
I. Executive Summary
Property Stewardship Report
II. Technical Proposal
Insurance Certificates
4.
Claims INIanagement Services
Claims Consultant Services
4
Risk Control
.19 4
Sample Reports
III. Qualifications
4
Organizational Charts
4
Resumes
Current Client References
4
Prior Client References
4
Corporate Fact Sheet
4
Corporate Brochure
4
2001. — 2002 Annual Report
IN7. Price Proposal
V. Marketing Timeline
Resolution No. 2003-RO288
Table of Contents
ExecutiveSummary........................................................................... ..... ....1
INTRODUCTION.................................................. ... .. 1
MARKETINGEFFORT.............................................................................................. 1
PROGRAM ASSUMPTIONS........................................................................................2
INSURABLEVALUES................................................................................................ 2
PROPOSED MARKET DUE Dill GENCE .................................................................. 2
TERRORISM.................................................................................. . ...................... 3
RiskAssessment.................................................................................................. 4
BACKGROUND......................................................................................................... 4
OBJECTIVE.............................................................................................................. 5
EXPOSURE OVERVIEW ........................ ........................... . b
SUMMARY Loss ANALYSIS..................................................................................... 7
TOP T wENTY FIVE EVENT LOSSES......................................................................... 9
KEY DRIVERS OF LOSS......................................................................................... 12
MAP AND AGGREGATE CATASTROPHE EXPOSURES .............................................. 14
DISTRIBUTION BY POSTAL CODE.......................................................................... 16
MAPPING OF DISTRIBUTION BY POSTAL CODE ..................................................... 18
DISTRIBUTION BY CONSTRUCTION TYPE.............................................................. 19
DISTRIBUTION BY OCCUPANCY............................................................................. 19
CONCLUSION......................................................................................................... 20
Conceptual/
Executive Summary
1NTRODUCTI ON
Palmer & Cay of Texas, LLC, Sanford Insurance Agency and Napco are committed
partners to the City of Lubbock, Texas and are thankful to have been given the
opportunity to provide a Property Insurance Conceptual & Risk Assessment Analysis on
the renewal of the Property Insurance Program for the City of Lubbock. Our respective
Organizations take great pride to provide our clients with the highest level of professional
program design and marketing. Our mutual goal is to continue the long-term business
partnership the City of Lubbock. We recognize that in order to achieve that goal we must
constantly find ways to positively impact our mutual relationship.
MARKETING EFFORT
As we approach the 2003 renewal term, our strategy will be to continue to build upon
long-term underwriting relationships to assist us in negotiating the most cost effective
and comprehensive program available. To keep pace with challenging market conditions
and growth conditions within the city, our firms will endeavor to accomplish the
following goals:
• Work closely with City of Lubbock to secure accurate and up-to-date renewal
information.
• Negotiate a rate reduction based upon favorable account history and market
conditions.
• Contain the City of Lubbock's risk transfer and risk retention costs through effective
program design.
• Maximize carriers net and treaty capacity, minimizing the need for facultative
reinsurance, further insulating the program from market swings.
• Increase program loss limit and sub limits, where necessary.
• Increase sub limits for Flood and Earthquake (including high hazard flood zones A
and V).
• Maintain or in some instances, reduce deductible levels.
• Introduce new markets into the program.
• Negotiate utilizing a manuscript policy form to further enhance coverage and bring
administrative ease to the program.
• Provide options to include coverage for Terrorism, both certified (TRIA) and non -
certified (domestic).
0
PRoGR.Am AssumpnloNs
In our development of this conceptual, the following insurable values were assumed. -
INSURABLE VALUES
The insurable values utilized in this conceptual were taken from the existing Statement of
Values (2002-2003) and are summarized as follows:
$ 347,098,026 Buildings (Replacement Cost Value)
$ 309,285,418 Contents (Replacement Cost Value)
$ 656,383,444 Total Insured Values
PROPOSED MARKET DUE DILIGENCE
While we can understand the City's decision to foster competition by bringing in outside
brokers, we believe that this would only serve to fragment the marketplace and possibly
impair the City of Lubbock from realizing any potential rate reduction. As such, we
emphasize the importance of having "one" experienced and recognized marketing source,
whose access to the entire marketplace will ensure that the City of Lubbock is presented
with the most cost-effective and comprehensive program available.
We are confident that given unencumbered access to the insurance marketplace, we will
be successful in fulfilling the objectives and expectations of the insured. However, should
the City of Lubbock's final decision be to go out to bid this year, we ask for their
authorization to approach the markets outlined below in addition to the incumbent,
markets, Coregis / First Specialty, London, Commonwealth and Royal Specialty:
I. Travelers
2. AIG - Lexington
3. Allianz
4. IRI
5. Crum & Forster
6. Ace / Westchester
7. First State Specialty - Hartford
8. Bermuda Markets (AXIS, Endurance, Everest Re, AWAC, XL, ACE, Montpelier
Re, Glencoe Insurance Ltd & Arch)
9. Essex
10. LMG / Liberty Mutual
11. St. Paul Fire and Marine
12. CNA
13. FM Global
Note: In addition to the above referenced companies, Napco LLC is also a licensed
Reinsurance Intermediary, affording us access to reinsurance capacity when needed.
TERRORISM
Terrorism Risk Insurance Act of 2002 (TRIA)
Under the Terrorism Risk Insurance Act of 2002, all carriers are obliged to offer
coverage for certified acts of terrorism. Premiums will be separated from other
aspects of the program as required under the Act.
The tragic events of September 11, 2001 have caused Congress to pass the
Terrorism Risk Insurance Act of 2002 (The Act). The Act provides that all property
and casualty insurers must offer their policyholders the opportunity to purchase
coverage for acts of terrorism, and that there will be a temporary (through the year
2005) payment from the federal government of 90% of losses from such acts which
exceed the statutorily established deductible (an annually increasing percentage of
the insurer's earned premium for the commercial lines of business of the previous
year). This deductible must first be paid by each insurance company.
♦ An act of terrorism is defined as:
Any act that is certified by the Secretary of the Treasury:
• To be an act of terrorism
• To be a violent act or an act that is dangerous to a human life, property or
infrastructure;
• To have resulted in damage within the United States or outside the United
states in the case of certain aircraft or vessels, or on the premises of a US
mission; 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 populations of the US or to influence the policy or effect the
conduct of the US Government by coercion.
♦ No act will be certified as a act of terrorism if:
• It does not meet the above criteria;
• The act is committed as part of the course of war declared by congress;
• Property and casualty losses resulting from the act, in the aggregate do
not exceed $5,000,000. 0
Disk Assessment
]BACKGROUND
RMS is the leading provider of software solutions, analytical services, and focused
advisory services to aid insurers and insureds in managing their worldwide natural hazard
exposures via an improved understanding and quantification of natural hazard risk.
RMS' RiskLink Software group provides this quantification of natural catastrophe risk by
using RMS' proprietary suite of software tools and analytical techniques.
The RiskLink Software, when used with a schedule of values and locations, can produce
a report that will indicate the risk types and severities according to a set of assumptions
that are set within the simulation. The more the data can be entered in a granular manner,
the more accurate the final reports are.
The analyses attached herein are a series of Risk
Management Solution (RMS) and other software -generated
reports for the peril of Tornado/Hail. These reports contain
a summary of insured risk related to the above risk type. It
is intended for use in internal property risk review. The
information presented in this report is for illustrative
purposes. It does not represent the actual risk or potential
losses associated with the City of Lubbock, Texas. This
sample report prepared by Palmer & Cay of Texas, LLC,
Sanford Insurance Agency and Napco LLC is provided as a
courtesy and a valued added service in order to facilitate
some coverage decisions, but not to be used as the sole
criterion for such decisions. Omissions, inaccuracies and
the assumptions in the model will affect the results;
therefore, the model should be used only as a guide to
indicate possible exposures and potential damages.
•
OBJECTIVE
Palmer &. Cay of Texas, LLC, Sanford Insurance Agency and Napco LLC worked with
the City of Lubbock, Texas and were supplied a schedule of values to develop a
comprehensive assessment of the potential losses due to tornado/hail. Coastal windstorm
and earthquake analyses were omitted due to lack of exposure. After formatting and
importing of the data, it was processed through a simulated succession of historical and
statistically created events according to the exposure and risk types that are present. The
specific reports and the goals for this analysis are defined below:
• Summary Losses — a report that summarizes the expected loss on a ground up
basis for the properties at the various standard levels of severity. These include
estimates for the statistical 500, 250, 100, 50, 25 and 10 year events.
• Top Twenty -Five Event Losses — a listing of the twenty-five most severe
statistically relevent events and the damages resulting from their occurrence.
• Key Drivers of Loss — a listing of the properties most likely to produce losses
under the model results and therefore indicating the relative vulnerability of
individual properties within the property schedule.
Additionally, reports detailing aggregate exposures and attendant maps are included
as a further aid to understanding the analysis. These include:
• Summary of Values by State and County
• Distribution by Construction Type
• Distribution by Occupancy
0
ExposuR,E OyERyIEw
The City of Lubbock, Texas provided Palmer & Cay of Texas, LLC, Sanford Insurance
Agency and Napco LLC with a data set of records detailing buildings, contents, and
address information for their property portfolio. Additional monetary classes were
included within the three mentioned categories for analysis purposes.
Please note that locations without a stated value are not included in the analysis due to
software limitations. This may affect results if a location without a stated value is subject
to a significant peril. Additionally, locations that could not be geocoded accurately due
to mistaken or ambiguous address information are approximated using the next largest
geographic descriptor (zip code, then city, then county, then state). In addition,
generalized values that apply to the entire schedule are not capable of being analyzed due
to not being tied to a specific geographic location.
Palmer & Cay of Texas, LLC, Sanford Insurance Agency and Napco LLC performed a
series of deterministic and probabilistic analyses to assess the risk to which the City of
Lubbock, Texas is exposed. The reports were run on an Occurrence Exceeding
Probability basis (OEP). This methodology uses the probability of a single occurrence in
a calendar year as a basis of analysis, thus resulting in single incident risks and damage
estimates.
The succeeding sections and inserted RiskLink tables further explain the analysis
methodologies and explain the results in a more detailed manner.
0
SUMMARY LOSS ANALYSIS
The following documents present the results of the summary loss analysis as respects
Tornado/Hail for the City of Lubbock, Texas portfolio. The figures represent the losses
that are expected to be produced (by a single event) once every 500, 250, 100, 50, 25 and
10 years. It should be noted that more severe events than these can, and do, occur, so
these damage estimates should not be used as a final arbiter of coverage limits. The
incidents in these categories are a statistical average and do not reflect a single historical
event. Please note that the hail estimates that are incorporated in these results reflect hail
as a secondary peril associated with a tornado, and not hail as part of a thunderstorm.
This will understate vulnerability to vehicles and buildings with large amounts of
exposed glass on their facades.
Additionally, extremely severe events outside the statistical models average range could
also result in higher losses due to their falling outside the statistical ranges of severity. It
is important to remember that in a typical year, multiple 500-year events can, and often
do occur from either a single peril or multiple perils.
The examined summaries include:
• Entire United States Tornado/Hail
40
Entire United States Tornado/Bail
Summary Losses
DLM Analysis: City of Lubbock TO
PorBolio Number: CL 1003 TO 4
Portfolio Nan*: City of Lubbock TO
EP 7 ype: OEP2
Peril: Tomedo / Nail
Region: North i mence
hand Up Loss
•
0
it
2,760,332.48
Version 4.3 (Build 430'
1.2fi2,8B9.14 2so.oB8.8a
l9
Top TwE TY FivE EvENT LOSSES
The City of Lubbock, Texas portfolio was then analyzed to examine the expected losses
for different severity events for the peril of Tornado/Hail, since this is the peril that drives
the catastrophe risk for the property. The following documents summarize the top
twenty-five events that would materially impact damage calculations. These events are
not historical and are for illustration purposes since they do not necessarily denote past
occurrences. They indicate only a few of the thousands of events that are used to prepare
the previous models, but are useful as indicators of possible future single scenarios that
can be further developed with more detailed modeling.
By cross referencing the incidents and nearby locations from the schedule of values, the
insured will be able to gauge the benefit of additional coverage to cover properties
deemed to be mission critical to the organization or revise values to correspond to the
impact that a single incident would have on municipal operations.
The table is run on a ground up basis. In other words, projected coverage limits and
deductible amounts are not figured into the damage total to give a net loss to the insured.
Again, it is important to keep in mind that the damage factors only include direct incident
damage from tornado activity wind and the accompanying hail. A description of the three
damage causing cyclonic events has been provided as an aid to understanding the results.
•
[7
0
Entire United States Tornado/Hail
Top 25 Event Losses for a Financial Perspective
DLM Analpk:
Porbwio Number.
Portfolio Name:
Financiot Perspectiv6:
Peru:
Region:
City of L ubbock TO
CL 1003_ TO 4
City Of L ubbock TO
Ground Up Loss
Tornado / Nail
North Americe
Version 4.3 (Build 430'
12.192.707.2E
COOD009000D
D.DOD00900DC
33636E.
2573..
:.. .._.. IomatlaMai:
North Ameh6
11.683.648.0E
0.0000759971
0.t100067000C
3601&
47562
lamatlaMe6
North Americo
6,795.631.00
O.W03649964
0.000009000r,
361045
48413
lomador-ig
North America _
7.D5D,912.0
0.0009555432
D.DOM71000t
:W987
3235E
lo,400"al
North Amerce
4.661.680.0E
O.OD1215261C
0.00026000DC
356731
44099
lomaoortW
North Amenr-
3.815.560.7E
0.001488890E
0.00027400DC
335797
23165
7 omad0Me6
North Americo .
3.331,6212E
0.0015557886
0.000067000C
361170
4653E
l0matloAW.
North Americo -
3207406.50
0.001564774E
0,0000090ODC
330663
16031
10mado4lal
North America
3.137.963.3E
O.OD16383062
C.OD0274OODC:
359897 -
4726E
'Iomadontor
..
North America
..
3.04D.459X
O.OD20977965
O.OW2600000
32853E -
15904
lamadonieF
North Amerca
3.002.520,7E
0.0031151378
0.00102000OC
336650
2401E
" lumooMeil
North Amerm
2.902.640.32
0.0086670477
0.0056050001
362723
SOOE1
Iomadom f
North America
2.558.732.0E
0.0089447655
0.0002600DDC
33089E
IE367
Im do/E101
North Americo
2.497.636.81
O.OD90111540
O.D00067000C
35917E
46543
7omaamft-W
North Americo
2,388,310.91
0.0118176169
0.002835999E
35277E
40144
" 70madolH13E
North America
2.314254.91
0.0118638229
C.D00067600C
3631DC
5046E
lomadofmoll
North Americo
2.302.624.3E
0.0174067217
0.D056050001
36212E
49494
TOmad&AM,
North Amer=
2,107,404.61
0.022D967513
0.DO56050MI
359671
4703S -
I oonioi,
North Americo
2.066,614.7E
0.0283600642
0.0056050001
361572
4e94C
TomatloMiaE
North Americo
2.0E-5276.94
6.028368828E
0.0000090ODC
349977
3734E
70maddEMaf
North Americ "
2.0w.331.4i
0.0323650019
0.004141999E
35312E
50497
1a QUCMSWI
North Ameria
1.949.383.6E
0.0326500921
O.00D2740000
360605 -
47973
1omadaMe11
NdlhAn*ri*
1.B9E.595.13
0.0327149=
0.000D670000
34798C
3534E
7omaacAUE
NVV)Amenc6
1.8%3221Z
0.0327236079
0.00D0090000
3627Z
50090
lomadd OV
North America ......I
1.846.095.02
0.0327884132
0.0000670000
3644Ti
51840
.lornadaMafl
NCrM ArMnC*
Summary of Top Three projected events:
Event Id: 336366
Peril:
Tornado/Hail
Region:
North America
Description:
US,Max:F5H2,St:TX OK,AZ
Event Id:
360194
Peril:
Tornado/Hail
Region:
North America
Description:
US,Max:F4H3,St:TX,OK,NM
Event Id:
361045
Peril:
Tornado/Hail
Region:
North America
Description:
US,Max:FSH],St:TX,AR MO,OK_KS
•
0
11
KEY DRTyERS of Loss
This schedule is a listing of the top twenty property values subject to the event types
modelled above. This allows a further examination of possible event and risk exposure
and the running of further reports in order to adjust coverage limits and deductibles in
order to further protect the interests of the insured. This is not a simple filtered list
because it does take the probablility of events impacting these locations into account.
The Gross Loss column indicates the annual CAT load that a location exhibits, allowing
the City of Lubbock, Texas to estimate where premium loading can be reduced by the
production of additional information such as loss control and engineering reports.
The locations selected in this listing are subject to the format of the original data. A
single location or building complex that is listed as separate line items may not appear,
even if it is significant enough to be on the list due to the individual line items not being
great enough in monetary value to appear on the list on their own. Reformatting of the
data and re -importing into RiskLink may be necessary to capture such results in the
following analysis.
LJ
Entire United States Windstorm
Key Drivers of Loss - Top 20 Locations
Version 4.3 (Build 430:
DLM Analysis:
PorvVic Number:
Porttolio Name:
PerN:
Repion:
City of LuGbodk TO
CLT003 TO 43
City of Lubbock TO
Tornado i Har.
Nor7A Americo
1
LIA Parldnp Gatapr
5401 MARTINI KING BLVD
2
CMc Center
1501 6'TH Sl
3
Halty Ganeramp Swim
3500 E SIATON RID
4
LIA Mae, 7e: s-, BEd
5401 MARTIN L KING BLVP
5
Massenpale StWw. Bid
Municipal HBI
6
Wain Trew"i OmcevCpm
...
6WI NGUAVA AA
7
Chi .
-
2WDDnwolthan%;*,c
a
Municipal Soww
915 TEXAS AVL'
.1625
9
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6202 N. interstate 27
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324 E MUNICIPAL DF
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LUBBOCK
TX
79401
13430.65
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LUBBOCK.
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- 32.101.910.91)
LUBBOCK
TX
79401
12.136.56
46.000.900.00
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LUBBOCK
TX
7940,
10,344,616
297W.000.00
28.7W.OW.W
Lubbock.
TX
794W
6,631.12
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LUBBOCK
TX
794C3
6.713,67
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28.977- -99
Lubbock
TX
7940E
6.660.6E
16-196.163.00
16,296,169.00
LUBBOCK
TX
79401
5206.93
128W3.7110.00
.,, , 12,903.7W :OD.
LUBBOCK
TX
79401
4.794.62
13561.820.00
13.681.820.W
LUBBOCK
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TX'
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Lubbock
TX
79402A
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Lubbock
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4.160.000.0C
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LUBBOCK
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79401
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LUBBOCK
TX
79402
2.836,91
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LUBBOCK
TX
79401 _
2.809.50
7.061.00DW
7.081D00.00
Lubbock
TX
7940E
2727.37
.7.oT7.0�.00
.... .. 7,071,038.00
Lubbock
TX
79403
2,813.E
10.628.300,01D
10.838.300.00
Lubbm
TX
79406
_- .2,406.4T
20.000.0W.00
20,000,000.00
LUBBOCK
TX
79403
2,2138E
5,3981MD0
5.398.E20.00
1.81 228,745.7E 886,383,444.00 654.383.4s4.M
13
0
MAP AND A GGREGATE CATASTROPHE EXPOSURES
Following are the results of geocoding and filtering the schedule of values in order to
aggregate and report the schedule by specific zones. These maps and reports are included
hereunder as a further aid in giving a complete picture of the insured's property
distribution and risk exposure.
These reports are prepared with the aid of a customized form of MapInfo software
dubbed the Napco Mapper. The Mapper is one of the pieces of software used in the
formatting, geocoding and analyzing properties and dovetails into the import process for
the use of RiskLink, and is indicative of the commitment that Palmer & Cay of Texas,
LLC, Sanford Insurance Agency and Napco LLC have to the pursuit of technology as a
means of understanding and marketing of the City of Lubbock, Texas property portfolio.
In addition, it allows the export of a properly formatted schedule that can then be passed
onto the insured to be kept on file and annotated during the coverage year in order to
allow faster and more accurate processing of the data during the renewal period for the
next coverage year.
0 The reports and maps provided are:
•
• Summary of Values by State
o Mapping of Locations by State
• Distribution of Values by Postal Code
• Distribution of Values by Construction Type
• Distribution by Occupancy
7 A
SUMMARY OF VALUES BY STATE
fr-f>•'s� 1�" � nu :iy,f-.Y"yi�.w..N .d.�' .. ,�,,. ..�,,, zir" �- ¢+ }r 1 £5
:Texas 656,383,444408 1,608,783 46.000,900 100.0%
MAPPING OF LOCATIONS BY STATE
•
0
,Ir
Values By County By Postal CodE
•
•
Values By Countyliylo:
Top 5 Values AD Slate:
100 % = 656.365.444.06
- n±a 2A1S
Portfolio humber. CL1009 70_43
Portfolio Name: City of Lubbock TO
Peril: 7omedo / He
le xw
cci&
Version 4.3 (Budd 4301
791D!..1-hbo k lnm- .90.41E
S r.494, Lubbeek lama
24.1%
0 79101, L kbcx*, lei
tan
7Am. Lubbmk I"=
7.1%
7941t. LLWOCk lei
2.6%
Ot111M1
�ti.E i
Fiaiey
79347
200.160.OG 100.00
200 160.0(
79330
1.419,773.OG 100.OD
1,419,773.0(
Heale
79311
4,039,926.011 100.00
Gana lad 656.763,4M,0�
Im
•
SaMk'
DISTRIBUTION BY CONSTRUCTION TYP€
Construction Class: 0
ISO Unknown 39,513,885.00
ISO Wood Frame - Small (1A,6,C) 172,788,Y94.00
ISO All -Metal - Small (2A) 60,063,385,00
ISO All -Metal - Large (28) 384,017,880.00
lots] 656,303,444.00
DISTRIBUTION BY OCCUPANCY
Occupancy Class:
ATC
Entertainment and Rec reafm
36,988,151.00
ATC
Parking
32,640,900.00
ATC
Heavy Fabrication and Assembly
44,100.00
ATC
Light Fabrication and Assembly
19,794,166.00
ATC
Chemicals Processing
651,990.00
ATC
Metal and Minerals Processing
1,193,640.00
ATC
Construction
122,5W.00
ATC
Permanent Dwelling (mufti family housing)
1,457,840.00
ATC
Agriculture
1,008,750.00
ATC
Religion and Nonprofit
44,575,840.00
ATC
General Services
91,046,346.00
ATC
Emergency Response Services
38,730,467.00
ATC
Education
20,606,625.00
ATC
Electrical
206,711,724.00
ATC
Water
127,322,051.00
ATC
Sanitary Sewer
1,000,000.00
ATC
Communication (Radio and TV)
6,063,560.00
ATC
Retail Trade
671,950.00
ATC
Wholesale Trade
6,562,005.00
ATC
Professional, Technical and Business Services
10,540,025.00
ATC
Health Care Service
8:650,924.00
Total
656,383,444.00
l�
u
CONCLUSION
The loss estimations presented in this report are based on a combination of inputs, data
supplied by the City of Lubbock, Texas, RiskLink expert systems and methodologies,
and a number of analytical assumptions.
Palmer & Cay of Texas, LLC, Sanford Insurance Agency and Napco LLC are determined
to further their capabilities in the exercise of these analytical tools to benefit its clients.
This Property Insurance Conceptual and Risk Assessment Analysis was developed using
a team approach to capitalize on our collective knowledge. We sincerely appreciate the
opportunity to once again be involved in the renewal of this valued client. The
partnership that we share with The City of Lubbock enhances our marketing efforts and
we look forward to continuing to add creative value to the overall process.
0
SECTION H
•
•
0 Intent Scope of Service
It is the intent of Palmer & Cay and Sanford Insurance Company to act on the behalf of the CITY
OF LUBBOCK as a professional property/casualty insurance brokerage services firm. To assist
the CITY OF LUBBOCK with it's various insured and self -funded programs. Such services
would include, but not be limited to the review, analysis, recommendation, and placement of all
insured and self -funded programs. Areas of coverage would include Property, Auto, General
Liability, Policy Liability, Airport Liability, Workers' Compensation, Boiler & Machinery.
Palmer & Cay and Sanford Insurance Company will handle the processing of all policy change
endorsements, policy reviews, and audits. Palmer & Cay and Sanford Insurance Company would
also at the CITY OF LUBBOCK'S request prepare Requests for Proposals for the various
insurance placements and Third Party Administrators. All lines of coverage will begin on
October 1, 2003 or at its renewal date thereafter. All insurance policies that Palmer & Cay and
Sanford Insurance Company places on the CITY OF LUBBOCK'S behalf will be net of
commission to Palmer & Cay and Sanford Insurance Company.
Services in advising and coordinating with the City's Managing Director of Human
Resources/Risk Management Coordinator would include, but are not limited to, the following:
1. Meetings
a.
Bi-monthly meetings to discuss and review: analysis of coverage, loss control, benefit
design, exposure changes, claims, and general administrative matters with Human
Resources/Risk Management staff.
b.
Annual property loss control meetings with Human Resources/Risk Management staff.
c.
Exposure identification meetings with Lubbock Power & Light, Public Works, Civil
Services and other departments as requested by the CITY OF LUBBOCK.
2. Coordinate
a.
Facilitate insurance company interface and coordination in the following areas:
• Renewal information format and market presentation
• Marketing of existing coverage
• Possible preparation of request for proposals
4 Negotiate insurance contracts to assure best possible pricing
b.
Any special projects requested by the CITY OF LUBBOCK.
c.
Develop coverage options on coverages not currently purchased by the CITY OF
LUBBOCK for the CITY'S review
d.
Analyze the CITY OF LUBBOCK'S exposure to loss and review adequacies of coverage
contained in existing policies and make appropriate risk recommendations
e.
Assist the CITY OF LUBBOCK in reviewing all insurance policies, contracts, leases,
and bonds as necessary
f.
Provide service for day-to-day contact and advise on insurance matters
g.
Prepare certificate of insurance forms as requested
h.
Other services as normally and customarily required of a municipal property/casualty
insurance broker
i.
Assist the CITY OF LUBBOCK with their evaluation and selection of a Computer
Management Insurance System.
j.
Assist and coordinate information technology exposure, identification, and analysis
including Lubbock Power & Light and Municipal Court internet exposures.
Technical Proposal
(a) Describe the insurance the proposer currently maintains to protect itself,
and its clients for errors and omissions, general liability, professional
liability, and performance under contract, including the name of the
insurers, limit of coverage, claims basis, and deductible, list any claims
outstanding against proposer and proposer's insurance within the last five
(5) years, including current status of each claim.
Palmer & Cay purchases Errors & Omissions coverage from Fireman's
Fund Insurance Company. All other lines of coverage are secured from
the St. Paul Insurance Companies. All carriers are "A" rated by the 2002
A.M. Best Rating Guide. Certificates of Insurance for these coverages are
included in our RFP response. Palmer & Cay is not able to disclose claims
filed against our Errors & Omissions insurance policy due to
confidentiality requirements set forth by our Errors & Omissions insurance
carrier.
(b) Describe the proposer's access to the insurance market including excess
and stop -loss lines for coverage listed in Attachment #1.
Palmer & Cay of Texas, LLC and Sanford Insurance Agency enjoys
significant relationships with those markets and wholesalers that specialize
in Public Entity business. Our firm places in excess of 1,300,000,000 into
the marketplace on an annual basis. We are the 14' largest insurance
broker and the second largest privately held brokerage firm in the United
States. We are the Broker of Record for a large array of Public Entities
throughout the United States who value our consultative approach and the
broad array of risk management services available. Our success is directly
attributable to our strategic relationships that result in our ability to deliver
the best possible risk management programs available in today's
marketplace.
The following is an exhibit of the markets we represent and would access
on behalf of the City of Lubbock:
•
0
•
•
is
City of Lubbock Markets
Airport Commercial General Liability
Associated Aviation Underwriters
AIG Aviation
Lloyd's of London
Signal Insurance Co.
Westchester Fire Insurance Co. (ACE USA
Aerospace)
USAIG
Phoenix Insurance Managers / Old Republic
Insurance Company
Boiler & Machinery
CNA Insurance Group
Zurich North America
Chubb Insurance Group
Travelers Insurance Group
Hartford Steam Boiler & Inspection
Company (AIG)
Excess Liability
(CGL, POL, EPL, LEL, AL)
Clarendon National Insurance / SIRPRO
St. Paul Insurance Group
Great Lakes U.K. / AMS
ALEA Insurance Group
Genesis Underwriting Management Company
(GUMC)
Munich American Risk Partners / American
Alternative Insurance Company
American Intemational Group (AIG)
Zurich North America
GE ERC / Coregis Group
Inland Marine
Great American Insurance Group
Fireman' Fund Insurance Group
Travelers Insurance Group
Zurich North America
St. Paul Insurance Group
Royal SunAlliance Insurance Group
Chubb Insurance Group
Airport Public Officials & Employers Liability
American International Group
Zurich Specialty
St. Paul Insurance Group
Texas Municipal League (TML)
Professional Governmental Underwriters / Royal
Specialty
Commercial Crime
Hartford Insurance Group
American International Group (AIG)
Chubb Insurance Group
Zurich North America
Great American Insurance Group
Gulf Insurance Company
RLI
UST/AST Pollution Liability
Seneca Insurance Company
Zurich North America
American International Group (AIG)
Chubb Insurance Group
Public Officials Bonds
St. Paul Insurance Group
Hartford Insurance Group
CNA/Westem Surety
Safeco Insurance Group
Zurich North America
City of Lubbock Markets Continued
Property
Property
Coregis Group
American Empire Surplus Lines
LMG Property Group
Lexington Insurance Company
Travelers Insurance Group
Discover Property & Casualty
Zurich North America
First State - Pacific
St. Paul Insurance Group
First State - Hartford
Royal SunAlliance Insurance Group
IRl
Chubb Insurance Group
Affiliated FM
Allianz Insurance Company
RLI
Firemans' Fund Insurance Group
Bermuda Insurers:
Great American Insurance Group
Allied World Assurance Co. Ltd.
