HomeMy WebLinkAboutResolution - 2000-R0163 - Contract - MLIRP - Airport Directors & Officers Insurance - 06/08/2000Resolution No. 2000-80163
June 8, 2000
Item No. 25
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 airport
directors and officers insurance, by and between the City of Lubbock and Texas
Municipal League Intergovernmental Risk Pool of Austin, 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 8th day of June '2000.
WINDY SIT � , MAYOR
A
City Secretary
APPROVED AS TO CONTENT:
Victor Ki an, Purchasing Manager
APPROVED AS TO FORM:
William de Haas
Competition and Contracts Manager/Attorney
gs:ccdocsrrx Mun League Intergov Risk Pool.res
May 30, 2000
Resolution No. 2000-80163
Texas Municipal League June 8, 2000; Item No. 25
Intergovernmental Risk Pool
1821 Rutherford Lane, First Floor • Austin, Texas 78754
LIABILITY/PROPERTY INTERLOCAL AGREEMENT
This Contract and Interlocal Agreement is entered into by and between political subdivisions of this state (hereinafter referred to as "Pool
Members') to form a joint self-insurance pool to be named the Texas Municipal League Joint Self -Insurance Fund (hereinafter referred to as
the "Fund") for the purpose of providing coverages against risks which are inherent in operating a political subdivision.
WITNESSETH:
The undersigned Pool Member, in accordance with the Interlocal Cooperation Act, Tex. Gov't Code § 791.001, et seq., and the interpretation
thereof by the Attorney General of the State of Texas (Opinion #MW -347, May 29,1981), and in consideration of other political subdivisions
executing like agreements, does hereby agree to become one of the Pool Members of this self-insuredpool. The conditions of membership agreed
upon by and between the parties are as follows:
1. Definitions of terms used in this Interlocal Agreement.
a. Board. Refers to the Board of Trustees of the Texas Municipal League Joint Self -Insurance Fund.
b. Fund Year. 12:01 a.m. October 1 through 12:01 am. the following October 1.
c. Manual Rates. The basic rates applicable to each liability classification promulgated by the Insurance Service Office or the Board of
Trustees.
d. TML Municipal Liability Self -Insurance Plan. The liability coverage document that sets forth in exact detail the coverages provided
as part of the overall plan.
e. Adjustments. Refers to any offsets to manual premium that may result from the Pool Member's election of deductibles, loss experience
or Fund Modifier which reflects the savings to the Pool Member by entering into this Agreement.
f. TML Municipal Property Self -Insurance Plan. The property coverage document that sets forth in exact detail the coverages provided
as part of the overall plan.
g. Premium and Contribution. Used interchangeably in some parts of this Interlocal Agreement. Any reference at any time in this
Interlocal Agreement to an insurance term not ordinarily a part of self-insurance shall be deemed for convenience only and is not
construed as being contrary to the self-insurance concept except where the context clearly indicates no other possible interpretation
such as but not limited to the reference to "reinsurance."
h. Reimbursable Deductible. The amount that was chosen by this Pool Member to be applicable to the first monies paid by the Fund to
effect judgment or settlement of any claim or suit. The Pool Member, upon notification of the action taken, shall promptly reimburse
the Fund for all or such part of the deductible amount as has been paid by the Fund. Further, however, the Fund's obligation to pay
damages shall be subject to the Limits of Liability stated in the Declarations of Coverage or Endorsements to this Interlocal Agreement
less the stated deductible amount.
i. Fund Modifier. A percentage figure that is applied to the manual rates by the Fund to reflect the savings to the Pool Member by entering
into the Interlocal Agreement.
j. Agreement Period. The continuous period since the Pool Member first became a member of this Fund excluding, however, any period
or periods of time therein that the member did not participate as a member of the Pool.
k. Declarations of Coverage. The specific indication of the coverages, limits, deductibles, contributions and special provisions elected
by each individual Pool Member. The Declarations of Coverages may be modified by Endorsement.
2. The Board of Trustees, acting through its agents and Fund staff, is responsible for the administration of all Fund business on behalf of
the Pool Members.
Revised 10/90
3. In consideration of the execution of this Agreement by and between the Pool Member and the Fund and of the contributionsof the Pool
Member, the coverage elected by the Pool Member is afforded according to the terms of the TML Liability Self -Insurance Plan and the
TML Property Self -Insurance Plan. The affirmative declaration of contributions and limits of liability in the Declarations of Coverage
and Endorsements determines the applicability of the Self Insiiratice Piahs.
Each Pool Member agrees to adopt and accept the coverages, provisions, terms, conditions, exclusions and limitations as further provided
for in the TML Self -Insurance Plans or as specifically modified by the Pool Member's Declarations of Coverage. This Interlocal
Agreement shall be construed to incorporate the TML Liability Self -Insurance Plan and/or the TML Property Self -Insurance Plan,
Declarations of Coverage, and Endorsements and addenda whether or not physically attached hereto.
4. It is understood that by participating in this risk sharing mechanism to cover liability exposures, the Pool Member does not intend to waive
any of the immunities that its officers or its employees now possess. The Pool Member recognizes the Texas Tort Claims Act and its
limitations to certain governmental functions as well as its monetary limitations and that by executing this Agreement does not agree to
expand those limitations.
The Pool Member, upon the execution of this Agreement, shall supply the Fund with a current copy of its charter provisions or ordinance
that sets out its requirement as to the number of days in which a third party liability claim must be made against it.
If the Pool Member does not have such an ordinance provision that establishes a set number of days or if it has an ordinance provision
which provides for less than sixty (60) days notice and for good cause shown up to six (6) months notice the Pool Member agrees to adopt
an ordinance providing for such notice reasonably describing the damage or injury claimed and the time, manner and place of the incident
from which it arose. The notice requirement shall not be changed by the Pool Member without first giving the Fund thirty (30) days written
notice. Violation of this provision may, at the Fund's discretion, void this Interlocal Agreement.
