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HomeMy WebLinkAboutResolution - 2000-R0335 - Contract - Crawford & Company - Third Party Administrator Services - 09/27/2000Resolution No. 2000-RO335 Septmeber 27, 2000 Item No. 23 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 third party administrator services, by and between the City of Lubbock and Crawford & Company of Atlanta, Georgia, 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 27th day of September , 2000. WTO , MAYOR ATTEST: L��usLrtA/ Kaythi Darnell, City Secretary APPROVED AS TO CONTENT: Victor Kilman, P chasing Manager APPROVED AS TO FORM: / y' l5rf' .r - William de Haas, Competition and Contract Manager/Attorney gs/ccdoes/ThirdPartyAdministratorServ.doc September 18,2000 Resolution No. 2000-RO335 September 27, 2000 Item No. 23 CRAWFORD & COMPANY CLAIM SERVICE CONTRACT THIS AGREEMENT, made and entered into effective this first day of October, 2000, between CRAWFORD & COMPANY, a corporation of the State of Georgia, as general partner of CRAWFORD & COMPANY, L.P., a limited partnership of the State of Texas, hereinafter referred to as the "Servicing Company," and CITY OF LUBBOCK, a governmental entity of the State of Texas, hereinafter referred to as "Client." WITNESSETH THAT WHEREAS, the "Servicing Company" operates a business known as CRAWFORD & COMPANY, L.P., Claims Adjusters, and WHEREAS, the Client desires to employ the "Servicing Company" as its Claims Adjusters, to service its claims for its self-insured exposures as stated in Paragraph (3) hereunder, up to its self-insured retention. NOW THEREFORE, the "Servicing Company" and the "Client" mutually agree as follows: (1) The general agreement pages, to which this is attached, are made a part hereof as though fully repeated and set out herein. (2) This contract covers Claim Service for the "Client" in the U.S.A. (3) The "Client" shall pay the "Servicing Company" fees as follows: 52 Automobile Liability claims @ $245.00 per claimant - $1.2,740.00 250 General Liability claims @ $245.00 per = 61,250.OU claimant Total. = $73,990.00 The "Client" agrees to pay the "Servicing Company", at the rate of. one -twelfth (1/12) of $73,990.00 per month ($6,165.83). At the first of each monthly period during the term of this contract, monthly billings in said amount will be submitted to the "Client" by the "Servicing Company and such billings will be paid by the "Client" to the "SOrvictng rOmpany" within forty-five (45) days of such billing. Twelve months after the contract term, there shall he a final accounting as to the nr.tnal number of claimants handled by the "Servicing Company" and the ",Servicing Company" will he entitled to compensation at the above flat rates for each claimant in excess of the above numbers. likewise, the "Client" shall be entitled to a refund on the same basis if the number of claimants does not reach the above projections. If the final accounting results in a refund due the "Client," the "Servicing Company" will make such refund within ninety (90) days of the "Client's" written request for such refund. If the final n accounting results in the Client�� n owing the Servicing Company" additional sums, the "Client" will pay the "Servicing Company" within ninety (90) days from the date of the "Servicing Company's" billing for such additional sums. Any single accident or occurrence resulting in ten (10) or more declared or potential claimants shall be treated as a catastrophe. "Servicing catastrophe cases shall be handled on a Time and Expense basis by the Servicing Company" at its then prevailing hourly rate and expense method of billing. Contractual Liability claims, Professional Liability claims, Personal Injury Liability claims, and subrogation investigation shall be handled on a Time and Expense basis by the "Servicing Company" at its then prevailing hourly rate and expense method of billing. All claim services in Puerto Rico and the Virgin Islands shall be provided by the "Servicing Company'" on a Time and Expense basis at its then prevailing hourly rate and expense method of billing. Billings for Time and Expense claims will be submitted to the "Client" by the "Servicing Company" when such claims are concluded, or if any such claims have not been concluded and have accumulated billing amounts of Two Hundred Dollars ($200) or more, the "Servicing Company" will submit interim time and expense billings to the "Client" within six (6) months from the date of assignment of such claims to the "Servicing Company. Subsequent interim billings will be submitted thereafter only when any such claim has accumulated a billing amount of Two Hundred Dollars ($200) or more. Claims so interim billed shall continue to be handled by the "Servicing Company after interim billing on a time and expense basis at the "Servicing Company's" then prevailing hourly rate and expense method of billing. Such time and expense billings submitted to the "Client" by the. "Servicing Company" will be paid by the "Client" to the "Servicing Company" within thirty (30) days of billing. For all Time and Expense lines of coverage, SISDAT charges shall he waived. In addition to the compensation of the "Servicing Company" set forth herein, any taxes, except taxes on income, which the "Servicing Company" may be required to pay or collect or which may be incurred by or assessed against the "Servicing Company," under any existing or fnture law, in any way relating to the sale, delivery, rendering or provision of services to the "Client" pursuant to this contract, including but not limited to any Canadian (Federal, Provincial, territorial or local.) or any domestic (Federal, State or local) sales, use, personal property, ad valorem or other tax shall be for the account of the "Client." The "Servicing Company" shall bill the "Client" and the "Client" shall promptly pay the "Servicing Company" all such taxes in accordance with the provisions of the applicable law and regulations concerning collection of such taxes and the "Servicing Company" shall remit such taxes to the appropriate taxing authority. 2 #01277 - 09/14/00 The fees of the "Servicing Company" apply only the "Client's" self-insurance retention. Once self-insurance retention(s), either specific or been exceeded, the "Servicing Company"" will be its fee(s) as set forth under this contract. GENERAL AGREEMENTS I. THE "SERVICING COMPANY" AGREES: to claims handling within the "Client's of annual aggregate, has/have considered to have earned A. To review all claim and/or loss reports with claim and/or loss dates incurred during the term of this contract for all accident/occurrence lines of exposure or claims and/or losses made during the term of this contract for all claims made lines of exposure, involving the hereinabove stated exposures to the "Client . " B. To investigate, with reasonable diligence, all reported claims and/or losses as defined in Section I.A., above. C. To investigate, adjust, settle or resist all such losses and/or claims as defined in Section I.A., within the discretionary settlement authority limit of the "Servicing Company." The settlement authority of the "Servicing Company" shall be described in Exhibit "'B. It D. To investigate, adjust, settle or resist all such losses and/or claims as defined in Section I.A., in excess of the discretionary settlement authority limit of the "Servicing Company" with specific prior approval of the Client. E. To furnish all claim forms necessary for proper claims administration. F. To establish claim and/or loss files for each reported claim and/or loss. (Claim and/or loss files are subject to review by the "Client" at any reasonable time, without prior notice.) G. That the records, reports and other information created, gathered or maintained by "Servicing Company" i.n discharging its obligations to the "Client" under this contract may well be considered public records and accordingly such public records may not be destroyed (V.A.P.C. Sec. 37.10). Servicing Company" agrees to care for and return all of its records maintained by it in the discharge of this contract to the "Client" for proper storage. The policy described in Exhibit "A" shall be followed by "Servicing Company" as to when a record, report or other information shall be returned to the "Client." ,"Servicing Company" further understands that the "Client" is subject to the provisions of the Texas Public Information Act (Chapter 552) Texas Government Code and that as such any or all documents created, gathered or maintained by "Servicing Company" in discharging its obligations to the "Client" may also be subject to Texas Public Information Act Chapter 552. 3 #01277 - 04/14/00 H. To furnish the "Client" with monthly Loss Run, monthly Loss Fund Activity and quarterly Doss Cause Analysis claim statistical information from the "Servicing Company's" SISDAT Department. The "Client" shall designate the breaks for the total and subtotals for each division, region, etc. In the event the "Client" desires a statistical report of its own design, or additional reports from SISDAT, a separate quotation for the additional cost will be submitted to the "Client" for approval. The statistical information will be furnished to the "Client" either as one hard copy and one microfiche. I. To maintain adequate General Liability, Automobile Liability, Workers' Compensation, Fidelity Bond, and Errors and Omissions insurance coverage. J. To establish an account (regular demand deposit account or minimum balance controlled disbursement account), hereinafter referred to as the "Loss Fund Account," with a bank in Atlanta, Georgia of the