Lloyd's of London
Axis Specialty Ins. Ltd.
CNA
Endurance Specialty Ins. Ltd.
Commonwealth Insurance Company
XL Insurance Ltd.
Industrial Risk Insurers
Ace Bermuda Insurance Ltd.
Hartford / ITT
Glencoe Insurance Ltd.
Crum & Forster / Fairfax Insurance Group
Munich American Risk Partners / American
Alternative Insurance Company
Workers' Compensation
Third Party Administrators
American International Group
Crawford & Company
Safety National Casualty
GAB Robins
Employers Reinsurance Corporation
Gallagher Bassett
Genesis Underwriting Management Co.
EOS Group
Midwest Employers Casualty Corp.
Barron Risk Management
Clarendon National Ins. Co.
Permian Claims Service
Harbor Specialties Insurance Company
F.A. Richard
CNA/Wexford Underwriting Mangers
Cambridge
Gulf/CM Olympia
Littleton Insurance Group
Discover Property Casualty Ins. Co.
ATTENTA
Texas Municipal League (TML)
Cunningham Lindsey
•
•
0
c . Describe the proposer's insurance marketing expertise with respect to the
() P P g P P
coverage listed in Attachment 41.
The proposed Palmer & Cay and Sanford Insurance Company's account
service seam has in excess of twenty-five) years experience with marketing
and servicing Public Entity business. Significant market relationships and
contacts were initiated and nurtured during this period. Risk
identification, analysis, evaluation, program selection, implementation and
result monitoring skills were established and developed. Palmer & Cay
and Sanford Insurance Company's executives stay close to the market that
gives them a thorough understanding of how to effectively interface with
the insurance carvers. The City of Lubbock does not need their Broker of
Record to "learn on the job." Palmer & Cay and Sanford Insurance
Company brings the leadership, guidance and experience required to get
the job done from the inception of the contract. As your current Broker of
Record, we saved the City of Lubbock $102,139 in transactional costs as
compared to placing through a broker on a commission basis. We also
saved significant premium dollars achieved skillful negotiation with the
excess liability carrier when one of the exposure bases doubled from 01-02
to 02-03.
Our philosophy of long-term mutually profitable relationships is a client's
best approach to dealing with the Cost of Risk. We encourage our clients
to play an active role in the marketing process by being available to meet
with markets as appropriate. We initially qualify possible markets as the
quality of services offer, financial strength, pricing and responsiveness.
Then we move forward with those markets that meet our client's
qualifications and recommend a meeting with Underwriters.
Robert S. Bookhammer III, ARM, your Senior Client Executive, has
developed, negotiated, placed and serviced sophisticated All Lines Basket
Aggregate programs (CGL, AL, POL, EBL, EPL, LEL), Excess Workers
Compensation programs, Third Party Administrators, Large Sophisticated
Property placements (City of Lubbock is a current client) and Loss Control
programs. He also coordinates Claims and Loss Control Oversight
Services for his various Public Entity clients.
(d). Describe the proposer's plan to provide and maintain the City's insurance
program in a computer management information system. Provide
examples of management information reports provided to clients with
similar programs, including cumulative project year premium and loss
record (for claims over SIR), claims status (for claims over SIR), loss
frequency, severity forecasts, observations on relevant changes in the
insurance market, views on loss exposures facing the program, discussion t
of risk control activities, and summaries of insurance coverage in place.
The City has a third party administration program (TPA) for its self -
insured liability claims. Describe, in detail, any necessary requirements
involving the TPA.
Palmer & Cay and Sanford Insurance Company will develop a specialized
electronic computer program that details each of the insurance policies
purchased by the City of Lubbock. This database will also roll -up the fixed
cost of each policy as requested by the City.
Examples of management information reports provided to our clients
would be as follows:
• Specific & Aggregate Excess Reinsurance Recovery Reports
• Specific Excess Claims Report that details specifics of any claim
with an incurred amount excess or an agreed reporting threshold
• Paid versus Incurred Loss Fund Status Reports
• Quarterly Loss Analysis - Perform review of actual estimated losses to
expected estimated losses by line of coverage
• Statistical Loss Forecasting - Compute annual loss projectors by
coverage line
• Retention Analysis - Loss review by stratified layer to determine
optimal loss retention by policy period.
• Reserve Analysis - Determine outstanding losses for each policy
period using appropriate testing techniques. Loss Triangulation
techniques are utilized.
• State of the Marketplace Reports on a continuous basis
• Schedule of Insurance for all policies
The required data for the above reports must be provided to Palmer & Cay
from the City.
Examples of Insurance Programs designed and implemented for our
cliental are as follows: All Lines Basket Aggregate Programs (CGL, AL,
LEL, POL, EPL, Crime and Property), Excess Casualty Programs (CGL,
AL, LEL, POL and EPL), Large Monoline Property/Boiler & Machinery
Programs, Excess Workers Compensation, Large Monoline Auto Liability
Programs, Environmental Impairment Liability (EIL) Programs and
Monoline POL/EPL Programs
Palmer & Cay and Sanford Insurance Company recommends the City's
TPAs permit our firm to interface directly with their claims database. This
process will allow Palmer & Cay to order special adhoc reports as required
0 and requested by the City of Lubbock.
(e). Describe exposure identification and evaluation assistance for each
exposure listed in Attachment #l, to be provided by the proposer as a basic
service.
Palmer & Cay and Sanford insurance Company regards the exposure
identification and risk transfer evaluation process one of the most
important services a broker provides. Lets review our approach to this
most important function byline of coverage contained in Attachment 41:
1.
Airport General Liability: Contract Review, Exposure Checklist &
Survey, Financial Review, Flow Chart Analysis, Historical Loss
Report Analysis and Review of Loss Control Inspection Reports.
2.
Airport Public Officials: Contract Review, Financial Review,
Historical Loss Report Analysis, Review of Human Resource Manuals
& Training Program and Ordinance Review.
3.
Boiler & Machinery: Physical Inspection, Exposure Checklist &
Survey, Review of Preventative Maintenance Program, Business
Income Analysis, Contingency Plan Review, and Historical Loss
Report Analysis.
4.
Commercial Crime Policy: Review of Policies & Procedure Manual
for the handling of Money & Securities, Inventory Reports, Security
and Electronic Information, Flowcharts, Historical Loss Report
Analysis and Loss Control Report Analysis. (This includes the Buddy
Holly Museum Employee Dishonesty policy)
5.
Excess Liability Policy (CGL, AL, LEL, POL, EPL EBL): Physical
Inspection, Exposure Checklist & Surveys, Review of Policy &
Procedure Manuals, Contract Review, Financial Review, Flow Chart
Analysis, Perform Optimal Retention Analysis, Historical Loss Report
Review and Review of Loss Control Inspection Reports.
6.
Fuel Tanks: Exposure Checklist & Surveys, Historical Loss Report
Review, Review of Preventative Maintenance program, Analysis of
EPA reports and Physical Inspections.
7.
Inland Marine: Exposure Checklists & Surveys, Security Analysis,
Historical Loss Report Review, Verification of Premises Protection
and Confirm Valuation.
8.
Property/Fire & Extended Coverage: Establish Current Replacement
Cost Valuations, Exposure Checklists & Surveys, Business Income
Analysis, Analyze and confirm Probable Maximum Loss Event,
Confirm Flood Zones for all City locations, establish Electronic
Statement of Values Database, Historical Loss Report Review,
Perform Optimal Retention Analysis and Review of Loss Control
Inspection Reports.
9. Public Officials Bonds: Exposure Checklists & Surveys, Historical
Loss Report Review, Review of Policy & Procedure Manuals and
Review of Internal Controls.
10. Workers Compensation: Exposure Checklists & Surveys, Historical
Loss Report Review, Optimal Retention Analysis, Review of Loss
Control Inspection Reports, Physical Inspections, Review of Safety
Training and Compliance Program, Flow Chart Analysis, Loss
Trending and Forecasting, and Statistical Program Analysis.
(f). Describe the loss prevention, loss control, and other technical services for
each exposure listed in, Attachment #1.
Please find the attached presentations of the Risk Control, Claims
Consulting, and Claims Management Services that are available through
Palmer & Cay and Sanford Insurance Company.
(g). Provide information regarding any limitations on the amount of time to be
used for consulting services during a year, i.e., 10 days per year, 2 days per
month, etc. Advise of any items listed in Attachment #1, which are not
included in the annual cost for property/casualty insurance
broker/consultant services and for which an additional charge will be made
and list the additional cost per item.
Palmer & Cay and Sanford Insurance Company is prepared to personally
meet with designated City risk management officials on a bi-monthly basis
as required by the City. R.S. Bookhammer III, ARM will conduct these bi-
monthly meetings. Ronnie Hall, our Risk Control Property Engineering
Specialist, will perform two days of physical property loss inspection per
year. Mr. Hall will also perform up to six (6) days of loss control
identification and evaluation for those City divisions as identified by the
City including LP&L, Civil Works, Public Works & Information
Technology (Municipal Court and LPL Internet activities). Tom Heim,
Vice President, Alternative Risk Financing, will perform up to 2 days of
technical & statistical services as outlined in our RFP response.
The above services and time commitments are included in our proposed
fee structure. The above time commitments are negotiable as requested by
the City. We would adjust our fee accordingly.
Palmer & Cay and Sanford Insurance Company's Claims Consulting &
Management Oversight is included in our proposed fee structure.
(h). Describe any type of report for the City's self-insurance program you
propose to submit, the information that will be included in the report, and
•
L�
C. Client Support
In order for our group to meet the clients and brokerage expectations, we
will need your assistance with the following:
• Include the Claims Consultant as part of the service team, starting with
the marketing or renewal of an account.
• Notify the Claims Consultant when new accounts are written, renewed
or changed for a client.
• Identify special or significant account demands, i.e., designated
outside defense counsel, designated adjuster, preferred forensic
accounts, etc., and secure agreement with the underwriter during the
marketing or renewal of an account.
Provide 40 days written notice for claim reviews or claim status
reports. Include with your request a loss run or list of all claims that
are to be reviewed, including the claimant's name, date of loss and
claim number. It is recommended that as part of the marketing or
renewal of an account your specific needs for loss runs be addressed
with the carrier.
Establish claim review procedures with the carrier during the
marketing or renewal of an account. The agreed upon procedure
should include the timing of the reviews, along with the claim
threshold amounts. The timing should not be more frequent than
quarterly and the threshold should not be less than $25,000 incurred.
• Strongly encourage our clients to report their claims directly to the
carriers.
(Only the branch manager can approve direct reporting of claims through
Palmer & Cay.)
• Provide the Claims Consultant with loss runs 30 days in advance of the
due date if a request is made to review the claim history for either a
renewal or a proposal.
/ b
D. Definitions
In the past, there has been some confusion regarding the terms claim
review, reserve analysis, and file audits. The following is a brief
explanation of the terms, but should you have specific questions or need
clarification, please contact your designated claims consultant.
• Reserve Analysis — The focus is to determine whether the reserves
accurately reflect the exposure on a claim or group of claims. We must
emphasize — the purpose is not to drive the reserves down, but to
determine their accuracy, which means the reserves may require an
increase.
• Claim Review — The objective is to determine the status of the claim,
and evaluate the plan of action to resolve the claim. The reserves are
evaluated, as is the quality of the claims service.
• File Audit — The focus is a detailed analysis of the historical events,
i.e., payment history, reserving history, compliance with best practices,
etc. It is very labor intensive, and time consuming, as payment
histories, and specific events, i.e., first contact, individual follow-up,
specific payments, etc., must be considered.
We want to thank each and every one of you for your support, guidance
and assistance as we work to build this partnership with the producing
seams and our clients.
0
how the report can be best utilized by the city to insure a sound self-
insurance program with levels of retention to assure coverage for losses.
Advise if the cost for such reports is included in the annual costs for
broker/consultant services or if the reports will be at additional cost and if
so, how much.
Palmer & Cay and Sanford Insurance Company will provide an Incurred
and Paid Reinsurance Recoverable Claims Summary for claims excess
of various self -insured retentions (SIR.s.) The report tracks the amounts
paid and incurred within the SIR for the various coverages. It also tracks
those amounts paid excess of the SIR that are collectible from reinsurers
on both a paid and incurred basis. An example of this report is included in
our response for the City's review. We will provide a Expected Loss
Forecast report for Workers Compensation that will be very helpful to the
City when considering how to handle the funding for the workers'
compensation program. We will also provide a Retention Analysis
Report that will be useful when selecting the optimal retentions for
various lines of coverage.
The cost for the reports will be included in the annual cost for broker
services.
•
I. Claims Consultants Services
A. Overview
The primary role of the Claims Consultant is to assist our clients with achieving the
optimum financial results in the event of a loss or claim. By partnering with the
broker and client management team, client -specific procedures can be established,
both internally and externally to assure valuable and meaningful claim services are
provided to our clients.
We would like to share with you our service plan which is intended to maximize the
Claims Consultant resource:
B. Support For Our Clients
• Develop internal claims management manuals for our clients.
• Design/improve in-house claim reporting/handling procedures during the
marketing/renewal of an account.
• Establish special handling instructions and carrier -performance standards
during the marketing or renewal of an account.
■ Monitor the carriers' performance and delivery of service relative to pre-
established special handling instructions and performance standards.
• Provide educational memos and material to both internal and external clients,
including advisories on legislative and regulatory issues.
• Conduct training seminars on claims issues, claim processing procedures, and
clients' in-house claims case management responsibilities.
■ Conduct analysis of large claim reserve files to determine if the reserves are
appropriate to the exposure.
■ Perform claim file audits to determine the quality of work being provided by
the claims service provider. The claim audit segment will be done on an
exception basis with a consulting fee arrangement established for the project.
• Coordinate claim file reviews and produce claim status reports on difficult and
questionable claims. 0
•
•
•
Changing the Future of Risk
Risk Control Consulting
Established 1 SM
RISK CONTROL CONSULTING PRACTICE
•
Risk Control Consulting
Changing the Future of Risk
I. Philosophy ........................................... 3
B. Team .................................................... 4
Ill. Consulting Services .............................. 5
IV. Contact Information ........................... 10 0
0
R1SK CONTROL CONSULTING PRACTICE
i
L Risk Control Philosophy
Insurance is not a complete solution to managing risk.
An effective risk management program is designed to
understand and control exposures that can impact the
assets of the balance sheet and support corporate
strategy.
It does so by identifying, evaluating and controlling
risks and by utilizing this information to properly
structure a risk financing plan to address those risks.
The goal is to reduce and control the total cost of risk.
To help our clients achieve their goals, Palmer & Cay
has staffed its risk management consulting division
with specialists in a broad range of disciplines, from
alternative risk funding to international risk services to
risk control and safety services.
An integral component of this division is our risk
control consulting practice. These professionals focus
on a comprehensive range of loss control and safety
measures that can significantly impact the cost of risk
related to injury, business interruption, litigation costs
and insurance costs.
Working closely Arith clients, insurance company
representatives and members of our own property -
casualty staff, our risk control consultants help change
the future of risk by providing customized solutions to
meet your individual needs.
0
II. Risk Control Team
RISK CONTROL CONSULTING PRACTICE
Over the past decade, Palmer & Cay's risk control
practice has recruited some of the industryes most
respected consultants to serve as key players on
our client service teams.
With over 200 years of combined experience,
there are few industries or operations unknown to
this team. Thew insight, experience and
innovative concepts are available to all Palmer &
Cay clients. Strategic positioning allows our risk
control consultants to respond promptly and
efficiently to client needs on a national and
international basis.
HEM,
p S}4 ry y 'v xc.i
�-="��= R ,ass ^t.k r• w a7�. �{ r�.,�� s"
Rs�>� Kati a i s' Boston, MA
PALMER& CAY F� John Bouchard
_~~�^ Established 1868 Wyk Dick Mertineft
"�. 4c �' �`k�t.,c» 'xa }",� °'�`a�i••'�+' � @a'* �s"�`y� Fi1ChnWrld, 1IA
'�`�����;., ,hs� �p.��•, .�,.K _,a,,r: �t x�� :� ���.'�. � • Boyd Jones
�. Lexington, KY
Ronnie Hall c
Charlotte, NC
Bill Enos
Atlanta, GA
Tom Martinelli € ;
Julie Scarborough Savannah, GA
Bob Simmons
Kemp Nussbaum
Columbus, GA
Jack Phillips W Palm Beach, FL
Jeff Selituri
Contact information and area of specialty for
each risk control consultant is listed in Section IV.
•
0
RISK CONTROL CONSULTING PRACTICE
[A
III. Risk Control Consulting Services
To help clients control their total cost of risk, our
staff relies on years of experience in focused
technical fields and/or specific industries. Areas of
experience and expertise include:
■ Intemational/National Service Evaluation & Coordination
■
Highly Protected Risk (HPR) Programs
■
Boiler and Machinery Risk Control
■
Building Replacement Cost Evaluations
■
Ergonomics — Evaluations & Training
■
Industrial Hygiene — Survey & Evaluation
■
Risk Management Resources and Facilitation
■
Safety, Health & Environmental Team Development
■
Performance Based Safety & Safety Culture Evaluations
■
Claims Trending & Analysis
■
Compliance Training Team for OSHA
■
DOT & Transportation Evaluation, Education & Training
■
Risk Profiling Projects
■
Healthcare Risk Consulting
■
M&A Risk Management Due Diligence
■
OSHA Citation Defense Assistance expertise
■
MSHA & Mine Safety Consultation and Training
■
Business Continuity Consulting
■
Industry Specific Best Practices Research Projects
■
Customized Safety, OSHA, & DOT Programs
■
Customized Safety, OSHA & DOT Training Programs
■
Behavioral Based Performance
■
Workers Compensation Cost Containment
■
Business Risk Evaluation Process
■
•
Environmental Management
■
Construction Safety Programs
RISK CONTROL CONSULTING PRACTICE
•
III. Risk Control Consulting Services (continued)
Risk control consulting services focus on two broad
categories: Casualty and Property. The following list
provides an overview of the services our staff currently
delivers to clients on an individual, customized basis.
Casualty Risk Control Services
Safety Management Services
■ Comprebensive safety program evaluations/audits
■ Safety program development, review & modification
■ Safety committee evaluation, development &
facilitation
■ Safety recognition/incentive plan assistance
■ Emergency preparedness consultation
■ Accountability program and development
Safety Program Administration
■ Action planning and implementation
■ Provide regulatory updates
■ Serve as client/carrier liaison
■ Advise on safety program administrative issues
RISK CONTROL CONSULTING PRACT]CE
•
0
III. Risk Control Consulting Services (continued)
Casualty Risk Control Services
Risk Control Program Evaluation
■ Perform facility/physical plant audits
■ Facility workflow studies
■ Self -evaluation program assistance
s Job safety analysis
■ Behavioral & cultural assessments
• Industrial hygiene sampling/evaluation
■ Ergonomic assessment & control
s Develop safety performance rating
■ Injury and illness statistical analysis
■ Business risk evaluation process
Safety Training & Orientation Programs
■ Develop customized training materials
■ Training programs may include:
- Management responsibilities
- Supervisors skills development
- Effective safety orientation
Accident investigation
- Hazard recognition
- Train the trainer
■ Evaluate orientation & training needs
■ OSHA, DOT & other regulatory/safety training
RISK CONTROL CONSULTING PRACTICE
III. Risk Control Consulting Services (continued)
Casualty Risk Control Services
General Liability
■ Risk surveys to identify real & potential exposures
■ Non -employee program assessment
• Technical support for risk control &claims handling
■ Contract review & consultation
■ Environmental management consulting
Auto Liability
■ Fleet safety program evaluation
■ Loss analysis & accident trending
■ Driver file evaluation
• Fleet safety program development
■ DOT regulation updates
■ Fleet safety incentive/award programs
■ Driver Training
Products Liability
■ Product safety program assessment
■ Develop/modify product safety program
■ Consult on new product development
■ Assist in the review of literature
■ Act as a liaison between client & carrier
•
0
RISK CONTROL CONSULTING PRACTICE
•
•
E
III. Risk Control Consulting Services (continued)
Property Risk Control Services
■ Fire protection evaluations
■ Property conservation policy assistance
■ Business interruption analysis
■ Coordinate insurance company, outside service
provider, and other third -party property risk
management resources
■ Carrier recommendation prioritization
■ Human element program development
■ Life safety considerations
■ Conduct property marketing surveys
■ Recommendation cost benefit analysis
■ New construction & renovation plan reviews
■ Sprinkler and water supply design criteria
■ Probable maximum loss studies
■ Ensure consistent & uniform carrier service
■ Hazard mitigation
■ Total property asset protection
■ Replacement cost evaluation assistance
Information
Atlanta, GA / 3348 Peachtree Road NE, #1400 / Atlanta, GA 30326 800-755-8945
Tom Martinelli MS, CIH / Risk Control Consultant
Specialties: Industrial Hygiene, Process Safety Management, WC, Ergonomics, Emergency Response
404-760A297 / (C) 404-734-7367 / Email: Tom_ Martinelli@pahnercay.com
Julie Scarborough / Risk Control Consultant
Specialties: Restaurant Safety, Workers Compensation
404-504-8166 / (C) 770-597-5577 / Email: Julie_Scarborough@palmercay.com
Columbus, GA / 240 Brookstone Center Parkway / Columbus, GA 31904 / 800-226-8599
Jack Phillips, CDS / Risk Control Consultant / Specialties: Motor Fleet, Warehousing, Cargo, Workers
Compensation, Claims, Defensive Driving Course, OSHA Compliance, DOT Compliance
706-576-3514 / (C) 706-329-9050 / Email: Jack-PhiUips@pahnercay.com
Charlotte, NC / 6100 Fairview Road, Suite 1400 / Charlotte, NC 28210 / 800-568-0419
Bill Enos / Senior Risk Control Consultant
Specialties: HPR Property, Product Liability, OSHA Compliance, Safety Programs, M&A Due Diligence
704-553-0419 / (C) 704-661-8140 / Email: BiU-Enos@palmercay.com
Richmond, VA / 9020 Stony Point Parkway, Suite 200 / Richmond, VA 23235 / 800-520-1134
Boyd Jones, CSP / Senior Risk Control Consultant / Specialties: HPR Property, Boiler &Machinery,
Chemical, Manufacturing, Products Liability, Construction, OSHA Regulatory
804-267-3121 / (C) 804-305-5175 / Email: Boyd_ Jones@palmercay.com
Savannah, GA / 25 Bull Street / Savannah, GA 31401 / 800-755-9594
Bob Simmons, CSP, ARM / Risk Control Consultant
Specialties: WC, Long shoring, OSHA, Construction
912-231.6940 / Email: Bob-Sirmnons@pahnercay.com
Kemp Nussbaum, CHSP / Risk Control Consultant
Specialties: Performance Based Safety Systems; Healthcare & Casualty Risk Management
912-231-6941 / (C) 912-308-8140 / Email: Kemp Nussbaum@pahnercay.com
Boston, MA / 189 State Street / Boston, MA 02109 / 888-71 M922
John Bouchard / Risk Control Consultant / Specialties. HPR, Large Property Risk Management, NFPA
Technical Committees, Business Continuity Planning
617-742-8852 / Email: John-Bouchard@palmerray.cmrijonbski@aol.com
Dick Mertineit, CSP / Risk Control Consultant / Specialties: Casualty Risk Management, Behavioral Based
Safety, Training Presentations, Account Management, Products Safety, Fleet Safety, WC Cost Containment
617-742-8852 / Email: Dicic_Mertineit@palmercay.com
Lexington, KY / 360 East Vine Street / Lexington, KY 40588 / 800-796-3567, X604
Ronnie Hall / Risk Control Consultant / Specialties: Construction Risk Mgt, Wrap -Ups, Captive Risk
Control, Casualty Risk Mgt Safety Program Development, MSHA Compliance, Property Evaluation
859-254-8023 / Email: RSHALLJR@aol.com, Ronnie_Hail@palmercay.com
•
W. Palm Beach, FL / 1555 Palm Beach Lakes Blvd, #1200 / W. Palm Beach, FL 33401 / 888-909-7410
Jeff SaliturL P.E., CSP / Risk Control Manager / Specialties: WC Cost Containment, Behavioral Based
Performance, Ergo, Environmental Mgl, Acct Mgt, Business Risk Evaluation, Casualty Risk Mgt
561-615-5613 / (C) 561-906-6284 / Email: Jeff_ Salitwi@palmerray.com 0
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THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
Palmer & Coy of Georgia, Inc.
Savannah Commercial Line:
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
P. 0. BOX 847
COMPANIES AFFORDING COVERAGE
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THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT 70 WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
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TYPE OF INSURANCE
POLICY NUMBER
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POLICY EFFECTIVE
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DATE (MM/DD(YY)
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30 DAYS WRITTEN NOTICE TO THE CERTIFICATE MOLDER NAMED TO THE LEFT,
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ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOVjjwL
Novato, CA 94996-3301
COMPANIES AFFORDING COVERAGE
COMPANY
A Firemen's Fund
INSURED
COMPANY
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B
25 Bull Street
COMPANY
Savannah, GA 31401
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INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICA7E MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
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POLICY NUMeEA
POLICY EPF•ECTIVE
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MXES03S92315
01/01/03
01/01/04
Inc. Agents and I
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Brokers Prof Liab
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S 500,000 Deductible
DE6CRIPnON OF OPERATIONS/LOCATIONS/VEHICLEE/6PECIAL FrEMS - - .... .. .... ......, ;
SEE ATTACHED SCHEDULE OF ALL NAMED INSUAEDS AND LOCATION ADDRESSES
Employees are covered while acting on behalf of and within the scope
of their dut;e6 for the named insured entity
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SHOULD ANY OF THE ABOVE DESCRNLEO POUCIES 8E CANCELLED BEFORE THE
City of Lubbock
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
Furchasing Dept. Room L04
30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT
Municipal Bldg -1625 13th St.
BUT PAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABIUTY
Lubbock, TX 794-01
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AUTHORI fEPR SENTAT►VE
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NAMED INSUREDS&OCATIONS
Palmer & Cay,.Inc,
Palmer & Cay Holdings, Inc. & dba Seamark Group
4C Select, LLC
C Select, Inc. dba Capital Casualty Insurance Agency, Inc.