5. The tern of this Agreement and the self-insurance provided to the Pool Member shall be continuous commencing 12:01 am. on the date
designated in this Agreement until terminated as provided below. Although the self-insurance provided for in this Agreement shall be
continuous until terminated, the limit of liability of the Fund under the coverages that the Pool Member elects shall be limited during any
Fund Year to the amount stated in the Declarations of Coverage for that Fund Year.
This Agreement may be terminated by either party giving to the other sixty (60) days prior written notice of intent to terminate except
the Pool Member may terminate this Agreement and its coverages thereunder without giving the sixty (60) days notice if the reason is
because of a change by the Fund in the Pool Member's contribution, coverage, or other change in the limits of liability, terms, conditions,
exclusions and limitations provided for in the Texas Municipal League Self-insurance Plans provided that no termination by the Member
shall be effective prior to the date that written notice of termination is actually received in the offices of the Texas Municipal League Joint
Self -Insurance Fund and provided that the Pool Member agrees to and shall pay the applicable premium and contribution for those
coverages it is terminating until the date the notice of termination is actually received by the Fund.
The Fund shall provide the Pool Member with Declarations of Coverage and any Endorsements that determine the applicability of the
Texas Municipal League Self -Insurance Plans annually by December 1. Such Declarations of Coverage shall include, but not be limited
to, the coverage period which shall be the applicable Fund Year, limits, deductibles, contributions, special provisions and limitations.
Changes made during the Fund Year, whether requested by the Pool Member or required by the Fund, will be handled by Endorsement.
It is the intention of the parties that the Pool Member's coverages under this Agreement shall remain in full force and effect from Fund
Year to Fund Year, subject to the limits of liability that the Fund can provide each Fund Year and the terms, conditions, limitations that
the Fund may require to protect its solvency and to comply with reinsurance requirements, until notice of termination is given as herein
provided. Realizing that the Pool Member needs the earliest possible information concerning the Fund coverages, limits, and exclusions
and the Pool Member's contribution that will be required for any new Fund Year, the Fund will endeavor to provide this information as
soon as possible before the beginning of each Fund Year. The parties recognize, however, that conditions in the reinsurance industry are
such that the Fund may not be able to provide this information to the Pool Member before the beginning of a Fund Year for various reasons
including the failure of the Pool Member to timely submit the appropriate exposure summary or delays on the part of reinsurers in getting
information to the Fund, and so, to protect the Pool Member from gaps in its coverage and to protect the solvency of the Fund, the parties
agree as follows:
If, for any reason other than the Pool Member's failure to provide the information requested in the exposure summary, the Fund has not
been able to provide the Pool Member with information concerning available coverages fora new Fund Year or advise the Pool Member
of the amount of its contribution for the new Fund Year by the beginning of the Fund Year, the Fund shall nevertheless continue the Pool _
Member's coverages at the same limits of liability (if still available and if not, then at the highest limit of liability available for the new
Fund Year) so that the Pool Member shall at all times remain covered as herein provided and the Pool Member's initial contributions
forthe new Fund Yearshall be determined bya "tentative contribution "as determined by the Board with the Pool Member's actual annual
Revised 10/90
contribution to be credited by the amount paid in accordance with the tentative contribution and adjusted during the Fund Year. In the
event the Pool Member does not wish to have its coverages extended or renewed at the end of any Fund Year, the burden shall be upon
the Pool Member to give written notice to the Fund as provided hereinabove and the Pool Member agrees to pay as hereinabove stated
all contributions or pro rata contributions until the date such written notice is received in the offices of the Fund or the date of termination
of this Agreement, whichever is later.
6. Commensurate with the execution of this Agreement and annually thereafter, the Pool Member shall complete the appropriate exposure
summary and deliver it or cause it to be delivered to the Fund, or, if so instructed, to a designated contractor, no later than September 1
of each year and new annual contributions shall be calculated using manual rates times exposure, less any adjustments. Intentional or
reckless misstatements on the exposure summary shall be grounds for cancellation. In the event that the Pool Member fails or refuses
to submit the appropriate exposure summary, the Fund reserves the right to terminate such Pool Member by giving thirty (30) days written
notice and to collect any and all contributions that are earned pro rata for the period preceding contract termination.
The Pool Member agrees to pay the annual contribution to the Fund in four (4) equal quarterly installments, in advance, commencing
at the beginning of this Agreement with subsequent installments due the fust quarter thereafter. Pool Members who elect a deductible
in excess of $25,000 shall comply with the monthly payment schedule outlined to them in advance of assuming such a large deductible.
In the event this Agreement is terminated as herein provided, the Fund shall promptly repay to the Pool Member any such unearned annual
contribution prorated as of the date of termination and the Pool Member agrees during the term of this Agreement to promptly pay all
reimbursable deductibles upon receipt of statement.
At the end of each and every Fund Year, the Fund may require the Pool Member to submit the actual data requested on the exposure
summary as reflected by the books and records of the Pool Member. The Fund reserves the right to audit the records of any Pool Member
and adjust contributions accordingly.
In the event that the Pool Member fails or refuses to make the payments, including accrued interest, as herein provided, the Fund reserves
the right to terminate such Pool Member by giving them ten (10) days written notice and to collect any and all amounts that are earned
pro rata for the period preceding contract termination. If the amounts owed, including reimbursable deductibles, have to be collected by
suit, the Pool Member agrees to pay attorneys' fees and costs incurred in such suit.
7. The Fund shall maintain adequate protection from catastrophic losses to protect its financial integrity. Aggregate protection shall also
be maintained. The Member's contributions shall be limited to that amount as calculated under this Agreement.
8. Notwithstanding the provisions of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection
outlined above and/or amend coverages as it finds available or deems necessary to maintain the fiscal soundness of the Fund at the
beginning of or during any Fund Year.
9. The Fund will make available loss control services to the Pool Members to assist them in following a plan of loss control that may result
in reduced losses. The Pool Member agrees that it will cooperate in instituting any and all reasonable loss control recommendations. In
the event that the recommendations submitted seem unreasonable, the Pool Member has a right to appeal to the Board of Trustees. The
Board shall hear the objections of the Pool Member at its next regularly scheduled meeting and its decisions will be final and binding on
all parties. Any Pool Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately.
