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Home My WebLink AboutResolution - 2002-R0284 - Contract For Consulting Services - Palmer And Cay Of Texas, LLC - 07_11_2002Resolution No. 2002-RO284 July 11, 2002 Item No. 43 RESOLUTION 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 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 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 11th ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: V��— Victor Kilman, k1urchasing Manager APPROVED AS TO FORM: William de Haas Contract Manager/Attorney day of July , 2002. gs/ccdocs&/cityatt/Contract-Palmer and Cay of Texas. res July 1, 2002 Resolution No. 2002-RO284 Agreement Between City of Lubbock and Palmer and Cay of Texas, LLC. For Broker Services & A Letter of Understanding THIS AGREEMENT, entered into as of the 27th day of June, 2002, by and between the City of Lubbock (hereinafter called "CITY") and Palmer and Cay of Texas, LLC. (hereinafter called "Palmer and Cay") to provide Broker of Record services for the City's Property and Casualty insurance program as follows: 1. Meetings a. Palmer and Cay 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 and Cay will attend annual property loss control meetings with Human Resources/Risk Management staff. c. Palmer and Cay 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 and Cay 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 and Cay will assist with any special projects requested by the CITY. c. Palmer and Cay will develop coverage options on coverages not currently purchased by the CITY for the CITY's review. d. Palmer and Cay will analyze the CITY'S exposure to loss and review adequacies of coverage contained in existing policies and make appropriate risk recommendations. e. Palmer and Cay will assist the CITY in reviewing all insurance policies, contracts, leases, and bonds as necessary. f. Palmer and Cay will provide service for day-to-day contact and advise on insurance matters. g. Palmer and Cay will prepare certificate of insurance forms as requested by the CITY. h. Palmer and Cay will assist with or provide other services as normally and customarily required of a municipal property/casualty insurance broker. i. Palmer and Cay will assist the CITY with their evaluation and selection of a Computer Management Insurance System. j. Palmer and Cay will assist and coordinate information technology exposure, identification, and analysis. k. Palmer and Cay will assist the CITY with implementing a cost allocation system. 1. Palmer and Cay will assist the CITY with implementation of a premium allocation system. 3. Time of Performance The contract period shall commence on June 27, 2002 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-rata basis. 4. General Conditions a. Palmer and Cay agrees to comply with all applicable federal, state, and local laws and regulations relating to the services provided under this contract. b. RFP #073-02/DC shall be attached hereto as Exhibit "A" and shall become part of this Agreement. 5. Hold Harmless and Indemnification Palmer and Cay and the CITY shall hold each other harmless and to the extent allowable by the laws of the State of Texas, Palmer and Cay and CITY shall defend, indemnify and hold each other harmless from and against all claims, liability, loss and expense, including reasonable collection expenses, attorney's fees and court costs which may arise because of the negligence, misconduct, or other fault of the indemnifying parties, its agents or employees in the performance of its obligations under the Agreement. The obligations in this section are intended to be within the limits of liability found in the Texas Tort Claims Act. This clause shall survive termination of the Agreement. 6. Broker Compensation Palmer & Cay of Texas, Inc. agrees to provide the above outlined services for an annual fee of $75,000 with a 5% contingent catastrophic claims charge, if an unforeseen event causes an unexpected increase in our expenses incurred in carrying out our service contract to the CITY. 7. Entire Agreement This Contract, including Exhibit "A" hereto, contained the Entire Contract between the CITY and Palmer and Cay, and there are no other written or oral promises, conditions, warranties, or representations relating to or affecting the matters contemplated herein. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. CITY OF LUBBOCK: APPROVED AS TO CONTENT: Mary Hous irector of Human Resources PALMER AND CAY OF TEXAS, LLC: BY: +� Robert S. Bookhammer III, ARM BY: R. Warren Blesh, LRM APPROVED AS TO FORM: h / e'� - '& v�� l �' , William de Haas, Contract Manager ATTEST: REBECCA GARZA, CITY SECRETARY F • 3. 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 2001 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, Inc. enjoys significant relationships with those markets and wholesalers that specialize in Public Entity business. Our firm places in excess of 1,000,000,000 into the marketplace on an annual basis. We are the 14'h 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: Airport Commercial General Liability i. Associated Aviation Underwriters ii. AIG Aviation iii. Phoenix Insurance Managers / Old Republic Insurance Company iv. Signal Insurance Co. v. Westchester Fire Insurance Co. (ACE USA Aerospace) vi. USAIG vii. Lloyd's of London • Airport Public Officials & Employees Liability i. American International Group (AIG) ii. Zurich Specialty iii. St. Paul Insurance Group Boiler & Machinery i. CNA Insurance Group ii. Zurich North America iii. Chubb Insurance Group iv. Travelers Insurance Group V. Hartford Steam Boiler & Inspection Company (AIG) Commercial Crime Policy i. Hartford Insurance Group ii. American International Group (AIG) iii. Chubb Insurance Group iv. Zurich North America v. Great American Insurance Group vi. Gulf Insurance Company • Excess Liability (CGL, POL, EPL, LEL, AL) i. Commonwealth Specialty Insurance Co. ii. St. Paul Insurance Group iii. Royal SunAlliance Insurance Group iv. Alea Insurance Group V. Genesis Underwriting Managers vi. Munich American Risk Partners vii. Kemper