P&C Select Insurance Agency, LLC
Palmer & Cay
Palmer & Cay Consulting Group, Inc,
Palmer & Cay of Arkansas, LLC & dba Palmer '& Cay Consulting Group
Palmer & Cay of Connecticut, LLC
Palmer & Cay of Florida, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Florida Insurance Agency, LLC
Palmer & Cay of Georgia, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Georgia Insurance Agency, LLC
Palmer & Cay of Illnois, LLC
Palmer & Cay of Kansas, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Kentucky, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Kentucky Insurance Agency, LLC
Palmer & Cay of Louisiana, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Maryland, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Michigan, LLC
Palmer & Cay of Minnesota, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Missouri, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay Insurance Agency of Massachusetts, LLC
Palmer & Cay Insurance Advisors of Massachusetts, LLC
Palmer & Cay of New York, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of North Carolina, LLC &dba Palmer & Cay Consulting Group
Palmer & Cay of North Carolina Insurance Aaency,'LLC
Palmer & Cay of Ohio, LLC
�lmer & Cay of Pennsylvania, LLC
mer & Cay of South Carolina, LLC & dba Palmer & Cay Consulting Grp,
Palmer & Cay of South Carolina Insurance Agency, LLC
Palmer & Cay of South Carolina, Inc dba Programs International
Palmer & Cay of Tennessee, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Tennessee Insurance Agency, LLC
Palmer & Cay of Texas, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Texas Insurance Agency, LLC
Westwind Underwriters
Palmer & Cay of Virginia, LLC & dba Palmer & Cay Consulting Group
Palmer & Cay of Virginia Insurance Agency, LLC
Palmer & Cay of Wisconsin, LLC & dba Palmer & Cay Consulting Group &
dba Palmer & Cay Insurance Agency of Wisconsin, LLC
Palmer & Cay Insurance Agency of Wisconsin, LLC
Westwind Underwriters
Palmer & Cay Reinsurance Services, LLC & dba Palmer & Cay Reinsurance
Brokers
Savannah Reinsurance Underwriting Management, LLC
25 Bull Street, Savannah, GA 31401
7001 Chatham Ctr. Dr., Suite 400, Savannah, GA 31405
3348 Peachtree Rd., NE, Suites 1100,1225,1400,Atlanta,GA 30326
1 St Andrews Court, Brunswick, GA 31520
240 Brookstone Centre Parkway, Columbus, GA 31904
76 South Laura St., Suite 1400, Jacksonville, FL 32207
�0 Prudential Drive, Suite 6, Jacksonville, FL 32207
. - .-„ .. - nn-n ":) 7 c ^we , N-) flow 1tmwnw -I 1J-1 Rf:: rn romp in 'inr
** S6'3Sdd ld101 **
1E55 Palm Beach Lakes Blvd., Suite 1200, West Palm Beach, FL 33401
3325 S. University Drive, Suite 110, Davie, FL 33326
1500 Mahan Drive, Suite 111, Tallahassee, FL 3230E
1425 E. Piedmont Dr., Suite 201, Tallahassee, FL 32306
J1'00 Superior Avenue East, Cleveland, OH 44114
Six Landmark Square, Suites 420,422,458, Stamford, CT 06901
176 Croghan Spur Road, Suite 300, Charleston, SC 29402
4408 Forest Drive, Suite 303, Columbia, SC 29206
2212 Haywood Road, Bldg 300D, Greenville, SC 29615
2234 west Palmetto St., Florence, SC 29502
6100 Fairview Rd, Suite 1400, Charlotte, NC 28210-3277
300 E. Lombard St., Suite 930, Baltimore, MD 21202
189 State St., 8th Floor, Boston, Massachusetts, 02109
6600 City West Pkwy, Suite 205, Eden Prairie, MN 55344
413 Northshore Drive, SW, Knoxville, TN 37919
360 East Vine St., Lexington, KY 40507
111 East Kilbourn Avenue, Suite 2600,Milwaukee, WI 53202
2 St. Charles Avenue, Suite 2401, New Orleans, LA 70170
1 Commercial Place, Suite 1350, Norfolk, VA 23510-2103
11150 Sunset Hills Road, Suite 200, Reston, VA 20190
9020 Stony Point Pkwy, Suite 200, Richmond, VA 23235
16090 Swingley Ridge Rd., Suite 400, St. Louis, MO 63017
1500 K. Street, NW , Ste 625, Washington, DC 20006
280 Trumbull St., 15th Floor, Hartford, CT 06103
5956 Sherry Lane, Suite 2000, Dallas, TX 75225
666 Third Avenue, 17th Floor, New York, NY 10017
2500 City West Blvd., Suite 300, Houston, TX 77042
111 Center St., Suite 1410, Little Rock, AR 72201
6900 College Blvd., Suite 300, Overland Park, KS 66211
460 Wilson Avenue, Versailles, KY 40383
�177 Ashwood, Ada, Michigan 49301
)60 West Second Street, Cleveland, OH 44113
10333 Richmond Avenue, Houston, TX
123 North Wacker Drive, Chicago, IL
1055 Westiakes Drive, Berwyn, PA 19312
4449 Easton Way, Columbus, OH 43215
0
Technical Proposal
0 (a) The following is a schedule of insurance carried by Sanford Insurance Agency.
Type of Coverage
Errors & Omissions
General Liability
Automobile Liability
Directors & Officers
•
•
Insurance Company
Westport Ins. Corp.
Central Mutual Ins. Lloyds
Central Mutual Ins. Co.
Illinois Union Ins. Co.
Limit of Coverage Claims Basis
$1,000,000 claims mode
$1,000,000 occurrence
$1,000,000 occurrence
$1,000,000 claims made
Deductible
$10, 000
General Liability includes claims of a tort liability nature arising from the performance
under a contract.
AL,LIML1, U r—M II Ir14,.li I LZ VI L—IPILJIL—I I a rai�vvr.�....►� uI/uo/cvvo
PRODUCER (800)880-7428 FAX (S12)472-156s THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
IIAT Insurance Agency, Inc. ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIF)CATE DOES NOT AMEND, EXTEND OR
P.O. Box 684487 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
111S San Jacinto #100
Austin, TX 7876t INSURERS AFFORDING COVERAGE NAIC n
The Sanford Agency, Inc. INSURERAt Westport Insurance
PO Box 64790 INSURER E;
Lubbock, TX 79464 INSURER C
INSURER D'.
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE SEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDIN
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH F,ESPEC7 TO WHICH THIS CERTIFICATE MAY BE ISSUED OF
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
LTR
NSRp
TYPE OF INSURANCE
POLICY NUMBEk
DATE,MM/DDrrn
DATE MNUDD/YY
LIMITS '
GENERAL LIABILITY
EACH OCCURRENCE
5
COMMERCIAL GENERAL LIABILITY
CLAIMS MADE D OCCUR
FRE fE E: orzurencel
S
MED EXP (Any one parson]
F
PERSONAL &ADViNJURY
S
GENERAL AGGREGATE
5
GEN'L AGGREGATE LIMIT APPLIES PER!
I
PRODUCTS - COMP/OP AGG
S
POLICY F7 PRO.
JECT LDC
AUTOMOBILE
LIABIUTY
ANY AUTO
COMBINED SINGLE LIMIT
(Ee ar-ciaent)
s'
ALL O^MED AUTO
SCHEDULED AUTOS
BODILY INJURY
(Per person)
S
HIRED AUTOS
NON -OWNED AUTOS
BODILY INJURY
(Pcr accident)
i
PROPERTY DAMAGE
(Per Wtoent)
S
GARAGELIA13ILM
AUTO ONLY - EA ACCIDENT
S
ANY AUTO
HAN
AUTO O
AUTOEA ACC NLY. AGG
E
EXCESSNMBRELLA LIABILITY
OCCUR f7 CLAIMS MADE
UME100126-4
12/31/2002
12/31/2003
EACH OCCURRENCE 15
5 , 000, 000
AGGFEGATE
S 5 00m0 I
A
g
DEDUCTIBLE
g
X REIEN71ON S 10, 00C
S
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
ANY PROPRIETOR/PARTNER/ENECUTIVE
TDRY LIMITS ER
E.L, EACHACCIDENT
!.
E,L, OISEASE . EA EMPLOYEE
g.
OFFICERiMEMBER EXCLUDED
N yos, describe under
SPECIAL PROVISIONS bet&.
E.L. DISEASE -POLICY LIMIT
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A
OTHER
& 0 Liability
PALS9501-9
12/31/2002
12/31/2003
1,000,000 limit each claim
1,000,000 aggregate
10,000/30,000 deductible
DESCRIPTION OF OPERATIONS [LOCATIONS/ VEHICLES I DCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
CERTIFICATE HOLDER
City of Lubbock
P 0 Box 2000
Lubbock, 7X 7940S
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETNE
EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL
nQ` DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,
BVT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY
OF ANY KIND UPON THE INSU AGENTS OR REPRESEN 71VES.
AUTHORIZED REPRESENTATIVE
David Surles 'f
ACORD 25 (2001108) ; (6ACORD CORPORATION 1988
IMPORTANT
It the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement
on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may
require an endorsement. A statement on this certificate does not confer rights to the certificate
holder in lieu of such endorsement(s).
DISCLAIMER
The Certificate of Insurance on the reverse side of this form does not constitute a contract between
the issuing insurer(s), authorized representative or producer, end the certificate holder, nor does it
affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.
ACORD 25 (2001/08)
I. Claims Management Services
A. Oven iew
The Palmer & Cay Claims Management Practice, consisting of some of the industry's
most respected claim professionals, is part of our Risk Management Consulting
Division. Team members have extensive claims experience in all lines of insurance
and are capable of responding to virtually every claim situation. Each Palmer & Cay
office has a dedicated senior claims consultant and in turn, every client has access to
all of the claims specialists operating throughout our firm.
One example of the caliber of claims consultants on staff at Palmer & Cay is Mike
York, the senior claims consultant assigned to our Dallas office. Mr. York has almost
23 years of multi -line claims experience, with specialization in workers'
compensation, auto and general liability, executive protection, directors & officers
liability, employment practices liability, and litigation management. Currently, he
serves as the lead claims consultant for a number of Palmer & Cay's largest clients
and would assume the same role for City of Lubbock.
In addition to Mr. York, Peggy Dutton will serve as the senior workers' compensation
claims consultant for City of Lubbock. Ms. Dutton's experience in this specialty area
spans over 20+ years and she has held various positions with responsibilities for
training, investigation, supervision, auditing and instruction of Workers
Compensation claims handling procedures on the local, regional and national levels
with leading insurance carriers. Kent Powell is the resident Claims Manager for our
Dallas office. Mr. Powell will provide day-to-day claims management service to
City of Lubbock.
0
.7
B. Claims Advocacy Services
Most commercial claims are reported by the insured directly to the insurance carrier
or claims service provider to expedite the claims reporting and handling process.
Palmer & Cay will assist City of Lubbock with the design and implementation of an
aggressive claims advocacy program focused on improving claim outcomes and
financial expenditures. While our role in routine claims is more oversight in nature,
when coverage issues arise or when there are questions about loss adjustment, we also
fill the role of claims advocate for our clients.
Based upon our initial internal discussions of City of Lubbock's claims management
needs and our experience with similar clients, we suggest the following as our initial
approach to providing claims advocacy services to City of Lubbock:
■ Conduct a comprehensive review of the claim service provider office where the
WIC and Auto files are handled and review a cross section of open files to
confirm that Claims Best Practices are utilized in the management of City of
Lubbock claims. We will provide a report to City of Lubbock of our findings and
recommendations for improvement, if necessary.
Establish an annual audit process with the claim service provider. We suggest the
City of Lubbock's Risk Manager, Workers' Compensation Claims Manager and
Palmer & Cay all participate in the audit. The audit should include a
comprehensive review of actual claim files. The objective of the audit is to
establish the claim handlers have'a complete understanding of the cases they
manage and they are accurately reflecting case status in the claim diary. The audit
will be designed with the following in mind:
- Audits occur on a regular basis; claim reps anticipate future audits.
- Audits are based on criteria that adjusters know and understand.
- Audits are based on criteria that can be objectively measured.
- They are performed consistently.
s
- Criteria being measured are meaningful indicators of service quality.
■ Palmer & Cay will aid City of Lubbock with the development of a checklist
auditors may follow when reviewing files. We believe when audits are conducted
in this fashion, expectations are clearly identified to claim handlers along with
feedback about actual performance. This enables the claim service provider to
improve performance and meet the expectations of City of Lubbock.
■ The creation of City of Lubbock Special Claim Handling Guidelines. Palmer &
Cay will assist City of Lubbock in the creation of claims handling standards based
upon the claims review and recommendations discussed above. These standards
will be clearly communicated to the Claims Service Provider so that performance
expectations are established and can be monitored and measured.
■ The creation of a dedicated claim service team within the Claim Service Provider
in order for City of Lubbock to deal with fewer claim adjusters. This leads to a
closer relationship and makes it easier for the claims handler to appreciate City of
Lubbock's Special Claim Handling Guidelines.
■ Assigned claims adjusters should be required to visit City of Lubbock's various
facilities to obtain an understanding and appreciation of the City's operations.
•
C. Claims Management Services
Palmer & Cay claim consultants will provide assistance in the claim adjusting process
as an ongoing, active member of City of Lubbock's risk management team. We will
provide functional guidance on questions relating to the processing and equitable
disposition of losses. When requested, we can attend and participate in
ADR/mediation sessions. Our services to City of Lubbock will be customized to your
specific needs and objectives.
With the respect to the RFP, we anticipate providing the following claims
management services to City of Lubbock:
■ Provide input on the adjustment of City of Lubbock claims as directed by the
City's Risk Management Department
■ Review all claims reserved above $25,000
■ As part of City of Lubbock's Special Claim Handling instructions, Palmer & Cay
will require the claims service provider to create a Reserve Estimate Advisory
Report for all lines of coverage on claims reserved above $25,000. The claims
adjuster is to immediately notify City of Lubbock Risk Management and Palmer
& Cay of claims reserved above $25,000. The advisory letter will outline the
factors affecting the reserve amount, facts of the accident, nature and extent of
injuries as well as pertinent investigation details. The advisory is to be sent within
15 days of the reserve being posted. Palmer & Cay claim consultants will review
the advisory and discuss the issues with City of Lubbock's risk management
team.
■ Participate in quarterly claims audits of all outstanding claims affecting City of
Lubbock's open claims.
s
•
•
■ Palmer & Cay will schedule, attend and participate in all quarterly claim
audit/reviews. Our claims consultants will critique such areas as:
- Compliance with Special Claim Handling Procedures.
- Quality of Claims Investigation
- Level of Supervision
- Evaluate Reserves and Seek Decreases Where Warranted
- Subrogation Efforts
- Vendor Management
- Litigation Management
- Plans for Future Handling.
If any deficiencies are identified during the review, we will expect an action
plan from the claim service provider to correct the deficiencies.
0 ■ Aid in the design of a Claim Management Information System (Loss Run
g g Y
Formatting). When Risk Managers identify their primary concerns, their need for
accurate and timely information is consistently at the top of the list. Palmer &
Cay has long recognized that developing measurements that create and sustain
senior management's interest in cost control efforts is the single greatest
contribution a risk manager can make to the organization. Palmer & Cay will aid
City of Lubbock in developing claims management information that fits your
specific long-term goals.
Aid in the selection of an effective outside counsel network to handle claim
litigation and development of Third Party Adjustment instructions. Our claim
consultants will assist City of Lubbock screen potential network attorneys by
reputation, knowledge, and commitment to the City's goals and litigation
philosophy. We will aid City of Lubbock in the selection process by utilizing our
membership in the Tort and Insurance practice section of the American Bar
�' Association to aid us in the referral process. We will also draw upon Palmer &
Cay's claim consultants vast network of defense attorneys that we have partnered
with on behalf of other clients.
■ Palmer & Cay will aid in the development of special claim handling instructions
for Workers' Compensation, Auto and General Liability. The instructions will
cover areas such as:
- Program Description
- Location Codes
- Denial of Benefit
- Settlement Consultation
- Reserve Advisory Report
- Notice of Hearing
- Surveillance
- IlVIE's
- Subrogation
- Liens -Workers' Compensation
- Independent Adjusters/Private Investigators
- Rehabilitation
- Payroll Information/Request for Wage Information
- Return to Work
- Claim Audits/Reviews
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SdiEDULE OF LOG4TInONS.rNAlUE:
%2D03
BH9., .Or• I Desenp6w. Atldes=
IDi -
Ctty
Start Zfo C6oe F"DeVSOW
- -
CaW_lyl*
So Feet Coat Ppl
F t
14ePIaCemmll
Value
C-W6- I6b1 C641 lenanl
RV
Year bull'Flood
-
Stonte
Zone
425
lWater LhAme: SEWRP Warebousr 36031—K.
Lubbock
T% 179402 Fi
E
SOD(
175DOD�
450000 62500(''1 0
1993
1
426
!Water UGllee: ISEWRP DeCbior acO Genoy Law(2 mi SW of CV 400)
Lubbock
Tk 179347 IFE �D/SOecia'
60C 126
75.006
60,000 125,000 C
!
1994
1
427
Waler U41iVe: JLAH Eleetrloi Dam Conbd a
LakE A6n klen Jusbi
Lubbock
TA 479330
I W
(
10C 100
I 1D
6 OOD
16 000 C
2000'
428
Fln IF" SG9on87E
�8002 Venlu
Lubbock
TX 79424
SD.FE,PF
F 7,400 11D
8t4,OW
814,000
1995
1
429
EEepnctMWe_ Paul Tn Su0sUa9i.
551056tb Strfie:
WbboA
7X 1T91U
W.
OUre
-60
2 000
2 OW
Water lHAl4es PutEte4trical SnaF'Bukdl69
TOTAL INSUfu4B VALUE: I
I6001-N. Guaw
I
tLbOoak
I
TX 76400
1
FE
E 5.00D
SWAM
1 47 348 0
SO.00D EOM
900J300
6
2002
I
Sample Sample . Sample Sample Sample Sample
i'
Sample Sample Sample Sample Sample Sample
Sample Sample Sample Sample Sample Sample
Sample Sample Sample Sample Sample Sample
6
is
Specific Claim Layer Loss Model - All Claims Foliey Years 1995 through 2000
Developed basis - Valued as of 10114102
urge WC Claims Greater than $50,000
Claim
Total
$0to
I S50,000to
$100,000to
5250,000to
5500,O0 to
Greatert�haan,,
EAcc
DateSample
Develop.
Stm*wd
I 150,000 S
1eS1D0,000
I S2-$t* tie
I 5500,000
i�D0,00D
I 51,000,ODO '
WC
E 15,289,571
S 5.500,ODD S
4,469,817
S 4,744,126
S 576,629
S -
E -
Layer %.:
36.00k
29.2%
31.0°/
3.81/
0.04k
0.0%
Cumulative:
36.00A
652%
96.2%
100.0%
100.0%
100.0%
110
IOtal
Claim
; Total
$0 to
S50,ODO to
E100,000 to
1250,000 to
$500,DOD to
Greater than
WC
Incurred
Develop._
j Incurred
S50,OOD
II00,ODD
$250,000
$500,000
E1,00D,000
$1,000,000
1/27/1995'' 52,017.1E
1.147E 59,664 S
50,000
E 9,664
E
E -
S - E
S 59,664
12111 5
• 62,700.52
SaWlel.147
S 71,9t7,41c
50,000
S Sg W7
E = Simple
S Samp1G -
E 71,917
5
54,515.64
1.147
S 62,52E
50,000
E 1 529
E
S
E S
$ 62.529
12/1/1994
- 221,120.57
1.147
S 253,625 $
50,000
S 50,000
S 150,OD0
S 3,625
S - S -
$ 253,625
9/13/1995
111,467.56
1.147
S 127,8W S
50,000
S 50,000
E 27,853
S -
S - E -
$ 127,853
6/1811995
59,291.02
1.147
$ 68,007 S
50,000
S 18,007
S
$
S - S
$ 68,007
12/24/1994
83,089.82
1.147
S 95,304 S
50,000
S 45,304
E
S
5/10/1995
52,979.59
1.147
E 60,768 E
50,000
S 10.768
S
E
10/16/1995
74,389.97
1.147
S 85,325 E
50,000
E 35,325
S
E
2/26/1995
65,451.97
1.147
S 75.073 S
50,000
S 25,073
E
E
12/6/1995
81,467.17
1.178
S 95,968 S
50,000
S 45,968
S -
S -
S - E
4/28/1996
51,488.1E
1.178
E 60,653 S
50,000
S 10,653
S
$ -
E - $
1/18/1996
71991.40
S l 1.178E
e1.178
84.8Q6 le
50,000
S S $
S -
le -
W.
E ga>npla
8
55:594.03
�
$ 65,4
50,ODO
S •j 0
E
S
E - S -
6/30/1996
95,368.3E
1.178
S 112,344 S
50,000
E 50,DD0
S 12,344
E -
S - S
6/18+1996
54,043.69
1.178
E 63,663 S
501000
E 13,863
E •
E -
E - E -
7/1/1996
179,901.23
1.178
E 211,924 S
50,000
E 50,ODO
$ 111,924
S _
S - E
3/3/1996
156,033.37
1.178
S 183,807 S
50,000
$ 50,00D
S 83,807
S -
E - E
4/6/1996
122,791.0E
1.178
E 144.648 E
50,000
S 50,000
E 44,648
S -
S - E
5fl8f1996
242,531.80
1.178
E 285.702 E
50,000
S 60,000
S 150,000
E 35,702
S S
1/1Oil 996
62,851.10
1.178
$ 74,039 E
50,000
S 24,039
S
$
114/1996
202,138.11
1.178
E 238,119 S
50,000
S 50,000
S 138,119
E
1/21/1996
52,776.7E
1.178
E 62,171 S
50,000
S 12,171
E
4/14/1996
67,77247
1.178
S 79,836 S
50,ODD
S 29,836
S
&2711996
279,421.9E
1.178
$ 329,169 5
50,000
S 50,000
S 160,000
5 79,159
S - 5
5/26/1996
59,297.36
1.178
S 69,862 S
50.000
S, 19,852
$
S
Sa1np�€
11/$5(.,��
58,825.92
Sample4•215
E 71,475a*lc
50,000
S Sa�ipw
E
sample
S
7 26/1 96
147,285.71
1.215
$ 178,952 S
50,000
S 50,ODO
E 78,952
S
S S
Page 1 of 3
9/27/1996
58,683.64
1.215 S
71,301
S
50,000 S
21,301
3
$
$
$
922/1996
61,006.50
1.215 $
74,123
1
50,000
1 24,123
1
$
$
$
12/12/1995
90,911.24
1.215 S
110,457
S
50,000
$ 50,000
1 10,457
S
$
`
$
11/30/1996
63,435.94
1.215 E
77,075
S
50,000
$ 27.075
$
$
$
7/12/1997
85,456.80
1.215 S
103,830
S
50.000
1 50,OD0
4 3,830
S
$
10/1/1997
53,600.00
1,215 $
65,003
1
50,000
$ 15,003
$
S
4/511997
55,567.81
1215 S
67,515
S
50,000
$ 17,515
29
3
S&WIC
S
Sample$
�J22��/�1 97
54,344.60
sample 1.215 S
amp
66.1,
50,000
$ S
$
$
$
$
�P1 i 7
59,349.52
1.215 S
72,110
$
50,000
$22,110
$
S
6/21/1997
111,782.4E
1215 S
135,616
S
50,000
1 50,000
S 35,816
S
S
823/1997
63,817.9E
1215 S
77,539
1
50,000
1 27,539
1 -
$
$
10/9/1997
157,671.37
1.215 4
191,571
S
50,000
$ 50,000
4 91,571
S
S
$
1/11/1997
69,982.37
1.215 S
85,029
5
50,000
3 35,029
1
$
$
$
8/13/1997
59,546.44
1.215 $
72,349 .3
50,000
1 22,349
S -
$
-
6/6/1997
69,398.51
1.215 $
108,619
1
50,000
3 50,000
4 8,619
S
$
10/12/1997
68,834.6E
1.215 $
83,634
5
50,000
5 33,634
$ -
S
S
$
4/1/1997
54,112.38
1.215 $
65,747
S
5D,000
4 15,747
1
S
$
-
4/1211997'
12J13/1996,
76,327.34
241,166.87
1215 $
1.215 $
92,738
293,0 8
1
$le
50,000
50,000
1 42,738
$ Sam{00
1
S 150,000
S le
43,018
S
Sample$
$
12�p$e7
52,649.87
Sample 1.215 $
63,99
50,000
3 -73,b70
$
$
10/611997.
75,176.8E
1.215 S
91,340
1
50,000
4 41,340
S
$
4/17/1998
123,525.15
1.282 $
15E,359
$
50,000
$ 50,000
3 58,359
$
S
10/4/1998
79,092.29
1.282 $
101.396
S
50,000
S 50,000
$ 1,396
$
82311998
67,948.47
1.282 S
87,110
$
50,D00
S 37,110
$ -
$-
$
2r23/1998
153,053.40
1.282 $
196,214
$
50,000
S 50,000
$ 96,214
1
$
$
618/1998
111,825.65
1.282 $
143,360
S
50,DDO
S 60,000
4 43,360
4
$
$
$
1/4/1998
84,462.25
1.282 $
108,281
$
50,000
S 50,000
3 8,281
$
-
$
$
7/14/1998
108,56621
1.262 5
139,182
E
50,OD0
S 50,D00
S 39,182
$
-
$
-
$
6117/1998
10/1/1998
116,12427
100,870.87
1.2B2 S
1.282 S
146,871
129,316
$
$
50,000
5D,OD0
$ 60,000
S 50,900
$ 46,871
S 29,316
S
�?
$
Sempl
179,335.00
Sample1.282 $
229,9�1e
50,000
S S�@DO
$ 129,907
"t"'Yle
_
$
-
81171 998
229,880.68
1.282 $
294.707
S
50,000
$ 50,000
$ 150,000
$
44,707
$
$
7/16/1998
65,901.36
1.282 $
84,486
1
50,000
$ 34,486
S -
511all 996
79,349.17
1282 $
101,725
S
50,000
$ 50,000
$ 1,726
$
3/10/1998
197,B13.73
1282 $
253,341
5
50,000
$ 50,000
S 160,000
S
3,341
S
916✓1998
179,507.26
1282 $
230,128
S
50,000
$ 50,000
$ 130,128
S
-
$
- $
5/311998
74,450.78
1.282 $
95,446
S
50,000
$ 45,446
$ -
$
S
$
$
$
10/1&1998
70,699.00
1.282 $
90,636
$
50,0D0
S 40,636
S
$
$
S
220/1998
71,138.80
1.282 $
91,200
3
50,000
$ 41,200
$ -
$
-
$
-
$ -
11/30/1998
99,86620
1.394 S
139,214
$
50,000
1 50,000
$ 39,214
$
-
$
-
$
W5/1999
196,947.22
1.394 S
274,544
S
50,DD0
S 50,OD0
S 150,DDO
$
24,644
7/4119M
59,582.86
1.394 $
83,059
S
50.0DO
$ 33,059
$ -
$
5
-
$
$
1/11/1999
161,320.49
1.394 $
224,881
S
50.000
$ 50,D00
S 124,861
-
$
SamPl€
•
12 20/19 8
3
118,742.53
133,087.50
S l 1 394 $
amp e7.394 S
165,51�1e
185,5
50,000
50,000
i SQ,t@0
$ 50p, __000
$ 65,527
$ 85,524
gample
S
S
$
Page 2of3
0
2/26/1999
63,366.3(
1.394 S
86,333
5
60,000
S 38,333
S -
1 1
312W199S
104,106.9!:
1.394 1
145,125
1
50,000
1 50,00D
S 45,126
5
1 S
12/611998
60,061.4E
1.394 S
83,726
S
50,000
1 33,726
1
S
1 S
1.394 S
$
50,0D0
S 28,983
1
1
S S
/23/1998
8l23l1999
76,126.15
76,126.15
1.384 1
106,120
06,120
1
50,000
$ 50,000
1 6,120
614/1999
58,624.30
1.394 S
81,722
1
50,000
S 31.722
5
$
1 S
12/1011999
63,490.77
- 1.631 1
103,553
S
50,000
1 50,000
S 3,553
1 105,727
1
Simple
S S
S Samples
���/ya1�7/20�00
126.135.49
Sample 1.631 1
205,781 e
50,000
S San*l@M
1 90,058 1-
17J[1�19'JN
116,528.29
1.631 1
190,05E
50,000-
1 50,000
2/27/2000
98,856.31
1.631 1
161,235
$
50,000
- S 50,000
S 61,235
$
1/21/20D0
59,739.13
1,631 1
97,435
S
60,000
1 47.435
S -
1
1 S
2/3/20D0
147,079.74
1.631 1
239,887
1
50,000
1 50,0D0
1 139,887
1
4128120DO
78,493.71
1.631 1
128,023
1
50,000
1 50,000
1 28,023
1
1/2012000
198,004.34
1.631 1
322,945
.S
50,000
1 50,000
1 150,000
1
72,945
S - 1
12/28/1999
128,126.14
1,631 S
208,974
1
50,000
$ 50,000
1 108,974
S
4/6f2000
66,730.5E
1.631 $
108,838
1
50,000
1 50,000
1 8,838'
1
411612D00
63,244.00
1.631 1
103,151
S
50,000
S 50,000
1 3,151
1
,
5127/2000
120,715.74
1.631 S
196,887
S
50,000
5 50,0D0
1 96,887
$
5114/2000•
57,552.86
1
Sam
93,869 Ile
50,000
S Sa 69
S
Sample
1 Sample
S S
I%kXI1D
119,428.18
ple1.631
.1.631 S
194,7
50,000
S 00
1 94,787
$
-
611/20DO .