10. The Pool Member agrees that it will appoint a contact of department head rank, and the Fund shall not be required to contact any other
individual except this one person. Any notice to or any agreements with the contact shall be binding upon the Pool Member. The Pool
Member reserves the right to change the contact from time to time by giving written notice to the Fund. '
11. The Fund agrees to handle all liability and property claims, and provide a defense for any and all liability claims covered under this
Agreement after prompt notice has been given. The Pool Member hereby appoints the Fund staff and Contractors as its agents to act in
all matters pertaining to processing and handling of claims covered under this Agreement and shall cooperate fully in supplying any
information needed or helpful in settlement or defense of such claims. As respects liability claims, the Fund staff and Contractors shall
carry on all negotiations with the claimant and his attorney and negotiate within authority previously granted by the Fund. If a personal
appearance by the Pool Member or an employee is necessary, the expense of this appearance will not be the responsibility of the Fund
With the advice and consent of the Fund, the Fund staff and the Contractors will retain and supervise legal counsel for the prosecution
and defense of any litigation. All decisions on individual cases shall be made by the Fund through the Fund staff and the Contractors,
which includes the decision to appeal or not to appeal. However, any Pool Member shall have the right in any case to consult with the
Fund on any decision made by the Fund staff or Contractors: The Board shall hear the objections of the Pool Member at its next regularly
scheduled meeting and its decision will be final and binding on all parties. Any suit brought or defended by the Fund shall be brought
or defended only in the name of the Pool Member and/or its officers or employees. There shall be supplied periodically to each Pool
Member a computer printout involving a statement of claims. As respects the TML Municipal Liability Self -Insurance Plan, the Fund
Revised 10/90
pi. I I I I I a
shall have priority in enforcing its subrogation claims agaltist the claims of pool Memberexcept as to claims of the Texas Municipal League
Workers' Compensation Joint Insurance Fund, which shall take preference.
12. The Pool Member acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any
amendments thereto.
13. The Fund agrees that all Fund transactions will be annually audited by a nationally recognized certified public accounting firm.
14. If legally required, the Fund shall cause to be filed the necessary tax forms with the Internal Revenue Service.
15. As the administrators of the Fund, the Board shall primarily and consistently keep foremost in their deliberations and decisions in operating
the Fund that each of the participating Pool Members is a "self-insured." At least annually, the Board shall carefully review, study and
consider the actual claims or loss experience (including reserves for future claims payments) of each of the Pool Members, the pro rata
savings to the Fund resulting from overall loss experience attributed to each Pool Member, and the pro rata portion of the cost of all
catastrophic loss protection and aggregate stop loss protection allocated to each Pool Member as well as the pro rata allocation, as
determined by the Board of the other and necessary administrative expenses of the Pool, in order to reasonably determine the actual pro
ratacost, expense and loss experience of each Pool Member in order to maintain as nearly as possible an equitable and reasonable self-
insurance administration of the Fund as applied to each Pool Member.
The Fund shall maintain case reserves and supplemental reserves computed in accordance with standard actuarial principles, taking into
account historical and other data, designed to measure claims development and claims incurred but not yet reported, so that funds will
be available to meet these claims as they bepome due. The Fund shall also establish and maintain a reserve for Return of Contributions
to further ensure the fiscal integrity of the Fund in the event of a potential adverse loss development. Only current Pool Members may
receive return of contribution.
16. The Pool Member may elect to participate in the Fund only to the extent of obtaining administrative services, and, if desired and available,
reinsurance. In that event, the Pool Member shall not make contributions as provided in Paragraph 5 nor receive the coverages provided
for in the TML Self -Insurance Plan, nor shall the TML Joint Self -Insurance Fund be liable for the payment of claims against the Pool
Member. The Fund shall only handle and service claims for the Pool Member and pay same out of funds to be deposited by the Pool
Member in a separate account administered by the Fund for the payment of claims and judgments only against that Pool Member as "
hereinafter provided.
Notwithstanding the provisions of any other section of this Interlocal Agreement, a Pool Member who elects to receive Administrative
Services Only as specified in the attached Declarations (hereinafter refen-ed to as the "ASO Pool Member") shall be subject to the following
requirements and conditions:
A. Although the ASO Pool Member will receive coverage documents setting forth the coverages, provisions, terms, conditions,
exclusions and limitations provided for in the TML Self -Insurance Plans, these documents are not intended to and shall not create
an insured-insurerrelationship between the Fund or any of its other Pool Members and the ASO Pool Member, but ratherare provided
solely for the purposes of. (1) defining the scope of claims the Fund will handle on behalf of the ASO Pool Member, and (2) defining
the nature and scope of claims and conditions applicable thereto that will be covered by reinsurance, if available and obtained by
the ASO Pool Member, beyond the ASO Pool Member's self-insured retention. The Fund shall not itself be liable for the payment
of claims or judgments against the electing ASO Pool Member, nor to provide the electing ASO Pool Member with a defense of any
such claims or suits at the expense of the Fund. The Fund will only make payments on behalf of the ASO Pool Member out of the
ASO Pool Member's claims account. The ASO Pool Member shall comply with all requirements of any reinsurer including but not
limited to furnishing timely claims reports, proposed settlements that would impact the reinsurer as well as progress reports involving
litigation. The ASO Pool Member further agrees to hold the Fund harmless from any and all claims (including attorney fees) that
may be asserted against the Fund for the non-payment of any claims due to the failure of the ASO Pool Member to maintain adequate
reserves for the payment of claims as well as claims based upon breach of a duty of good faith and fair dealing because of the ASO
Pool Member's or their agents' conduct toward the claimant.