Insurance Group viii. American International Group (AIG) UST/AST Pollution Liability i. Seneca Insurance Company ii. Zurich North America iii. Kemper Insurance Group (Lumberman's Mutual) iv. American International Group (AIG) V. Chubb Insurance Group 0 0 Inland Marine i. Great American Insurance Group ii. Fireman's Fund Insurance Group iii. Travelers Insurance Group iv. Zurich North America V. St. Paul Insurance Group vi. Royal SunAlliance Insurance Group vii. Chubb Insurance Group Public Officials Bonds i. St. Paul Fire & Marine ii. Hartford Insurance Group iii. CNA/Western Surety iv. Safeco Insurance Group V. Zurich North America Property (Palmer & Cay is the City's insurance broker for this coverage) i. Coregis Insurance Company LMG Property Group Travelers Insurance Group Zurich North America American International Group (AIG) St. Paul Insurance Group Royal SunAlliance Insurance Group Chubb Insurance Group Allianz Insurance Company Fireman's Fund Insurance Group Great American Insurance Group Lloyd's of London CNA Commonwealth Insurance Company Industrial Risk Insurers Hartford / ITT Crum & Forster / Fairfax Insurance Group 0 • Third Party Administrator Services i. Crawford & Company ii. GAB' iii. Gallagher Bassett iv. EOS Group V. Barron Risk Management vi. Permian Claims Service vii. F.A. Richard viii. Cambridge ix. Littleton Insurance Group Workers Compensation American International Group Safety National Casualty Employers Reinsurance Corporation Genesis Underwriting Managers Midwest Employers St. Paul Insurance Group Clarendon National Insurance Company Harbor Specialties Insurance Company CNA / Wexford Underwriting Managers Gulf / CMI Olympia xi. Discover Property Casualty Insurance Company (c). Describe the proposer's insurance marketing expertise with respect to the coverage listed in Attachment #1. The proposed Palmer & Cay account service team has in excess of twenty (20) years experience with marketing and servicing Public Entity business. Significant market relationships and contacts were made and nourished during this period. Risk identification, analysis, evaluation, program selection, implementation and result monitoring skills were established and developed. Palmer & Cay executives stay close to the market which gives them a thorough understanding of how to effectively interface with the insurance carriers. The City of Lubbock does not need their Broker of Record to "learn on the job." Palmer & Cay brings the leadership, guidance and experience required to get the job done from the inception of the contract. s # 6 0 � ~h �y Ci • 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, EPL, LEL), Excess Casualty Programs, 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 is frequency, severity forecasts, observations on relevant changes in the insurance market, views on loss exposures facing the program, discussion of risk control activities, and summaries of insurance coverage in place. The City has a third parry administration program (TPA) for its self - insured liability claims. Describe, in detail, any necessary requirements involving the TPA. Palmer & Cay 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 • • • AA, • 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 Palmer & Cay 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 and requested by the City of Lubbock. (e). Describe exposure identification and evaluation assistance for each exposure listed in Attachment #1, to be provided by the proposer as a basic service. Palmer & Cay 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 by line of coverage contained in Attachment # L 1. Airport General Liability: Physical Inspection, 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 EBQ: 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. FueI Tanks: Exposure Checklist & Surveys, Historical Loss Report Review, Review of Preventative Maintenance program, Analysis of EPA reports and Physical Inspections. int" 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. (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 is prepared to personally meet with designated City risk management officials on a bi-monthly basis as required by the City to ensure a smooth transition of the insurance program. R.S. Bookhammer III, ARM will conduct these bi-monthly meetings. Boyd Jones, our Risk Control Property Engineering Specialist, will perform one day of physical property loss inspection per year. Brian Smith, our Risk Control Engineer Practice Leader, will perform up to five (5) days of loss control identification and evaluation for those City divisions identified in Addendum # 2, (LP&L, Civil Works, Public Works & Information Technology.) Tom Heim, Vice President, Alternative Risk Financing, will perform up to 2 days of technical & statistical services as outlined in our • RFP response. J-911"Ift • 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'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 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 will provide an Incurred and Paid Reinsurance Recoverable Claims Summary for claims excess of various self -insured retentions (SIRS.) The cost for the reports will be included in the annual cost for broker services. 