94,961.59
1.63t $
154,882
1
50,000
1 50,0D0
S 54,882
S
1 - $
W612D00
105,555.35
1.631 S
172,161
1
50,000
1 50,0D0
S 72,161
$
1 - $
4/29/2000
71,181.19
1.631 S
116,097
$
50,000
S 50,000
1 16,097
S
S - $
8f18/2000
50,138.41
1.631 S
81.776
$
50,000
S 31,776
S -
S
-
S - $ -
2/212001
63,576.D4
2.271 S
144,386
S
50,000
1 50,000
1 44,386
1
1 - $
2/27/2001
60,998.8E
2.271 S
138,528
1
50,0D0
$ 50,000
1 38,528
1
3/20/2000
54,113.71
2271 1
122,892
1
50,000
S 50.000
S 22,892
1
1 - S
6/17/2001
68,641.75
2271 $
155,885
1
50,000.1
50,000
a 55,885
1
S - $ -
6/V2D01
66,382.35
2271 S
150.754
1
50,000
$ 50,000
S 50.754
S
1 - $ -
9/28/2001
132,880.2E
2271 S
301,771
1
50,000
1 50,90D
S
1 150,000
mPle
51,771
S Sampl -
S
10
66,432.86
Sample2271 S
148,5�a�le
50,000
$
$ 48,59E
3/21/001
80,819.43
2.271 1
163,541
$
50,000
S 50,000
S 83,541
$-
9/23/2001
58,772.05
2.271 $
133,471
S
50,000
1 50,DD0
S 33,471
S
S - $
7/612001
79,584.89
2271 $
180,737
S
50,000
S 50,DD0
S 80,737
$
-
1 - S
12/22/2001
73,488.18
5.447 1
400,290
$
50,000
1 50,000
S 150,000
S
160,290
1 - $
1/21/2002
51,146.00
6.447 $
278,592
1
50,000
S 50.000
1 150,0D0
S
28,592
S - S
6/17/2002
52,860.88
5.447 S
287,933
S
50,000
1 501000
1 150,000
$
37.933
1 S
0 Sample Sample Sample Sample Sample Sample
Page 3 of 3
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ABC Public Entit}
f9AS OF 05/31/2003
POLICY PERIOD: 30/01/2003 TO 30/03/2002
Net Loss Payments Allocated Exp. Pmts. JOIS Loss Reserver Allocated Exp. Reserve JTotal Experience
57,471 41,754 74,133 14.701 188,059
Sample Sample LNC257iW CLAIMS LOSS WY Sample Sample
Sample
0 Sample
Total Period Experience 00/01/01 to 10/01/02
188.059
Less Clsims Excess of Per Occurrence Retentions
(Reinsurance)
(59,348)
Total Incurred Loss Fund Experience
128,711
Projected 12 Month Loss Fund Ratio
(128,711 divided by 300,000
43%
Sample Sample Sample Sample
PAID CLAIMS LOSS FUND SUM L4RY
Total Claim Payments
99,225
Less Reinsurance Recoveries
Total Payments Appliesble to Loss Fund
99,225
Loss Fund Amount
300.000
Loss Fund Balance
200,775
Total Payments made in Excess of Loss Fund
Sample Sample Sample Sample
Sample
Sample
Loss Forecaster It Report Prepared For:
Sample Sample Sample Sample
Industry:
,
Policy Periods:
Line of CoveraoE:
Sample S
Method:
Analysis:
Sample Sample Sample
Fabricated Metal Products-
7
Workers Compensation
Both
Reserve Analysis
Sample Sample
Sample
Sample
Sample
U
Sample Sample, Sample Sample Sample Sample
Loss Forecaster Il Pape 1
0
8
Workers Compensation
Lesses are limited to historical limitations
r
i
SSle Data In le Sample Sampler
r
J
r
z
Sample
Sample
Policy Period
Ev4lu21ion Date' Incurred Loss
Paid Loss Loss Limit
05/01/1996-
04/01/2003
j 1549,965
$536,9831 $460,000
04/30/1997
I
r
05/01/1997-
04/01/2003
$510,145
$463,816 • $•450,000
04/30/1996
DS/01/1998- 04/01/2003 , 1386.826
$354,085
$.250,000
04/30/1999
05/01/1999 04/01�/2003 $848,584
$673.124
S250,000
04/30/2000
0510112000-�
04/01/2003
$591,060
$484,435 i 5250,000
04/30/2001
05101/2001- 04/01/2003 $439,339. S399,336 1250,000
04/30/2002
05/01/2002-
04/01/2003 ` $470,232 1 $236,027 S250.000
i 04/ Wli
Sample Sample Sau ple
As of 4/1/2003 the total incurred figure for the 2001-02 policy period is 1566,339. However
settiemerd will occur that will reduce the total incurred figure by $127,00D.
Sample Sample Sample Sample
sample
ample
has advised Palmer & Coy that a claim
Sample Sample
Loss Forecaster tl page 2
Workers Compensation
Losses are limited to historical limitations
Ex ess of Loss Limit { cur Losses)
Sample Sample S Sample Sample
Sample Sample
Sample Sample
Policy Period
incurred Large
Losses
05101/1996-
04/3011997
05101/1997-
04/30/1996
OS/01/1996-
5a80/1995
Sample
05/01/1999-
$300.967
04/30/2000
05/01/2000-
-
04/30/2001
05/0112001-
I $273,169
04/30/2002
i p1/2002-
/3012003
Sample --_- —
Sample Sample
Sample
t. •.
Sample
Sample Sample Sample Sample Sample Sample
Loss Forecaster If Page 3
0
r
L
c
L
P
r)
s
Sample
,
Sample
Sample
Sample
Workers Compensation
Lesses are limited to historical limitations
Policy Period 'Total incurred
Limited lncurred
'iota! Paid Loss
. Limited Paid Loss
Loss
Loss
05101/1996-
$549.965
$549,965
$536,983
$536 983
04130/1997
05/01/1997-
$510,145
$510,145
$463,816. $463.816
041301199E
,05J01/1998• '- $386,826 $386,826! $354,0851
$354.085
104/9 99 Sample i Sample ; Sam
le
05/01/1999-
$846,584
$797,6171
$673,124
$673,124
04/3012000
0510112000-
1591,060
$591,060
$484,435
$484,435
04130/2001
:0510112001-
S439,339
$416,170
5399,338
$399,338
04/30/2002
05! 2- Sy j9,232 aoa
$236,C741e $236,027'
04/30/ZU03
I
ample
ample
ample
Sample Sample Sample Sample Sample
Loss Forecaster 11 Page 4
r
Sample
Sample
Sample
Sample
Workers Compen"tion
Losses are limited to hislorical limitations
1p
Loss Develo ment Facto {Incurred Method)
Sample
Policy Period
Evaluation Dale
Limited Incurred
Incurred LDF
( Estimaled
Loss
Ultimate Incurred
I
Loss
05101/1996-
04/01/2D03
$549,965
1.062
$564,D63
04/30/1997
05/01/1997-
04/01/2003
$510,145 1.081
5551,467
04/30/1996
05/8 96-
Gdt61w003., 3V5TW 1.fw
le $428,603
04/30/1999
i
05/01/1999- E 04/01/2003
6797.617
1.094
$872,593
04/301200D
05/01/2000-
I 04/0112D03
g591,060
1.188
$702.179
l 04/30/2001
05/0112D01-
04/01/2003
$416,170
1.126
$468,607
04/30/2002
05 1
04 2003; $479, 32
1.859
$Ei>'v,892
04/30/2003-
i
ample
Sample Sample Sample Sample Sample
Loss Forecaster11 Page 5
•
Sample
r
J
Sample
r
n
s
.13
s
v
9
Z
_J
Sample
Sample
Workers Compensation
Losses are limited to historical limitations
Los, Development Fac ors Paid Method) Sammie
Policy Period Evaluation Date
limited Paid Loss Paid LDF
Estimated
Ultimate Paid
Loss
05101/199&-
04/0112003
9536,9831 1.183
$635,251
04/30/1997
i
05/01/1997-
04/01/2003
$463,816 , 1.221
3566,319
04/30/1996
0510vt9Eb- I Sr OU2003 f; $n4v85
1ji�le $455,707
04/30/1999
05101/1999-
04/01/2003
i $673.124
1.399
3941,700
04/30/2000
05/01/2004
04/01/2003
1484,435
1.632
$790.598
04/30/2001
5/0112001-
F
04/01/2003
$399,338
2.254
$900,108
4/30/2002
05 402- 04/ 1l2003
$236, 27 •
5.339
$1,260,148
04/30/2003
i
Sample Sample Sample Sample Sample
Loss Ferxcaster 11 Page 6
Sample Samp]
Sample Sampl
Sample Sampb
Workers Compensation
Losses are limited to historical limitation_
Selected Estimated Ultimate Incurred Lasses
Policy Period Estimated
E:lirnated i Ultimate.lncuned
Ultimate Loss -
Ultimate Loss - : Loss'
°. Incurred Method
i Paid Method
p5101/1996
$584,063
' $635.251
$584,063
04/30M997
0510111997-
$551,467
3566,319
5551,467
064/30/1998
05101/1998- Sile $428,603
Sample $455,707
San*428,603
= 04/30/1999
!
i
05101/1999-
$872.593 $941,700' $672,593
04/3012000
0510112000-
$702.179
3790,59E
$702,179
04f30/2001
'05101/2001-
$468,607
1900,108
468,607
04/30/2002
Sample
05/01/2002- $890,892
11,260,148
--5�$
892
04/30/2003
Sample
Sample
Sample
Sample Sample Sample Sample Sample Sample
Loss Forecaster 11 Page 7
Workers Compansalon
Losses are limited to historical lim-,,rations
r
S It Sample Sa l jEstimaled Requir"d erves Sample Sample
0
1
J
D
G
U
0
n
a
fj
Sample
Sample
Sample
Policy Period
Loss LimitEstimated Limited Paid Loss i Estimated
Ultimate Incurred ? ;Required Reserve
Loss
05/01/1996- $4.60,000
t584,O63
$536,983
$47,080
04/3011997
105/0111997- $450,000
$551,467
$463,816
187.651
04/30/1996
05/05#i- Es1?&t 000
$4k$354,O8 e $74,518
04/30/1999
05/01/1999
S250,000
$872,593
$673.124
$199,469
O413OJ2O00
05/01/2000-
$250,000'
$702,179
$464,435
$217.744
04/30/2001
05/0112001- 5250,000 $468,607
$399,338
$69,269
04/3012002
e
05101/2 02-
$250,000 $890,892
" $236.0271
$654,865
04/30/2003
Totals
$4,498,404
g3,147,8O8
96
$1,350,5�j
Sample Sample Sample Sample
,ample
;ample
Sample
Loss Forecaster It Page 6
m
Workers Compensation kv
Lewes are limited to historical limitations a
.J
CI
I-
C
Sample Sample Sample le Sample Sample ~
Discounted Payout ule
Policy
Period D410212OD3
Inception
Date 0510112OD3
05,10112003 : 05'D112004 OSi01ROD5 DS101/2006 ; 0510112007
I
} OW0112004 I DEF0112DOS =. 05/01120D6 05/07ROD7 05/01R[>D8
PY01r2m
• OS/D112009
05MI12009
DSro1R010
OSIO112DIO
05f0112011
05M112D11
OS�01R012
total
p5101196
13,622
' 114,486
114,466
[ 114,486 $0
£20,624 320,623
$D
$D
$01
1D
$0
£47,0a0
05MIN7
�. $0
£25,780
$20,E24
$0
so
SO' $0
$D i
$e7,651
05101196 sample
$3,240
£16,2
le 316,201)
11g a $12,960
10
Sample 10 ' £o
Sample $0, 174,518
OSlD1199 37,12A
M619 335.619
335,619 i 328,496
528,496
12E,49E
$0 ; $0
$0 . 1195,469
OWIOD 15,8m $52,965
; 229,425
129,425 : $29.426
[ $23.640
123.540
- 123,539
$01
$D
$217.744
OW01101 $2,4741
122.265
111,1331
$6,105 $6.185'. $6,185
$4,948
34.948
$4,946
$0
$69,269
OW102 $15,972
£207,640
$743,751 i $71,875 439,931 £39,931
$M.931 ; $31.945
331,945. $31,944
$&47,885
total 1 538,31>
$374,955
3771.236 $191,174 1137.6204111,170;
396,915 1 $60.432
$36.691 131,944
41,350,59E
Sample Sample Sample Sample Sample Sample
Expected Fuhue Payments -Discounted Basis
014102120DI
0510112003
0510112DO4 0510112OD5
owo112006
OW0112007
OWO112008
OSID1R0D9 °l
OWOI12010
0510112D11
j
1
05/01/2003
05",120D4
05/01/2005
05/0112005
05MI12007
051D112008
W0112009
05)01R010
0510112011
0510112012 f
total
2%
136,285
3370,647
$W.471
T262.057
$264,891
11E1,634
$128,189
1101.464
$06,763
i 453,041 '
$31,744
528,94E i
$1,281.672
491
136,263
4172,742
$119,569 t $92.616
$77.642: $46,672 327.396
$22,806
$1,219,481
69l
$3E,222
1362,420 ; $247.310
$164,443
$111,fi76
£65,054
$b9,963 $41,166
$23,709 i
119,35fi .
31,163;351
Sample Sample Sample Sample Sample Sample
Loss Forecaster 11 Page 9
is
SECTION III
Dallas Service Team and National Resources
Richard "Dick" Clarke i
Global Financial Products
Marshall Nonor,
Aviation Specialists
Jeff Salituri
Risk Control Consultam
Leila Hutcheson
Risk Management Coordinator
Robert S. Bookhammer I11, ARM
Senior Client Advisor
Douglas Sanford, C1C
Senior Client Advisor
Shyla Smith
Senior Account Manager
Deanna Zahn
Senior Account Manager
Tom Heim
Alternative Risk Financing
Evan Simmons
Senior Oversight Advisor
Mike York
Claims Consultant
Jeffery Sieben
Casualty Claims Consultant
Ronnie S. Hall
Risk Control Consultant
0
�► Organizational Chart
Dee Bartlett
Commercial Lines
Supervisor
Janet Williams
Certificate
Customer Service
Representative
0
Douglas Sanford Diannah Tatum
Agent Back -Up Agent
Jean Thompson
Claims
Administrator
Sandy Davis
Customer Service
Representative
Frank Scardinc
Seriia Vice President
Ruth Min F
Aden MIL
Gary Donofrio
Evan Simmons Sr.
Bob Bookhemmer
Senior Vice President
Senior Vice Presidem
Senior Client Executive
Patsy Cathey
Doug McCord
Asn. Vice President
Vice President
Shelley Rauscb
Stu Rican
Sepia Amt. Mg.
Account Executive
-F
Sue Griffis
FeaA Martin
Senior Acct. Mg.
Techrd Aset.
Jane Damon
Senor Act Mg.
Pansy Westrich
Senior Am. Mg.
Kim Utaery
Technical Ant
Marie Moore
Technical Aast.
John Cay
Chairman I CLO j
Jim Meathe II
President i
Frank Beard
COO
Howard McClure
Executive Vice Presidem
Shyle Vahle
Senior AccL Mgr.
Cindy Sachse
Senior Acci. Mg,
Deanna Zahn
Senior AccL Mg.
Lxecutive Committee
Howard McClure
Executive Vice President
Frank Sim Evan Sirumons Sr.
Senior Vice President Settior Vice Presider
Gary Donofrio
Jane Hughes
Receptionist
Carla Jones
Asffi. \rice Presidem
=Ad,,,
Office Manger
Dan Cox
Rice Cannon
Sepia Vice President
Vice President
Margaret Nicks
Asst. Vice President
Aceouat Mg.
Linda Oiiva
Senior AWL Mg,
Barbara Johnson
Senior Acct. Mgr.
Dian Luther
Technical Asst.
Less Blaze I Pat Kent
Claims
Personal Lines Advisory
Client Executive
Campbell Letch
Employee Benefits
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Robert S. Bookhammer III, ARM Senior Client Executive.
National Public Entity Specialist
Commercial Insurance Practice Group
Palmer & Cay of Texas, LLC.
Dallas, Texas
Licensed Risk Manager — State of Texas
Associate in Risk Management (ARM) - 1990
Bachelor of Science in Business Administration
Major: Risk Management
University of Florida - 1981
Bob ioined Palmer & Cay in 1997. He is a
Senior Client Executive in the Palmer & Cay
Commercial Insurance Practice Group and
focuses on the Public Entity sector. This group
focuses on clients whose cost of risk exceeds a
minimum threshold of $250,000.
These organizations tend to recognize and value
the consultative approach and services provided
by the Palmer & Cay Commercial Insurance
Division.
Prior to joining Palmer & Cay, Bob was a
Senior Vice President with a large Dallas
insurance brokerage who specialized in risk
management accounts and alternative risk
transfer products. He provided statistical,
technical and claims oversight services for a
multi -tenant captive and several other key
commercial clients.
Specific areas of technical specialization include
loss development projections, sophisticated
property placements, specific & aggregate
reinsurance placements, alternative risk transfer
program design and placement, reinsurance
recovery, loss control oversight, claims
management oversight, cost allocation services
and client service plan development.
11
0
0 3hyla R. Vahle
E
Senior Account Manager
Palmer & Cay of Texas, LLC
Dallas, Texas
ty & casualty industry handling small to large
middle market accounts.
and MGA side of the industry. Her background
includes workers' compensation, commercial
property & casualty programs, and public
entity all lines aggregate programs.
Shyla joined Palmer & Cay of Texas in August
of 1999.
Shyla is pursing her Associate in Risk
Management Designation.
D O UGLA S SANFORD, CI C
Agent
Douglas Sanford is Co -Chief Executive Officer of Sanford Insurance
Agency and a principal (owner). He has been a full tiros- employee of
Sanford since June of 1970. He graduated from Vander; University
in 1970 and obtained his Certified Insurance Councilor designation
in1985. He is a Licensed Risk Manager. Douglas has been the lead
agent or co -agent on accounts such as the City of Lubbock,
Methodist/Covenant Health System, Multiple Listing Realtor
Associations of Lubbock, North East Tarrant County and Irving, Glass
Control, Inc. and other complex accounts.
Douglas has been published in Rough Notes and Texas Insurance Journal
magazines and was a speaker at the National Association of
Independent Insurers National Underwriting Conference in April on
"The Return to Traditional Underwriting". Douglas is a Past President
of the Independent Insurance Agents of Texas and is currently the
Texas National Director of the Independent Insurance Agents and
Brokers of America. Douglas has been a member of Texas Tech
Continuing Education Staff, teaching insurance principles for
Executive Directors of Non -Profit Organizations.
Working with Senator Duncan, Douglas successfully petitioned for a
change in the Charitable Immunity Act of Texas to allow the benefits
of the act to reach more organizations. Douglas testified before
Congressional Committees in the process.
1�1
11
DIA1' WAH TA T UM, Cl C
Back- Up Agent
Diannah Tatum, who joined the agency in 1978, has mastered every
function of the insurance agency business. She was named an Officer
and Manager of Commercial Lines Operation in October 1985. She has
been instrumental in the significant growth of the Sanford Insurance
Agency since 1985.
Diannah was promoted to her current position, Co -Chief Executive
Officer, in January 2002. In addition to agency operations, she takes an
active part in marketing and is directly responsible with Douglas for the
agency's largest accounts.
Goal oriented, self -motivated and always seeking additional knowledge,
Diannah has earned a Certificate of General Insurance from the
Insurance Institute of America and the Certified Insurance Counselor
designation. Diannah is a Licensed Risk Manager.
Diannah is a past member of the Producer's Council with CFCI,
Northbrook, CGU, Kemper -Personal Lines, and Texas Mutual. She
also served on the Independent Insurance Agents of Lubbock Board of
Directors.
DEE BAR TLETT
Commercial Lines Supervisor
Dee Bartlett joined the agency staff of Sanford Insu- ance Agency in
2001. She came to us with over 25 years of past experience as a
Customer Service Representative. Dee specializes in large accounts
and has earned her Accredited Customer Service Representative
(ACSR) designation. She is the Supervisor of the Commercial
Department.
SAND YDA VIS
Customer Service Representative
Sandy Davis joined Sanford Insurance in 2001 in the Life & Health
department. She then transferred to Commercial Lines in 2002. Sandy
is currently working on her ACSR designation, specializing in large
accounts. Sandy has become a valuable member of our staff.
•
2099f, ard
JEAN THOMPSON
Claims Administrator
Jean Thompson joined our, agency in January of 1999. She handles all
of our claims, Commercial and Personal, and is also working on her
ACSR designation. Jean received her Adjusters Certification this past
February.
III Ta1vET uIILLraNrS III
Certificate Customer Service Representative
Janet Williams began working for the agency in August of 1995. She
serves as Receptionist at the front desk and assists with issuing
Certificates of Insurance.
Agency Personnel Responsible
to the �
City of Lubbock
Douglas Sanford, CIC, Co -CEO - Douglas will be primarily responsible to meet with
designated representatives to review and recommend insurance alternatives. An analysis of
the current coverage for the City and current loss control and claims activities will be
conducted. Through regular meetings with the City Staff, Douglas will keep apprised of
exposure changes and general administrative matters. Sanford will also oversee certain
claims and their proper handling. Sanford will meet with the Human Resource/Risk
Management Staff as often as necessary, especially in the first year while becoming familiar
with the City's entire program.
Douglas expects to spend a minimum of 100 hours working as Agent to the City. Special
Projects, such as the departmental needs assessment, will be in addition. It is estimated the
assessment will consist of:
• a review of coverages available and specific exclusions
• meetings with department representatives to present coverages/exclusions and
determine how appropriate the insurance and risk transfer mechanisms are
* review findings with Human Resources as well as seek coverage from insurance
providers as need is determined.
Douglas's term as State National Director to the Independent Insurance Agents and Brokers
of America will end with the October 2002 convention, freeing 160 hours annually.
Additional hours will be obtained by transferring servicing of certain accounts to others in
the Agency.
Diannah Tatum, CIC, Co -CEO - Diannah will serve as the back up Agent to Douglas
Sanford. Diannah is a Partner in the Agency, and has 24 years of insurance experience.
Diannah will also be involved in setting up any administrative needs required by the City.
She is the current back up Agent to the City of Lubbock account. Diannah will be involved
in the City's "Team" meetings. The "Team" meetings will be held with all Sanford
Insurance personnel responsible for the City of Lubbock. The meetings should take
approximately 2 hours a week at the beginning and taper off as the year progresses. More
time will be required at each renewal.
Sandy Davis - Sandy will be responsible for day to day contact with insurance companies
and facilitating gathering of information. She will prompt the insurance companies for
requests for information, audits and endorsements that may be needed. Sandy would
request certificates internally. She will work closely with the City's Risk Management
department on any changes or needs. Sandy's responsibility for accounts will be changed to
allow adequate time for the City's needs.
Dee Bartlett, ACSR, Commercial Lines Manager - Dee is responsible to see that all
Commercial Property and Casualty Personnel in the Agency are operating according to
Agency guidelines and to temporarily reassign duties in event of the absence of an
individual.
Janet Williams - Janet is in charge of issuing all Certificates of Insurance as requested by
Karen Deering.
Jean Thompson, Claims Manager - Jean is responsible for the prompt notification to the
insurance company when Sanford Insurance is notified of a claim or a situation that will
likely give rise to a claim. Jean also routinely follows up to be certain the claim has reached
its proper source and is a facilitator to gather information as to the current status of claims
as requested by the City. She is to advise Account Executive, Douglas Sanford, in the event
that claims are not proceeding properly.
s�f�for�
Deanna Zahn
Senior Account Manager
Palmer & Cay of Texas, LLC
Dallas, Texas
Deanna has seven years experience in the
property & casualty industry handling various
sized accounts.
Deanna has worked the retail side of the
industry. Her background includes workers'
compensation, commercial property & casualty
programs, professional liability, and
employment practices liability.
Deanna joined Palmer & Cay of Texas in
February 2003.
Deanna has received her Accredited Customer
Service Representative designation as well as
earned her BA in Communications Studies
from the University of Nebraska.
1�1
*':;van Simmons Sr.
Executive Vice President
E
Evan has had 35 years insurance and risk
management experience as an agent,
broker, consultant and risk manager. Much
of this time was spent with Fortune 500
companies and the world's largest
insurance brokers.
His specific industry experience has been
in construction, oil, chemicals and
petrochemicals, as well as large diversified
enterprises, and he has also acted in the
capacity of compliance officer in the
implementation and execution of brokerage
standard operating procedures.
Evan has served as Chairman of the
American Subcontractor's Association
National Insurance Committee, Chairman
of the National Association of Surety Bond
Producers Liaison Committee with the
American Subcontractor's Association and
as a member of the Texas Aggregates &
Concrete Association Insurance
Companies.
He attended The College of Insurance in
New York City where he studied insurance,
reinsurance and risk management theories
and practices and holds the professional
designation, Associate in Risk
Management.
In his position of Executive Vice President
of Palmer & Cay, Evan assists in the
management of the Dallas office, heads -up
the National Accounts Unit and manages a
client portfolio for which he has primary
responsibility.
.dichael E. York, CIC Claims Consultant 40
Assistant Vice President
Claims Services
Commercial Insurance Division
Palmer & Cay of Georgia, Inc.
Atlanta, Georgia
Bachelor of Business Administration
West Georgia College
Carrollton, Georgia
Certified Insurance Counselor
(CIC), 1993
Serves as claims and risk consultant to major
clients. Assists in reserve analysis, settlement
consultations and overall claims strategy.
Mr. York brings to Palmer & Cay over twenty
years experience in the carrier and broker industry.
Previous professional experience includes claims
consulting positions with Sedgwick James and
claims management positions with Liberty Mutual
Insurance.
0
Jeffrey L. Seibert Vice President
Senior Claims Consultant
Palmer & Cay of Virginia, Inc.
Richmond, Virginia
Primary focus is on commercial account claims consultation and support
with the objective to reduce and control the client's total cost of risk.
Bachelor of Science, Business Administration
Economics & Statistics
Old Dominion University
Norfolk Virginia
Casualty Claim Law Associate
Workers' Compensation Claim Law Associate
Mr. Seibert has more than twenty-seven years of experience in the
insurance industry. Prior to joining Palmer & Cay in 1995, he was
employed by Johnson & Higgins and by the Travelers Insurance
Company in various claims positions.
.mie S. Hall Assistant Vice President
Risk Control Consultant
Palmer & Cay, Inc.
Lexington, KY
Master of Arts, Marketing
Webster University
St. Louis, Missouri
Bachelor of Science, Occupational Safety & Health
Murray State University
Murray, KY
Mr. Hall joined Palmer & Cay, Inc. in 1999 with over 16 years of property
and casualty risk management and account management experience. Mr.
Hall currently serves as the Construction Specialty Practice Leader and
works with OCIP and CCIP clients.
Mr. Hall has experience in planning, supervising, and performing the risk
control services for self-insurance funds, agency captives, and individual
accounts.
During his tenure as Loss Control Manager and Loss Control Supervisor he
developed and established model safety compliance manuals, safety
incentive programs, and conducted safety training seminars for self-
insurance and agency captive policyholders.
His areas of experience include: construction safety, mining safety and
safety program development, workers' compensation cost reduction, OSHA
regulatory issues, and large account management. His industry experience
includes; restaurants, construction, forest products, apparel, mining and
manufacturing.
Professional Achievements:
• Professional Member of the American Society of Safety Engineers
• Past Chapter President/Current Delegate of ASSE — Louisville KY
Chapter
• ASSE 2000 Distinguished Service Award — Louisville KY Chapter
• ASSE 2000 Chapter Achievement Award — Louisville KY Chapter
• Kentucky Safety & Health Network — Charter Member
• OSHA 10 & 30 Hour General Industry Outreach Trainer
• OSHA 10 & 30 Hour Construction Industry Outreach Trainer
• Certified Underground Coal Miner •
• Certified Surface Coal Miner
* JeffR. SalituriP.E. CSP Vice President/ Risk Control Consultant
11
9
Palmer & Cay of Florida, Inc.
West Palm Beach, FL
Master of Science-Biology/Environmental Oceanography
Florida Institute of Technology
Melbourne, Florida
Bachelor of Science -Physical Oceanography
Florida Institute of Technology
Melbourne, Florida
Mr. Salituri has 25+ years of Casualty Risk Control, Risk
Management and Account Management experience. Prior to joining
Palmer & Cay in 2002, Mr. Salituri held the positions of Senior
Consultant and Southeast Region/Florida Manager for Risk Control
consulting services for Marsh USA He has considerable experience
in assessing exposures and developing innovative solutions to clients'
business needs through team participation and the coordination of
appropriate resources. His areas of experience include: workers
compensation cost containment, ergonomics, behavioral risk
improvement programs and environmental management.
For a period of 9 years, Mr. Salituri developed and directed his
employer's Environmental Consulting practice.
His industry experience includes retail, hospitality, technology,
construction, communication, forest products, and manufacturing.
Professional Achievements.
Professional Member of the American Society of Safety Engineers
Chapter President of AS SE -Central Florida
"Safety Professional of the Year" —Central Florida
Member of the National Association of Environmental Professionals
Professional Certifications:
Certified Safety Professional (CSP) —Comprehensive Practice
Licensed Professional Engineer (P.E.)
Certified Hazard Control Manager (CHCM:)
Certified Environmental Professional (CEP)
Thomas F. Heim Account Executive
Risk Management Consulting Practice Is
Palmer & Cay of Georgia, Inc.
Savannah, Georgia
Bachelor of Arts, Political Science
Randolph Macon College, 1984
Ashland, Virginia
Serves as technical analyst and resource for designing, evaluating, and
implementing alternative risk financing programs.
Mr. Heim's background and area of expertise is in the field of financial modeling,
risk and statistical analysis, as well as loss forecasting. He also serves as a
consultant for various complex commercial accounts.
Prior to joining Palmer & Cay in 1998, Mr. Heim was employed with Scott
Insurance as an account executive specializing in large commercial accounts. I -Es
background includes managing and overseeing program development and
underwriting for various self -insured associations with an annual premium
volume of nearly $25,000,000 million. He has more than fifteen years experience
in large account management and in the design, development, and implementation
of various alternative risk financing mechanisms including captive insurance
companies and the management of those facilities. 0
E
E
0
Richard G. Clarke
CPCU, CIC, RPLU Directors & Officers Liability Specialist
Senior Vice President
Global Financial Group
Palmer & Cay, Inc.
Atlanta, Georgia
Bachelor of Arts, English
East Tennessee State University, 1971
Chartered Property & Casualty Underwriter (CPCU)
designation, 1982
Registered Professional Liability Underwriter (RPLU)
designation, 1997
Joined Palmer & Cay in 1993.
Previous professional experience includes management
and consulting positions with Marsh & McLennan and
McNeary Insurance Consulting Services.
Area of specialization — Directors and Officers Liability
Coverage; Fiduciary Liability; Employment Practices
Liability. An avid scholar, Mr. Clarke is one of only
200 insurance professionals in the nation who have
earned the RPLU designation
Mr. Clarke also conducts national workshops for
insurance agents and risk managers on various coverage
issues and risk transfer mechanisms.