choice of the "Servicing Company" for the purpose of paying claims and/or losses and associated allocated loss expense and to maintain and perform monthly reconciliations of that account. The cost of any bank charges shall be paid by the "Client." K. To indemnify, defend, and hold harmless the "Client" with respect to any claims asserted as a result of any errors, omissions, torts, intentional torts or other negligence on the part of the "Servicing Company" and/or its employees unless the complained of actions of the "Servicing Company" were taken at the specific direction of the "Client." L. To report directly to the "Client." and to have no responsibility for reporting to or placing any specific excess Insurer(s) or annual aggregate excess insurer(s) on notice of any claims) that is/are or may be required to be reported or notice given to such excess insurers) under any such excess insurance policies available to the "Client." The "Servicing Company" will continue to handle claims once the "Client's" self-insurance retention, either specific or annual aggregate, has been exceeded if mutually agreed to by the "Client" and excess insurer(s), if there is no controversy As to coverage, liability, and damages between the "Client" and its excess insurer(s). Such further claims handling will. be provided by the "Servicing Company" at Time and Expense based upon its then prevailing hourly rate and expense method of billing with the excess insurer(s) being responsible for supervision of the "Servicing Company" and payment of the "SerO ting CompAny's" Time and Expense service bil_l.s. II. THE "CLIENT" AGREES: A. To make funds available that the "Servicing Company" may draw from at any time and from time to time for claim and/or loss payments and for associated allocated loss expense within the discretionary settlement authority limit of the "Servicing 4 #01,277 - 09/14/00 Company and for claim and/or loss payments in excess of the discretionary settlement authority limit of the "Servicing Company" as approved by the "Client." (1) On or before the effective date of this contract, the "Client" will provide an initial imprest deposit to the "Servicing Company in an amount equivalent to five (5) banking days of average anticipated claim and/or loss and associated allocated expense payments or ten thousand dollars ($10,000), whichever is greater, to be maintained by the "Servicing Company" as a loss fund deposit, hereinafter referred to as the "Deposit," for payment of claims and/or losses and associated allocated expense from the "Servicing Company's" "Loss Fund Account." (2) Reimbursement to the "Loss Fund Account" will be made by a daily direct debit executed by the "Servicing Company's" bank against the "Client's" designated bank account for deposit into the "Loss Fund Account" at the "Servicing Company's" bank. The amount of the daily direct debit will be limited to the amount computed by the Servicing Company" wlto will instruct its bank as to the appropriate amount. The amount of the daily direct debit will be determined by the "Servicing Company" computing the average claim and/or loss and associated allocatedexpense payments made daily for the "Client." Each day the same average amount will be deposited into the Servicing Company's" "Loss Fund Account" via a direct debit drawn against the "Client's" designated bank account. The "Client" shall monitor the daily direct debits and specifically reserves the right to refuse any direct deposit that exceeds amounts as defined herein. At the end of each month, beginning with the end of the first month from the effective date of this contract, the "Servicing Company" will compare the total dppasi.ts to the "Loss Fund Account, including all_ direct debits resulting from the average daily budgeted amount and any amount as specified in Section I1.A.(4) below, made d+iring the month to the "Servicing Company's" Lass Fund Account" to th+- actual claim payment account detailed in the SISDAT Monthly Loss Fund Activity and Loss Run Reports and an adjustment direct debit will be made, so the monthly depos;ts are equal to the totals shown on such SISDAT reports which reflect payments based on checks issued. (3) The "Servicing Company" will conduct a quarterly analysis of the adequacy of the "Deposit" in the "Servicing Company's" Loss Fund Account" based upon the most current three (3) months of "Loss Fund Account" activity. If the analysis determines that the current average "Loss Fund Account activity exceeds the then existing "Deposit," then the "Servicing Company" will authorize its bank to initiate an adjustment direct debit in the amount necessary to bring the "Deposit" to the level stipulated in Section II.A.(1), above. The "'Servicing Company" will 5 #01277 - 09/14/00 adjust the average daily direct debit to the revised average daily "Loss Fund Account" activity in accordance with Section II.A.