HomeMy WebLinkAboutResolution - 2003-R0014 - Purchase Of Terrorism Coverage - Ace USA - 01_09_2003RESOLUTION
Resolution No. 2003-R0014
January 9, 2003
Item No. 33
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to purchase terrorism coverage for and on behalf of the City of Lubbock, to be
added to the existing airport/non-owned aircraft liability coverage, by and between the
City of Lubbock and ACE USA, and related documents.
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
ml:/ccdocs/ACE USA.res
December 27, 2002
, MAYOR
ACE USA, AIRPORT & SPECIAL RISKS UNIT
1100 POYDRAS STREET, SUITE 2150, NEW ORLEANS, LA. 70163-1121
ace usa
January 6, 2003
City of Lubbock
(and others as named in the Policy)
P.O. Box 2000
Lubbock
TX 79457
TEL: (504) 310 -3600 FAX: (504) 310 -3610
52
Re: Terrorism Risk Insurance Act Notice of 2002
Dear Insured:
Resolution No. 2003-ROOl~
Attached to this letter is a Disclosure Notice {"The Notice") addressing the Terrorism Risk Insurance Act of 2002 ("The Act")
which was signed into law by President Bush and effective on November 26, 2002. As your insurance carrier, we are
required by law to send you The Notice and explain the implications of The Act to you, our policyholder. PLEASE READ
THE ATTACHED NOTICE CAREFULLY AS IT EXPLAINS THE ACT AND ITS AFFECT ON iHE INSURANCE COVERAGE
PROVIDED TO YOU UNDER YOUR POLICY.
The Act was established to provide a system of shared compensation between the United States and the Insurance
Companies covered by The Act for insured losses resulting from acts of terrorism defined in The Act. The Act was
designed to address the ability of businesses and individuals to obtain property and casualty insurance for terrorism and
to protect consumers by addressing market disruptions and ensure the continued availability or terrorism coverage.
As The Notice clearly states, we are required by The Act to provide you thirty (30) days to remit premium to your
AgenUBroker for the terrorism coverage defined in The Act. The amount of premium due for the coverage provided
under The Act is set forth on The Notice. You should be aware that if you do not remit the premium payment for the
terrorism coverage defined in The Act, your terrorism exclusion will automatically be reinstated on the date clearly set
forth on the notice.
If you have any questiOrJ$ regarding The Notice or The Act, we would urge you to contact your AgenUBroker.
Sincerely,
Stephen P. Dinsdale
Senior Vice President
Airport & Special Risk Unit
Westchester Fire Insurance Company
c.c. Palmer & Cay of Texas, Inc.
5956 Sherry Lane, Suite 2000
Dallas
TX 75225
Attn. Bob Bookhammer
RECEIVED
JAN 'l 3 2003
HUMAN RESOURCES
52 TRIAC1/insd
RECEIVED Westchester Fire Insurance Company
1.IAN ·1 3 2003
HUMAN RESOURCES
Insurance Company
ace usa ACN 770329
Policy Number
POLICYHOLDER DISCLOSURE
NOTICE OF TERRORISM INSURANCE COVERAGE
You are hereby notified that under the Terrorism Risk Insurance Act of 2002, effective November 26, 2002, you now have a
right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in Section 102(1) of the Act:
The term "act of terrorism" means any act that is certified by the Secretary of the Treasury, in concurrence with the
Secretary of State, and the Attorney General of the United States-to be an act of terrorism; to be a violent act or an act that
is dangerous to human life, property; or infrastructure; to have resulted in damage within the United States, or outside the
United States in the case of an air carrier or vessel or the premises of a United States mission; and to have been committed
by an individusl or individuals acting on behalf cf any fo;eign person or foreign interest, as part of ail effort tc coerce the
civilian population of the United States or to influence the policy or affect the conduct of the United States Government by
coercion. Coverage under your existing policy may be affected as follows:
EFFECTIVE NOVEMBER 26, 2002 THE IN-FORCE TERRORISM EXCLUSION IN YOUR POLICY WAS NULLIFIED TO
THE EXTENT THAT IT EXCLUDES ACTS OF TERRORISM DEFINED IN THE ACT. THE TERRORISM EXCLUSION IN
YOUR POLICY STILL APPLIES FOR LOSSES RESULTING FROM ANY ACTS OR EVENTS THAT ARE NOT INCLUDED
IN THE ACTS OF TERRORISM DEFINED IN THE ACT, AND COVERAGE FOR ACTS OF TERRORISM DEFINED IN THE
ACT ARE SUBJECT TO ALL TERMS, CONDITIONS AND OTHER COVERAGE LIMITATIONS OF YOUR POLICY. THE ACT
AND THIS NOTICE ONLY AFFECT THE TERRORISM EXCLUSION IN YOUR POLICY AND ALL OTHER TERMS AND
CONDITIONS OF YOUR POLICY REMAIN UNCHANGED.