B. In connection with claims within the scope of the coverage documents, the Fund shall provide the following services or on behalf
of the ASO Pool Member as confirmed specifically in the attached Declarations:
1. Overall contract and claims administration;
i
2. Loss control services to the ASO Pool Member to assist it in developing a plan of loss control to attempt to control or reduce the
-
frequency and severity of claims against it;
Revised 10/90
3. Claims servicing including investigation and i66btnmendhtion by the l end's contractors; periodic meetings with the ASO Pool
Member's claims official or claims committee attended by representatives of Contractors;
4. Claims administration including coordination and recommendation of defense; reserve recommendations; claims handling and
defense recommendations by the Fund claims manager and assistants, as well as review of all files to monitor the ASO Pool
Member's self-insurance exposure; participation by Fund staff member(s) in the periodic meetings to review claims with the ASO
Pool Member's claims official or claims committee.
5. Storage and retention of claims records; periodic MIS reports detailing claims and loss information and history.
The Fund shall charge the ASO Pool Member its usual and customary charges for the aforesaid services based on actual services provided
Allocated claim expenses, including defense attorney's fees, discovery fees, expert and witness fees and court costs shall be paid by the Fund
on behalf of the ASO Pool Member out of the ASO Pool Member's claims account as part of the administrative services provided by the Pool,
but shall never be an expense or liability of the Fund but rather is solely that of the ASO Pool Member.
The Fund shall handle all liability and automobile physical damage claims and oversee, coordinate and make recommendations in connection
with the defense of any and all liability lawsuits covered under this Agreement after prompt notice has been given. The ASO Pool Memberhereby
appoints Fund staff and Contractors as its agents to act in all matters pertaining to processing and handling of claims covered underthis Agreement
and shall cooperate fully in supplying any information needed or helpful in settlement or defense of such claims. As respects liability claims,
the Fund staff and Contractors shall cant' on all negotiations with the claimant or his attorney, but no settlement shall be made without express
prior approval of the ASO Pool Member. All claims will be discussed with the ASO Pool Member's claims official or claims committee on
a periodic basis. As information on each claim develops, the Fund staff and Contractors shall make recommendations concerning claim reserves,
settlement and whether or not a case should be tried or settled or a judgment should be appealed, but all decisions on individual cases shall be
made by the ASO Pool Member. In the event of litigation, the Fund staff and Contractors will retain on behalf of the ASO Pool Member legal
counsel approved by the ASO Pool Member to represent it and will supervise the defense of the litigation, including any appeals.
The ASO Pool Member shall establish in its name a "claims account" at a bank designated by the Fund, out of which the Fund, through its agents,
shall pay on behalf of the ASO Pool Member qualified claims or losses and allocated claims expense including court costs, fees and expenses
of attorneys, independent investigators, experts and witnesses and all other costs, charges or expense properly chargeable to a qualified claim
or loss. Funds shall be provided at the inception of the ASO Member's self-insurance program and promptly from time to time under the
following formula based on estimates furnished by the Fund of the anticipated or actual level and volume of qualified claims or losses and
allocated expenses: The ASO Pool Member shall deposit into the account initially an amount equal to one-fourth ('/a) of the estimated volume
of qualified claims or losses and allocated claim expenses during the fust twelve (12) months of its self-insurance program and each month
thereafter, or sooner if necessary, shall deposit into the account an amount sufficient to restore, maintain or increase the account balance to an
amount equal to one-fourth ('/a) of the estimated volume of qualified claims or losses and allocated claim expenses during the next twelve (12)
months.
The Fund shall account to the ASO Pool Member monthly for all expenditures from the claims account. ff at anytime the claims account balance
drops to below fifty percent (50%) of the balance currently called for under the above formula, the ASO Pool Member shall promptly deposit
additional funds to restore the full balance. During any period of time that the claims account balance is fifty percent (50%) or less of that currently
called from under the formula, only allocated claim expenses shall be paid out and the ASO Pool Member shall directly pay qualified claims
or losses out of other funds until it deposits into the claims account the amount necessary to restore the account to its full balance. In the event
payment of a qualified claim or loss would reduce the claims account balance to less than fifty percent (50%) of that called for under the formula,
the ASO Pool Member shall be,promptly notified and shall either pay the qualified claim or loss directly out of other funds or deposit into the
claims account sufficient funds for its payment.
It is expressly understood that the Fund shall not be required to advance its own funds or those of the Joint Self -Insurance Fund to pay claims
or losses or allocated expenses hereunder, or continue to perform any services hereunder if the ASO Pool Member fails to provide necessary
and adequate funds as herein set forth.
It shall be the sole responsibility of the ASO Pool Member to establish and maintain adequate reserves in addition to the limited funds in the
claims account for payment of all claims, including catastrophic claims. The Fund will provide reserve recommendations and estimates of
liability exposures, but both parties realize that judges and juries have wide discretion in assessing damage awards and the award in any particular
case may be greatly in excess of or greatly less than a recommended reserve.
Revised 10190
Either party to this agreement may at any time terminate it tIP06 sixiy (60) bays written notice for any reason as to either all pending and future
claims, or alternatively, only as to future claims. In the event cancellation is with respect to both pending and future claims, the Fund will no
longer be obligated to perform the services outlined in this Agreement and shall promptly and in an orderly manner forward to the ASO Pool
Member or its designee all pending claim files. In the event termination is only as to future claims, this Agreement shall continue in full force
and effect with respect to all pending claims and claims occurring but not reported prior to cancellation until concluded. In eitherevent, the ASO
Pool Member shall be entitled, if it so requests and at its own expense, to have the closed claim filed retrieved from storage and elivered to +
it. In the event the ASO Pool Member does not request closed files in the notice of cancellation, however, they will be retained or destroyed
at the Fund's option and the ASO Pool Member shall have no recourse against the Fund for failure to retain them.