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. • Resolution No. 2002-RO284 • ERRORS & OMISSIONS CERTIFICATE A CORD PRODUCER I INSURED Assurex E&O Commercial Group LIM Novato, CA 94998-3301 Palmer & Cay of TX, Inc. 12225 Greenville Ave, Ste 330 Dallas, TX 75243-9334 �r :2::i:::::?::::�;:;:::i••,:r: DATE p� MM D V ( /D IY 1 THIS CERTIFICATE IS ISSUEDASA MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPANY A Fireman's Fund COMPANY B COMPANY C COMPANY D 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 TO 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 I TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR I I DATE (MM/DD/YV) I DATE (MM/DD/YY) GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR OWNER'S & CONTRACTOR'S PROT AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS GENERAL AGGREGATE s PRODUCTS - COMP/OP AGG $ PERSONAL & ADV INJURY $ EACH OCCURRENCE $ FIRE DAMAGE (Any one fire) $ MED EXP (Any one person) $ COMBINED SINGLE LIMIT 1 $ BODILY INJURY S (Per person) BODILY INJURY $ IPer accident) PROPERTY DAMAGE I $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM EACH OCCURRENCE $ AGGREGATE $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR/ INCL PARTNERS/EXECUTIVE OFFICERS ARE: EXCL WC STATU- DTH• TO Y MITS ER EL EACH ACCIDENT $ EL DISEASE - POLICY LIMIT $ EL DISEASE - EA EMPLOYEE 1 $ A I OTHER I MXE80394674 Ins. Agents and Brokers Prof Liab I DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS City of Lubbock Purch.Dept,Rm L04, Municipal Bldg, 1625 13th Street Lubbock, TX 79401 12/01 /01 12/01 /02 $1,000,000 Each Claim $1,000,000 Aggregate $ 150,000 Deductible SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. rH�PR SENTATIVE " A CORD PRODUCER ................ INSURED Palmer & Cay of Georgia, Inc. Savannah Commercial Lines P. 0. Box 847 - Savannah, GA 31402 Palmer & Cay of TX, Inc. 12225 Greenville Ave, Ste 330 Dallas, TX 75243-9334 ------ ...B:........................ ..:......:.... . DATE {MM/DD/YYI 04/22/02 :...................................... THI� .:ERTIFICATE:.IS.::.:::: 912-234-6621• -�- S C ISSUED �AS•.A�MATTER •OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANY A St Paul Mercury Ins Cc COMPANY B Fidelity & Guaranty Ins Co COMPANY C COMPANY D 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 TO 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 TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MM/DD/YY) DATE (MM/DD/YY) A GENERAL LIABILITY BKO1 161 128 2/01 /02 2/01 10: GENERAL AGGREGATE $ 2000000 X COMMERCIAL GENERAL LIABILITY CLAIMS MADE FX1 OCCUR OWNER'S & CONTRACTOR'S PROT B AUTOMOBILE LIABILITY X ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS X HIRED AUTOS X NON -OWNED AUTOS PRODUCTS - COMP/OP AGG $ 200 PERSONAL & ADV INJURY $ 10D EACH OCCURRENCE $ 100 FIRE DAMAGE (Any one fire) $ 50 MED EXP (Any one person) $ t BINDER AUTO I 2/01 /02 I 2/01 /03 I COMBINED SINGLE LIMIT I $ BODILY INJURY I $ (Per person) BODILY INJURY I $ (Per accident) PROPERTY DAMAGE 1 $ 1000000 GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT 8 OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM EACH OCCURRENCE $ AGGREGATE $ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY THE PROPRIETOR/ INCL PARTNERS/EXECUTIVE OFFICERS ARE: EXCL TNRY IMIT OTR EL EACH ACCIDENT $ EL DISEASE - POLICY LIMIT 8 EL DISEASE - EA EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLES/SPECIAL ITEMS Certholder is Addl Insd on Gen. Liab. & Auto Liab. - Waiver of Subroqation included City of Lubbock Purch Dept, Room L04 Munip.Bldg,1625 13th St. Lubbock, TX 79401 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES. rH�PR- ENTATIVE Q Resolution No. 2002-R0284 • RISK CONTROL PHILOSPHY 11 C, I. 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 fmancing 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 with 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 0 W Over the past decade, Palmer & Cay's risk control practice has recruited some of the industry's 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. Their 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. c Boston, MA PALNER & CAY x'& I •a John Bouchard — x Dick Mertineit Evablished 1868 _ z t a kRichmond, VA Boyd Jones �.. Lexington, KYk� Ronnie Hall�RI < Charlotte, NC Bill Enos Atlanta, GA "E Brian Smith Julie Scarborough N"✓ Savannah, GA Tom Martinelli Bob Simmons Kemp Nussbaum Columbus, GA Jack Phillips Contact information and area of specialty for each risk control consultant is listed in Section IV I* • 11 • 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 ■ Comprehensive 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 • • 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 ■ Job safety analysis ■ Behavioral & cultural assessments ■ Industrial hygiene sampling/evaluation ■ Ergonomic assessment & control ■ Develop safety performance rating • Injury and illness statistical analysis 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 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: ■ International & National Account 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 0 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 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 • 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 r IV. Contact Information Atlanta, GA / 3348 Peachtree Road FALL & CAY Esrnhlis)wd 1868 i Suite 1400 / Atlanta, GA 30326 / 800-755-8945 Brian Smith, CSP, ARM / Risk Control Manager Specialties: WC, Ergonomics, Industrial Hygiene, Account Coordination 404-504-8170 / 404-386-5562 (C) / Email: Brian—snith@palmercay.com Julie Scarborough / Risk Control/Claims Technical Administrator 404-504-8166 / 770-597-5577 (C) / Email: Juhe—Scarborough@palmercay.com Tom Martinelli MS, CIH / Risk Control Consultant Specialties: Industrial Hygiene, Process Safety Management, WC, Ergonomics, Emergency Response 404-760-4297 / 404-734-7367 (C) / Email: Tom Martinelli@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, WC, Claims, Defensive Driving Course 706-576-3514 / 706-329-9050 (C) / Email: Jack—Phillips@palmercay.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 704 553-0419 / 70"61 8140 (C) / Email: Bill_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, B&M, Chemical, Manufacturing, Products Liab, Construction, OSHA Regulatory 804-267-3121 / 804-305-5175 (C) / Email: Boyd_Jones@palmercay.com Savannah, GA / 25 Bull Street, Savannah, GA 31401 / 800-755-9594 Bob Simmons, CSP, ARM / Risk Control Consultant Specialty: WC, Long shoring, OSHA 912-231-6940 / Email: Bob—Sinunons@patmercay.com Kemp Nussbaum, CHSP / Risk Control Consultant Specialties: Performance Based Safety Systems; Healthcare & Casualty Risk Management 912-231-6941 / 912-308-8140 (C) / Email: Kemp_Nussbaum@palmercay.com Boston, MA / 189 State Street, Boston, MA 02109 / 888-718-6922 John Bouchard / Risk Control Consultant Specialties: HPR, Large Property Risk Mgt, NFPA Technical Committees, Business Continuity Planning 617-742-8852 / Email: John—Bouchard@palmercay.comjonbski@aol.com Dick Mertineit, CSP / Risk Control Consultant Specialties: Large Client Casualty Risk Management, Behavioral Based Safety, Training / Presentations 617-742-8852 / Email: Dick—Mertineit@palmercay.com Lexington, KY / 360 East Vine Street / Lexington, KY 40588 / 800-796-3565 Ronnie Hall T Risk Control Consultant Specialties: Captive Risk Control, Casualty Risk Mgt, Safety Program Development, MSHA Compliance 859-254-8023 / Email: RSHALLJR@aol.com, Ronnie_Hall@Pahnercay.com Resolution No. 2002-R0284 • CLAIMS CONSULTANTS SERVICES 0 0 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 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 teams and our clients. 