(2) above. (4) The "Servicing Company" will notify the "Client," via telephone, whenever any single claim and/or loss payment or associated allocated expense payment is to be made for twenty-five thousand dollars ($25,000) or more, and these amounts will be included in the direct debit along with the daily budgeted amount upon approval of the "Client." The "Servicing Company will not consider such amounts in arriving at the daily budgeted direct debits and will not consider such amounts in computing the necessary "Deposit" required of the "Client" as set forth in Section II.A.(3). (5) An appropriate letter, hereinafter referred to as the "Letter of Authority," will be provided, within fifteen (15) days from the effective date of this contract, to the "Servicing Company's" bank authorizing the Servicing Company's" bank to initiate the necessary daily direct debits against the "Client's" designated bank account for deposit to the "Loss Fund Account" at the "Servicing Company's" bank. In addition, the "Servicing Company" will be furnished by the "Client" with such account documentation with respect to the "Loss Fund Account" that may be required by the Servicing Company's" bank and the "Servicing Company" respectively. (6) The "Servicing Company" shall be and hereby is indemnified by the "Client" to the extent allowed by law, from and against any and all losses, damages, suits, actions, proceedings, and expenses, including, without limitation, all attorneys' fees, incurred or suffered by the "Servicing Company" in connection with (i) the '"Loss Find Account'" established by the '"Servi.cing Compnn}�'" at the "Servi.cing Company's" bank for the benefit of the "Client;" or (ii) any drafts, checks, items, overdrafts or other charges to, on, or related in any way to the "Loss Fund Account" established by the "Servicing Company" at the "Servicing Company's" bank for the benefit of the "Client." This provision shall not include losses, damages, suits, actions, proceedings and expanses resulting from any negligent, tortious, frali&04-nt, or dishonest actions by the "Servicing Company," its officers, agents or employees. (7) The "Servicing Company" may draw and authorize checks, drafts, and other items on the "Loss Fund Account" only if the "Servicing Company" determines that it has sufficient funds in the "Loss Fund Account" to cover such checks, drafts, and other items. (g) The "Servicing Company" Account" at any time, i without cause. may terminate the Loss Fund its sole discretion, with or 6 #01277 - 09/14/00 (9) As security for the due and punctual payment and performance of all indebtedness and obligations of the "Client" "" to the Servicing, Company," whether now existing or hereafter arising, however evidenced, whether direct or indirect, absolute or contingent, individually or jointly with any other person, and including, without limitation, all indebtedness, payments, reimbursement of funds, and other moneys owed by the "Client" to the "Servicing Company" pursuant to this contract (the "Secured Obligations"), the "Client" hereby pledges, assigns, transfers, sets over, conveys and delivers to the "Servicing Company," a security interest in all right, title and interest of the"Client" in and to the moneys from time to time on deposit in the "Loss Fund Account" including, without limitation, and the "Deposit" (the "Funds"). The "Client" acknowledges and agrees that, so long as this contract remains in force and effect, the "Funds" shall constitute cash collateral as that term is defined by Section 363(a) of the Bankruptcy Code, 11 U.S.C. Section 363(a). The "Client" further acknowledges and agrees that the foregoing security interest is perfected in favor of the "Servicing Company" by the "Servicing Company's" control over the accounts into which the "Funds" are deposited and, in the alternative, by possession of the "Funds" by the "Servicing Company's" bank where the "Loss Fund Account is established, who, for purposes of the security interest, shall be and is hereby deemed to be the Bailee of the "Servicing Company" within the meaning of Section 9-305 of the Uniform Commercial Code. The "Client" hereby authorizes the "Servicing Company'" at any time, and regardless of whether there exists or is continuing an event of defanit under this contract, to apply and set off without notice any indebtedness due or to become due to the "Servicing Company" from the "Client," including, without limitation, the "Funds," against and in satisfaction of any of the "Secured Obligations" of the "Client" secured hereby, regardless of the nature of such obligations or the time they arise. (10) The "Client" also agrees to provide the "Servir_ing Company,"" Within fifteen (1.5) days