TO BE COMPLETED BY MEMBER:
EMPLOYER MEMBERS' FUND CONTACT (See Section 10�: AIRPORT PUBLIC OFFICIALS
"DI ECTORS & OFFICERS" COVERAGE ONLY
Member Name City of Lubbock
Name ofContact Leisa Hutcheson TideRisk Management Coordinator
Mailing Address P. 0. Box 2000; Lubbock, Texas 79457
Street Address (if different from above) 1625 13th Street, Suite 104
City Lubbock, Texas zip 79401 phone (806)775-2277
SIGNA =AUTHO F.R OFFICIAL, WINDY S I TTON
June 8, 2000
Title Date g.TE
Member's Federal Tax I.D. Number 7 5- 6 0 0 0 5 9 0hut(
This Information is ATORY
,
SPPRPVSD AS #0 CON7ENT:Xj• AP .Vi �FORM:
TUBE COMPLETED BY FUND: (OFFICE USE ONLY) Manager/Attorney
Revised 10/90
Resolution No.
June 8, 2000
Item No. 25
PROPOSALFORM
A. Airport Public Officials Liability Insurance Proposal Form
PROPOSAL FOR INSURANCE ON
CITY OF LUBBOCK
AVIATION PUBLIC OFFICIALS
1. Agency -or Firm Name
2. Company or Companies who will carry coverage
2000-R 0163
The City desires to consider Public Officials Professional Liability coverage's for
the Lubbock International Airport with limits of $5,000,000 and $10,000,000 each
loss and annual aggregate. The contract will be effective for a period of one year
with the option to renew for two additional years with a limited annual premium
Increase of 30/6 or less.
The City desires to consider options for $7,500 and $25,000 deductible per
occurrence.
Annual Annual
Best
Coverage Term in
Premium Premium
s
Amit Months
Resolution No.
June 8, 2000
Item No. 25
PROPOSALFORM
A. Airport Public Officials Liability Insurance Proposal Form
PROPOSAL FOR INSURANCE ON
CITY OF LUBBOCK
AVIATION PUBLIC OFFICIALS
1. Agency -or Firm Name
2. Company or Companies who will carry coverage
2000-R 0163
The City desires to consider Public Officials Professional Liability coverage's for
the Lubbock International Airport with limits of $5,000,000 and $10,000,000 each
loss and annual aggregate. The contract will be effective for a period of one year
with the option to renew for two additional years with a limited annual premium
Increase of 30/6 or less.
The City desires to consider options for $7,500 and $25,000 deductible per
occurrence.
TOTAL PREMIUM AMOUNT
* See coverage clarification #1
Annual Annual
Best
Coverage Term in
Premium Premium
Comoanv Name Rating
Amit Months
AmountAmount
5 5.000,000 ea Wrongful act
S 10,000,000 Aggregate
W/3`/. Prepd Discount
TM -TRP N/A*
S 7.500 Deductible 12
6.578 6,381
S 5,000,000 ea Wrongful act
$10,000,000 Aggregate
W/3%Prcpd Discount
TML -MP N/A•
S 25.000 Deductibie 12
17n 5.209
510.000.000 ea WrongfW act
S 10,000,000 Aggregate
W/3% Prcpd Discount
TML --MP N/A*
S 7.500 Deductible 12
7.296 7.077
510.000,000 ea Wrongful act
510,000,000 Aggregate
W/3% Prepd Discount
TML -IRP N/A'
S 25.000 Deductible 12
!, MR 5,906
TOTAL PREMIUM AMOUNT
* See coverage clarification #1
3. Does Dr^Mal include all expenses of handling claims?
YES X
NO
U2, please briefly describe the variation(s).
4. Does proposal meet the minimum standards of protection as set forth in the
specifications?
YES x NO
t..
If no, please briefly describe deviation(s).
5. Please attach the following:
A. Specimen policy including all endorsements and exclusions. see Cov- Doc • Tab
B. Written evidence of ability to indemnify the City of Lubbock for any
monetary loss up to one (1) million dollars, Incurred by the City as a result
of the error or omission on the part of the agent, his employees, or
subagents In providing or purporting such Insurance coverage as
requested. see coverage clarification #2
C. Information and references regarding former and existing clients of the
agent involved (See General Specifications). see Member services Tab
D. Description of services provided (See General Specifications). see Member serv. Tab
E. Provisions regarding prior notice of cancellation (See General
Specifications)Pee coverage clarification #5
F. Provisions regarding premium payment. see coverage clarification #4
By signing below, l acknowledge that i have completely read and understood these
specifications. Further, I acknowledge that any variations from these specifications,
which are included in this proposal, are so designated. Failure to designate any
variations may eliminate my proposal from consideration.
NAME OF AGENCY THL 4)
NAME OF AGENT jMs F. Vinson ril,Senior underwriter
SIGNATURE OF AGENT
This endorsement forms a part of the Declarations to which attached, effective
on the inception date of the coverage unless otherwise stated herein, and modifies
such self-insurance as is afforded by the provisions of the coverage shown below:
ERRORS & OMISSIONS LIABILITY
Entity Name :Lubbock
Entity ID :547
Effective Date :6/24/00
As part of your Errors and Omissions Liability coverage effective 6/24/00• you have requested
and we have provided a retroactive date of 6/24/95. The retroactive coverage provided by this
endorsement does not apply to :
I) wrongful acts which, at the time of the initial effective date of uninterrupted Errors &
Omissions Liability Coverage shown above, were previously reported as claims to a prior
insurer;
2) wrongful acts likely to give rise to a claim of which the member had knowledge at the time
of the initial effective date. of uninterrupted Errors. & Omissions Liability Coverage shown
above, provided•thc prior assurer 'would havC covered)., c6l�wrongful acts if such had been''
reported to
it digmg its coverage or�ended coveragcpenad or woui'd:haye denied coverage
on the basis of a oblicy c Clro�pyn, dr y
�''t# . 'iiY41u.. w:►... w.4,,.,x'.::A.... ?z1 w:wC::Y' ..
3) claims made against the Member during any extended reporting period provided by previous
insurance.
Coverage provided by this endorsement sbmM be considered excess over any other valid and
collectible insurance.
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL
EL238
02/11/00
Resolution No. 2000—RO163
LIABILITY COVERAGE PROPOSAL
INFORMATION CONCERNING THIS PROPOSAL
1. The attached proposal shows the annual price of various options for liability coverage
available to you through the Texas Municipal League Intergovernmental Risk Pool (the
Pool). For each coverage, all standard options are shown in a grid format.