.darshall L. Norton Team Leader — Aviation Practice
Vice President
Bachelor of Arts, English and Art History
Lake Forest College, Lake Forest, IL
Marshall has over 30 years experience in the
insurance brokerage having worked for BB&T
Insurance Services and prior to that 19 years
with Johnson & Higgins in New York and
Richmond. He was also a member of their
Aviation Practice Committee.
Mr. Norton's responsibilities include sales and
marking along with being the Team Leader on
a number of accounts. Marshall has
specialized in aviation insurance and his
experience covers the full range of private
operators, charter and fixed based operators,
manufacturers, leasing companies and airlines.
11
0
Current Reference Data
Name of Client: City of Lubbock
Address of Client: P.O. Box 2000
Lubbock Texas79457
Client's Contact and Title: Ms. Leisa Hutcheson, Risk Management Coordinator
Telephone Number: (806) 775-2167
Length of Service: July 15, 2000 to Current
Description of Program/Services Provided:
Market and negotiate all Property and Casualtv Lines of coverage to obtain
the best possible program placement of Insurance coverage with selected
insurance carrier(s). Contract and certificate review and consulting. Advise applicability
of Texas Tort Cap on various claims cases. Monitor carrier solvency (continuous).
Directed and advised City of effective format for distribution of property schedule.
Name of Client: Orleans Parish School Board
Address of Client: 3510 General DeGaulle Dr., Room 493
New Orleans, LA 70114
Client's Contact and Title: Mr. Gene LaJeune, Risk Management Associate
18 Telephone Number: (504) 304-5588
Length of Service: March 25, 2003 to Current
Description of Program/Services Provided:
Market and negotiate all Property and Casualty Lines of coverage to obtain
the best possible program placement of Insurance coverage with selected insurance
carrier(s). Perform contract, certificate and selected lease agreement review and
consulting. Provide risk control consulting services and applicable reports. Perform
claims audit function and corresponding reports. Conduct and provide oversight for
various Request for Proposals. Monitor carrier solvency (continuous). Policy review
and delivery. Analyze and advise on optimal retention level for various loss sensitive
policies.
U
References Continued
Name of Client: Ector County
Address of Client: 1010 East Eight Street, Room 600
Odessa, Texas 79761
Client's Contact and Title: Ms. Regenia Brazeal, Insurance Coordinator
Telephone Number: (915) 498-4011
Length of Service: October 1, 1995 to Current
Description of Program/Services Provided:
Quarterly claims reviews and ultimate net loss analysis. Complete and modify specific
and aggregate reinsurance recoveries. Market and negotiate All Lines Aggregate (ALA)
coverage to obtain best possible program placement of Insurance coverage with selected
insurance carrier. Contract and certificate review and consulting. Advise applicability of
Texas Tort Cap on various claims cases. Monitor carrier solvency (continuos).
Directed and advised City of effective format for distribution of property schedule.
Policy review and delivery. Analyze and advise on optimal retention level for property _
insurance. _
Name of Client: Leander Independent School District
Address of Client: P. O. Box 218
Leander, Texas 78641
Client's Contact and Title: Ms. Darla Humes, Risk Manager
Telephone Number: (512) 434-5000
Length of Service: September 1, 1995 to Current
Description of Program/Services Provided:
Quarterly claims reviews and ultimate net loss analysis. Complete and modify specific
and aggregate reinsurance recoveries. Market and negotiate All Lines Aggregate (ALA)
coverage to obtain best possible program placement of Insurance coverage with selected
insurance carrier. Contract and certificate review and consulting. Advise applicability of
Texas Tort Cap on various claims cases. Monitor carrier solvency (continuos).
Directed and advised City of effective format for distribution of property schedule.
Policy review and delivery. Analyze and advise on optimal retention level for property
insurance.
0
0 References Continued
Name of Client: Webb County
Address of Client: 1001 Houston Street, Suite 100
Laredo, Texas 78040
Client's Contact and Title: Ms. Juanita Puente, Risk Manager
Telephone Number: (956) 721-2390
Length of Service: October 1, 2001 to Current
Description of Program/Services Provided:
Market and negotiate Excess Workers' Compensation coverage to obtain best possible
program placement of Insurance coverage with selected insurance carrier.
Monitor carrier solvency (continuos).
Name of Client: Lewisville Independent School District
Address of Client: 1800 Timbercreek Road
Flower Mound, Texas 75028
Client's Contact and Title: Mr. Sam Russell, Director of Business Operations
Telephone Number: (972) 539-1551
Length of Service: September 1, 1999 to Current
Description of Program/Services Provided:
Market and negotiate Excess Workers' Compensation coverage to obtain best possible
program placement of Insurance coverage with selected insurance carrier.
Monitor carrier solvency (continuos).
•
References Continued
Name of Client: Dallas County Hospital District
Address of Client: 5201 Harry Hines Blvd.
Dallas. Texas 75235
Client's Contact and Title: Mr. Tom Cox, Director of Purchasing
Telephone Number: (214) 590-4575
Length of Service: February 26, 1998 to Current
Description of Program/Services Provided:
Market and negotiate Property and Boiler & Machinery coverage to obtain best possible
Program placement of Insurance coverage with selected insurance carrier. Monitor
Carrier solvency (continucs).Directed and advised City of effective format for
distribution of property schedule. Policy review and delivery. Analyze and advise on
optimal Retention level for property insurance. Contract review and analysis. Catastrophe
oversight and management. Claims advocacy services and claims review as required
claims by client.
Name of Client: City of Lynchburg, VA
Address of Client: P. O. Box 40
Lynchburg, Virginia 24505
Client's Contact and Title: Blake E. Isley, Risk Manager
Telephone Number: (434) 847-1367 Ext. 1
Length of Service: 1996 to Current
Description of Program/Services Provided:
Market and negotiate Excess Workers' Compensation_ coverage to obtain best possible
program placement of Insurance coverage with selected insurance carrier.
Monitor carrier solvency (continuos).
0
References Continued
Name of Client:
Address of Client:
Client's Contact and Title
Telephone Number:
Length of Service:
City of Tallahassee, FL
300 South Adams
Tallahassee, Florida 32302
Ms. Gail Shuffler, Risk Manager
(850)851-2117
25+ Years
Description of Program/Services Provided:
Property/Casualty brokerage services. Current placement includes Property,
Boiler & Machinery, Workers' Compensation & Airport Liability
Name of Client: State of Florida
Address of Client: 4050 Esplanada Way, Suite 315
Tallahassee, Florida 32399
Client's Contact and Title: Ms. Theresa Dollar, Risk Manager
Telephone Number: (850) 488-7516
Length of Service: Seven Years
Description of Program/Services Provided:
Property/Casualty brokerage services. Current placement_ includes Boiler & Machinery
and Crime Programs. Palmer & Cay has written various other coverages for the
State of Florida over the last 20 vears.
E
7 ft�,;
References Continued
Name of Client: Commonwealth of Kentucky
Address of Client: P. O. Box 517
Frankfort, KY 40601
Client's Contact and Title: Mr. John Burkholder, Risk Manager
Telephone Number: (502) 564-6055
Length of Service: Five Years
Description of Program/Services Provided:
Market and negotiate Property, Aviation, Directors & Officers Liability, Professional
Liability, Crime, and Medical Professional coverages. Claims reporting function and
claims management system oversight.
Name of Client: Fairfax County Public Schools
Address of Client: 11000 Berry Street
Fairfax, VA 22030
Client's Contact and Title: Roger Lane Webb, Ph. D., Risk Manager
Telephone Number: (703) 246-6740
Length of Service:
Description of Program/Services Provided:
Market and negotiate Property, Boiler & Machinery, and Fiduciary Coverages. Provide
Consulting services for the districts Student Accident Coverage.
0
Qualifications
0 Current Clients
1. Texas Tech University
Patricia Aldridge - Director of Contracting
Box 41101
Lubbock, Tx 79409-1101
806-742-3841
2. Covenant Medical Center
Christine Newman - Manager, Workers' Compensation
3615 19th Street
Lubbock, Tx 79410
806-725-1011
3. David Wood Construction
David Wood - President
5501 Spur 327
Lubbock, Tx 79424
806-798-2700
4. Glass Control, Inc.
Jim Lupton - President
6301 Indiana
Lubbock, Tx 79493
806-799-8807
5. St. Joseph Health System
Richard Spinello - Vice President, Risk Management/Insurance Services
P.O. Box 14132
Orange, CA 92863-1532
714-347-7500
6. Texas Medical Liability Trust
Thomas Mohler, CPCU, ARM, CIC
P.O. Box 160140
Austin, Tx 78716-0140
512-425-5800
7. Zurich North America
Brenda Lemont
12222 Merit Drive, Suite 700
Dallas, Tx 75251
214-866-1310
8. G. Greenstreet, Inc.
Gary Greenstreet
112 E. 82nd Street
Lubbock, Tx 79404
806-745-9444
I Samfoxi
Covenant Medical Center
3615 19th Sireet
lubbock,Texas 79410
806-725-1011 Tel
r�
April 30, 2002
The Honorable Mayor and City Council of Lubbock
1625 13" Street
Lubbock, Texas79401
Your Honor and Distinguished Council Members:
Covenant ;� L
Health System
I'm pleased to have the opportunity to provide a letter of recommendation to the City of
Lubbock on behalf of the Sanford Insurance Agency. Their ability to provide Property
and Casualty Insurance Broker and Consulting Services in an expeditious and
professional manner would be an asset to any organization and their surrounding
community.
As a longstanding resident of Lubbock and a licensed insurance professional, I can
personally attest to Sanford Insurance Agency's ability to provide the type of service
that West Texan's are accustomed. I have known and worked with_the Sanford Agency
for over fifteen years in a variety of capacities ranging from commercial insurance
company employee to the present position of Claims Manager for Covenant Health
System My relationship with the Sanford Insurance Agency can best be described as
the ultimate `business partnership'. Their unwavering support can be further
exemplified by their ability to provide all of our entity locations in Texas, New Mexico
and California, a variety of services including but not limited to coverage verifications,
claims reporting and risk management consulting.
With respect to the current market conditions, the Sanford Insurance Agency has gone
far beyond my expectations in assisting us in our decision making process. I can
recommend with complete confidence that the Sanford Insurance Agency would be an
appropriate choice for your current professional risk management needs.
Respectfully,
Christine C. Newman
Manager, Workers' Compensation
Covenant Health System
0wr
Industrial Moldin Cor oration
g P
May 8, 2002
The Honorable Mayor and City Council of Lubbock
1625 13t' Street
Lubbock, Texas 79401
Your Honor and Distinguished Council Members,
I have worked with Douglas Sanford and Sanford Insurance Agency for ten years. During that
time, we have realized savings of hundreds of thousands of dollars in our Worker's Compensation
program, and have received a competitive Property and Casualty program overall.
Sanford has the integrity we require in an agent, as well as the capabilities to deliver an
insurance package that allows us to be a competitive force in our market place. Sanford
Insurance Agency has always maintained a qualified staff, with friendly and capable service, to
allow a smooth flow of day to day business.
I hope that your decision is to favor this capable agency with your business. If you would like
further information regarding Sanford Insurance Agency, please feel free to contact me at 474-
1000.
Sincerely,
y"12 �� - _x"�
Mary Pierce
VP Human Resources
•
616 East Slaton Road • Lubbock. Texas 79404 • tel (806) 474-1000 • Fax (806) 474-1 168 • www.indmoldint!.com
y TEXAS TECH UNIVERSITY
n+
Office of Contracting
Box 41 101
Lubbock -TX 79409-1101
(806) 742-3841
FAX (806) 742-0350
April 30, 2002
The Honorable Mayor and City Council of Lubbock
1625 13'h Street
Lubbock, Texas 79401
RE: Sanford Insurance Agency
Texas Tech University has had the privilege of conducting business with Sanford
Insurance Agency for several years. Sanford currently insures several policies for
the University including various property policies, Liquor Liability, and Accident
Insurance for the University Masked Rider Mascot.
Doug and his staff have always assisted the insurance needs of the University and
System is an expeditious manner which still provides the best procurement value
for State dollars.
Short time frames needing quick response have been accommodated.
Please feel free to give me a call.
Sincerely,
Patricia Aldridge
Director of Contracting
An EEOjAffirmativeAction Institution
r7012tLof, one.
P.O. Box 6370
—PoSSgock, Dr-=6. 79493
May 1, 2002
The Honorable Mayor and City Council of Lubbock
1625 131h. Street
Lubbock, Texas 79401
To The Honorable Mayor and City Council Members:
At a time when you are searching for a reliable and capable insurance
company, I would like to recommend to you the Sanford Insurance Agency.
We in the Glass Control Association have placed our faith and trust in the
Sanford Agency since 1987. Glass Control, Inc. is an association made up of forty
three glass companies with fifty six locations. These companies operate in Texas,
New Mexico, Oklahoma and Louisiana. Therefore it takes a knowledgeable and
service oriented company to service our account.
We have found the Sanford Agency to be this type of agency. They have
been able to furnish us with the many types of policies and coverages we need in
our industry. They have consistently fiunished our companies with competitive
pricing and have developed programs to aid us in the operation of our businesses.
They have helped us to improve our safety procedures and programs which is
important in the glass industry.
The staff at the Sanford Agency is both knowledgeable and responsive to
our needs. We have enjoyed our relationship with the Sanford Agency and would
highly recommend this agency to any group searching for a quality agency with
which to place their insurance.
Sincerely,
Glass Control, Inc.
im Lupton
President
6301 Indiana (806)799-8807 Facsirri'e (806)799-8809
112 E.82ND STREET
May 9, 2002
COMMERCIAL CONSTRUCTION & DEVELOPMENT
LUBBOCK, TEXAS 79404 (806) 745-9444 FAX (806) 745-8722
The Honorable Mayor and City Council of Lubbock
1625 1) Street
Lubbock, TX 79401
Your Honor:
I have worked with Sanford Insurance Agency and Douglas Sanford since I formed my
business in 1983. My goal in choosing Sanford was to pick a Property and Casualty
Insurance Agent to be part of the financial team, which is so important to a commercial
contractor. To be competitive in a market place which has many competent contractors,
all the parts of my organization must always perform as well as those around us, and
oftentimes, out perform the field. Sanford's insurance portfolio has allowed us to be a
success.
Our requirements for Sanford Insurance Agency are that they provide us with any
insurance required by those for whom we work, procuring it in a speedy and
competitively priced manner. Sanford Insurance has always done so.
We endorse Sanford Insurance Agency as a truly professional and competent agency.
Sincerely,
G. Greenstreet, Inc.
Irk •
David Wood
Construction
INCORPORATED
March 30, 2002
City of Lubbock
Honorable Mayor and City Council
P.O. Box 2000
Lubbock, Texas 79457
Honorable Mayor and City Council
Recognizing that you and your company are in a position, which would
require reliable advice -on insurance matters, I am writing to recommend to. you
the Sanford Insurance Agency.
The Sanford Insurance Agency has had my insurance business since the
inception of my company. They have provided competitive quotes from top -rated
companies, excellent rates, and policies for all coverage that my company
requires.
Doug Sanford and Diannah Tatum are extremely knowledgeable and
realize my needs before I do myself. The suggestions and advice they have
offered have been invaluable. Not only have they advised me in the selection of
policies, they have made suggestions concerning ways to protect myself and my
company from unnecessary exposure to liability.
The staff at Sanford Insurance is the best, in my experience. They are
prompt, helpful, knowledgeable, and very professional. They are available to
answer any question or concern, which might arise.
I would highly recommend the Sanford Agency to anyone seeking the best
insurance services. I hope you will be receptive to a call from Doug Sanford
regarding your insurance needs.
Sincerely
DAVID WOOD CONSTRUCTION, L.P.
David Wood
President
5502 Spur 327 ■ Lubbock, Texas 79424 - Office 806-798-2700 - Fax 806-798-8777
ITMLT
-''CAS MEDICAL LIABILITY TRUST
On I. Scheid M.D.
Cho6mon
W.Thomas Cotten
President 3 CEO.
May 1, 2002
BTMILT
OARDOVERNING
OFFICERS
Howard R. Marcos. M.D.
Vice Chorrmnn
C.YVawm MD.
The Honorable Mayor and City Council of Lubbock
Samuel
SeCtrt°7Tmosu '
1625 13`h Street
BOARD MEMBERS
Lubbock, TX 79401
Nanry Byrd. MD.
Daniel A Chester. MO.
Dennis Fattor.M.D.
To Whom It May Concern:
Richard Geis, M.D.
M Dwain McDonald MD.
Robert G.Thu—od. M.D.
As Sales Manager of Texas Medical Liability Trust, I have worked closely with the
Sanford Insurance Agency for the past three years. We have secured a number of
accounts and this agency has become our largest agent in the state of Texas.
0
During the time we have worked together this agency has been superior to deal with for
the following reasons:
• Responsiveness: This agency has responded to all requests on a timely and
efficient basis.
• Professionalism: All activities have been handled in a professional way that
leaves no question as to any gray areas.
• Ethical: At all times the highest level of ethics have been adhered to. The
business we deal in there are many times when the truth can be "bent" but this
agency has always been completely open and honest with all involved.
Please feel free to call if you have questions or would like further input as to this
agency's involvement with Texas Medical Liability Trust.
Sincerely,
Thomas C. Mohler, CPCU, ARM, CIC
P.O. BOX 160140 • AUSTIN,TEXAS - 76716-0140 a 901 MOPAC EXPRESSWAY SOUTH • BARTON OAKS PLAZA V • SUITE 500 • AUSTIN.TEXAS 76746
512-425-5800 • 800-580-8658 • Fax:512-328-5637 • Emal:sales@tmlcorg • URL, w .tmltorg
The only health care liability claim trust created and endorsed by Texas Medicl Association
0
ZURICH 0
May 8, 2002
The Honorable Mayor and City Council of Lubbock
1625 13'h Street
Lubbock, Texas 79401
Honorable Mayor and City Council Members:
It is with great pleasure that I write to you to recommend the Sanford Insurance Agency
to provide your Property, Casualty and Risk Management consulting services.
I have worked with Doug Sanford and Diannah Tatum of the Sanford Insurance
Agency for numerous years and have seen how their professionalism is appreciated and
Zurich North America respected by both their customers and the insurance industry. I have been most
Corporate Customer impressed with their ability to marshal the necessary resources to provide effective
Casualty solutions for their insureds. 0
Four Forest With twenty years of experience in the insurance industry, I have worked with multiple
12222 Merit Drive, Suite 700 national brokerage houses and regional agencies. I consider the Sanford Insurance
Dallas, TX 75251
Agency among the best.
(214) 866-1000
Toll Free Phone (800) 727-1080 Recognizing that you seek a superior agency to partner with on your insurance needs, I
v✓ww. 2urichna.com
am confident that the Sanford Insurance Agency meets the challenge. With the Sanford
Insurance Agency, you will not only be partnering with an agency, but with people who
care about you and your needs.
Please feel free to contact me at 214-866-1310 if you have any questions.
Sincerely,
Brenda Lemont, CPCU, CIC
Senior Account Executive
0
A L,
ST. JOSEPH
HEALTH SYSTEM
April 30, 2002 P.O. Box 14132
Orange, CA 92863-1532
714.347.7500 Tel
714.347.7501 Fax
The Honorable Mayor and City Council of Lubbock
1625 131h Street
Lubbock, TX 79401
Your Honor,
It is without hesitation or reservation that I recommend the Sanford Insurance Agency to provide
Property/Casualty Insurance Broker and Consultation Services to and for the City of Lubbock.
As you can see from the location on our letterhead, we are a not for profit, California based
organization with a heavy presence in Lubbock through the Covenant Health System. Currently,
except for Lubbock, we utilize the nationally known alphabet brokers (e.g.) Aon, Marsh, and
Willis however, I can state that bigger is not necessarily better! The Sanford Insurance Agency
has performed exceedingly well from not only a technical standpoint, but also from a customer
service standpoint. The latter became readily apparent following the 1998 merger of the
Methodist Health System and St. Mary of the Plains Hospital (Catholics and Methodists). They
handled the placement of a number of lines of insurance, both property and casualty, eliminating
duplicate coverages resulting in significant dollar savings to the organization. As recent as
January of 2002, they were even able to place our automobile liability insurance for the entire
organization (approximately 220 vehicles) at a cost savings when compared to the major,
nationally known broker.
The Sanford Insurance Agency would not only be an asset in any insurance program; their
presence also makes your program stronger.
Very truly yours,
���Ae�-ee
Richard J. 9pinello
Vice President, Risk Management/Insurance Services
RJS:kaw
A Ministry of the
Sisters of St Joseph
of Orange
Former Clients
Name of Client:
Address of Client
Client's Contact and Title:
Telephone Number:
Length of Service:
Midland County
P.O. Box 421
Midland, Texas 79702
Julie Schumacher, Auditor/M. Dale Little/Safety Director
(915) 688-1823/(915) 688-8915
October 1, 1995 to December 31, 1999
Description of Program/Services Provided:
Quarterly claims reviews and ultimate net loss analysis. Complete and modify specific
And aggregate reinsurance recoveries. Market and negotiate All Lines Aggregate (ALA)
coverage to obtain best possible program placement of Insurance coverage with selected
insurance carrier. Contract and certificate review and consulting. Advise applicability of
Texas Tort Cap on various claims cases. Monitor carrier solvency (continuos).
Directed and advised City of effective format for distribution of property schedule.
_ Policy review and delivery. Analyze and advise on optimal retention level for property
insurance.
Name of Client: Dallas County Schools
Address of Client: 612 North Zang
Dallas, Texas 75208
Client's Contact and Title: Mr. Ray Lanoux, Director of Risk Management and
Human Resources
Telephone Number: (214) 9444521
Length of Service: September 1, 1998 to September 1, 2001
Description of Program/Services Provided:
Marketing and placement of Automobile Policy. Claims reviews and ultimate net loss
analysis. Formatted and maintained rolling incurred losses spreadsheet.
0
0 Former Clients Continued
Name of Client: City of Fort Worth
Address of Client: 908 Monroe Street
Fort Worth. Texas 76102
Client's Contact and Title: Ms. Sue Haupt, Risk Manager
Telephone Number: (817) 871-7761
Length of Service: October 1, 1999 to October 1, 2003
Description of Program/Services Provided:
Market and negotiate Property and Boiler & Machinery coverage to obtain best possible
Program placement of Insurance coverage with selected insurance carrier. Monitor
Carrier solvency (continuous).Directed and advised City of effective format for
distribution of property schedule. Policy review and delivery. Analyze and advise on
optimal Retention level for property insurance. Contract review and analysis. Catastrophe
oversight and management. Claims advocacy services and claims review as required
claims by client.
•
Former Clients
1. Industrial Molding Group
Mary Pierce - Vice President
616 E. Slaton Rd.
Lubbock, Tx 79404
806-474-1076
2. Sitton Drilling
Frank Sitton, Ronald Sitton
P.O. Box 65148
Lubbock, Tx 79464
806-794-1111
3. Rhode Construction
Robert Rhode - President
8207 Ithaca, Suite A
Lubbock, Tx 79423
806-792-0185
L ]l
•
Legal Name: Palmer & Cay, Inc.
Established: 1868
Corporate Office: Savannah, GA
Ownership: Private
Employees: 800
Trade Names: Palmer & Cay, Palmer & Cay Consulting Group, Palmer & Cay Investment Services,
P&C Select, Powell-Walton-Milward, DeFrain Mayer
Locations: 28 offices in 17 states and the District of Columbia
(GA, FL, SC, NC, VA, TN, KY, LA, MS, MA, MD, NY, MN, KS, MO, TX, WI)
Industry Rank: 140, largest U.S. broker (Business Insurance, 7101)
1311, largest U.S. retail broker (Business Insurance. 7/01)
2°d largest privately held broker (Hales Report. 8101)
Services: Risk Management Consultants, Benefit & Compensation Consultants,
Insurance Brokers (Commercial, Personal, Employee Benefits), Risk Control,
Surety Services, Financial Planners, Actuarial and Retirement Plan Services,
Investment Management Consulting, Human Resources Consulting, Executive Search
Trade Affiliations: WBN (Worldwide Broker Network), founding member
Assurex International, founding partner
Independent Insurance Agents of America, Inc. (IIAA)
Council of Insurance Agents & Brokers, Inc. (CLO)
Contact Information: 5956 Sherry Lane, Suite 2000 3, Dallas, TX 75225-6531
214 .365 .9150 * 800. 531 . 2034 r Fax 214 .365 .9141
info@palmercay.com - www.palmercay.com
...
415
W-" Ate_ u�ex
Corporate OMce
25 Bull Street (31401-2658)
P.O. Box 847
Savannah, GA 31402-0847
912 . 234. 6621
800. 755.9594
912. 234. 5427 fax
info@palmercay.com
www.palmercay.com
Atlanta
3348 Peachtree Rd. NE, 41400 (30326)
P.O. Box 52427
Atlanta, GA 30355-042 7
404. 231 . 9595
800 .755 .8943
404. 231 .9585 fax
Au to
1450 Greene Street, Suite 190 (30901)
P.O. Box 2323
Augusta, GA 30903-2323
706. 724. 7571
800. 203.8709
106. 724. 7302 fax
Baltimore
300 East Lombard Street Suite 930
Baltimore, MD 21202
410. 837. 7800
410. 837. 7215 fax
Boston
189 State Street, Sib now
Boston, MA 02109
,617. 742 . 8852
617. 742. 8856 fax
Bnms%ick
1 St Andrews Court (31520-6764)
P.O. Box 40
Brunswick, GA 31521-0040
912. 265 .2840
912. 265 .2976 fax
Charleston
176 Croghan Spur Road (29407)
P.O. Box 897
Charleston, SC 29402
843. 573. 2600
800. 476. 2256
943. 556. 4009 fax
Charlotte
6100 Fairview Road Suite 1400
iarlotte, NC 28210-3277
A. 553 .0419
800.568.0419
704 : 553.2316 fax
Columbia
4408 Forest Drive, Suite 303
Columbia, SC 29206
803 .790. 5577
888.933.9222
803 .787.6840 fax
Columbus
240 Brookstone Centre Parkway
P.O. Box 136
Columbus, GA 31902-0136
706. 576. 6990
800.226 . 8599
706. 327. 2411 fax
Dallas
5956 Sherry Lane, Suite 2000
Dallas, TX 75225
214. 365 .9130
800.284. 7834
214.365 .9141 fax
Eden Prairie
6600 City West Parkway, Suite 205
Eden Prairie, MN 55344
952. 983 . 5820
888 . 326. 7601
932, 829.7472 fax
Jackson
6425 Lakeover Road, Suite 101
Jackson, MS 39213
601.368.3395
601.368.3394fax
Jacksonville
76 South Laura St, #1400 (32202)
P.O. Box 1257
Jacksonville, FL 32201-1257
904.633.9400
800.755.8927
904. 633 . 7580 fax
Kansas City
6900 College Boulevard, Suite 300
Overland Park, KS 66211
913 . 345. 0500
800.729.0909
913. 345. 0172 fax
Knoxville
413 Northshore Drive SW
Knoxville, TN 37919
865.588.7200
800.752.1231
865. 588. 7224 fax
E.srablrshed 1868
Lexington
360 East Vine Street (40507)
P.O. Box 2030
Lexington KY 40588-2030
859. 234.8023
800. 796, 3567
859. 254. S020 fax
Milwaukee
111 East Kilbourn Avenue
Suite 2600
Milwaukee, Wl 53202
414.270. 1861
866.227 9092
414.270. 1867 fax
Nashville
SSS Marriott Drive, Suite 210
Nashville, TN 37214
615.874 .3390
888. 839. 7926
615 . 874. 8784 fax
New Orieam
201 St Charles Avenue, Suite 2401
New Orleans LA 70170-2401
504. 598.0100
888, 333 . 6212
304. 398. 0138 fax
New York
60 East 42"d Streei
Suite 3413
New York, NY, 10165
212 .490.3983
212 .573 .6946 fax
Norfolk
One Commercial Playa, Suite 1350
Norfolk, VA 23510-2103
757. 627. 8241
888.777.3185
757. 627. 6269 fax
IOV IVR •ROR,R'VRTV Oft
Reston
11150 Sunset Hills Road
Suite 200
Reston, VA 20190
703 . 481 .9370
703 . 481 .9438 fax
Richmond
9020 Stony Point Parkway
Suite 200 (23235)
P.O. Box 35735
Richmond, VA 23235
3100
800.520320.113434
804.330. 1384 fax
St. Louis
16090 Swingley Ridge Rd., Suite 400
St Louis, MO 63017
636.519.6400
888.305.2121
636. 519. 6.490 fax
Tallahassee
1500 Mahan Dr., Suite 111 (32308)
P.O. Box 749
Tallahassee, FL 32302-0749
850.877.8181
?00.548.6173
850. 942. 4928 fax
Washington. DC
1750 K Street NW, 6th Floor
Washington, DC 20006
202,466.6001
888.335.0931
202.466.6007 fax
West Patin Beach
1555 Palm Beach Lakes Blvd.
Suite 1200
West Palm Beach, FL 33401-2327
561 .688.7200
888.909.7410
561 .688.7208 fax
AsM l.Lt
a t. 0 a A A
Legal Name: The Sanford Agency, Inc.