from the effective date of this contract, with financial. security i.n t11e form of a "Loss Fund Escrow Account," which Acconut shall. he maintained with the Client's depoGitory bank, And which account shall be at all times be available to the "Servicing Company" to ensure that (i) the "Loss Fund Account" is at all times funded in the Amounts necessary to enable the "Servicing Company" to pay claims and/or losses and associated allocated expenses as set forth in this contract, and (ii) service fees are paid as set forth in this contract. Such financial security shall be equal in amount to two (2) months' anticipated payments of claims and/or losses and associated allocated expenses or fifty thousand dollars ($50,000), whichever is greater. 7 ¢01277 - 09/14/00 The "Servicing Company" will conduct a quarterly analysis of the "Loss Fund Account" activity based upon the three (3) most current months of "Loss Fund Account" activity. if the analysis determines that the "Loss Fund Account" activity warrants an increase in the required financial security hereunder, the "Servicing Company" will notify the "Client" of the required increase and the "Client" will provide such increase to the "Servicing Company within thirty (30) days of such notice. (11} The "Servicing Company will issue checks from the "Loss Fund Account" for amounts in excess of the "Client's" annual aggregate self-insurance retention unless the "Client" specifically instructs the "Servicing Company" to the contrary so long as the "Loss Fund Account" balance is adequate to accommodate such amountsornecessary " additional deposits are made by the Client to the Loss Fund Account" to adequately accommodate such amounts or necessary additional deposits are made by the "Client" to the "Loss Fund Account" in payment of any amount in excess of the "Client's" specific per claimant or per occurrence self-insurance retention, as identified by the "Client'" to the "Servicing Company," until such time as the "Client" transfers funds for the full amount of such payment into the "Loss Fund Account." The "Servicing Company" assumes and has no responsibility or obligation to recover from any of the "Client's" excess insurer(s) any amounts represented by checks issued from the "Loss Fund Account." B. To pay to the "Servicing Company" the claim service fee as prescribed in this contract. C. To pay to the "Servicing Company," in addition to the claim service fee as prescribed in this contract, at its then prevailing hourly rate and expense method of hilling for all claims service for all claims and/or losses previonsly handled or attempted to be handled by any person, firm or corporntionitor the "Client" before being assigned to the Servicing Company. D. To pay all "Allocated Loss Expense," as defined herein, in addition to the claim service fee to be paid to the "Servicing Company" as prescribed in this contract. E. To allow "Servicing Company" to control, handle and settle all. claims following within its discretionary settlement authority. The "Servicing Company" may exercise its judgment in connection with the above described authority provided that the Servicing Company" undertakes the following actions: (1) Keep the "Client" fully informed as to the nature find status of said claim or claims. (2) Inform, prior to settlement, the "Client" of the settlement value of the claim oritclaims or claims as described by "Servicing Company. 8 #01277 - 09/14/00 F. To indemnify, defend, and hold harmless the "Servicing Company" and/or its employees to the extent allowed by law, in the event of an adverse result or judgment when the "Servicing Company it could have settled the claim and/or loss within its discretionary settlement authority limit, if the "Servicing Company" is not guilty of error, other than error in judgment, omission, tort, intentional tort, or other negligence unless such actions were taken at the specific direction of the "C 1 lent . " G. To indemnify, defend, and hold harmless the "Servicing Company" and/or its employees to the extent allowed by law, in the event the "Servicing Company," acting at the specific direction of the "Client," becomes liable to any third parties. H. To indemnify, defend, and hold harmless the "servicing Company" and/or its employees to the extent allowed by law, if the "Servicing Company" or any of its employees are named as a defendant in any action (i) where the plaintiff's cause of action involved a claim hereunder and (ii) where there are no allegations of errors, omissions, torts, intentional torts, or other negligence on the part of the "Servicing Company. III. THE "SERVICING COMPANY" AND THE '"CLIENT'" MUTUALLY AGREE AS FOLLOWS: A. The term of this contract is continuous from its effective date for one (1) year renewable annually for up to two additional