2. There is a minimum deductible of 51,000 each for Law Enforcement Liability and Errors
gnd Omissions Liability.
3. An aggregate deductible program is available for some deductible options. If you are
interested, please contact your Field Services Representative or Underwater.
4. When Auto Liability coverage is purchased through the Pool, Auto Medical Payments
coverage is included at no additional charge, subject to a limit of $25,000 per person for
all vehicles with a design capacity of sic passengers or less. If you want to provide
medical payments coverage for vehicles with a capacity of more than six passengers, it
can be provided for an additional contribution charge.
5. This proposal has been issued with coverage dates other than the Fund Year beginning
October 1 to the following October 1. At the end of the coverage period, when other
than October 1 to October 1, we will extend the coverage to the next 10-01 at the same
rates as provided in this document, or lower, should the Pool's Board of Directors
approve a rate reduction. Thereafter your coverage will have the same annual coverage
dates as the Fund Year (10/01 to 10/01) at the rates in effect at the time.
TEXAS MUNICIPAL LEAGUE EVTERGOVERNMEqTAL RISK POOL
Page 1 of 2
X170 -A
05/25/99
LIABILITY JOINT SELF-INSURANCE FUND
PROGRAM SUMMARY
Local governments may cover their general liability, automobile, law enforcement, public
officials errors and omissions, and aviation exposures through the Pool's liability program. The
Pool's liability coverage is, in many respects,' broader than coverage available from standard
insurers, and is designed specifically to protect against the risks that local governments face.
Currently there are over 1,740 Members in the liability program.
All cov4pfages are written on an "occurrence" basis, including Errors & Omissions (Public
Officials) Liability. "Occurrence" basis coverage is considered preferable to "claims -made" in
that it permanently obligates the carrier to respond to claims during a policy period. Coverage
applies to events that occur during the coverage period, regardless of when the claim is made.
The Pool retains the first $1,000,000 of general, automobile, law enforcement, and public
officials errors and omissions liability losses and purchases reinsurance above $1,000,000 to
provide total limits up to $10,000,000 for those exposures. The Pool retains the fust $250,000 in
losses per occurrence for automobile physical damage.
Coverage for aviation liability exposures is available for all non-commercial municipally owned
airports and also for commercial feeder, regional and small hub municipal airports. Eligible
entities may elect limits from 11,000,000 up to $20,000,000 for all aviation coverages.
A Reinsurance Fact Sheet is included in the Background Section of this proposal which provides
additional information about the Pool's reinsurance arrangements.
Minimum deductibles vary by line of .coverage,and an eligible entity may elect higher
deductibles to decrease contributions. Lamer entities who qt
lify may take deductibles as high
as $300,000 or $500,000 (excluding aviation). An aggregate deductible program is also
available.
General, errors & omissions, law enforcement and gutomobile liability may be elected separately.
Total contributions are determined initially based upon actual exposures for each entity.
Annually, prior to your anniversary date, Members supply updated exposure information and
coverages are rerated using the most recent Board -approved rates and reinsurance costs.
If you purchased public officials errors & omissions liability from another carrier prior to joining
the Pool and such coverage is on a claims -made basis, claims which are discovered after your
prior policies expire may not be covered unless you obtain prior acts coverage through the Pool.
Additional information on the terms and conditions of such prior acts coverage is available upon
request. It has been included in this Proposal if errors and omissions coverage has been
requested.
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL
Page 2 of 2
X170 -A
08/25194
Resolution No. 2000-R 0163
June 8, 2000
Item No. 25
Texas Municipal League
JOINT SELF-INSURANCE FUND
Liability Coverage Document
OCTOBER 1, 1999
Texas Municipal League Intergovernmental Risk Pool
1821 Rutherford Lane, First Floor Austin, Texas 78754
P.O. Box 149194 - Austin, Texas 78714-9194
(512) 491-2300 - (800) 537-6655
L 200
10-1-99
Resolution No. 2000—RO163
TABLE OF CONTENTS
I. GENERAL CONDITIONS
Defense.......................................................................................................................................... 1
DefinedWords ................................................................................................................................ 1
Inspectionand Audit....................................................................................................................... 1
Member's Duties in the Event of an Occurrence, Wrongful Act,
Claim or Suit for all Coverages Adopted................................................................................. 1
ActionAgainst Fund....................................................................................................................... 2
CoveredParty Counterclaims........................................................................................................2
OtherInsurance..............................................................................................................................2
Subrogation....................................................................................................................................3
Chang9s......................................................................................................................................... 3
Assignment..................................................................................................................................... 3
Interlocal Agreement in Excess of the Fund Year......................................................................... 3
ReimbursableDeductible...............................................................................................................3
ExposureSummary ........................................................................................................................ 4
SupplementaryPayments.............................................................................................................. 4
DEFINITIONS....................................................................................................................................... a
III. GENERAL LIABILITY COVERAGE
InsuringAgreement........................................................................................................................9
CoveredParties.............................................................................................................................. 9
Limitsof Liability ............................................................................................................................ 9
Exclusions.................................................................................................................................... 10
IV -A. AUTOMOBILE LIABILITY COVERAGE
InsuringAgreement...................................................................................................................... 11
CoveredParties............................................................................................................................11
Extensionof Coverage.................................................................................................................11
Limitsof Liability...........................................................................................................................11
Exclusions.......................................................... C.........................................................................
12
FinancialResponsibility Laws...................................................................................................... 12
IV -B. AUTOMOBILE MEDICAL PAYMENTS COVERAGE
InsuringAgreement...................................................................................................................... 13
Limitsof Coverage....................................................................................................................... 13
AdditionalDefinitions.................................................................................................................... 13
Exclusions....................................................................................................................................13
AdditionalConditions....................................................................................................................14
Deductible..................................................................................................................................... 14
V. AUTOMOBILE PHYSICAL DAMAGE COVERAGE
InsuringAgreement......................................................................................................................