0 Resolution No. 2002—RO284 • CLAIMS MANAGEMENT SERVICES is is I. Claims Management Services A. Overview 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. • 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 W/C 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. • Mt ■ 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. ddh Ir ■ Aid in the design of a Claim Management Information System (Loss Run 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 0 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 - RME's • - Subrogation - Liens -Workers' Compensation - Independent Adjusters/Private Investigators - Rehabilitation - Payroll Information/Request for Wage Information - Return to Work - Claim Audits/Reviews Resolution No. 2002-R0284 0 SAMPLE REPORTS v 3r. � � . ;� . •?'ce' E` ry,. _..: Y,a: :. .h ... ., ,..<? =. .. Fa' ,. s. ..e�,"" - , a a, S �+. E Y,J•z`.. .,-.% R ... .�'. X �°a":C-i .. �` �....: nw u, `^ r.. n.... � a..t.. -_.: .. .._:iY. s,.. ... .. ,p..... :i, �. .. '�-.i�{:. '.a,�g. A & .f:.,. � .. � S"x ,^.. ..?S'.�hi. _ _. ": ... .... ,■[ .: .x-... .. f Lr . �d ,. D � _ i3.'€. .:.i � :..w:........,f .x . P 11 Godeke Branch Libra 660 uaker A A 148 Groves Branch Library 5502 W 19th Street PA A 10,426� Mahon Library 1306 9th Street _ �SP FE,PA .i., D 73,5371 W _._._ _ t �. Patterso,o!Bran�Pch Library1836 Par ay Dr SD/PA A 10,426 Buddy F1ftthter 1801 Ave mp�e MSD Sap µ11 769 Fine Arts Center 2600 Ave P FE A 4,203� y i c� x'i � •�k;x. : °sS+y�.` � :�..v 80 $ 75 $ 100 $ 7 $Sac $ 80 .: $ $ $ $ f ,�1 ,. W. i '�_ .5�. Ln kF.. 89 840 1 781,950 7,353,700 -- 781,95 2 942 25 �: .i A. E. v:. 1 40 8 1 4 $ 454,025 $ 3,219,213 437,525 200,000 GY ..P..... ,�5 .. C '1' F.<....1. 1 713,2 80 $ 1,235,975 $ 10,572,913 $ 1,219,475 $ 3,142,250 $ 336,240 $ - $ 336,240 Garden &Arts Center j4215 Universi FE A 7,250 $ 80 $ _ . 580000 36,000 $ 616,000 LM Arboretum Foundation ' I Center St. Paul's Historic Church 4111 University 4007 FE NA A 1,383 726 $ 70 $ $ 96,81 $ - $ 96,810 0 University B $ 85 ! 61,200i $ 1,000 $ 62,200 Atzlan Park Restrooms 1101 N 127 NA I D 530 $µ 70 $ 37,100. $ - $ 37,100 Berl Huffman Maint. Barn N Loo 28 C n on FE �i s 11,200 $ 5 0 $ ._ 504,00 ' 750,248 $ 1,254,248 Burns Par�c�aviilion „ ^ _., Canyon Lake 6 Shelter 23rd & Ave µin " NA �N University & Canyon Lake �NA w p i „ A 1,596 800 $ $ 35 $ 47,880f 28,000' - $ 47 880 $ $ - $ 28,000 Canyon Lakes 2 Restroom N University & Canyon Lake NA A 300 $ 60 $ 18,000if- $ - $ 18,000 Canyon Lakes Gazebo Rim Shelter » N University & Canyon Lake NA University & Canyon Lake NA w.. w F 817 800, $ [jCan 30 $ 24,510? _.. 24,000 $ - $ 24,510 on � $ $ 24,000 Carlisle Shelter 127th & Ave W NA A 800 $ 35 $ 28,0001 $ - $ 28,697 Central Park Maint 1912 Erskine FE A 18,000 $ 55 $ 990,000 $ 1,396,697 $ 2 386�697 , Charles A S Guy helter 192nd &Memphis tNA F w 800 $ 30 $ _.. 24,000 $ - $ 24,000 Chatmart Park, Restroom ��er i Sap E. 29th & Juniper ^^ NA i Sa 1,596 Sa $9k$ 0am 95,76 l 95,760 FE (auction € City Auto Building (Parks) 708E Broadway Storage) ; C 5,000 $ 70 $ 350,000 $ - $ 350,000 Clapp Restroom 14500 Ave U NA „ D 348 $ 85 $ ,5 2980 ^ _ � $ 29,580 Dawes Pavilion N. Ave L &Clemson DNA F 836 $V 30 $ m 25,080, $ - $ 25,080 Dub Rushing Gazebo»'82ndw&,Memphis NA » FM" 817 $ 30 µ $„ 24,150 $ - $ 24,150 Helen H ark Restroom Marshall & ty NA Sri 1 378 $ Sam $ 30124 A- $ 30,240 Higginbotham Park Restroom ica tica 1702 Ut NA ? A 530 $ 85 $ 45,050 $ $ 45,050 Hingosa Shelter Hoet �7404 22nd St. NA NA I F y F 560i 817 $ $ 35 30 $ $ 19,600, 0 24,510i $ - $ 19,600 Gazebo 92nd &Chicago $ - $ 24,510 _....._ Hollins Park Pavllllon 2212 1st St NA _.64$Sa $ 15,000_ $ $ _ 15,000 Joy-,land .$.w,�rili� Makenzek $ 2,88 ae;tB 2,880 Joyland Area Shelter I Park Road 18 NA F _.. 834 $ 30 $ 25,020 $ - $ 25,020 Joyland Bonanza Bldg? Mackenzie Pk MS/HD �MS/HD B 800 $ 35 $ 28,000 $ - $ 28,000 Joyland Concession #2 Mackenzie Pk , B 400 $ 45 $ 18,000 $ - $ 18,000 _, _ Mackenzie Pk „.._. MS/HD ; B 200 $ 40 i $ 8000' $ - $ 8,000 " Contents included with Building Structure Page 1 Print Date 04/30/2002 E .7 • I .. Loss Forecaster II Report Prepared For: Sample Sample Sample Sample Industry: Retail Policy Periods: 8 Sample Lmple in of Coverage: Worice Compensation a Method: Both Analysis: Reserve Analysis Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Loss Forecaster 11 Sample Sample Sample Sample Page 1 A • • • a ro Workers Compensation ti Losses are limited to historical limitations N ■■��•��I�■g111A��■II■�A 1�■ ■■■■/I 1�/A ■ - M�■!�I Ip P��AA■I O Dala Input Sample Sample Sample Sample Sample Policy Period Evaluation Dale Inca ed Loss Patd Loss Loss Limit 104/01/1993- 06/27/2001 $320,984 $320,984 $250,000 103/31/1994 j i 04/01/1994- 06/27/2001 $1,011,257 $922,4031 $250,000 103/31/1995 04/01/190r- 06/27/2001 Sample$776,433 Sa e9,787 $ �J 03/31/19 1 04/01/1996- 06/27/2001 $759,717 $T02,307 $250,000 03131 /1997 04/01/1997- 06127/2001 $476.138 $354,945 $250,000 03/31/1998 04/01 /1998- 06/27/2001 $299,279 ; $276,603 .$250,000 03131/19 9 j Sample,_ 1 04/01/1999- 06/27/2001 $513,418; $438,456 $100,000 03/31/2000 i 04/01/2000- 06127/2001 $25,253 { $13,323 $150,000 03/31/2001 Cn Sample Sample Sample Sample N 0 w N Sample Sample Sample Sample p. A A•■�■■■�•••IAINAI�q• • •�I ■�w1��I��A�.