Established: 1935
Corporate Office: Lubbock, TX
Ownership: Private
Employees: 40
Trade Names: Sanford Insurance Agency, Snyder Insurance Agency
Locations: 2 offices and 5 locations in the state of Texas
Services: Insurance Agent/Broker (Commercial, Personal, Employee Benefits,
Life), Risk Management Consultants, Assurity Services
Trade Affiliations: Independent Insurance Agents and Brokers of America, Inc. (IIABA),
Independent Insurance Agents of Texas (IIAT), Independent
Insurance Agents of Lubbock (IIAL)
Contact Information: P.O. Box 64790 •:• Lubbock, TX 79464-4790
806-792-5564 ❖ 800-749-5564 •:• 806-792-9344
campbelll@sanins.com ❖ www.sanfordinsuranceagency.com
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When clients turn to Palmer & Cav
for assistance with risk management,
benefits planning, actuarial services or
human resources, their needs become
our primary focus.
As independent advisors, we
offer practical and cost-effective solutions
from an unbiased perspective. Our
associates are encouraged to consider
new concepts and alternative sources as
a means of achieving client objectives.
Spearheading our service teams
are the brightest minds in the industry,
many of whom were attracted to Palmer
& Cay after years of service with major
consulting and brokerage firms and
insurance companies.
Our innovative ideas are
supported by a sophisticated infra-
structure, one that is comprehensive
in scope yet responsive to individual
client needs. From state-of-the-art
information management systems to
an international network of partner
firms, Palmer & Cay invests in the
resources necessary to support the
most complex risk management and
benefits strategies.
Our focus is on the client —
first and foremost.
Our firm is a haven for talented
professionals seeking a flexible,
entrepreneurial environment where
all energies are focused on the client.
No Text
One of Palmer & Cay's strongest
attributes is our ability to design and
manage fully integrated risk manage-
ment and benefits programs.
A broad range of internal
resources allows our associates to
assemble highly focused, cohesive, and
multi -disciplined account service teams.
These teams may include
specialists in alternative risk financing,
international brokerage, risk control,
and IPO exposure assessments.
Additional specialists may be
called upon for specific needs such as
actuarial projections, compensation plan-
ning or multi -national benefits strategies.
As client operations expand,
internal resources from all areas of
Palmer & Cay are available to address
new and different exposures.
At each stage of the service
cycle, the account executive retains the
role of team leader, ensuring timely
responses, detailed follow-through and
overall accountability.
Multi -disciplined teams of highly skilled and
experienced specialists form the core of one
of Palmer & Coy's greatest strengths —
our ability to design and manage fully integrated
risk management and benefits programs.
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The integrity of every corporation is a
reflection of the personal value systems
within the organization, and as such,
Palmer & Cay recruits and retains only
those associates whose ethical
standards are beyond reproach, both
professionally and personally.
In terms of education and
training, Palmer & Cay has one of the
highest ratios of professional desig-
nations -per employee in the industry.
And this figure climbs each year as
our specialists earn new designations
and as more professionals are attracted
to our firm.
We reward the continuation of
professional education; we encourage
updating of core skills, and we fund the
pursuit of higher education.
The experience level of Palmer
& Cay's professional staff can be measured
in decades, not just years. Many associates
have 10 to 15 years of continuous service
with our firm and the typical "new"
associate has spent 15 years with the
nation's largest consulting fines, broker-
age houses, and insurance companies.
These individuals come to
Palmer & Cay for a variety of reasons;
most are seeking a professionally
challenging environment where new
perspectives and innovation are met
with enthusiasm and recognition.
Our associates constantly push the
definition of professional standards to
higher levels, for themselves and for
the industry.
•
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Insurance markets throughout the
United States, Europe and the Pacific Rim
value the opportunity to do business
with Palmer & Cay and our clients.
The quality of accounts we
represent, our staff's level of integrity
with clients and underwriters, and our
selective marketing approach causes
the name Palmer & Cay to be held in
high regard by insurers worldwide.
In premium placements,
Palmer & Cay is one of the largest
privately -held insurance brokers in the
nation. Of more importance, however,
is the strength of the personal relation-
ships between Palmer & Cay's senior
management and key executives of the
world's leading insurers.
Foreign partners provide
access to insurers domiciled in 65
nations on six continents, assuring
that Palmer & Cay's clients can obtain
coverage according to local jurisdictions
outside U.S. boundaries.
Our firm maintains preferred status with
the leading domestic insurers and we
ore one of the few North American
brokers granted underwriting authority
from Lloyd's of London,.
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Established in 1868 in Savannah, GA,
Palmer & Cay, Inc. is one of the oldest,
largest and most respected professional
services firms in North America.
Palmer & Cay's
service capa-
bilities now span the farthest reaches
of the globe with resources in 65
countries on six continents.
Our capabilities encompass
the entire spectrum of insurance, risk
management, compensation, benefits
and investment consulting services, and
our resources are constantly expanding
in anticipation of client needs.
As a privately -held firm, we
attract the brightest minds in the industry
with our entrepreneurial environment,
unlimited professional horizons and
the potential for equity positions in
one of the fastest growing professional
services firms in the nation.
A prestigious list of clients,
both domestic and international,
verifies the caliber of our associates.
Our staff is described by clients and
underwriters alike as one of the most
technically proficient and highly
motivated in the business.
Clients receive a level of service
and professionalism rarely offered in
today's time -pressured environment as
^
our associates strive to exceed expecta-
tions in every undertaking.
"As an independently owned firm, Palmer &
Coy is committed to representing, first and
foremost, the interests of our clients."
— John E. Coy III, Chairman & CEO
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•
1�
C O M M E R C I A L
INSURANCE SERVICES
Our Commercial Insurance division is
comprised of individuals with a diverse
range of professional backgrounds, each
bringing special skills and experience to
the Palmer & Cay service team.
Recognized as one of the most
thorough, professional, and technically
proficient insurance brokerage teams in
the industry, these associates offer the
following core brokerage services:
• Risk Analysis
• Plan Design
• Program Marketing & Analysis
• Carrier Qualification & Monitoring
• Claims Management
• 1Program Administration
Many associates in this division focus on
a single industry sector, gaining valuable
insight into complex underwriting and
marketing requirements. A sampling of
our sector specialization includes:
• Marine & Cargo
• Private Equity Funds
• Healthcare
• Real Estate & Property Management
• Construction & Surety
• Financial Institutions
• Food Processing & Distribution
• Trade Associations & Franchise Groups
• Non -Profit Organizations
For more than 130 years, Palmer & (ay
has consistently performed beyond client
expectations, constantly seeking new
perspectives in every discipline...
•
COMPENSATION, BENEFITS
& INVESTMENT
CONSULTING SERVICES
Over the course of several decades,
an extraordinary team of compen-
sation, benefits and investment
Isconsultants has joined Palmer & Cay.
By focusing on high quality
service and objective advice, this
group. is rapidly becoming recognized
as one of the nation's leading providers
of benefit -related consulting services.
Our actuarial staff creates
the solid foundation of successful
benefit planning. These highly expe-
rienced advisors address critical fund-
ing, cost, compliance and risk issues
for existing and proposed health,
welfare and retirement programs.
Our benefits consultants
excel in the design and administra-
tion of life, health, disability and
retirement plans, and their analytical
skills are held in high regard by
clients and underwriters alike.
Benefits consulting services include:
• Plan Design Analysis
• Underwriting Assessment
• Funding Mechanism Evaluations
• Claims Experience Analysis
• Terminal Liability Exposure Review
• Bencbmarking & Best Practices
• Compliance Verification.
• Employee Communication
In the retirement services field, we
offer a range of services for qualified
and non -qualified plans including
401(k), 403(b), profit sharing and
supplemental executive retirement
plans. "Hybrid" plan arrangements
such as target benefit, pension equity
and cash balance programs are the
focus of our senior consultants.
In addition to health and welfare,
retirement and compensation oNce,
Palmer 8 Coy offers a wide range of
sophisticated services such as out-
sourcing monogement, employee
communications, human resource
and investment advisory consulting.
Compensation consulting is a
growing segment of our business as an
increasing number of employers recognize
the value of aligning benefits and reward
strategies with broader corporate and
human resource objectives. Our advisors
integrate health and welfare benefits, base
salary, incentives and stock plans to create
reward systems that support key financial,
operational and cultural objectives.
To assist clients with fiduciary
and investment obligations, Palmer & Cay
employs highly experienced investment
advisors. These professionals provide a
wide range of services to institutional
and high -net worth clients including
investment strategy & policy develop-
ment, asset allocation, manager/ fund
selection, performance evaluation, and
fiduciary compliance assistance.
0
11
•
RISK MANAGEMENT
CONSULTING SERVICES
Many of today's operational
exposures are mercurial in nature,
easily surpassing basic risk transfer.
protocol. To address these issues,
Palmer & Cay offers clients
specialized support from its Risk
Management Consulting division.
This diverse team of
technical experts offers advice on
a wide range of exposures, from
managing political risks in Latin
America to controlling workers
compensation costs with Internet -
based technology.
Working in concert with
account service teams, these highly
trained professionals develop fully
integrated risk management programs
with the goal of reducing each client's
"total cost of risk." Focus areas include:
• Management Liability
• International Risk Management
• Risk Control
• Business Continuity
• Alternative Risk Financing
• Captive Formation
• Actuarial Services
• Claim Management
As the complexity of risk continues
to evolve, so too will Palmer &
Cay's risk management consulting
services. Our objective is; to
research solutions and develop
resources... before the need arises.
Technical experts offer advice on o
wide range of exposures, from
political risks in Latin America to
controlling workers compensation
costs with InternAosed technology.
;7
0
�J
•
PERSONAL INSURANCE
SERVICES
Staying in the forefront of today's
rapidly evolving insurance market is
Palmer & Cay's Personal Insurance
division.
This division offers cost-
effective insurance solutions to a
diverse client base, from the
traditional one -policy homeowner
to Fortune 1000 employers with
sponsored personal insurance
programs.
Our Private Accounts group
manages insurance portfolios for
individuals with extensive personal
assets. Staffed with our most
senior level advisors, frequent
contact and personalized service
is a standard for this unit.
P&C Select, Palmer & Cay's
multi -media call center, specializes
in alternative distribution systems
and sponsored marketing programs
that include:
• Voluntary Payroll
Deduction Plans
• Association Branded Programs
• Financial Institution Services
• Agent -Only Products
Our success in the highly competi-
tive personal insurance arena is the
result of two factors: the ability to
provide choices for our clients and
the caliber of associates we employ.
Advanced technology, long-standing
relationships with dominant insurance
companies, and highly motivated
associates keep Palmer $ Coy in the
forefront of today's rapidly evolving
personal insurance market.
PURPOSE
TO HELP OUR CLIENTS SUCCEED
BY BEING THE BEST AT WHAT WE
DO AND TO BE A GREAT PLACE FOR
OUR ASSOCIATES TO WORK.
ASSOCIATES
TO BE THE BEST PLACE TO WORK
IN THE MARKETS WE SERVE.
CLIENTS
TO PROVIDE SERVICES THAT CLIENTS
VALUE, DELIVERED IN A SUPERIOR
AND DIFFERENTIATED MANNER.
FINANCIAL
TO ACHIEVE SUPERIOR FINANCIAL
RESULTS.
PMIAER &�CM •
Established 1868
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fa>x 912 :234 5427
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infoCpolmercay.com
vnwi.palmeicay.com
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WREATIVITY BACKED BY SOLID KNOWLEDGE
At Sanford, we offer innovative solutions to tough insurance prob-
lems. We can provide short-term policies for single risks or establish
an ongoing relationship between a difficult -to -insure business and a
reputable carrier.
Our risk management team works with you to develop a cost-
effective and balanced financial program, helping you determine
which risks to insure and which to protect by alternate means.
As risk managers, we coordinate between you and our carriers' loss
control experts, helping you improve your insurability while keeping
costs within acceptable limits. As part of our service, we also give
you periodic loss analyses so you can lower your premiums by
modifying some aspect of your operation.
We're proud of our employees' professional credentials and experi-
ence. On staff, we offer a Certified Financial Planner to advise you
on future financial security, producers with many years of energy -
related experience, experts on professional liability and seasoned
professionals in employee benefit programs.
C
"If we don't.
have the exper,
you nee
Siaff, ti
find one."
0
UR COMMERCIAL COVERAGES MEAN BUSINESS
When you consult with Sanford, we analyze your business operation
and review current coverages. Then we offer a comprehensive insur-
ance proposal, based on our experience _in your industry and our
knowledge of the insurance products available. Our proposals are
designed to eliminate wasteful overlaps in coverage and close any
gaps that leave you exposed to unacceptable risks.
We provide coverages for property and casualty loss exposures
including directors and officers liability, product liability, workers
compensation and property insurance; group life/health programs;
financial planning and personal life/health.
We're particularly strong in designing protection for high -risk indus-
tries, physicians, lawyers, construction, hospitals, municipalities,
supermarkets and liquor stores, as well as all aspects of oil and
energy -related operations.
•
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smaller accounts from larger ones. That way, an enterprise still in
the growing stage doesn't get lost among the giants.
Weekly meetings of the Sanford teams allow us to exchange infor-
mation regarding clients and trends in the insurance industry so each
account gets the benefit of the most up-to-date protection available.
Our marketing department reviews accounts to assure you're being
offered the best coverage for your particular situation.
"We don't rake
orders for TheYET
............................ .
Policy. We ANFORD TAKE CARE OF
ALL YOUR INSURANCE COVERAGES
develop an
insurance
program." It makes sense to let the people you trust to help protect your
business do the same for your personal health and assets. And it
assures you a balanced, coordinated program that closes gaps and
prevents doubling up on coverage, and hence premiums.
Because we're an independent insurance agency we have no restric-
tions in helping you choose the most well-rounded, cost-effective
coverage available. With access to a large number of carriers, we
evaluate a wide variety of products in order to create your insurance
portfolio.
z,4t ,r At Sanford, our strength lies in our diversity —
while we have several specialty departments, we're
comfortable in all areas of insurance. The advan-
tage to you? The security of knowing one agency
is taking care of your entire insurance program.
Call our toll -free number to find out what the
professionals at Sanford can do for you.
0
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6303 Indiana Avenue
Lubbock, Texas 79413
800-749-5564 806-792-5564 Fax:806-792-9344
0
PALMER & CAY
2001 - 2002
•
PALMER & CAY
Pi
0
PALM3Z & CALY
Vo the Shareholders of Palmer & Cay, Inc.
When we began Fiscal Year 2002 last July 1, none of us envisioned a world that would change
as dramatically as it has during the past twelve months. The events of September 11, 2001 have
had a lasting and dramatic impact on our lives, both personally and professionally. We will
always remember the tragedy we endured and the challenges we now face as a nation and as an
industry.
Fiscal Year 2002 was a tough year for our clients and for our associates. In the property -
casualty arena, the market had begun showing signs of "hardening" during the previous year
and with the far-reaching effects of September I F,, the markets began to restrict at an even
greater pace. Reduced capacity within the primary and reinsurance markets caused significant
increases in pricing, and for some clients, placement at any price became a critical issue.
During this difficult and stressful period, our associates showed their true character and
reinforced Palmer & Cay's long-standing reputation of representing clients' interests firstand
foremost. Throughout our firm, from South Florida to Minneapolis, from Boston to Texas, our
associates demonstrated their expertise, their commitment to quality, and their ability to
persevere until the best possible results are achieved for their clients.
Our associates in the benefits division experienced many similar circumstances as their clients
were broadsided with rising health insurance rates and a downward spiraling economy. As
entire industries and individual clients began suffering the effects of distressed financial
performance, many employee benefit plans underwent excruciating financial scrutiny. The
issues included mourning costs, increased administrative demands, and ever-increasing
regulatory and compliance concerns.
And again, our consulting staff in the health and welfare, compensation; retirement and
investment practices upheld Palmer & Cay's reputation and earned the respect and loyalty of
their clients by offering solutions, devising strategies and staying focused on the issues at hand.
continued
11
•
Financially, Fiscal Year 2002 turned out to be a good year for Palmer & Cay. Our revenues
grew by 11.8% to an all-time high, and our pre-tax income grew by a respectable 29.4%.
Our strong financial performance positions Palmer & Cay for continued success in Fiscal
2003 and keeps our firm on course for achieving our three-year goals established July 2000.
The most exciting and rewarding aspect of our daily efforts is the fact that Palmer & Cay
continues to attract new and highly -qualified talent to our firm. Throughout this Annual
Review, you v611 see evidence of this happening in every corner of our organization; from
our property -casualty operations to our benefit practices to our personal insurance
departments to our administrative support staff. Our future success is dependent upon the
continual expansion of our client service capabilities, thus it is gratifying to see the number
and quality of individuals seeking to join our organization.
While this attraction may be due in part to our firm's outstanding reputation, we believe the
stronger drawing card is our commitment to making Palmer & Cay the employer of choice in
every market we serve. Our internally -focused human resource efforts are intended to retain,
motivate and reward the winners in our firm, and in turn, we believe this philosophy is
attracting new talent to our ranks.
Palmer & Cay remains committed to the pursuit of excellence and the preservation of our
reputation. We are most appreciative of our associates and of our clients, and we look
forward to serving both constituencies in the year ahead.
Sincerely,
R04K- f. 6wt- -C-- rla-�
John E. Cay, ID F. Michael Crow]
Chairman & Chief Executive Officer
Palmer & Cay, Inc.
PALMER & CAY
President
Palmer & Cay, Inc.
11
A"�Ae�1111
:li,GaE To help our clients succeed by being the best at what we do, and
by being a great place for our associates to work.
To be the best place to work in the markets we serve.
Measured by our associates.
To provide a range of services that clients value, delivered in a
superior and differentiated manner. Measured by:
Client retention,
1. Client satisfaction. and
I New client relationships.
635,,,,aW To achieve superior financial results. Measured by:
15 20% minimum Net Operating Income (NOI), and
1 15% minimum annual increase in shareholder value.
•
PALMER & Cam'
far1w,xa& gwe�
2001- 2002
Palmer & Cay earns fees and commissions from three
service categories: property -casualty insurance broker-
age and risk management services; personal insurance
brokerage senices; and benefits -related consulting and
brokerage services.
Year end revenues from property -casualty related
services (excluding personal insurance) exceeded
$69 million, a 17% increase over 2001.
Year end revenues from personal insurance brokerage
services approached $7 million, representing a 9%
increase over the previous year.
Year end revenues from benefit -related consulting
services was in excess of $41 million, a 7% increase
over 2001.
Revenue growth for a-U divisions in 2002 was the direct
result of strong client retention and focused business
development efforts. Acquisition activity was limited,
thus having no material impact on revenues during
2001-02.
Palmer & Cay provides insurance brokerage, risk
management and benefits consulting services to
clients in virtually every industry, thus insulating the
firm against adverse economic trends affecting single
industry segments. Manufacturing
21%
Conversely, one of Palmer & Cay's strengths is it
specialization in key industry segments such w
healthcare, private equity, construction, food, and real
estate. The combination of client -industry knowledge
and technical expertise in the risk management and
benefit fields provides our associates a unique
perspective for solving client problems.
Property-
casuaky
59,10
Transportation &
Utilities Other
5% 20/o
PALMER & CAY
�-I-
Personal
rUprF 6%
Benefits &
Compensation
35%
services
30%
Wholesale
Construction 9010
10%
Financial services
& Real ES tatc
13%
Retail
100/0
2001 - 2002
fu4w,a yova&Wu
At fiscal year end 2002. Palmer & Cay operated 28 offices in 1� states and the District of Columbia_
Florida
Jacksonville
Missouri
St. Louis
West Palm Beach
Tallahassee
New York
New York
Georgia
Atlanta
Texas
Dallas
Augusta
Virginia
Norfolk
Brunswick
Richmond
Columbus
Reston
Savannah
North Carolina
Charlotte
Kansas
Kansas City
South Carolina
Charleston
Kentucky
Lexington
Columbia
Louisiana
New Orleans
Tennessee
Knoxville
Maryland
Baltimore
Nashville
Massachusetts
Boston
Wisconsin
Milwaukee
Minnesota
Minneapolis
District of Columbia
Washington
Mississippi
Jackson
PAUVIER & CAY
2001- 2002
aKw-a-�--
• Palmer & Cay Consulting Group appointed four new managing directors:
Colin England, FSA, EA, CEES (Reston, VA); Juliet D. White, PAHM (Richmond, VA);
Michael J. Lackey (St. Louis, MO); Lyle S. Hanna, SPHR (Lexington, KY).
" Peter S. Moore (Jacksonville, FL) named principal and practice leader of benefit consulting operations in Florida
• Lyle S. Hanna, SPHR (Lexington, KY) named practice leader of benefit consulting operations in
Kentucky, Tennessee and North Carolina
• Kathy M.Van Zant, SPHR (Atlanta, GA) named practice leader of human resource consulting operations in Atlanta.
' Thomas H. McCarley III, construction industry practice leader, named manager of property -casualty
operations in Knoxville,.Tennessee.
' Robert O. Collins, Jr. named manager of property -casualty operations in Charleston, South Carolina-
W. Kingsley Flynn named manager of property -casualty operations in Jacksonville, Florida
' J. Douglas Strohl, former manager of Charleston office, named manager of property -casualty operation
in Atlanta
' Ian D. Robb, SPHR (Savannah, GA) named manager of corporate human resources.
• Opened office in Milwaukee, Wisconsin.; James A. Liebenstein named manager of property -casualty operations.
Five other property -casualty professionals join Milwaukee office.
• Acquired The SeaMark Group, a Charleston, South Carolina -based captive consulting and management firm.
• Entered into a brokerage agreement with Capital CasualtyInsurance Agency, an employer -sponsored personal
insurance operation based in Tallahassee, Florida; Linda M. Collins, CIC named manager.
• Entered into a joint -venture partnership with Atlanta law firm Troutman -Sanders 'to form HRVest Consulting;
an integrated full service human resources consulting firm.
• Established a benefits consulting practice itt Hartford, CT; named Salvatore J. Dominello senior consultant
" Acquired The Walker Insurance Group, a property -casualty brokerage firm, in Knoxville, Tennessee.
PALMER & CAY
2001 - 2002
Joined International Benefits Network (IBI), a worldv6de consortium of independent benefit consulting firms,
to enhance consulting capabilities on an international basis.
■ Established Palmer & Cay Securities Corporation as a NASD registered broker/dealer to support investment and
benefit consulting services.
' Michael J. Lackey (St. Louis, MD) named practice leader for compensation consulting operations.
" Joyce R James, CIC (Savannah, GA) named practice leader for property -casualty program accounts operations.
m Thomas Martinelli, MS. CIH (Atlanta GA) joined risk management division as a risk control consultant
■ Diana DeValcourt, CIC, ARM (Atlanta, GA) joined risk management division as an international risk specialist_
" Jennifer R Songer, AAI, CIC (Atlanta, GA) joined risk management division as a healthcare industry specialist
1B Lee H. Firebaugh (Atlanta GA) joined risk management division as a global property broldng specialist.
Donald M. MacMeekin, CPCU, ARM joined risk management division as a captive consultant.
C.Jec�ot� t%n�al�rlea
Completed second year of a multiphase upgrade of client management software. Expanded e-commerce
capabilities with clients and carriers via successful pilot of Sagiva softtitare system.
C9�rnan ✓lcaflcu��ee CJn�a�tive�
Chairman's Advisory Council formed to identify and recommend actions to help Palmer & Cay reach its goal of
becoming the "employer of choice " in the markets it serves.
PALMER & CAY
n
�7
cam:'
2001 - 2002
We view each and every new client relationship as the beginning of a long-term partnership. Clients shown below
are a representative sampling of the caliber of new client relationships we established during the past fiscal year.
AAA Carolinas, Inc.
Flightstar Aircraft Services, Inc.
Rentenbach Constructors Inc.
Charlotte, NC
Jacksonville, a
Knoxville, TN
Acuity Brands, Inc.
Freighthandlers, Inc.
Ridgewood Hotels, Inc.
Ada?" GA
Fuquap-Marina, NC
Atlanta GA
Advance America, Inc.
GAB Robins, Inc.
SBC Communications, Inc.
Spartanburg, SC
Parsipparry, NJ
San Antonio, TX
Advanced Disposal Services LLC
GL&V1Celleco, Inc.
Shelter Corporation
Jacksonville. FL
Lawrenceville, GA
Minneapolis, AV
Athlete's Foot Group, Inc.
Global Intermodal Svstems
Sboffner Mechanical Contractors, Inc.
Kennessaw, GA
San Ramona CA
Knoxville, TN
Augusta Health Care, Inc.
Harrah's Entertainment, Inc.
Singing River Hospital System
Fishersville, YA
Memphis, TN
Pascagoula 16ff
Benedictine Health System
Health Axis, Inc.
Southern Eagle Distributing, Inc.
Duluth MN
Irvin$ TX
Ft Pierce, FL
Bessemer Trust Company
Husco International
Spectrum Clubs, Inc.
New York NY
Waukesha WI
Plano, TX
Bolles School, Inc.
John's Island Club, Inc.
Standard Corp Integrated Logistics, Inc.
Jacksonville, FL
Vero beach FL
Columbia, SC
Blue Capital Investments, Inc.
Leggett & Platt, Inc.
Stephens Inc.
Darla% TX
Carthage, MO
Little Rock AR
Cass Medical Center
Metro Washington Airports Authority
Suddath Companies
Harrisonville, MO
Washington, DC
Jacksonville, FL
CbemDesign Corporation
MPC, Inc.
TAM Investment Company
Fitchburg, MA
Walxorth WI
Orlando, FL
Children's Hospital of Alabama
Northern Shared Medical, LLC
Tishman Construction, Inc.
Birmingham, AL
Madison, WI
New York NY
Chiquola Industries, Inc.
Orion Food Systems, LLC
Titan America, Inc.
HoneaPaA Sc
SiouxFaa% SD
NorfoGk YA
City of Harrisonburg
Orlando Regional Healthcare, Inc.
Transjet Airways AB
Harrisonburg, VA
Orlando. Fi.
Sonentuna Sweden
City of Jackson-61le
Phoebe Putney Health
Tubular Textile LLC
Jacksonville, FL
Albany, GA
Lexington, NC
County of Henrico
Piccadilly Cafeterias, Inc.
U.S. Central Credit Union
Richmond, VA
baton Rogue, LA
Kansas City, MO
DeRoyal Industries, Inc.
Plasser American Corporation
Uncle Julio's Corporation
Powell, TN
Chesapeake, YA
Irving, TX
Ecclestone Organization
Power One, Inc.
Viking Range, Inc.
West Palm beach FL
Camarillo, CA
Greenwood MS
ERMC, LP
Pulau Electronics Corporation
Walco International, Inc.
Chattanooga TN
Orlando. FL
Irving, TX
EverClear Communications, LLC
Regency Centers Corporation
Zimmer Holdings, Inc.
Walton, KY
Atlanta GA
Warsaw IN
PALER&CAY
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11-11. AMR -
In a
July 22, 2002
August 2002
2001 - 2002
25 Largest Brokers of U.S. Business
Rank
Company
2001 U.S. Revenues
1.
Mersh & McLennan & Cos. Inc.
$4,314,080,000
2.
Aon Corp.
3,07E,350,000
3.
Arthur J. Gallagher & Cc.
803,182,080
4.
Wilk Group Holdings Ltd.
754,137,339
5.
Accordis, Inc.
480,556,000
6.
Brown & Bro M Inc.
35S,697,771
7.
Hilb, Rogal & Hamilton Co.
325,265,922
6.
USI Insurance Services Corp.
312,375.000
9.
Locklon Cos. Inc.
24E,342,600
10.
BB&T Insurance Services Inc.
219,362,OOD
11.
We& Fargo Insurance Inc.
15E,983,ODD
12,
Jardine Lloyd Thompson Group P.L.0
147,933,2%
13.
CBI2 Benefits & Insurance Services Inc.
124,645,000
- 14.
Felmer6 Coy -Inc.
10E,835:,E33..
15.
Near North Insurance brokerage Inc.y
107,121,791
16.
M,-Griff, Seibels & Williams Inc.
103,410,ODD
17.
ABD Insurance & Financial Services
100,107,ODD
16.
Hobbs Group L.L.C.
94,24E,000
19.
HLF Insurance Holdings Ltd
E7,639,173
20.
Talbot Financial Corp.
82,800,000
21.
Meadowbrook Insurance Group Inc.
80,433,095
22.
Hub International Ltd.
7E,974,670
23.
Fifth Third Insurance
72,062,098
24.
Brokerage Concepts Inc.
72,324,000
25,
Frank Crystal & Co. Inc.
70,591,000
Privately Held Brokers
{Revae)ue In Mldlons)
s'0o1 U.S.
Frank Company
Meedgiuertan
Revenues
1.
Locldon Cos. Inc.
Kansas City, MO
$246.34
2 Pelmer& Coy, Inc-, _
Savannah, GA
1D&.84,
3.
McGriff, Seibels & Williams, Inc.
Birmingham, AL
103A1
4.
ABO Imuranoe & Financial
Belmont, CA
1D0.11
5.
HobIx Group, L.L.C.
Atlanta, GA
94.26
6.
Brokerage Concepts
FGng of Prussia, PA 7222
7.
Frank Crystal & Co. Inc.
New York, NY
71A6
S.
John L. Worthem & Son, L.L.F.
Houston, TX
70.59
9
Keenan & Associates
Torrance, CA
70.34
10.
Summit Global Partners, Inc.
Dallas, TX
70.33
11.