] a
Coverages....................................................................................................................................15
Limit of Liability and Deductibles..................................................................................................15
SupplementaryPayments............................................................................................................15
AdditionalDefinitions....................................................................................................................15
Exclusions....................................................................................................................................16
Automobile Catastrophe Coverage Option..................................................................................
17
Additional Coverage for Automobiles Owned by
Volunteer Firefighters and Volunteer Emergency medical Service Persons .........................
17
Conditions.....................................................................................................................................
17
L 200
10.1-s9
VI. LAW ENFORCEMENT LIABILITY COVERAGE
InsuringAgreement...................................................................................................................... 20
CoveredParties............................................................................................................................ 20
Limitsof Liability........................................................................................................................... 20
Exclusions.................................................................................................................................... 20
VII. ERRORS AND OMISSIONS LIABILITY COVERAGE -,
Insuring Agreement...................................................................................................................... 22
CoveredParties............................................................................................................................ 22
Limitsof Liability ........................................................................................................................... 22
EffectiveDates.................................................................................................... ..................... 22
RetroactiveDate........................................................................................................................... 22
Additional Coverage for Reimbursement of Criminal Defense Expenses .................................... 22
Exclusilons.................................................................................................................................... 23
VIII. EXCLUSIONS APPLICABLE TO ALL COVERAGES........................................................................ 25
IX. NUCLEAR ENERGY LIABILITY EXCLUSIONS................................................................................. 30
Definitions..................................................................................................................................... 30
L 200
10-1.99
PART 1
GENERAL CONDITIONS
I. DEFENSE
obtainable information with respect to the time,
place and circumstances thereof, and the names
The Fund shall have tate right and the dntY to defend
and addresses of the injured and available wit -
any sunt against the Member or Covered Party
nesses shall be given by or for the Member to the
seeking damages on account of such liability as
Fund or any of its authorized agents as soon as
covered in this Pian, even if any of the allegations of
practicable.
the suit are groundless, false or fraudulent, and may
make such investigation and settlement of any claim
B. If claim is made or suit is brought against the
or suit it deems expedient, but the Fund shall not be
Member or Covered Party, the Member or Cov-
obligated to pay:any claim or judgment or to defend
ered Party shall immediately forward to the Fund
any suit or pay ihy amounts specified under General
at its Austin, Texas, address every demand, no -
Condition XIV, Supplementary Payments, after the
tice, summons or other process received. Failure
applicable limit of the Fund's liability has been ex-
to immediately forward to the Fund such docu-
hausted. In the event that there is'a conflict of interest
ments, at the sole discretion of the Fund, may be
between the Fund and the Member or Covered
declared a material breach of the duties of the
Party, the Fund shall retain its contractual right to
Member or Covered Party under this Agree -
select defense counsel and control the defense of
meet and may result in forfeiture of coverage for
the suit, without waiving its right to pay only those
that claim.
damages which are covered under the terms of the
Plan.
C. The Member or Covered Party shall cooperate
with the Fund and give any information as may
II. DEFINED WORDS
reasonably be required and, upon the Fund's
request, assist In making settlement, in the con -
Whenever words or phrases appear in this Plan in
duct of suits and in enforcing any right of contri-
bold type, they are used as defined in the Definitions
bution or indemnity against any person or organi-
Section or in the Coverage Parts of this Plan. Oth-
zation who may be liable to the Member or
erwise, words or phrases used herein shall have the
Covered Party because of injury or damage with
ordinary meaning attached to their usage.
respect to which self-insurance is afforded under
Ill. INSPECTION AND AUDIT
the Agreement: and the Member or Covered
Party shall attend hearings and trials and assist in
A. The Fund shall be permitted but not obligated to
securing and giving evidence and obtaining the
inspect the Member's property and operations at
attendance of witnesses. The Member or Cov-
any time. Neither the Fund's right to make in-
ered Party shall not, except at its own cost,
spections nor the making thereof nor any report
voluntarily make any payment, assume any obli-
thereon shall constitute an undertaking on behalf
gation or incur any expense other than for first aid
of or for the benefit of the Member or others to
to others at the time of accident. it shall be
determine or warrant that such property or opera-
understood that the Member or Covered Party
tions are safe or healthful or are in compliance
shall not take any action whatsoever, subsequent
with any law, rule, or regulation.
to an occurrence or wrongful act that could
increase the liability exposure of or jeopardize the
B. The Fuad may examine and audit the Member's
Fund in any way. Any such action, at the sole
books and records at any time during the Agree-
discretion of the Fund, may be declared a mate-
ment Period and extensions thereof and within
rial breach of the duties of the Member or Cov-
three years afterthe final termination of this Agree-
ered Party under this Agreement and may result
ment, as far as they relate to the subject matter of
in forfeiture of coverage for that claim.
this self-insurance.
D. Knowledge or notice of an occurrence, claim or
IV. MEMBER'S DUTIES IN THE EVENT OF AN
wrongful act by an agent, servant or employee of
OCCURRENCE, WRONGFUL ACT, CLAIM OR
the Member shall not constitute knowledge or
SUIT FOR ALL COVERAGES ADOPTED
notice to the Member, unless the Member's
Fund Contact, as designated in the Agreement,
A. In the event of an occurrence or wrongful act,
shall have received notice from its agent, servant
written notice containing particulars sufficient
or employee. The inadvertent failure of an agent,
to identify the Member and also reasonably
L 200
1 of 32 10-1-99
servant or employee of the Member to notify the
Fund of any occurrence or wrongful act of
which he has knowledge shall not invalidate the
self-insurance afforded by this Agreement.
V. ACTION AGAINST FUND
A. No action shall lie against the Fund unless, as a
condition preoedentthereto, there shall have been
full compliance with all of the terms of this Agree-
ment, nor until the amount of the Member's or
Covered Party's obligation to pay shall have
been finally determin ed either byjudgment against
the Member or Covered Party after actual trial or
by written agreement of the Member or Covered
Party, the claimant and the Fund. The Member
or Covered Party shall not assign, transfer, or
pledge all or any portion of the Member's or
Covered Party's rights or interests under this
Agreement, and the Fund shall not be liable to
any pennon claiming any such rights by virtue of
any reported assignment, transfer or pledge
thereof. Breach of the Fund's obligation to pro-
vide a defense shall not relieve the Member or
Covered Party of complying with the provisions
of this paragraph. Further, any such assignment,
transfer, or pledge shall relieve the Fund of all
duties and obligations under this Agreement to
the Member or Covered Party in respect to the
claim in which the rights were assigned, trans-
ferred, or pledged.