•1■�• •■A AIAI■I Loss Forecaster 11 Page 2 a v m Workers Compensation o N Losses are limited to historical limitations _ N O Excess of Loss Limit (Incurred Losses) Sample Sample Sample Sample Sample Sample Policy PeriodIMT Incurred Large Losses 04101/1993- 03131/1994 j 04/01/1994- 1 j $328,536 03/31/1995 , 04101/1995- amp ; a 03/31 /1995 04/01/1996- 03/31/1997 04/01/1997- I 03/31/1998 04101/1998- 03/31 /1999 Sampl Sa 04/01/1999- 03131 /2000 04/01 /2000- - 03/31/2001 pie Sample a r ple Sample ple Sample 0 A Sample Sample Sample Sample Sample 0 'L A Sample Sample Sample Sample Sample A Loss Forecaster 11 Page 3 a 0 Workers Compensation o N Losses are limited to historical limitations _ N Excess of Loss Limit (Paid Losses Sample Sample 1 Sample Sample Sample Sample ple Samp e M 0 -v a ale Sample ple Sample r n A a v, Sample Sample Sample Sample Sample 0 Sample Sample Sample Sample Sample T fG A Loss Forecaster If Page 4 Policy Period Paid Large Losses 04/01/1993- 03/31/1994 I 04/01/1994- $328,536 03/31/1995 Sample 04/01 /1995- 03/31/1996 04/01 /1996- 0.3/31/1997 04/01/1997- 03/31/1998 04/01/1998- - 03/31/1999Sample Sa 04/01 /1999- - 03/31/2000 04/01/2000- 03/31/2001 0 0 0 w 1Norkers Compensation N Losses are limited to historical limitations _ N Summary of Losses Sample Sample Sample Sample Sample Policy Period Total Incurred Limi ed Incurred Tota Paid Loss Limited Paid Loss Loss Loss 04/01/1993- $320,984 $320,984 $320,984 $320,984 03/31 /1994 04/01/1994- $1.011,257 $932,721 $922,403 $843,867 03/31/1995 04/01/19 gmp e $776,433 am e$776,433 99,787 $699, 87 03/31N996 04101/1996- $759,717 $759,717 $702,307 $702,307 03/31/1997 I 04/01/1997- $476,138 $476.138 $354,945 $354,945 03131/1998 04/01/199B- 1 $299,279 $299,279 Sample $2716,603 Sample $7576 6pp3 ar4iple 033/-31/19§9mple ' 04/01/1999- $513,418 $513,418 $438,456 $438,456 03/31 /2000 ; t 04/01/2000- $25,253 $25.253 $13,323 $13.323 03/31 /2001 t Sample Sample Sample Sample Sample Sample Sample Sample Loss Forecaster II Page 5 • • • Sample Sample Sample Sample Sample p W Workers Compensation N Losses are limited to historical limitations _ N Loss Development Factors (Incurred Method)_ Policy Period Evaluation Date, Lim ed Incurred Incurred LDF I Estima ed j Loss Ultimate Incurred Loss 04/01/1993- I 06/27/2001 ; $320,9B4 1.000 $320,984 03/31/1994 04/01/1994- i 06127/2001 $932,721 1.0151 $946,712 iO3/31/iNfimple. Sample 2 Sample Sample 04/01/1995- I 06/27/2001 $776,4331 11.030 $799,726 103131 /1996 1 04/01/1996- 06/27/2001 i $759,717 1.103 $637,968 1 03/31 /1997 ' `04/0111997- 06/27/2001 $476,138 i 1.139 $542,321 03/31/1998 04/01/19§091ple 06/27/2001 amp e$299,279 ! amp el .186 $N MA 03/31 /1999 i 04/01/1999- 06/27/2001 $513,418' 1.278 $656,148 03/31/2000 04/01/2000- 06/27/2001 $26,253 i 1.60B $40,607 03/31/2001 I Jil mpic J ailtYic O'LliiYit, Sample Sample Sample Sample Loss Forecaster 11 Page 6 Sample Sample Sample Sample Sample Workers Compensation N Losses are limited to historical limitations _ N Loss Development Factors (Paid Method) Policy Penole Evaluation Date Limit Paid Loss O�UIC id LDF ` Estimated Ultimate Paid Loss 04/01/1993- 06/27/2001 $320,984 1.000 ^$320,984 03/31 /1994 04/01/1994- 06/27/2001 $843,867 1.172 $989,012 03/31 /19Oimple Sample Sample Sample 0410111995- 06/27/2001 $699,787 1.206 $843,943 03/31/1996 04/01 /1996- 06/27/2001 $702,307 1.262 $886.311 03/31 /1997 04/01/1997- 06/27/2001 $354,945 1.354 $480,596 03/31/1998 04/01/19'ple 06/27/2001 Sample$276,603 Samplet.535;$ 03/31/1999 04/01/1999- 06/27/2001 $438,456 1.958 $858,497 03131/2000 04/01/2000- 06/27/2001 $13,323 3.762 $50,121 03/31/2001 sample aampie 041i1Yic JAI.LI ,ll. Sample Sample Sample Sample Loss Forecaster 11 Page 7 a 0 0 i 0 Workers Compensation N Losses are limited to historical limitations N Selected Estimated Ultimate Incurred Losses, Sample Sample Sample Sample Sample Sample Policy Period Estima ed Estimated t Ultimate Incurred Ultimate Loss - Ultimate Loss - Loss Incurred Method Paid Method r 04/01/1993- $320,984 $320,934 $320,984 03/31/1994 y 04101 /1994- $946,712 $989,01 r $967.662 tt+Bi� 1995 Sample[ S4ple ; 04/01/1995- $799,726 ; $843,943 $821,835 03/31 /1996 = ' 04101/1996- $837,96B i $886,311 $862,140 03/31/1997 04/01/1997- $542,321 ,^ $480,596 $511,459 03131 /1998 ! vffl�fi $ $424, p e $389,7613 03131 /1999 i 04101/1999- $656,148 $B58,497 $757,323 03/31 /2000 04/01/2000- $40,607 4 $50,121 $45,364 03/31 /2001 n Sample Sample Sample ;ample )ample ample Sample Loss Forecaster 11 Page 8 0 0 0 Sample Sample Sample Sample Sample r Workers Compensation Losses are limited to historical limitations Estimated Required Reserves C- --- --1- Policy Period Loss Limit I Estimated Limiled Paid Loss Estimated Ultimate Incurred i Required Reserve Loss 04/01/1993- $250,000 $320.984 $320,984 $0 03/31/1994 04/01/1994- $250,000 $967,862 $843,867 $123,995 03131/1965mple Sample Sample Sample 04/01/1995- $250,000 _ $821,835 $699,787 $122,048 03/31 /1996 04/01/199fi- $250,000 $862,140 $702,307 $159,833 03/31/1997 i t04/01/1997- $250,000 $511,459 $354,9451 $156,514 ' 03131119Bt3 � 04/01/19 6mp a $260.000 amp e$389,766 a � ,fiO3 $ 03131 /1999 $757,323 $438,456 $318,867 0410111999- $100,000 03/31 /2000 04/01/2000` $150,000 $45,364 $13,323 $32,041 03/31/2001 Totals Samp e amp ,ti76,733 ,9,272 $1,;R Sample Sample Sample Sample Loss Forecaster 11 Page 9 Sample Sample Workers Compensation Losses are limited to historical limitations D►sCdAQ'Ayoul schedule Sample Sample Policy Period 06/28/2001 04/01/2002 04/01/20D3 04/D1/2004 0110112105I 0410112016 04/0112fi07 04/0112008 04101/2009 04/01/2010 Inception Da6e 04/01/2002 04/01/2003 04/01/2004 041D1120D5 04/01/2006 04/01/2007 041D112WB 04/01/20091 04/01/2010 04/01/2011 Total 04/01/93 $0 $0 $0 $0 $9 $0 $0 $0' $0 $0 s0 04/01/94Sar4 le *33,817 $45,089 SaMM5,089 SO Sale $0 Sam* $D . Sampletfl $0 $123,995 04101195 1 $30,512 $30,512 S30.512 $30,512 so$0 $0 $0 t $0 $0 $122.048 04/01/96 $30,444 $38.055 $30,A44 S30AM $30,446 $0 $0 $01 $0 $D $159.833 04101/97 $24.079 $30,099 $30.099 $24,079 $24.079 $24,079 $0 so; $0 $0 $156,514 04/01/98 $23,2981 $16,642 $16,642 $16.642 $13.313 $13,313 $13,313 $0 $0 $0 $113,163 04/01/99 $84,597 $58,567 $32,537 $32,537 $32.537 $26.030 $26,030 $26.032 t $0 $0 t $318.867 D4/01100 38,68D $7,794 $3,897 $2,165 $2,165 $2,165 $1,732 $1,732 $1731 $D $32,041 lotal a p e $235,407 3226,768 ?10 $136,379 $102,54 $65,587 $41, 5 $27,764 1,731 $0 $1,026.461 Expected Fulure Payments - Discounted Basis 06)2W2001 04101120D2 410p1Je2003 S 04101120114 041OV2am5 a D4/01/2D08 04�{jltllt e 04/01/2008 c 4 11,��09 04/01/2010 Sample 04101120D2 04101/20D3 04/01/2004 04/01/2005 04/0112006 0410112007 04/0112008 04/0112009 04(0112010 0410112011A$978,619?0 2% $233.632 5221,163 $180.926 $127.042 $94,236 "9.094 $36,282 $24,043 i $1,470 $04% $231.905 $215,811 $173,149 $119,99D $112,756 $86,747 SM,352 $32,126 $20,876 $1,252 $06% $230,222 $21006 $1 5,844i $7 ,980 $48,261 I 28,5$18,119 1 89$D Loss Forecaster 11 Page 1D No Text • ABC Public Entity AS OF 04/02/02 POLICY PERIOD: 10/01/1995 TO 10/01/1996 Net L&fflPJwents Allocated l@mts. O/S Loss Munple Alloca Reserve Sa tal Ex erience 352,742 293,264 100,500 16,159 1 762,665 Sample Sample INCURRED CLAIMS MRR�UMMARY Sample Total Period Experience (10/01/95 to 10/01/96) 762,665 Less Claims Excess of Per Occurrence Retentions (Reinsurance) (232,517) Total Incurred Loss Fund Experience 530,148 Projected 12 Month Loss Fund Ratio (530,148 divided by 550,000) 96% Sample Sample Sample Samp PAID CLAIMS LOSS FUND SUMMARY Sample Total Claim Payments 646,006 Less Reinsurance Recoveries 202,164 Total Payments Applicable to Loss Fund 443,842 Loss Fund Amount Sample S unple Sam 160,000 Loss Fund Balance 106,158 Total Payments made in Excess of Loss Fund - Sample Sample Sample Sample Sample Sample Sample Sample No Text is APR-30-02 12:08 FROM -PALMIER CAY +104-553-231b 1-r4u r ui r-yf4 • r Sample Loss FbWiFster I► Keport Prepar *. Sample Prepared By: Palmer & Cay, Inc. Sample Sample Sample Sample March 18, 2002 Industry: Services Policy Periods: 4 Sample Line of Coverage: orkers Compensationam Method: Incurred Method Analysis: Loss Projection Exposure: Payroll Sample LOSS Limit: ^ Sa+ -~,000 Sam Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample • Sample Sample Sample Sample Loss Forecaster 11 Page 1 APR-30-02 12:08 FROM-PALMER CAY +704-553-2316 f-RU F.uz r-yfa Workers Compensation • Loss Limit = $50,000 Sample Sample Sample Sample Data Input Sample Policy Period Evaluation Date Incurred Loss Payroll 03/01/1997- 04/30/2001 $28,020 $15,258,057 02/28/ 1998 03/01/1998- 04/30/2001 $65,210 $19,980,142 02/28/1999 Sample Sa ple 03/01/1999- 04/30/2001 -^ $567,702 $33,584,461 02/28/2000 03/0112000- 04/3012001 $425,442 $50,037,292 02/28/2001 ample Sample Sample Sample Sample • Sample Sample P Sample p Sample pe Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 Page 2 APR-30-02 12:08 FROM-PALMER CAY +704-553-2316 T-720 P.03/21 F-914 Workers Compensation . Loss Limit = $50,000 Sample Sample Sample Sample Excess of Loss Limit (incurred Losses) Sample Sample Poficy Period Incurred Large Losses 03/01 /1997- 02/26/1998 - 031119- 02/28/1999 Sa 03/01/1999- 02/28/2000 $56,398 $223,240 $61, 968 $125,475 03/01/2 00- 02/28/2001 $79,489 $73,853 Ile Sample Ile Sample • Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 Page 3 91n APR-30-02 12:09 FROM-PALMER CAY +704-553-2316 T-720 P.04/21 F-914 Workers Compensation • Loss Limit = $50,000 Sample Sample Sample Sample Summary of Losses Sample Policy Period Total Incurred Limited Incurred Loss Loss 03/01/1997- $28,020_ $28,020 02/28/1998 03/01 /1998- Samp e $65,210 SampJ65,210 02/28/1999 03/01/1999- $567,702 $300,621 02/28/2000 03/01/2000- $425,442 $372,100 02/28/2001 Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Coss Forecaster p Page 4 APMU—H 12:U9 FRUM—PALMER GAT VU4-bb1-4j1b 1-14U r.Uaici r—U14 Workers Compensation . Loss Limit = $50,000 Sample Sample Sample Sample Loss Development Factors (incurred Method) Policy Period Evaluation Date Limited Incurred Incurred LDF Estimated LOSS Ultimate Incurred Loss 03/01/1997- 04/30/2001 $28,020 1.129 $31,635 /28/1996 03/01 /1998- 04/30/2001 $65,210 1.172 02MIl 999 - __.. $382,089 03/01/1999- 04/30/2001 $300,621 1.271 02/28/2000 03/01 /2000- 04/30/2001 $372,100 1.637 $609,128 02/28/2001 Sample Sample Sample Sample ® Sample Sample Sample P P p Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 Page 5 Cb APR-30-02 12:09 FROM-PALMER CAY +704-H3-2316 T-720 P.06/21 F-914 Workers Compensation Loss Limit = $50,000 i Sample Sample Sample Sample Inflation Trend Factors Sample Policy Period Payroll Med Care CPI~ Inflation Trend Adjustment Factor Factor Factor 03/01 /1997- 1.226 1.201 1.214 02/28/1998 Snmnle 03/01/1998- 1.174 1.163 1.169 02/28/1999 03/0111999- -- ~ 1.127 1.122 1.125 02/28/2000 03/01 /2000- 1.086 1.082 �1.084 02/28/2001 ample Sample Sample Sample Sample is Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 Page 6 APR-30-OZ 1Z:09 FROM -PALMIER GAY r.ur141 r-n14 Workers Compensation Loss Limit = $50,000 Sample Sample Sample Sample Loss Trend Adjustments Policy Period Estimated Inflation Trend 13LCF Adjusted Loss Ultimate Incurred Factor Loss 03/01/1997-�- $31,635 1.214 1.021 $39,211 02128/1998 03/0/1998- w $76,426 1.169 1.016 �772 02/28/1999 03/01/1999- $382,089 1.125 1.011 $407,104 02/28/2000 03/01/2000-rr $609,128 1.084 1.004 $654,102 02/28/2001 Sample Sample Sample Sample isSample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample 10 Sample Sample Sample Sample Loss Forecaster 11 Page 7 APR-30-02 12:09 FROM-PALMER CAY trua-aa�-c�io i-rcu r.uni n r-7i4 Workers Compensation Loss Limit = $50,000 • Sample Sample Sample Sample Exposure Trend Adjustments Sample Policy Period ~�^ Payroll Payroll Adjusted Payroll Adjustment Factor 03/01/1997- $15,258,057 1.226 $18,706,378 02/28/1998 03/01/1998- $ 9,980,142 1,174 $23,456,687 02/28/1999 03/01/1999- $33,584,461 1.127 $37,849,688 02/28/2000 0310112000- $50,037,292 1.086 ^ $54,340,499 02/28/2001 ample Sample Sample Sample Sample ® Sample Sample Sample Sample p p Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample • Sample Sample Sample Sample Loss Forecaster 11 Page 8 APR-30-02 12:09 FROM-PALMER CAY +704-553-2316 T-720 P.09/21 F-914 a, Workers Compensation • Loss Limit = $50,000 Sample Sample Sample