RESPONSIBILITY FOR COMPENSATION UNDER THE ACT IS SHARED BETWEEN INSURANCE COMPANIES COVERED
BY THE ACT AND THE UNITED STATES. SPECIFICALLY, COVERAGE PROVIDED UNDER YOUR POLICY FOR LOSSES
CAUSED BY ACTS OF TERRORISM DEFINED IN THE ACT IS PARTIALLY REIMBURSED BY THE UNITED STATES
UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. UNDER THE FORMULA, THE UNITED STATES PAYS 90% OF
COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE
INSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIUM CHARGED FOR THE TERRORISM COVERAGE
DEFINED IN THE ACT IS SET FORTH BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS
COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.
SELECTION OR REJECTION OF TERRORISM COVERAGE DEFINED IN THE ACT
UNDER FEDERAL LAW, YOU HAVE THIRTY (30) DAYS TO CONSIDER THIS OFFER OF COVERAGE FOR ACTS OF
TERRORISM AS DEFINED IN THE ACT AND TO SUBMIT THE REQUIRED PREMIUM SPECIFIED BELOW. IF WE DO NOT
RECEIVE THE SPECIFIED PREMIUM BY FEBRUARY 10, 2003 , THE PORTION OF THE TERRORISM EXCLUSION
NULLIFIED BY THE ACT WILL BE REINSTATED ON FEBRUARY 11, 2003 . Please check the applicable box below.
I ' hereby elect to purchase Terrorism coverage described by the Act, pro-rated for the
xxx remainder of the olic eriod in the amount of $1 581
Date
Notice Form 1 52 TRIAC1/insd
ATTEST:
~~. ~F RebccaGarZi,city Secretary
APPROVED AS TO FORM:
APPROVED AS TO CONTENT:
//it~
Mary Houtft Director of Human Resources
PALMER & CAY OF TX 2143659141 P.03
RECEIVED . ~CE Property and 9~~~alcy Insurance Company_
Insurance Company
ace usa JAN 1 3 2003
AAP N00048823 ...... ~ ....... ""'"·····---·--··--
HUMAN RESOURCES.
POLICYHOLDER DISCLOSURE.