years. However, the claim service fees shall be subject to negotiation at each twelve (12) month anniversary date. The contract can be terminated by either the "Servicing Company or the "Client" with or without cause and for any reason whatsoever by sixty (60) days written prior notice. B. The "Client" shall have the option upon terminnti.on of this contract: (1) To self -handle to a conclusion all claims and/or losses and associated services pending on the date of termination of this contract, such handling not to result in any expense or reduction in contract r.even»A to the "Servicing Company" previously earned or incurred on said clnim or claims; or (2) To have the "Servicing Company" handle and adjust to a conclusion all claims and/or losses pending on the date of termination of this contract. Sufficient funds of the "Client," including allocated claim and/or loss expense, shall remain available to the "Servicing Company" to liquidate such claims and/or losses. C. The flat rate per claimant claim service fees reflected in this contract include the provision of claim services by the "Servicing Company" for the "Client" for a period of. two (2) years from the date of accident/ occurrence for all accident/occurrence lines of exposure and two (2) years from the 9 #01277 - 09/14/00 date claim is made for all claims made lines of exposure. Any claim(s) not concluded within such time parameters shall be handled to a conclusion by the "Servicing Company" for the "Client" from that date forward at the specified additional flat rate fee per claimant for each additional two year period. The flat rate tail clause conversion will be $270 after the first two (2) years of claim handling. D. This contract does not include any Risk Control Services, activities, functions and/or responsibilities whatsoever and specifically excludes any Risk Control Services, activities, functions and/or responsibilities. E. "Allocated loss Expense" shall mean and include all expense items such as attorneys' fees, commercial photographers' fees, experts' fees (i.e., engineers, physicians, chemists, etc.), fees for independent medical examinations, rehabilitation fees, trial/hearing attendance fees, witnesses' travel expense, extraordinary claim investigation and/or travel expense incurred by the "Servicing Company"" at the request of the "Client," court reporters' fees, transcript fees, the cost of obtaining public records, witness fees, auto appraisal or property appraisal fees, all outside expense items, and any other similar fee, cost or expense associated with the investigation, negotiation, settlement or defense of any claim hereunder or as required for the collection of subrogation on behalf of the "Client." F. No periodic reports or reports on the status of individual claim and/or loss files, other than as provided in Sections I.F., I.G., and I.H., are required from the "Servicing Company" unless the reserve amount on any given claim and/or loss exceeds the discretionary settlement authority limit of the "Servicing Company." If a given claim and/or loss reserve amount exceeds the discretionary settlement authority limit of the "Servicing Company," reports will be submitted by the "Servicing Company," to the "Client" as may be mutually agreed to on an individual claim and/or loss file basis. G. The "Client" shall have the right during the term of this contract or during such time after the expiration or termination of this contract or during such time after_ the expiration or termination of this contract as may be necessary to perform an audit upon the book of acrotmts, bank accounts, claim files or other records maintained by the "Servicing Company" to the extent such records reflect or concern the activities of the "Servicing Company" under this contract. In the event such audit reveals that overpayments have been made to the "Servicing Company," then in such event the "Client" shall present to the '"Servicing Company" a detailed copy of said audit showing the basis of such alleged overpayment and the Servicing Company" shall have forty-five (45) days to review said detailed audit. In the event the Servicing Company" disputes the detailed audit presented, the parties hereto agree to meet and confer to resolve any such dispute. 