Sample Pure Loss Rate Sample Policy Period Adjusted Losses Adjusted Payroll Pure Loss Rate Per $100 Payroll 03/01/1997- $39,211 $18,706,378 $0.21 02/28/1998 03/01/1998- Sample$90,772 $23,456, ple $0.39 02/28/1999 - _ �.. $1.08 03//0 111999- 1 02/28/2000 $407,104 $37,849,688 03/01/2000- _ $664,102 $54,340,499 $1.20 02/28/2001 Sample Sample Sample Projected Policy Period IsSample Sample ample Sample Projected Period - Selected Projected Payroll Projected Losses Projected Pure Loss Rate 03/01 /2002- 02/28/2003 $0.74 Sample $71,635.153 Sa $530,100 ple Average Pure Loss Rates Weightedailiple 2 Year - 3 Year p e All Years $0.89 $1.14^r $0.89 $0.72 Projected Payroll is based on a 5% increase of the 2001 estimated payroll. Sample Sample Sample Sample Sample Sample ample ample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 page 9 p "O o Workers Compensation N Loss Limit= $50,000 N O [O Sample Sample D;s& tdF yowl Schedule Sample Sample a a Policy Period 03/01/2002 03101/2003 03101120D4 03/01/2005 03f0112006 03/01/2007 03101/2008 ! 03101/2009 03101/2010 03/010011 Inception i Date 03101/2003 0310112004 03101/2005 03101/20D6 03/01/2007 03/01/2008 0310112009 03101/2010 03101/2011 0310112012 Total 03/01/02 $106.020 $137,626 $95.418 S47,709 $26,505 $26,505 326,505 $21.2041 $21,204 $21,204 $530,100 Total Sa4le $106.020 $137,826 Sate*,418 $47,709 $SAS a $26,505 S S $21,204 1 Sarl$PIS204 1,$21,204 $530,100 Expected Future Payments - Discounted Basis 1 03101/2002 03101/2003 03/01/2004 03101/2005 0310112006 03101=07 0310112008 03101/2009 03101/2010 0310112011 t 03/01/2093 0310112004 03101120135 , 03/01120D6 03/01/2007 03101/2008 ( 03101/2009 03101V010 03101/2011 03101/2012 1 Total 2% $104,915 $133,792 $90,809 $44,514 $242 $23.770 9a23, $18,277 7,919 517,568 $499,173 $103,961 $129,951 $86,5D6 $41.589 $22,217 $21,362 $20.541 315.000 $15,193 $14,608 $471,728 L4'%I6 i $102,976 t S126,291 $82483 $38,9D7 $20,392 $19,237 $18,148 $13,697 $12,922 517,19D $447,243 Sample Sample Sample Sample Sample T C Sample Sample Sample Sample Sample T w I ■ �11��/ ��II��/��/Y,rl�/�i I�,e�l II IUIIIIII 1 P Loss Forecaster 11 Page 1 D • is APR-30-02 12:10 FROM-PALMER CAY +704-553-2316 T-720 F.II/Z1 F-314 Workers Compensation Loss Limit = $50,000 Sample Sample Sample Sample Confidence Interval Sample Sample Interval Losses ale $440,00 55% $480,000 60% $510,000 65% $560,000 70% $610,000 75% $660,000 le $730,000 85% $830,000 90% 1 $960,000 95% $1,200,000 99% $1,810,000 mple Sample mple Sample Sample mple Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample . Sample Sample Sample Sample Loss Forecaster 11 Page 11 • 11 • 0 0 0 SCHEDULE OF INSURANCE ABC Public Entity 11/30/01-02 POLICY PERIOD PALMIER + CAY nJ'7'v..Y.aq f ro. ' pYeCa a a , ,.. � . .. �n r . .....:.. ....�cttt .... _.:, ., 60, . �. ' .SrNri PF�dta (ilM 4 Ilc :� tee � �r � «Litytfa� >..s > y' . _crnments` Property Allianz Insurance Company 55555555555 $425,000 11130/01-02 $120,000,000 Each Occurrence except "Annual Aggregate $25,000,000 'Flood sub -limits $5,000,000 `Flood - Zones "A and V" $2,500,000 Transit - Inland Deductibles: $50,000 All Perils except 5% Named Windstorm. Minimum Sample Sample Sample $25,000 aQ0Sample rSt- Inland 24 Hours Service Interruption ($50,000 Min.) Boiler & Continental Casualty 5.55556E+12 $69,203 11130/01-02 $50,000,000 Property Damage - BI/Extra Expense Deductible: Machinery Insurance Co. $1,000,000 Service Interruption $50,000 - Property Damage 24 Hours-BI/Service Interruptn General Liability Federal Insurance 3524-88-59 $75,601 11130101-02 $1,000,000 Each Occurrence Subject to audit Company $2,000,000 General Aggregate $2,000,000 Products/Completed Operations Agg $1,000,000 Personal Injury & Advertising Sample Sample Sample $10,00 Employee Benefits pi�ayments (per person) Sample Employee Benefits $1,000,000 Each Claim $1,000 deductible -each claim $1,000,000 Aggregate Retro Date 7/1/89 Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample 04/30/2002 Account Executive: Sr. Account Manager: 1 a 0 0 SCHEDULE OF INSURANCE ABC Public Entity 11/30/01-02 POLICY PERIOD PAJ—N ER Af CAY fT ar Jnc. �,%((�... rr j� `rye µ. '• ( ': �'SS �"c. .'., ':: f �y + � M./� y • (� � .� .:. .,a.✓ ,a�'S: `�•��C��'��-.�S.n.Yi.. 4.�j one: •t v'S4.�1. eFw.t:. ^. ..;... J.4 ..• ,:. .. 5 'S .4, t aIW Y :. �.. .t <: R�ii av�z: �\l.�i�11J�f,S:Y. m: j;+tz.: Autom Federal Insurance 55555 $40,158 -02 $1,000,0 ny ne Accident Hired car Physical damage Company $5,000 Medical Payments (per person) Rental Reimbursement Mandatory Limits Personal Injury Protection $1,000,000 Uninsured Motorists $500 Collision & Comprehensive Deductibles Umbrella Liability Federal Insurance 5.55556E+11 $59,973 11/30/01-02 $25,000,000 Each Occurrence Company $25,000,000 General Aggregate Sample Sample Sample $25,000,00 /Completed Operations Workers's Insurance Employer's Liability Compensation Company $1,000,000 Each Accident $1,000,000 Disease -Each Employee $1,000,000 Disease -Policy Limit Sample am le Sami3le Aviation Products Lloyds of London 5555555555 $72,500 plus 11/30/01-02 $100,000,000 Each Occurrence & Annual Aggregate Deductible: Liability tax & fees Except $50,000 $100,000,000 Any one Grounding & Aggregate Crime National Union 8746308 $17,070 11/30/01-02 $1,000,000 Employee Dishonesty Coverage Deductible: Fire Insurance Co. $1,000,000 Loss Inside the Premises Coverage $25,000 Single Loss $1,000,000 Loss Outside the Premises Coverage $1,000,000 Depositors Forgery Coverage Sample Sample Sample $1,000, 861pkr Fraud Coverage Sampl Special Crime Lloyds of London 1334300 $4,950 11/30/01-02 $10,000,000 AD&D/War Risk Exel Sample Sample Sample Sample Sample 04/30/2002 Account Executive: Sr. Account Manager: 2 • • 0 ABC Public Entity2 Premium Payment Summary Policies Paid in Full - PAL7VI M Sir CAY 11-30-01 /02 m.. ........ ...... R/'T XAs Iitc Sam le Sam le Sam le Sam le Sam le Nov. Dec. Jan. Feb. Mar. April May June July Aug. Sept. Oct. Nov. Total Coverage Premium 2001 2001 1 202 2002 2002 1 2002 I 2002 2002 2002 2002 2002 2002 2002 Property 425,000.00 425,000.00 555555555 Allianz B&M 69,203.00 69,203.00 555555555 Sam ple Sar iple Sample Sarc plc Sample Cont. Cas. Umbrella 59,973.00 59,973.00 55555555555 Federal Ins. Co. xs Umbrella 37,500.00 37,500.00 5555555555 Lumbermens Aviation Prod is 55555555555 72,500.00 le Sample ample Sa le Sample 72,500.00 Lloyds Crime 17,070.00 17,070.00 555555555 National Union Taxes & Fees 1 2,356.251 2,356.25 Total Premium 683,602.25 683,602.25 Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample • 11 0 a 0 0 Specific Claim Layer Loss Model -Ali Claims Poky Years 1997, 1998, 1999, 2000 Undeveloped Beals - Loss Triangle: Account Specific; Valued as of WSM1 All claims greater than or equal to $250,000 Ta f525,000to f53 SS73,000o 00010 fo f260,000 to Greater than q Dala I Incurred I Dav lop. I lneurtad�tll f10,000 I I OOOo ( 5700 �00 f1 0,000 S20a,000 I II f200,000 $250,00 f250,000 S5or f500,000 RI W0' sample E 20,925,742 �t�r ff&2 f 0^ S 375,000 S 16 37 ;000 gr� $ 375;006� mpI�g 000% E 7503.8% f ��3�6% k 3 125,E4.9% $ 14,050.103 Cumulative: 0.0% 1.8% 3.6% 6.4% 7.2% 10.8% 14.3% 17.9% 32.9% 100.0% Ace Total Claim Total Developed $0 to $10,000 to $25,000 to $50,000 to $76,000 to $100,000 to f150,000 to $200,000 to $250,000 to Greater than WC, Auto, GL Dete Incurred Devela . Incurted $10 000 $25 000 $50 000 $76 000 $100 000 5750 000 5200 ODO $230 000 $500 000 $500 000 1989 f 876,153 1 $ 876,153 $ 25,000 f 25.000 f 25,000 $ 25,000 f 50.000 $ 50,000 f 50,000 $ 250,000 $ 376,153 - 1989 f 1,211,183 1 $ 1,211,183 $25,000 S 25,000 $ 25,000 S 25,000 $ 50,000 f 50,000 S 50.000 S 250,000 $ 711,183 1990 $ 841.293 1 f .41,293 -f 26,000 f 25,000 f 25,000 $ 25,000 f 50,000 $ 50,000 f 50.000 E 250,000 $ 341,293 1992 f 609,286 1 f 609,286 $ 25,000 $ 25.000 f 25,000 $ 25,000 f 50,000 $ 50,000 f 50,000 f 250.000 E 109.286 1992 f 981,030 1 $ 981.030 f 25,000 E . 25,000 f 25,000 $ 25,000 f 50,000 $ 50,000 $ 50,000 S 250,000 S 481.030 1993 f 269,849 1 f 269,849 $ 26,000 f 26,000 $ 25,000 S 25,000 S 50,000 $ 50,000 f 50,000 f 19,849 $ - 1993 f 760,000 1 $ 750,000 f 25,000 $ 25.000 $ 25,000 f 25,000 f 50,000 $ 50.000 f 50,000 $ 250,000 f 250,000 Sample 1993 1994 f 1,524,131 S 1,013:381 1 Sample 1 f 1,624,131 $ 1.013.381 S 25,000 f f Sable 25,000 25,000 $ 26.000, S 25.000 f 25,�amplC.Do9 f 50,000 f 50,000 $ 50,000 $S 50,000 50,000 $ 250,000 $ 250,000 $ 1.024,131 $ 513.381 1995 E 264,388 1 $ 284,366 $ 25, E 25,000 f 25.000 $ 25,000 f 50,000 f 50, $ 50,000 $ 14,366 $ 1995 $1,169,452 1 $ 1.169,462 f 25,000 $ 25.000 f 25,000 f 25,000 $ 501000 $ 50,000 $ 50,000 $ 250,000 $ 669A52 1996 f 1,074,460 1 f 1,074,460 f 25,000 $ 26.000 $ 25,000 E 25,000 $ 50,000 $ 50,000 E 50,000 $ 250,000 $ 574.460 1997 f 750,000 1 f 750,0W f 25.000 f 26,000 $ 25.000 f 25.000 f 50,000 $ 50.000 f 50,000 f 250,000 $ 250,000 1997 f 341,424 1 E 341,424 f 25,000 f 25,000 f 25,000 $ 25,000 f 50.0g0 $ 50,000 f 50,009 $ 91.424 $ - 1998 f 9,249.734 1 f 9,249,734 E 25.000 f 25,000 f 25,000 $ 25,000 $ 50,000 $ 50,000 f 50.0g0 f 250.000 $ 8.749,734 Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample Sample • 5. Fee Compensation Proposal 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 attributable to each line of coverage and each sub -contractor, if any. • 0 Palmer & Cay of Texas, Inc. proposes the following fee compensation structure for the City's consideration and adoption: Proposed Good or Service Annual Fee Compensation Broker Consulting, Management and $60,000 Marketing Services as further defined and outlined in our RFP response Risk Control Services, Property Loss Control 7,500 Meeting with Human Resource / Risk Management Staff, Exposure Identification for LPL, Civic Services, Public Works and Information Technology Quarterly Loss Analysis, Statistical Loss 7,500 Forecasting, Retention Analysis and Reserve Analysis TOTAL ANNUAL PROPOSED FEE $75,000 All insurance policies procured through Palmer & Cay of Texas, Inc. will be net of commission to Palmer & Cay as required by the CITY. Palmer & Cay 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 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 access all identified insurance carriers who specialize in public entity coverages. Palmer & Cay of Texas, Inc. 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. Transition Plan The Marketing Plan Timeline will be incorporated into Transition Plan. Week of 6/17/02 — Palmer & Cay meets with City of Lubbock to obtain written Broker of Record letters, confirm service expectations, agree on marketing timelines, discuss risk retention appetite, obtain complete copies of policies, deliver renewal applications and discuss renewal strategies for the 10/1/02 renewal. We are prepared to take over any outstanding items being handled by your current broker. Depending on how quickly you want us to get involved, with the Casualty piece of the program, we will want the following information: • An open items list • A complete list of Certificates of Insurance • Detailed list of service objectives and key timelines 6/22/02 — BOR letters sent to insurance carriers 6/24/02 — Palmer & Cay schedules Risk Control activities as required by the City. Information from these activities will be incorporated into the renewal applications. Discuss marketing strategy and timeline with City. 7/8/02 — Submissions for the various coverages are sent the markets. The City is available to meet with Underwriters on an as needed basis. Palmer & Cay performs marketing function and continuously advises City of status of marketing project. 8/23/02 — Quotations due from markets. 8/27/02 — Palmer & Cay presents quotes to the City of Lubbock. 8/27/02 to 9/16/02 — The City and Palmer & Cay negotiate with carriers 9/23/02 — City instructs Palmer & Cay to bind coverages with the selected insurance carriers. 10/1/02 — City of Lubbock effects insurance coverage with selected carriers. "ALL INFORMATION CONTAINED IN THIS RESPONSE TO REQUEST FOR i PROPOSAL PREPARED 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 IN ORDER TO REVIEW THIS PROPOSAL, AND SHALL NOT BE DISCLOSED TO ANY OUTSIDE PARTY." PLEASE DO NOT HESITATE TO CALL SHOULD YOU HAVE ANY QUESTIONS. 0