The NIA Group
Paramus, NJ
6E29
12.
Bollinger, Inc.
Short Hills, NJ
53.64
13.
J. Smith Lanier & Co.
West Point, GA
50.02
14.
The Leavitt Group
Cedar City, UT
49.21
15.
Hylani-Group
Toledo, OH
47.78
16,
Allient Resources Group, Inc.
Stamford, CT
46.08
17.
Allied North America
Jericho, NY
39.10
18,
IMA Financial Group
Wichita, KS
39.08
19.
Frenkel & Co. Inc.
New York, NY
37.60
20.
Synexis Group
Nashville, TN
36.40
d1ER & GAY
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11
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With offices currently in 17 states and the District
of Columbia, Palmer & Cay will continue
expanding its operations on a national basis.
Technical resources, business service
diversification and administrative synergy are the
focus of Palmer & Cay's fixture acquisition efforts.
Acquisition candidates will be involved in risk
management, commercial insurance, benefits and
compensation consulting, retirement plan services,
human resources consulting and investment
advisory services.
Above all other criteria, the management and staff
of potential acquisitions must demonstrate high
ethical standards and a business philosophy
regarding clients, associates and service providers
which is compatible with Palmer & Cay's.
C.�114'1 Uau"M
As a means of diversifying our revenue base,
Palmer & Cay will continue to focus on the
expansion and diversification of our benefits
consulting services over the next five years.
Specialized services such as actuarial consulting,
investment management consulting, and human
resource services will continue to add depth and
value to our client service capabilities.
2002
Propery-Casa
57%
Persona!
6%
Benefita &
;ompensation
37%
_--- PALMER & GkY — — _
2/002
John E. Cay, M
Chairman and ChiefExecutjve Ofeer
Palmer & Coy, Inc.
Savannah, Georgia
Frank H. Beard, ARM
Executive Vice President
Palmer & Coy, Inc.
Atlanta, Georgia
Thomas J. Bennett, Jr.
Senior Vice President
Palmer & Cay, Inc.
Atlanta Georgia
F. Mchael Crowley
President
Palmer & Coy, Inc.
Savannah Georgic
Gregory B. Milward
Executive Vice President
Powell -Walton Milward
c division ofFalmer & Coy
Lmdngton, Kentucky
David P. Morgan, FLMI, CLU
Managing Director
Palmer & Coy Consulting Group
Richmond Virginia
J. Ruffin Branham Jr. Raymond M. Slabaugh, M
Executive Vice President Managing Director
Palmer & Coy, inc. Palmer & Coy Consulting Group
Savannah, Georgic 4 " Richmond Vvpima 0
E. Blake Graeber M Richard W. Stein CPCU
President ` Presidenr
Palmer & Coy ofNorth Carolina, LLC Palmer & Coy Capital
Charlotte, North Caroline Jacksomdlle, Florida
Karen J. Lehman; CPA William C. Woolfolk III, CIC
Senior Vice President & Chief Financial Officer Senior Vice President
Palmer & Cay, Inc. Palmer & Cay, Inc.
Savannah Georgic Columbus, Georgia
John B. Milward
President Thomas F. Motamed
Powell -Walton Milward Executive Vice President & COO
a division of Palmer & CcD: ` Chubb & Son, Inc.,
Lexington Kentudy Warren NewJeraey
Lewis H. Oden a CLU
Vice Chairman, Retired
Palmer & Ca}, Inc.
Savannah Georgia
Emeritus
PALMER & CAY
C7
2002
John E. Cay, ID
Chairman and ChiefFxecutiw Officer
Palmer & Cay, Inc.
Savannah, Gaorpia
Frank H. Beard, ARM
Executive Vice President
Palmer & Coy, Inc.
Atlanta Georgia
J. Ruffin Branham; Jr.
Executive Vice President
Palmer & Cay, Inc.
Savannah Georgic
Richard W. Stein. CPCU
President
Palmer & Cay Capital
JoebonVil%, Florida
Karen J. Lehman: CPA
Senior Vice President &
Chief Financial Oficer
Palmer & Cay, Inc.
Savannah Georgic
Ex Offtcic
PALM R & GAY
#. -
F. Michael Crowley
President
Palmer & Cay, Inc.
Savannah Georgia
Raymond M Slabaugk M
Managing Director
Palmer & Coy Consulting Group
Richmond lirginia
David P. Morgan, FIN% CLU
Managing Director
Palmer & Cay Consulting Group
Richmond Virpinic
William C. Woolfolk III, CIC
Senior Vice President
Palmer & Cay, Inc.
Columbus, Georgia
David M. Hofele
Senior Yee President &
General Counsel
Palme`r'�& Cay, Inc.
.Savat r' Georgia
Ex Officio
2002
John E. Cay In
Frank H. Beard, ARM J. Ruffin Branham, Jr. Ray M. Slabaugb III David P. Morgan, CLU Robert A Ellis, CLU Richard W. Stein,; CPCU
F.xecudw VicePresident Ewcutive Vice President Managing Director ManapAg Director President President
Palmer & Coy, Inc Palmer & Coy, Inc. Palmer & Cay Palmer & Cay P&C Selec; Inc. Palmer & Coy Capital
Consulting Group Consulting Grouy
E
PAL R & CAY
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-��
Corporate Ocoee
25 Bull Street
P.O. Box 847
Savannah. GA 31402
912. 234. 6621
SOO. 755. 9594
912.234. 5427 fax
nfoCpalmcrcay.com
www.palmexcey.com
P.tlante
2348 Peachtree Rd NE
Suite 91400
P.O. Box 52427
Atlanta. GA 30355
404. 231 . 9595
$00.755.8945
404 .231 . 95F5 fax
AUQU51r
1450 Greene Stree,
Suite 190
P.O. Box 2323
Augusta, GA 30903
706. 724. 7571
800.203 . 8705
706. 724. 7502 fax
Balbmorf
300 East Lombard Street
Suite 930
Baltimore, MD 21202
410. 837. 7800
410, F37.7215 fax
Boston
1 F9 State Street Feb Floor
Boston MA 02109
617. 142. 8852
617. 742. 8856 fax
Brunswick
1 St. Andrews Court
P.O. Box 40
Brurowick GA 21521
912. 265. 284G
912. 265 . 2976 fax
Charleston
176 Croghan Spur Road
P.O. Box F97
Charleston, SC 29402
843. 573. 2600
800, 476. 2256
843. 556.4009 fax
Chs rlotte
6100 Fairview Road
Suite 1400
Charlotte, NC 28210
704. 553 .0419
900. $68 . 0419
704. 553 . 2316 fax
Colurpbia
4408 Forest Drive
Suite 303
Columbia, SC 29206
$03. 790. 5577
888. 933 .9222
803. 787. 6840 fax
�)Ufilwx 6� , Aw",
2002
Columbus
240 BrooL-tone Centre Parkway
P.O. Box 156
Columbus, GA 31902
706, 576. 6990
800. 226. E595
706, 327.2411 fax
Dallas
5956 Sherry Lane, Suite 2000
Dallas, 7X 75225-6531
214. 365. 9150
$00. 531 . 2034
214, 365. 9141 fax
Eden Prairie
6600 City West Parkway
Suite 205
Eden Prairie, MN 55344
952. 983 . 5F20
888 . 526 . 7601
952 . 829. 7472 fax
Jaclown
6425 Lakeover Road
Suite. 101
Jackson. MS 39213
601.36F. 3395
601 . 36F . 3394 fax
Jacksoovilh
76 South Laura Street
Suite *1400
P.O. Box 1257
Jacksonville, FL 32201
904. 633 . 9400
800. 755 . 8921
904. 633 . 7580 fax
Kansas Cih
6900 College Boulevard
Suite 30C
Overland Park, KS 66211
913. 345 . 0500
800, 729, 0909
913. 345. 0172 fax
Knornille
413 Northshore Drive S W
Knoxville, TN 37919
865. 588 . 7200
800, 752 . 1231
865. 588 . 7224 fax
]AWFI on
360 Bast Vine Street
P.O. Box 2030
Lexington, KY 40588
859, 234. 8023
600. 796. 3567
859. 254. 8020 fax
Milwaukee, Wl 53202
414. 270 .1861
866. 227 . 9092
414. 270. 1867 fax
Nashville
555 Marriott Drive
Suite 210
Nashville, TN 37214
615.C74.3390
888.$39.7926
615 . 874 . 8784 fax
New Orieans
201 St. Charles Avenue
Suite 2401
New Orleans, LA 70170
504. 598. 0100
888 . 333 . 6212
504. 598. 0138 fax
New York
60 East 42nd Street
Suite 3415
New York, NY 10165
212.490. 3883
212. 573 . 6946 fax
Norfolk
One Commercial Plaza
Suite 1350
Norfolk, VA 23510
757. 627. 8241
888 . 777.3185
757. 627 .6269 fax
Rester
11150 Sunset Hills Road
Suite 200
Reston, VA 20190
703. 481 .9370
703. 481 .9438 fax
PALMER & CAY
Rkhenoml
9020 Stogy Point Parkway
Suite 200
P.O. Box 35735
Richmond, VA 23235
804 . 267.3100
800. 520. 1134
804.330. 1384 fax
St Louis
16090 Swingiey Ridge Road
Suite 400
St Louis, MO 63017
636. 519. 6400
888 . 305 .2121
636. 519. 6490 fax
Tallahassee
1500 Mahan Drive
Suite 111 (32308)
P.O. Box 749
Tallahassee, FL 32302
650. 877. 8181
800. 548. 6175
850. 942 .4928 fax
Washinaton. DC
1750 K Street NW, 6th Floor
Washington, DC 20006
202. 466. 6001
888. 335. 0931
202. 466 .6007 fax
West Palm Beach
1555 Palm Beach Lakes Blvd
suite 1200
West Palm Beach, FL 33401
561. 688 7200
888. 909. 7410
561 . 686 . 7208 fax
L► KQ /7-y y International
Ll-��_ 031_.eJ7_JJO_va�_i_Aall�
•
n
FINANCIAL STATEMENT
(A Compilation)
SANFORD AGENCY, INC.
LUBBOCK, TEXAS
DECEMBER 31, 2002
SANDEFUR & SWINDLE
Certified Public Accountants
Lubbock, Texas
E
FINANCIAL STATEMENT
(A Compilation)
SANFORD AGENCY, INC.
LUBBOCK, TEXAS
DECEMBER 31. 2002
SANIDEF1,111 8',
SANFORD AGENCY, INC.
Lubbock, Texas
CONTENTS
December 31, 2002
Accountant's Compilation Report
Statement of Assets, Liabilities, and
Equity --Income Tax Basis
Statement of Income, Expenses and
Retained Earnings --Income Tax Basis
General and Administrative Expenses
Selected Information --Substantially All
Disclosures Are Not Included
Page
Number
1
Exhibit A 2
Exhibit B 4
Exhibit B-1 5
Exhibit C 6
Lj
Sandefur&Swindle
CERTIFIED PUBLIC ACCOUNTANTS ftV
A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS Hal Sandefur, CPA, P.C.
B. Randolph Swindle, CPA
3306 - 64th Streci James O. McAteer, CPA, P.C.
P.O. Box 64359 Jerry E. Schulz, CPA
Lubbock,Texas 79464 Randel J. Terry, CPA, P.C.
Phone 806/793-2656 Nathan R. Swindle, CPA, P.C.
Fax � 806/797-7513
March 10, 2002
Board of Directors
Sanford Agency, Inc.
Lubbock, Texas
We have compiled the accompanying Statement of Assets, Liabilities, and Equity --Income
Tax Basis of the Sanford Agency, Inc. (a corporation) as of December 31, 2002, and the
related Statement of Income, Expenses, and Retained Earnings --Income Tax Basis for the
year then ended, in accordance with Staiements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants. The financial
statements have been prepared on the accounting basis used by the Company for income
tax purposes, which is a comprehensive basis of accounting other than generally accepted
accounting principles.
A compilation is limited to presenting in the form of financial statements information that is
the representation of management. We have not audited or reviewed the accompanying
financial statements and, accordingly, do not express an opinion or any other form of
assurance on them.
Management has elected to omit substantially all of the disclosures ordinarily included in
financial statements prepared on the income tax basis of accounting. If the omitted
disclosures were included in the financial statements, they might influence the user's
conclusions about the Company's assets, liabilities, equity, income, and expenses.
Accordingly, these financial statements are not designed for those who are not informed
about such matters.
f
SANDEFUR & SWINDLE, CPAs
i
d
I
Members: American Institute of Certified Public Accountants Texas Society of Certified Public Accountants
,Ap.MYEFUR & SWINDLE
-2-
EXHIBIT A
SANFORD AGENCY, INC.
Lubbock, Texas
STATEMENT OF ASSETS, LIABILITIES, AND EQUITY --INCOME TAX BASIS
December 31, 2002
Current Assets
Petty Cash
Cash in Banks
Money Market Accounts
Certificates of Deposit
Dean Witter Investments
Stock Owned--AFLAC, Inc.
Annuity --National Farm Life
Accounts Receivable --Insurance
Accounts Receivable --Other
Prepaid Insurance and Other
Total Current Assets
Fixed Assets (At Cost)
Office Furniture and Fixtures
Leasehold Improvements
Cabin and Furnishings
Building --Snyder
Lake House & Furnishings
Automobiles
Total
Less: Accumulated Depreciation
Net Fixed Assets --Book Value
Other Assets
Goodwill --Acquired
Agency Expirations
Covenant not to Compete
U.S. Savings Bonds
Art Objects
Cash Surrender Value --Life Insurance
Total Other Assets
ASSETS
$ 1,200.00
81,970.00
186,094.13
225,306.20
280,478.94
48,085.20
3,012.05
593,257.33
50,859.15
27,800.14
$ 1,498,063.14
902,417.94
19,954.60
33,979.76
31,307.93
636,553.82
172,264.63
1,796,478.68
900,579.50 ti
895,899.18
6,833.20
156,073.68
3,333.20
18.75
10,890.50
129,491.57
306,640.90
TOTAL ASSETS $ 2,700,603.22
Note: See accountant's compilation report.
Note: The accompanying "Selected Information" is an integral part of the financial
statements.
i
i
3
t
EXHIBIT A
(Continued)
SANFORD AGENCY, INC.
Lubbock, Texas
STATEMENT OF ASSETS, LIABILITIES, AND EQUITY --INCOME TAX BASIS
December 31, 2002
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $
1,045,720.74
Payroll Taxes
48,035.13
Accrued Commissions
16,290.69
401k Plan Payable
1,421.88
Note Payable --Lubbock National Bank
7,324.83
Employee Contributions and Other
3,080.16
Franchise Tax Payable
2,000.00
I
Federal Income Tax Payable
3,997.77
Total Current Liabilities
$
1,127,871.20
Term Liabilities
Note Payable --Lubbock National Bank
600,333.29
Reserve for Retirement
217,620.00
Total Term Liabilities
817,953.29
Stockholders' Equity
Common Stock --No Par value, 200,000
E
Shares Authorized; 56,187 Shares Issued
116,356.60
Paid -In Capital (Discount)
(4,315.47)
Retained Earnings (Exhibit B)
642,737.60
Total Stockholders' Equity
754,778.73
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$
2,700,603.22
I
d
S
S
G
a
Note: See accountant's compilation report.
Note: The accompanying "Selected Information" is
an integral part of
the financial
f
statements.
3
:.l\TNOI1=Fi.:i^ ,.. SWINE)[.;
-4-
EXHIBIT B
SANFORD AGENCY, INC.
Lubbock, Texas
STATEMENT OF INCOME, EXPENSES, AND RETAINED EARNINGS --INCOME TAX BASIS
For the Year Ended December 31, 2002
Operating Income
Insurance Agency Commissions
Other Commissions, Fees and Reimbursements
Total Operating Income
Operating Expenses
General and Administration Expenses (Exhibit B-1)
Income from Operations (Loss)
Other Income (Expense)
Interest and Dividend Income
Decrease in Value of Mutual Funds
Increase in Value of Stock
Employee Reimbursement --Personal Use of Autos
Increase in Cash Surrender Value --Life Insurance
Loss on Sale of Vehicle
Total Other Income
Income Before Federal Income Tax
Provision for Federal Income Taxes (See Note 6)
Net Income for the Year
Beginning Retained Earnings, 1-1-02
ENDING RETAINED EARNINGS, 12-31-02
Note: See accountant's compilation report.
t Note: The accompanying "Selected Information"
statements.
i
E
$ 3,276,406.57
39,440.63
30, 516.04
(19,282.88)
8,834.01
12,554.32
17,114.98
(6,207.02)
$ 3,315,847.20
3,344,959.89
(29,112.69)
43,529.45
14,416.76
13,997.77
418.99
642,318.61
$ 642,737.60
is an integral part of the financial
-5-
EXHIBIT B-1
SANFORD AGENCY, INC.
Lubbock, Texas
STATEMENT OF INCOME, EXPENSES, AND RETAINED EARNINGS --INCOME TAX BASIS
For the Year Ended December 31, 2002
GENERAL AND ADMINISTRATIVE EXPENSES
Salaries and Commissions --Selling
$ 1,178,752.14
Salaries --Administrative
1,027,834.85
Promotional
39,949.94
Advertising
18,610.50
Entertainment
20,910.76
Automobile Expense
54,865.34
Travel
29,622.50
Officers' Life Insurance.
28,998.47
Agency Recruitment
2,404.42
Educational Expense
13 355.23
Licenses and Permits
6,571.00
Security
633.38
Contributions
10,933.23
Accounting
4,864.00
Legal
2,762.75
Claims
13,257.46
Contract Labor
7,146.15
Dues and Subscriptions
34,835.03
Insurance
163,386.33
Rent (Net, after Sub -Lease Income)
57955.87
Repairs and Maintenance
79:406.07
Taxes --Payroll
137,880.66
Taxes --Ad Valorem and Franchise
13,900.97
Interest
12,690.12
Office Expense and Supplies
60,089.90
Postage
39,640.78
Tickets
9,089.00
EMaillinternet
4,377.23
Telephone
50,556.36
Utilities
15,447.48
Bad Debts
1,717.02
Depreciation
94,172.20
Amortization --Intangibles
15,089.88
Employee Expense --Christmas and Recreational
5,295.98
Lake House Expenses
7,473.42
401-K Plan Expense
11,222.29
Small Balances Waived
(334.54)
Bank Charges
1,306.56
Retirement Expense
22,320.00
Miscellaneous Expenses
45,969.16
TOTAL OPERATING EXPENSES
$ 3,344,959.89
Note: See accountant's compilation report.
Note: The accompanying "Selected Information" is an integral part of the financial
statements.
SANDEFUR SWINDLE
-6-
EXHIBIT C
SANFORD AGENCY, INC.
Lubbock,Texas
SELECTED INFORMATION --
SUBSTANTIALLY ALL DISCLOSURES ARE NOT INCLUDED
December 31, 2002
Note 1: Summary of Significant Accounting Policies
The Company uses the direct charge -off method of accounting for bad debt losses
instead of the generally accepted accounting method of providing an allowance for
future losses in the period the related revenue is recognized. Management is of the
opinion that the difference in methods would not have a material effect on financial
position or results of operations. All known uncollectible accounts have been written
off.
Fixed Assets are stated at cost less accumulated depreciation. The straight-line and
declining methods were used to calculate depreciation on assets purchased through
December 31, 1980, based on useful lives of the assets ranging from three to eight
years. In accordance with the Economic Recovery Tax Act of 1981, effective
January 1, 1981, depreciation has been calculated under the Accelerated Cost
Recovery System with cost recovery based on the "class of property," not
necessarily useful lifa, on fixed assets purchased from 1981 through 1986. In
accordance with the Tax Reform Act of 1986, effective January 1, 1987, depreciation
has been calculated under the Modified Accelerated Cost Recovery System. The
Company has elected to reflect depreciation for financial statement purposes the
same as that used for tax purposes as the difference would have no material effect
on the accompanying financial statements.
The Company accounts for income tax credits as a reduction of the income tax
expense in the year in which such credits are allowable for tax purposes.
Note 2: In January, 1998, the Company acquired the Snyder Insurance Agency for the total
f
purchase price of $179,709.49. The cost will be amortized over a 15 year period.
The remaining cost at 12-31-02 is as follows:
Covenant not
Goodwill to Compete Expirations Total
Cost $ 5,000.00 $ 5,000.00 $ 169,709.49 $ 179,709.49
Amortization (1,666.80) (1,666.80) (56,528.52) (59,862.12)
Remaining Cost $ 3,333.20 $ 3,333.20 $ 113,180.97 $ 119,847.37
Note: See accountant's compilation report.
SAN,C)[:FL,44 &: 4ffih:L _
-7 -
EXHIBIT C
(Continued)
SANFORD AGENCY, INC.
Lubbock, Texas
SELECTED INFORMATION --SUBSTANTIALLY ALL DISCLOSURES ARE NOT
INCLUDED
December 31, 2002
Note 2: (Continued)
In June, 2001, the Company acquired the Dick Lauer Agency, with payments over a
36 month period. The cost will be amortized over a 15 year period. The cost,
amortization and remaining cost as December 31, 2002 are as follows:
Cost $ 46,577.57
Amortization (3,684.86)
Remaining Cost $ 42,892.71
Note 3: The Company acquired a Lake House in Palo Pinto County, Texas, on August 29,
2002, for $610,000.00. The property is pledged as security on a real estate lien note
to Lubbock National Bank, Lubbock, Texas, with an interest rate of 6.25%. The note
calls for 35 monthly payments of $3,758.00 beginning September 29, 2002, and the
final installment of the principal and interest then owing on August 25, 2005.
Note 4: Key employees are paid profit sharing bonuses if net income for the year is sufficient
to warrant such bonuses. The Board of Directors determines the amount to be
distributed and the employees who will participate.
Note 5: The Company has in operation a 401(k) Profit Sharing plan. The plan is a Salary
Reduction Profit Sharing Plan which is available to all employees who have satisfied
the eligibility requirements.
Note 6: The Company's income tax expense on the current year's operations was $13,997.77.
The Company made estimated payments totaling $10,000.00. The resulting liability
of $3,997.77 is reflected under current liabilities in the financial statement.
Note: See accountant's compilation report.
SECTION III
G
0 Price Proposal and Contract Fee
The price proposal and contract fee is a presentation of the proposer's total offering price
including the cost for providing each component of the required goods or services.
(Please be reminded, and address the tact, that all insurance policies obtained
through the broker are net of commission.) Proposers should indicate the dollar
amount that will be attributable to each line of coverage and each sub -contractor, if any.
Palmer & Cay of Texas, LLC and Sanford Insurance Agency proposes the following fee
compensation structure for the City's consideration and adoption:
Proposed Good or Service
Annual Fee Compensation
Broker Consulting, Management and
$67,500
Marketing Services as further defined and
outlined in our RFP response. Quarterly Loss
Analysis, Statistical Loss Forecasting,
Retention Analysis and Reserve Analysis
Risk Control Services, Property Loss Control
12,500
Meeting with Human Resource / Risk
Management Staff, Exposure Identification
for LPL, Civic Services, Public Works and
Information Technology
TOTAL ANNUAL PROPOSED FEE
$80,000
All insurance policies procured through Palmer & Cay of Texas, LLC & Sanford
Insurance Agency will be net of commission to Palmer & Cay and Sanford Insurance
Agency as required by the CITY. Palmer & Cay and Sanford Insurance Agency will
endeavor to place all policies directly with the selected insurance carriers. Certain
coverages carried by the CITY will require the use of wholesalers who have contracts
with these specialized markets that only deal with wholesalers. Palmer & Cay and
Sanford Insurance Agency will request any wholesaler to negotiate their compensation
fairly with our firm and the CITY. It is to the benefit of the City that Palmer & Cay and
Sanford Agency access all identified insurance carriers who specialize in public entity
coverages.
Palmer & Cay of Texas, LLC and Sanford Insurance Agency respectfully requests the
option to renegotiate our service fee, subject to a 5% cap, if an unforeseen event causes
an unexpected increase in our expenses incurred in carrying out our service contract to
the CITY.
.7
SECTION V
E
L]
• 104-03/04 Sample Marketing Timeline
07/24/03 City of Lubbock awards Palmer & Cay and Sanford Insurance
Agency their Broker of Record
07/25/03 City of Lubbock, Palmer & Cay and Sanford Insurance Agency
establish marketing plan, develop renewal strategies and identify
potential insurance carriers
07/25/03 to 08/01/03 City of Lubbock, Palmer &. Cay and Sanford Insurance Agency
complete required applications
08/04/03 Submission to markets
08/04/03 to 09/0I/03 Palmer & Cay and Sanford Insurance Agency conducts marketing
function and schedules meetings with Underwriters to meet with
City of Lubbock as required.
09/0I/03 Quotes due from markets.
Is 09/03/03 Palmer & Cay and Sanford Insurance Agency presents quotes to
the City of Lubbock
09/03/03 to 09/5/03 City of Lubbock, Palmer & Cay and Sanford Insurance Agency
negotiate with carriers to obtain best possible program
09/08/03 Final proposal sent to City of Lubbock
9/18/03 City of Lubbock makes final decision for renewal
I0/I/03 City of Lubbock effects insurance coverage with selected carriers
0
"ALL INFORMATION CONTAINED IN THIS RESPONSE TO REQUEST FOR
PROPOSAL REPARED BY PALMER & CAY IS CONSIDERED
CONFIDENTIAL INFORMATION AND IS TO BE USED BY THE CITY OF
LUBBOCK FOR THE PURPOSES OF THIS RFP ONLY. THIS CONFIDENTIAL
INFORMATION IS RESTRICTED FOR USE BY ONLY THOSE EMPLOYEES
OF THE CITY OF LUBBOCK WHO MUST KNOW THIS INFORMATION UV
ORDER TO REVIEW THIS PROPOSAL, AND SHALL NOT BE DISCLOSED
TO ANY OUTSIDE PARTY."
PLEASE DO NOT HESITATE TO CALL SBOULD YOU HAVE ANY
QUESTIONS.
0
RFF t1C3-03NK, Insurance Eroker Servrnces.for Fropeny 6 Casualty Insurance
C
SUBMIT TO:
CITY OFLUBBOCK
0_(t�
CITY OF LUBBOCK, TEXAS
PURCHASING DEPARTMENT
1625 13T" STREET, RM LN
LUBBOCK, Tx 79401.3830
AN EQUAL
OPPORTUNITY
REQUEST FOR PROPOSAL
#1 03-03/VK
CONTACT PERSON:
Victor Kilman
EMPLOYER
TEL:806.775.216i
FAX: 806.775.2164
http://purchasini;.ci.lubbock.tx.us
TITLE:
SUBMITTAL DEADLINE:
Insurance Broker Services for Property Et Casualty insurance
July 8, 2003, 2:00 P.M. CST
PRE PROPOSAL DATE, TIME AND LOCATION:
Any proposois received otter the time and dote listed
July 1, 2003 at 10:30 A.M. in Council Chambers Room
101
oboes, rrgardless of the mode of delivery, sholl be
returned unopened.
RESPONDENT NAME:Palmer Ck CCay u4 IoD6 .LC
Tl--6(8 n rQ C
IF RETURNING AS A "NO RESPONSE", PLEASE STATE REASON.
MAILING ADDRESS:
CITY'- STATE - ZIP:
THE CITY OF LUBBOCK RESERVES THE RIGHT TO ACCEPT OR REJECT ANY
i :1 ff" _ %1�r rat .
r `�`l ' I 1 `� �' ` ` r '' 'L
AND ALL PROPOSALS IN WHOLE OR IN PART AND WAIVE ANY INFORMALITY IN
THE.COMPE7ITIVE PROPOSAL PROCESS. FURTHER, THE CITY RESERVES THE
RIGHT TO ENTER INTO ANY CONTRACT DEEMED TO BE IN THE BEST
TELEPHONE NO:
rol L' •; •�.' �: %
J
INTEREST OF THE CITY.
1�
IT IS THE INTENT AND PURPOSE OF THE CITY OF LUBBOCK THAT THIS
QAX NO:
t
REQUEST PERMITS COMPETITIVE PROPOSAL. IT IS THE OFFEROR'S
RESPONSIBILITY TO ADVISE THE CITY OF LUBBOCK PURCHASING MANAGER IF
ANY LANGUAGE, REQUIREMENTS, ETC., OR ANY COMBINATIONS THEREOF,
E-MAIL:
San 66 CQ'S C
INADVERTENTLY RESTRICTS OR LIMITS THE REQUIREMENTS STATED IN THIS
a i (_-M.
RFP TO A SINGLE SOURCE. SUCH NOTIFICATION MUST BE SUBMITTED IN
WRITING AND MUST BE RECEIVED BY THE PURCHASING MANAGER NO LATER
FEDERAL TAX iD NO. OR SOCIAL SECURITY NO.
—15 — V. 714 i -
THAN FIVE (S) BUSINESS DAYS PRIOR TO THE ABOVE SUBMITTAL DEADLINE.