10 #01277 - 09/14/00 H. In the event that the "Servicing Company" contends that it has been underpaid by the "Client" in accordance with the terms of this contract, it shall present to the "Client" a detailed account showing the basis of such alleged underpayment and the "Client" shall have forty-five (45) days to review said detailed statement. In the event the "Client" disputes the detailed statement presented, the parties hereto agree to meet and confer to resolve any such dispute. I. Both parties agree that the services to be performed under this contract require good, sufficient and timely communications between the "Servicing Company" and the "Client" and to this end both parties agree to give their full attention to this undertaking. J. The "Client" retains full authority to select legal defense attorneys of the "Client's' choosing. K. This contract is made and entered into in Lubbock County, Texas, and accordingly the laws of the State of Texas shall govern this contract and the interpretation of same. L. Venue upon any dispute of this contract shall be in Lubbock County, Texas. 11 #01277 - 09/14/00 IN WITNESS 'WHEREOF, the "Servicing Company and the Client have caused this contract to be executed by the persons authorized to act in their respective names. Dated this_ 27th day of September , 2000. CITY OF LUBBOCK 4ayor ATTEST: BY:� ? ' CityS cretary APPROVED AS TO CONTENT: BY: Managing rector of Human Resources APPROVED AS TO FORM: BY: � Contract Manager CRAWFORD & COMPANY, AS GENERAL PARTNER OF CRAWFORD & COM N L.P. BY: Vice President 12 x}`01277 - 09/1.4/00 Resolution No. 2000-RO335 EXHIBIT A FILE RETENTION AND DESTRUCTION POLICY LIABILITY FILES: Destroy five (5) years after applicable statute of limitations has expired. Exceptions: a. Suits - retain until expiration of appellate process. Then destroy. b. Mental Incompetents - retain indefinitely. C. Infant Minor Claims - retain until infant reaches majority plus applicable statute of limitations plus five (5) years. FIRST PARTY CLAIMS SUBROGATION ARBITRATION INCIDENT REPORTS AND BOND LOSSES: Destroy five (5) years after file closing. Exceptions: a. Suits - retain until expiration of appellate process. Then destroy. b. Prevailing Statute Precludes Destruction in five (5) years. WORKERS' COMPENSATION CLAIMS: Medical Onl Claims Excludin. Occu ational Disease Claims: Destroy six (6) months after applicable statute of limitations has expired. Exceptions: a. Prevailing Statute Precludes Destruction in six (6) months. Other Than Medical Only Claims Excluding Occu ap tional Disease Claims: Destroy one (1) year after applicable statute of limitations has expired. Exceptions: a. Formal or Informal Hearing_Leve1_._� Claims - retai_n until expiration of appellate process. Then destroy. b. Prevailing Statute Precludes Destruction in one (1) year. Occupational Disease Claims: Destroy four (4) years after applicable statute of limitations has expired. Exceptions a. Formal or Informal Hearing Level Claims - retain until expiration of appellate process. Then destroy. b. Prevailing Statute Precludes Destruction in four (4) years. 13 Resolution No. 2000—Rp335 EXHIBIT "B" The "Servicing Company's" settlement authority shall be limited to that authority granted to it by the Risk Management Coordinator on a claim by claim basis. The foregoing shall in no manner limit the ability of the "Servicing Company" regarding the following: 1. to make settlement recommendations to the City of Lubbock; 2. to limit "Servicing Company's" ability to make periodic payments for expenses in connection with the defense of a claim as provided by this contract; 3. to make payments in accordance with the settlement of workers' compensation claims as provided by the laws of the State of Texas. 14 Resolution No. 2000-RO335 CRAWFORD & COMPANY ADDENDUM #1 STATE OF GEORGIA AGREEMENT NO. 13990 PREPARED NOVEMBER 7, 2001 COUNTY OF FULTON PROGRAM NO. 01277 CRAWFORD & COMPANY, L.P., hereinafter referred to as Service Company, and CITY OF LUBBOCK, hereinafter referred to as Client, mutually agree to the following amendment to the October 1, 2000, Claim Service Agreement # 13990 (the "Agreement"). 1. The flat rate loss exposure claims section on page 1 of the agreement shall read as follows: (3) The "Client" shall pay the "Servicing Company" fees as follows: For Claims with dates of accident from October 1, 2001 through September 30, 2002. 25 Automobile Liability claims @ $245.00 per claimant = $ 6,125.00 314 General Liability claims @ $245.00 per claimant = $ 76,930.00 Total = $ 83,055.00 2. The monthly installment amount paragraph is hereby amended to include the monthly installment amount of $6,921.55 for the period of October 1, 2001 through September 30, 2002. 3. All other provisions of the Agreement shall remain unchanged. -1- IN WITNESS WHEREOF, the "Servicing Company" and the "Client" have caused this contract to be executed by the persons authorized to act in their respective names. Dated this 27th day of CITY OF LUBBOCK BY: Mayor- Wind Sitton November , 2001. CRAWFORD & COMPANY, AS GENERAL PARTNER OF CRAWFORD & C ANY, L.P. BY: ti:-rw rl Vice President ATTEST: BY: Q10 � __0 4- !)i� — City Secretary - Rebecca Ga a APPROVED S TO CONTENT: BY: Managing irector of Human Resources - Mary House APPROVED AS TO FORM:�Q BY:_ZnriCt_ Contract Manager- William De Haas -2-