NOTICE OF TERRORISM INSUR.~NCE COVERAGE . :: . ; :
Policy Number
vo;:; a~~ hereby noti~ed :ihat under the Terrorism Risk Insurance Act of 2 l02. effective November 26, 2002. you now have a
.·'g,....: '.o. purchase insurance coverage for losses arising out of acts of terrorism, as defined in Section 102(1) of the Act:
'Th~ ~erm "act of terrorism~· means any act that is certified by the Sereretary of the Treasury, in concurrence with the
S-ec~e:ary of State~ and the Attorney General of the United Siates-to· be < n act of terrorism; to be a violent act or an act that
. 's dangeroi.;s :o human life, property; or infrastructure; to have resulted n 'damage within the United States. or outside the
United States in the case of an air carrier or vessel or the premises of a I Jnited States 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
c:v:nan population of the United States or to influence the policy or affect the conduct of the United States Government by
c:::ierc;cn. Coverage under your existing policy may be affected as follows:
EFFECTIVE NOVEMBER 26, 2002 THE IN-FORCE TERRORISM EXC .USION IN YOUR POLICY WAS NULLIFIED TO
-:--:=:EXTENT THAT IT EXCLUDES ACTS OF TERRORISM DEFINED IN THE ACT. THE TERRORISM EXCLUSION IN
v'JUR POLICY STILL APPLIES FOR LOSSES RESULTING FROM AN'' ACTS OR EVENTS THAT ARE NOT INCLUDED
'\. ''-'E ACTS OF TERRORISM DEFINED IN THE ACT. AND COVERAGE FOR ACTS OF TERROR.ISM DEFINED iN THE
AC:T ARE SLJSJECT TO ALL TERMS, CONDITIONS AND OTHER CO'/ERAGE LIMITATIONS OF YOUR POLICY. THE
Tr E ACT AND THIS NOTICE ONLY AFFECT THE TERRORISM EXCLL SION IN YOUR POLICY ANO ALL OTHER TERMS
A.ND CONDITIONS OF YOUR POLICY REMAIN UNCHANGED.
,~E:SPONS!9 !LITY FOR COMPENSATION UNDER THE ACT IS SHAREC, BET'v\IEEN INSURANCE COMPANIES COVERED
3Y :'-'.:: ACi AN'D THE UNITED STATES. SPECIFICALLY, COVERAGE PROVIDED UNDER YOUR POLICY FOR LOSSES
CAUSED SY ACTS OF TERRORISM DEFINED IN THE ACT IS PAR1'1ALLY REIMBURSED BY THE UNITED STATES
UN'.)ER A FORMUtA ESTABLISHED BY FEDERAL l.JJ...W. UNDER THE FORMULA, THE UNITED STATES PAYS 90% OF
CCVERED TERRORrSM LOSSES EXCEEDING THE STATUTORIL'f ESTABLISHED DEDUCTIBLE PAID BY THE
:NSURANCE COMPANY PROVIDING THE COVERAGE. THE PREMIW ~ CHARGED FOR THE TERRORISM COVERAGE
QEFlNEO IN THE ACT IS SET FORTH BELOW ANO DOES NOT INCLUJ)E ANY CHARGES FOR THE PORTION OF LOSS
COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT.
~E..l.ECIIPN OB. REJECTION OF TERRORISM C.O~BAGE DEEINEQ IN THE ACT
'.J~DER FEDERAL LAW, YOU HAVE THIRTY (30) DAYS TO CONSIOE:R THIS OFFER OF COVERAGE FOR ACTS OF
TERRORISM AS DEFINED IN THE ACT ANO TO SUBMIT THE REOUIRI :o PREMIUM SPECIFIED BELOW. IF WE DO NOT
.>:<:ECElVE THE SPECIFIED PREMIUM BY JANUARY 24, 2003 , TH: PORTION OF THE TERRORISM EXCLUSION
NU:...UF!EO BY THE ACT WILL BE REINSTATED ON JANUARY 25, 2003 . Please check the applicable box below .
.,-· -· _,, ... :'I hereby elect to purchase Terrorism coverage described by the Act, pro-rated for the
xxx !'. remainder of the policy period in the amou '1t of 21 233 ==========¥======:=:=:===~==:==;::==::::::::;! :! I hereby elect to hav the exclusion for terrorism coverage reinstated. I understand
F that I will have no era e for reviog§!y~~=:!e=d===act==s=o=f=te=rr=o=r=is=m=·========i
Mayor
Date
Notice Form 1 . ·-38 TRJA 1.125/file
ATTEST:
~&cee ~ =
Rebecca Garza, City Secretary =
APPROVED AS TO FORM:
/.10hi1Kfii9ht, AssintcitYOff1ey
APPROVED AS TO CONTENT:
, Director of Human Resources