THE OFFEROR HEREBY ACKNOWLEDGES RECEIPT OF AND AGREES ITS PROPIKAL iS BASED ON THE FOLLOWING ADDENDA:
f11 asi ;. ;tE fiS__\,Jf4aPieaseInitial)
The City of Lubbock Charier states that no officer or employee of the City can benefit from any con act, job, work or service for the municipality or
be interested in the sale to the City of any supplies, equipment, material or articles purchased. Il ' ny officer or employee of the City, or member
of their immediate family, benefit from the award of this proposal to the above firm! YET
IN COMPLIANCE WITH THIS SOLICITATION, THE UNDERSIGNED OFFEROR HAVING EXAMINED THE REQUEST FOR PROPOSAL, AND BEING
FAMILIAR WITH THE CONDITIONS TO BE MET, HEREBY SUBMITS THE FOLLOWING. AN INDIVIDUAL AUTHORIZED TO BIND THE COMPANY
MUST SIGN THE FOLLOWING SECTION. FAILURE TO EXECUTE THIS PORTION MAY RESULT IN PROPOSAL REJECTION.
By my signature I certify that this offer is made without prior understanding, agreement, or connection with any corporation, firm,
business entity, or person submitting an offer for the same materials, supplies, equipment, or service(s), and is in all respects fair and
without collusion or fraud. i further agree th offer is accepted, the offeror will convey, sell, assign, or transfer to the City of
Lubbock all right, title, and i est in and all cause. faction it may now or hereafter acquire under the Anti-trust laws of the United
States and the State of Tex for rice fixi I; relating to he particular commodity(s) or service is) purchased or acquired by the City of
bbock. At the City' scr tion,uch assi nment shall made and become effective at the time the City tenders final payment to the
ven r.
AuVmWized Sig ure Title
bU_kala % MIora �1 3
Print/Type Name Date
0 THIS FORM MUST BE COMPLETED AND RETURNED WITH YOUR RESPONSE.
103-03.doc
RFP z103-031VK. Insurance Eroker Services for Property d Casualty Insurance
Insurance Broker Services for Property @ Casualty Insurance
CITY OF LUBBOCK, TEXAS
RFP #103-03/VK
The City of Lubbock appreciates your time and effort in preparing your proposal. All offerors should
familiarize themselves with the following INSTRUCTIONS TO OFFERORS and GENERAL REQUIREMENTS:
I. INSTRUCTIONS TO OFFERORS
PROPOSAL DELIVERY, TIME @ DATE
1.1 The City of Lubbock will receive written and sealed competitive proposals for
Insurance Broker Services for Property @ Casualty Insurance until 2:00 P.M. p.m.
CST, July 8, 2003, if date/time stamped on or before 2:00 P.M. at the office listed
below. Any proposal received after the date and hour specified will be rejected and
returned unopened to the offeror. Each proposal and supporting documentation must
be in a sealed envelope or container plainly labeled in the lower left-hand corner: "RFP
#103-03NK, Insurance Broker Services for Property Et Casualty Insurance" and the
closing date and time. Offerors must also include their company name and address on
the outside of the envelope or container. Proposals must be addressed to:
Victor Kilman, Purchasing Manager
City of Lubbock
1625-13th Street, Room L-04
Lubbock, Texas 79401
1.2 Offerors are responsible for making certain proposals and proposed contracts are
delivered to the Purchasing Department. Mailing of a proposal does not ensure that the
proposal will be delivered on time or delivered at all. If offeror does not hand deliver
proposal, we suggest that he/she use some sort of delivery service that provides a
receipt. The City of Lubbock assumes no responsibility for errant delivery of proposals,
including those relegated to a courier event who fails to deliver in accordance with the
time and receiving point specified.
1.3 Proposals will be accepted in person, by United States Mail, by United Parcel Service, or
by private courier service. No proposals will be accepted by oral communication,
telephone, electronic mail, telegraphic transmission, or telefacsimile transmission. THE
CITY WILL NOT ACCEPT FAX PROPOSALS.
1.A Proposals may be withdrawn prior to the above scheduled time set for closing.
Alteration made before RFP closing must be initiated by offeror guaranteeing
authenticity.
1.5 The City of Lubbock reserves the right to postpone the date and time for accepting
proposals through an addendum.
2 PRE -PROPOSAL MEETING
2.1 For the purpose of familiarizing offerors with the requirements, answering questions,
and issuing addenda as needed for the clarification of the Request for Proposal (RFP)
documents, a pre -proposal meeting will be held at 10:30 A.M., July 1, 2003, in Council
Chambers Room 101, Lubbock, Texas. All persons attending the conference will be
asked to identify themselves and the prospective offeror they represent.
2.2 It is the offeror's responsibility to attend the pre -proposal meeting though the meeting
is not mandatory. The City will not be responsible for providing information discussed
at the pre -proposal meeting to offerors who do not attend the pre -proposal meeting.
'0 i2.3 The City of Lubbock does not discriminate against person with disabilities. City of
Lubbock pre -proposal meetings are available to all persons regardless of disability. If
103-03.doc
RFP #103-031VK, Insurance broker Services for Properly L Casualty Insurance
5.2 Before submitting a proposal, each offeror shall be responsible for making all
investigations and examinations that are necessary to ascertain conditions and
requirements affecting the requirements of this RFP. Failure to make such
investigations and examinations shall not relieve the offeror from obligation to comply,
in every detail, with all provisions and requirements of the Request for Proposal.
OPOSAL COPIES
OFFEROR'S MUST SUBMIT THE ORIGINAL AND SIX COPIES OF THE SEALED PROPOSAL TO
THE PURCHASING DEPARTMENT PRIOR 70 RESPONSE DUE DATE/TIME. FAILURE TO
SUBMIT THE ADDITIONAL COPIES MAY RESULT IN THE PROPOSAL BEING DECLARED
Q UNRESPONSIVE 70 SPECIFICATION AND MAY NOT BE FURTHER EVALUATED.
v .2 All proposals, responses, inquiries, or correspondence relating to or in reference to this
RFP, and all electronic media, reports, charts, and other documentation submitted by
offerors shall become the property of the City of Lubbock when received.
7 PROPOSAL PREPARATION COSTS
7.1 Issuance of this RFP does not commit the City of Lubbock, in any way, to pay any costs
incurred in the preparation and submission of a proposal.
7.2 The issuance of this RFP does not obligate the City of Lubbock to enter into contract for
any services or equipment.
7.3 All costs related to the preparation and submission of a proposal shall be paid by the
proposer. .
5 TRADE SECRETS, CONFIDENTIAL INFORMATION AND THE TEXAS PUBLIC INFORMATION ACT
8.1 If you consider any portion of your proposal to be privileged or confidential by statute
or judicial decision, including trade secrets and commercial or financial information,
clearly identify those portions.
8.2 Proposals will be opened in a manner that avoids disclosure of the contents to
competing offerors and keeps the proposals secret during: negotiations. All proposals
are open for public inspection after the contract is awarded, but trade secrets and
confidential information in the proposals are not open for inspection.
8.3 The City of Lubbock will honor your notations of trade secrets and confidential
information and decline to release such information initially, but please note that the
final determination of whether a particular portion of your proposal is in fact a trade
secret or commercial or financial information that may be withheld from public
inspection will be made by the Texas Attorney General or a court of competent
jurisdiction. In the event a public information request is received for a portion of your
proposal that you have marked as being confidential information, you will be notified of
such request and you will be required to justify your legal position in writing to the
Texas Attorney General pursuant to Section 552.305 of the Government Code. In the
event that it is determined by opinion or order of the Texas Attorney General or a court
of competent jurisdiction that such information is in fact not privileged and
confidential under Section 552.110 of the Government Code and Section 252.049 of the
Local Government Code, then such information will be made available to the requester.
8.4 Marking your entire proposal CONFIDENTIAL/PROPRIETARY is not in conformance with
the Texas Open Records Act.
9 DISADVANTAGED BUSINESS ENTERPRISE (DBE) REQUIREMENTS
9.1 The City of Lubbock hereby notifies at[ offerors that in regard to any contract entered
into pursuant to this RFP, Disadvantaged Business Enterprises (DBE's) will be afforded
equal opportunities to subrriii proposals and will not be discriminated against on the
grounds of race, color, sex, disability, or national origin in consideration of an award.
103-03.doc
RFF x103-03NK. Insurance broker Services for Froperty & Casualty Insurance
provisions. Person signing proposal must show title or AUTHORITY TO BiND THEIR FIRM IN A
CONTRACT. Failure to manually sign proposal will disqualify it.
14 ABOUT THIS DOCUMENT
This document is a Request for Proposal. It differs from an Invitation to Bid in that the City of
Lubbock is seeking a solution, as described in the following General Requirements section, not
a bid/quotation meeting firm specifications for the lowest price. As such, the lowest price
proposed will not guarantee an award recommendation. Sealed proposals will be evaluated
based upon criteria formulated around the most important features of a product or service, of
which quality, testing, references, availability or capability, may be overriding factors, and
price may not be determinative in the issuance of a contract or award. The proposal evaluation
criteria should be viewed as standards that measure how well an offeror's approach meets the
desired requirements and needs of the City of Lubbock. Those criteria that will be used and
considered in evaluation for award are set forth in this document. The City will thoroughly
review all proposals received. The City will also utilize its best judgment when determining
whether to schedule a pre -proposal conference (before proposals are accepted), or meetings
with offerors (after receipt of all proposals). A Purchase Order/Contract will be awarded to a
qualified offeror submitting the best proposal. The City reserves the right to select, and
subsequently recommend for an award, the proposed service which best meets its required
needs, quality levels, and budget constraints.
15 EVALUATION PROCESS
15.1 All proposals will be evaluated by an evaluation committee and may include senior
management representatives, a financial officer, and/or an independent consultant.
15.2 Respondents to this RFP may be required to submit additional information that the City
may deem necessary to further evaluate the offeror's qualifications.
15.3 The committee will evaluate and numerically score each proposal in accordance with
the evaluation criteria included in the Request for Proposal.
15.4 The committee will arrive at a short list of the top respondents and these short-listed
respondents may be scheduled for a structured oral presentation and interview. Such
presentations will be at no cost to the City of Lubbock. At the end of the oral
presentation and interview, the evaluation of the short-listed respondents will be
completed. The oral interview may be recorded and/or videotaped.
16 SELECTION
16.1 Selection shall be based on the responsible offeror whose proposal is determined to be
the most advantageous to the City of Lubbock considering the relative importance of
evaluation factors included in this RFP.
16.2 NO INDIVIDUAL OF ANY USING DEPARTMENT HAS THE AUTHORITY TO LEGALLY AND/OR
FINANCIALLY COMMIT THE CITY TO ANY CONTRACT, AGREEMENT OR PURCHASE ORDER
FOR GOODS OR SERVICES, UNLESS SPECIFICALLY SANCTIONED BY THE REQUIREMENTS OF
THIS REQUEST FOR PROPOSAL.
17 EQUAL EMPLOYMENT OPPORTUNITY
Offeror agrees that it will not discriminate in hiring, promotion, treatment, or other terms and
conditions of employment based on race, sex, national origin, age, disability, or in any way
violative of Title VII of 1964 Civil Rights Act and amendments, except as permitted by said
laws.
18 NONAPPROPRiATION
All funds for payment by the City under this contract are subject to the availability of an annual
appropriation for this purpose by the City. In the event of non -appropriation of funds by the
103-03.doc
RFF t103-031VK. Insurance broker Services for Property d Casualty Insurance
11. GENERAL REQUIREMENT!
1 INTENT
a) The City of Lubbock (hereinafter called "City") is seeking proposals from interested firms and
individuals, (hereinafter called "Proposer") for the purpose of selecting a licensed insurance
broker as the sole broker of record to obtain proposals and coverages for excess or surplus
insurance that provides necessary coverage and adequate limits of coverage in structuring
layered excess coverages in all areas of risk requiring special consideration, including public
official liability, police professional liability, and airport liability. The broker will be retained
only on a fee basis and may not receive any other remuneration from any other source.
b) The information contained within this document is intended to provide interested firms with
the requirements and criteria that will be used to make the selection.
2 INTRODUCTION/BACKGROUND
a) The City is requesting proposals from qualified providers of professional insurance
broker/consultant services to assist in the management of the City's various insured and self -
funded programs. Such services would include, but not be limited to the review, analysis,
recommendation, and placement of all insured and self -funded programs in the areas of
Property, Liability, Auto, Workers' Compensation, Boiler 13 Machinery, as well as processing
policy change endorsements, policy review and audit and monitoring claims.
b) The population of Lubbock, Texas, is approximately 200,000, with 1800 FT employees and 150
PT and seasonal employees. The City conducts municipal functions including electric production
and distribution, water treatment and distribution, wastewater collection, solid waste
collection, fire and police protection, emergency dispatch, storm water planning, street
construction and repair, codes and zoning, parks and recreation, civic center and
auditorium/coliseum and other cultural arts services. The City is committed to a strong,
proactive safety, loss prevention and claim administration program directed by a Risk
Management Coordinator and three Loss Prevention Specialists. The Risk Management
Coordinator directs the City's insurance, self-insurance and loss prevention programs. The Risk
Management Coordinator reports directly to the Managing Director of Human Resources.
c) The City is currently self -insured for liability coverage including police, auto and general
liability*with a $250,000 =elf -insured retention (SIR), is fully insured for airport liability and is a
member of a municipal pool with a guaranteed cost program for Workers' Compensation.
Excluding health and life, the City's current insurance policy budget is approximately $ 3.5
million. A list of our current coverage is included with this RFP. Additionally, the City has a
current balance in the self-insurance fund of $4,860,123; with existing cash asset balance of
$10,874,196.
3 EVALUATION OF PROPOSALS WILL CONSIDER THE FOLLOWING:
a) Broker Experience (30%) - The breadth of knowledge of municipal and/or large commercial
accounts.
b) Service (30%) - The ability to provide coverage and/or services in an expeditious and
professional fashion as verified by previous or current clients and the availability of qualified
personnel within the offeror's organization such as professional staff and service personnel.
c) Financial Capacity (10%) - The capacity to provide coverage and services in the future with
minimum risk to the, client. Such measuf ements as Best and/or submitted certified financial
statements may be used to measure this criteria.
d). Price (30%) - The cost of the service-cequested and proposed.
103-03.doc
RFP k103-031VK, Insurance broker Services for Property 8 Casualty Insurance
broker shall put all lines of insurance in place, as listed on Attachment #1, to begin coverage on
October 1, 2003, or at its renewal after that date. All insurance policies obtained through the
successful broker must be net of commission. 0
b) Services in advising and coordinating with the City's Managing Director of Human
Resources/Risk Management Coordinator would include, but are not limited to the following:
c) MEETINGS
Bi-monthly meetings to discuss and review: analysis of coverage, loss control, benefit design,
exposure changes, claims, and general administrative matters with Human Resources/Risk
Management staff.
Annual property loss control meetings with Human Resources/Risk Management staff.
d) Facilitate insurance company interface and coordination in the following areas:
• Renewal information format and market presentation
• Marketing of existing coverage
• Possible preparation of requests for proposals
Negotiate insurance contracts to assure best possible pricing.
e) Any special projects requested by clients.
f) Develop coverage options on coverage not currently purchased by the City for City's review.
g) Analyze City's exposure to loss and review adequacies of coverage contained in existing policies
and make appropriate risk recommendations.
h) Assist the City in reviewing all insurance policies, contracts, leases, and bonds as necessary.
i) Provide service for day-to-day contact and advise on insurance matters. 0
j) Prepare certificate of insurance forms as requested.
k) Other services as normally and customarily required of a municipal property/casualty
broker/consultant.
13 PROPOSAL FORMAT
Proposals must contain each of the below enumerated documents, each fully completed, signed,
and notarized as required. Proposals submitted which do not include the following items may be
deemed non -responsive and may not be considered for contract award.
Page Title
The title page shall indicate "INSURANCE BROKER SERVICES FOR PROPERTY Et CASUALTY
INSURANCE" and show the name and address of the brokerage firm as well as the contact person for
the firm, phone number, fax number and E-mail address.
Table of Contents
The table of contents should outline in sequential order the major areas of the proposal, and all
pages of the proposal, including the enclosures. The proposal must be clearly and consecutively
numbered and correspond to the table of contents.
Technical Proposal
The technical proposal is a narrative that addresses the scope of work, the proposed approach to
the work, the schedule of the work, and any other information called for by the RFP which the
proposer deems relevant, including the following: i
10"Idoc 10
RFP 9103-03W, Insurance broker Services for Property d Casualty insurance
•
Price Proposal and Contract fee
The price proposal and contract fee is a presentation of the proposer's total offering price including
the cost for providing each component of the required goods or services. (Please be reminded,
and address the fact, that all insurance policies obtained through the broker are net of
commission.) Proposers should indicate the dollar amount that will be attributed to each line of
coverage and each sub -contractor, if any. Proposers may use formats of their choice.
`Z J
� J
103-03.doc 12
ATTACHMENT #1
City of Lubbock
Schedule of Insurance
Coverage
Company
Premium
Policy Dates
Limits
Comments
Primary Property
Coregis Insurance
$ 385,825
10/01/02-03
$ 20,000,000
Per Occurrence
$250,000 AOP Deductible
Company
$ 6,000,000
Flood per occurrence/annual aggregate
$50,000 AOP Deductible for 7
I
$ 2,500,000
Flood per occurrence/annual aggregate -
Specified Leased Location
Zones A or V
1% Deductible for the value of
g 5,000,000
Earthquake Per occurrencelannuai
damaged or destroyed property, 4
aggregate
per occurrence, subject to
$250,000 min. 11,000,000 max,
500.000 Flood Deductible
designated by FEMA to be located
in Flood Zones A 8 V
Policy includes Terrorism
Property - 2nd Layer
Underwriters at Lloyds
$ 61,502
10/01102-03
$ 20,000,000
Per Occurrence
Excess $20,000,000
Excluding Flood 8 Earthquake
50% Participation ($10MM)
Policy Includes Terrorism
Commonwealth
-2nd Layer
Insurance
$ 56,353
10/01/02-03
$ 20,000,000
Per Occurrence
Excess $20,000,000
(Property
Company
Excluding Flood B Earthquake
50% Participation ($10MM)
1
Includes terrorism
Royal Indemnity
Property - Excess
Company
$ 135,588
10101102-03
$ 260.000,000
Per Occurrence
Excess $40,000,0D0
Excluding Flood 8 Earthquake
Policy Includes Terrorism
(Museum Coverage
Lumbemnens Mutual
$ 12,364
06I15102-03
Property Owned by You
Fuel Tank Storage
I
Casualty
S 2,082,801
4 50,000
$ 50.000
$ 250,000
$ 100.000
$ 100,000
At Your Premises
On Exhibition at the Premises of Others
On Loan to Others
Property of Others
Covered Property While in Transit
Per Occurrence at Scheduled Location
$1,000 Per Occurrence Deductible
Location: 3500 East Slalon Hwy
$5.000 Per Occurrence Deductible
Policy Includes Terrorism
Great American
;Crime
Insurance
$ 3.938
12111102-1010
$ 100.000
Gov. Foram O - Public Emp Dishonesty
$5.000 Deductible
Company
$ 100,000
Cov. Form B - Forgery or Alleralior,
Excess Form O applies to buddy
S 400,000
Excess Cov. Form O - Public Emp. Dish.
Holly location.
Excess Liability
St. Paul Insurance
$ 387,357
10101/02-03
Company
I
General Liability
$ 3,000,000
General Aggregate
$250,000 SIR including loss
I
$ 3.000,000
Products/Completed Operations Agc
8 expense per occurrence
$ 1.000.000
Personal Injury 8 Advertising
$ 1,000,000
Each Occurrence
I
f
$ 100,000
Premise Damage Limit
I
Excluded
Medical Payments (per person)
Excluded
Failure to Supply Limit
Excluded
Sewer back -Up Limi;
M
;
;Employee benefits
$ 3,000,000
Total Limit
$250,000 SIR including loss
Claims Made)
S 1,000,000
Each Wrongful Act Limi;
8 exense each wrongful act
No Retro Date Applies
II
i
ILSw Enforcement
S 1,000,000
Total Limit
$250.000 SIR Including per loss
$ 1,000,000
Each Wrongful Act Limit
8 expense each wrongful act
JPubllc Entity Mgmt
$ 1.000,000
Total Limit
$250,000 SIR Including loss
0
iClalms Made)
S 1,000,000
Each Wrongful Act Limi;
& expense each wrongful act
Retro: 09/101199E
Employment
Practices
$ 1,000,000
Total Limit
$250,000 SIR including loss
(Claims Made)
S 1,000,000
Each Claim
& expense each wrongful act
Retro: 09110/1999
Auto Liability
S 1,000,000
Auto Liability
$250,000 SIR including loss
S 1,000.000
Uninsured/Underinsured Motorist
8 expense per accident
S 5,000
Medical Payment
Excluded
No FoulUPIP/First Party benefits
Umbrella/Excess
$ 9,000.000
General Aggregate Limit
$10,000 Retention
S 9,000.000
Products & Completed Ops. Aga. Limit
S 9,000,000
Personal injury Limit
A separate SS,000,000limit
S 9,000,000
Advertising Injury Limit
applies to Public Entity Mgmt.
S 9,000,000
Each Event Limit
& Employee benefits (Claims Made)
S 9,000,000
Law Enforcement Liability- Each Act
rporl Owners
Ace Property &
Liability
Casualty
S 55.361
10/01/02-03
$ 50.000.000
Per Occurrence
Zero Deductible
S 50.000,000
Products -Completed Operations Annual
Aggregate
Policy Includes Terrorism
$ 50,000,000
Personal & Advertising injury Annual
Aggregate
$ 50.000,000
Malpractice Annual Aggregate
Excluded
Extended Coverage -War, Hi -jacking 8
Other Perils Annual Aggregate
S 100,000
Fire Damage - Any One Fire
S 5,000
Medical Expense Limit - Any One Person
S 50,000,000
Hangarkeepers not "in flight" Per
Occurrence
S 60,000.000
Hangarkeepers not 'in Night' Per Aircraft
Excluded
Nan -Owned Aircraft Liability
I
Airport Owners
Excess Liability
Underwriters at Lloyds 1
$ 25,043
10101/02-03 1
S 60,000.000 1
Per Occurrence / Annual Aggregate
Excess 150.000,000 Retention i
0
E
Limit applies separately to j
non -owned aircraft.
i
Policy Excludes Terrorism
INon-Owned
Westchester Fire
$ 10,917
10101/02-03
$ 50.000,000
Per Occurrence
Liability Coverages include:
(Aircraft Liability
Insurance Company
D. Single Limit Ef incl. Passengers
i
I
and Property Damage k
i
I
No aircraft physical damage
coverage provided j
Policy Includes Tertorisrt, ++
I
1Boiler 8 Machinery
Continental Casualty
$ 570.621
10/01/01-02
$ 50.000,00o
Comprehensive Incl. Production Machines
Deductibles:
$ 250,000
Expediting Expense
Vary by location -please refer to
$ 100,000
Water Damage
binder.
$ 100,000
Ammonia Contamination
$ 100,000
Hazardous Material Cleanup
i
Included
Ordinance a law
$ 500,000
Demolition 8 Incrs. Cost of Gonstruction
Included
CFC Refrigerants
Included
Electronic Comp. 8 Elec. Proces. Equip
ff
Texas Municipal
rWcrkers'
Leaoue
$ 1.659,893
10101101-02
Statutory
lCompensation
i
i
Texas Municipal
rrporl Directors
league
$ 7.815
10l01/01-02
$ 10,000.000
Each Wrongful Act
$7,500 Deductible Each Wrongful
Land Officers Liability
f
$ 10,000,000
Annual Aggregate
Act
City of Lubbock
PURCHASiNG DEPARTMENT
ROOM L04, MUNICIPAL BUILDING
1625 13TH STREET
LUBBOCK, TEXAS 79401
PH: (806)775.2167 FAX: (806)775-2164
http://purchasins2.ci.lubbock.tx.us
MAILED TO VENDOR:
CLOSE DATE:
RFP #103-03/VK
ADDENDUM # I
Insurance Broker Services
for Property @ Casualty Insurance
July 1, 2003
July 8, 2003 at 2:00 P.M. CST
The following items take precedence over specifications for the above named Request for Proposal (RFP). Where any
item called for in the RFP documents is supplemented here, the original requirements, not affected by this addendum,
shall remain in effect.
This addendum provides responses to questions asked at the pre -proposal meeting.
1. Q: Is the City going back to self-insurance for workers' comp?
A: ;At this time, based on a current actuarial study, it appears that the City will maintain it's current guaranteed
cost program with Texas Municipal League (TML), however, as the time approaches to renew that program, we
will again look at the cost effectiveness, based on cash flow, of an excess workers' compensation policy and will
expect input from the Broker on this subject.
2. Q: Is loss reporting an issue with the City?
A: The TPA (Liability only) RFP will be issued at the end of this week. The city is makine it a requirement of the
plan that loss reports be provided monthly in a format compatible with Microsoft Excel.
3. Q: Is the City asking for loss control for each department?
A: Yes, but on an as -needed basis either by request of the department or based on loss history. TML currently
provides this service for workers' compensation, so the issues would be mainly limited to liability and property.
4. Q: Is the City looking to evaluate insurance coverage by department?
A: Yes, with a few main current concerns, particularly pertaining to Information Technology issues. However, the
City requires that the selected broker review all of our exposures and recommend possible additional coverages
or deletion of coverages where appropriate.
5. Q: Regarding the City's evaluation criteria, do accounts need to be municipalities and local:
A: This criteria is put in place to allow vendors that may not have municipalities as clients the ability to submit a
proposal based on other types of complex commercial accounts. The account references can be from any
location and are not required to be local.
6. Q:. Will the proposer be considered non -compliant if they do not respond to all aspects of the RFP?
A: Yes, the proposer needs to respond to all aspects of the RFP whether they will conduct the services in-house or if
they will make it a part of the insurance contract or whether they will subcontract parts out. The pricing given,
however, needs to clearly state whether there will be additional charges for these services.
The City of Lubbock appreciates your time and effort in preparing your proposal.
THANK YOU,
Victor Kilman
Purchasing Manager
It is the intent and purpose of the City of Lubbock that this request permits competitive bids. It shall be the bidder's responsibility to
advise the City of Lubbock Purchasing Manager if any Tani uage requirements etc or any combinations thereof, inadvertently restrict
or Limits the requirements stated in this RFP to a single source. Such notification must be submitted in writing and must be received by
the Purchasing Manager no later than five (5) business days prior to the bid close date. A review of such notifications will be made.
C
Jul-O)-03 O::41M From -CITY OF LUFFOCK-PURCHA.SIiZ,
E0677511b4 1_% r.uvui r'd IL
City of Lubbock
FuRCHASING DEFARTMENT
ROOM L.W, MUNICIPAL BUILDING
1625 13TM STREET
LU6BOCK, TEXAS 79401
FH: (606)775.2167 FAX: (606)775.2165
http:/)purchasing.ci.lubbock.tx.us
RFP #103-03NK
ADDENDUM #9
Insurance Broker Services
for Property 6 Casualty Insurance
MAILED TO VENDOk: July 1, 2003
CLOSE DATE: July 8, 2003 at 2:00 P.M. CST
The following
items take precedence over specifications for the above named Request for Proposal (RFP). Where any
item called far in the RFP documents is supplemented here, the original requirements, not affected by this addendum,
shall remain
in effect.
This addendum
provides responses to questions asked at the pre -proposal meeting.
1. Q:
Is the City going back to self-insurance for workers' comp?
A:
At this time, based on a current actuarial study, it appears that the City will maintain it's current guaranteed
cost program with Texas Municipal League (TML), however, as the time approaches to renew that program, we
wilt again look at the cost effectiveness, based on cash flow, of an excess workers' compensation policy and will
expect input from the Broker on this subject.
2. Q:
Is loss reporting an issue with the City? -
A:
The TPA (Liability only) RFP will be issued at the end of this week. The city is making It a requirement of the
plan that loss reports be provided monthly in a format compatible with Microsoft Excel.
3. Q:
Is the Ciry asking for loss control for each department?
A:
Yes, but on an as -needed basis either by request of the department or based on loss history. TML currently
provides this service for workers' compensation, so the issues would be mainly limited to liability and property.
s. Q:
Is the City looking to evaluate insurance coverage by department?
A:
Yes, with a few main current concerns, particularly pertaining to Information Technology issues. However, the
City requires that the selected broker review all of our exposures and recommend possible additional coverages
or deletion of coverages where appropriate.
5. Q;
Regarding the City's evaluation criteria, do accounts need to be municipalities and local?
A:
This criteria is put in place to allow vendors that may not have municipalities as clients the ability to submit a
proposal based on other types of complex commercial accounts. The account references can be from any
location and are not required to be local.
6. Q:
Will the proposer be considered non -compliant if they do not respond to all aspects of the RFP?
A:
Yes, the proposer needs to respond to all aspects of the RFP whether they will conduct the services In-house or if
they will make it a part of the insurance contract or whether they will subcontract parts out. The pricing given,
however, needs to clearly state whether there will be additional charges for these services.
The City of Lubbock appreciates your time and effort in preparing your proposal.
THANK YOU,
U�.
Victor KiLman
Purchasing Manager
It is the intent and purpose of the City of Lubbock that this request permits competitive bids. it shall be the bidder's resoonsibiti v to
19 advise the City of LubbockPurch2sinri M?rjaker if any t?n4u24! requtrements etc or any combinations thereof inadvertently restricts
or limits the reavi►ements stetee in this RFP to a senate source. Sucn notification must be subrf)itted in writing and must be received by
the Purchasing Manager no later than five (S) business days prior to the bid close date. A review of such notifications will be made.