B. Any person or organization or legal representa-
tive thereof who has securedjudgment or written
agreement shall thereafter be entitled to recover
under this Agreement to the extent of the self-
insurance afforded by this Agreement. No per-
son or organization shall have any right under this
Agreement to join the Fund as a party to any
action against the Member or Covered Party to
determine the Member's or Covered Party's
liability, nor shall the Fund be impleaded by the
Member or Covered Party or its legal represen-
tative. Bankruptcy or insolvency of the Member
or of the Member's or Covered Party's estate
shall not relieve the Fund of any of its obligations
hereunder.
VI. COVERED PARTY COUNTERCLAIMS
This coverage is not intended to and does not pro-
vide coverage for any claim or suit when Covered
Parties are asserting claims against each other
which would otherwise have resulted in coverage
under this Agreement applying to each Covered
Party involved in such claims. This provision does
not apply:
A. To the Member; or
B. To a Covered Party of one Member asserting
claims against a Covered Party of another Mem-
ber.
VII. OTHER INSURANCE
L 200
10-1-99 2 of 32
A. The self-insurance afforded by the Agreement is
primary self-insurance, except when stated to
apply in excess of or contingent uponthe absence
of other insurance. When this self-insurance is
primary and the Member or Covered Party has
other insurance which is stated to be applicable to
the kiss on an excess or contingent basis, the
amount of the Fund's liability under the Agree-
ment shall not be reduced by the existence of
such other insurance.
B. When both this self-insurance and other insur-
ance apply to the loss on the same basis, whether
primary, excess or contingent, the Fund shall not
be liable under the Agreement for a greater
proportion of the loss than that stated in the ,
applicable contribution provision below:
1. CONTRIBUTION BY EQUAL SHARES. If all
of such other valid and collectible insurance
provides for contribution by equal shares, the
Fund shall not be liable for a greater propor-
tion of such loss than would be payable if
each insurerorthe Fund contributes an equal
share until the share of each insurer or the
Fund equals the lowest applicable limit of
liability under anyone policy or Agreement or
the full amount of the loss is paid, and with
respect to any amount of loss not so paid the
remaining insurers or the Fund then continue
to contribute equal shares of the remaining
amount of the loss until each such insurer or
the Fund has paid its limit in full or the full
amount of the loss is paid; or
2. CONTRIBUTION BY LIMITS. If any such
other insurerdoes not provide for contribution
by equal shares, the Fund shall not be liable
for a greater proportion of such loss than the
applicable limit of liability under the Agree-
ment for which such loss bears to the total
applicable limit of liability of all valid and
collectible insurance against such loss.
C. As respects non -owned automobiles, the cov-
erage provided by this Coverage Document shall
be in excess of any valid and collectible insurance
available to the Member or other Covered Party.
_J
A
D. As respects hired automobiles and watercraft,
IRIthis self-insurance shall be excess over any valid
and collectible insurance available to the Main -
bar or other Covered Party.
E. As respects any occurrence or wrongful act
arising out of the ownership, maintenance or use
of an airport or medical clinic, this self-insurance
small be excess over any valid and collectible
Insurance available to the Member or other Cov-
ered Party and shall be non-contributory with any
insurance or self-insurance purchased by the
Member or Covered Party specifically for such
airport or medical clinic.
F. This coverage shall be excess over any valid and
collectible insurance which provides coverage to
the Member or Covered Party as an additional
named insured, an additional insured, or an other
insured.
Vill. SUBROGATION
In the event of any payment under this Agreement,
the Fund shall be subrogated to all the Member's or
Covered Party's rights of recovery thereof against
any person or organization, and the Member or
Covered Party shalt execute and deliver instru-
ments and papers and do whateverelse is necessary
to secure such rights. The Member small do nothing
after loss to prejudice such rights.
A waiver of subrogation is included for Members lf
required by contract.
IX. CHANGES
Notice to any agent of knowledge possessed by any
agent or by any other person shall not effect a waiver
or a change in any part of the Agreement or estop
the Fund from asserting any right under the terms of
the Agreement; nor shall the terms of the Agree-
ment be waived or changed, except by amendment
issued to form part of the Agreement, signed by an
authorized representative of the Fund and reinsurer
if applicable.
it is agreed that the Board of Trustees of the Texas
Municipal League Joint Self -Insurance Fund shall
have the right to amend, change, or revise the
coverages, limits, terms and exclusions provided in
this Agreement as needed during the Agreement
Period to maintain the fiscal soundness of the Fund.
In the event the Board determines to change or
revise any coverage, term, exclusion or limits of
liability provided by this Agreement, it shall cause
written notice of the change or revision to be given to
the Member stating in the notice the effective date
which, if necessary to satisfy or comply with reinsurer
requirements, may be prior to sending the written
notice of change or revision. The Member shall have
the right to terminate this Agreement and all of its
coverages under the TML Municipal Liability Self -
Insurance Plan because of any change or revision by
delivering to the Fund's offices In Austin, Texas,
notice of termination, provided the effective date of
termination may not be earlier than the date the
written notice is actually received in the Fund offices
and the Member shall be liable for payment of aff
contributions due to the Fund for that Fund Year
prorated as of the effective date of termination.
X. ASSIGNMENT
Assignment of interest under the Agreement shalt
not bind the Fund until Its consent is endorsed
thereon.
XI. INTERLOCAL AGREEMENT IN EXCESS OF THE
FUND YEAR -
This Agreement is indefinite in term and shall con-
tinue until terminated by either the Member or the
Fund. The limit of the Fund's liability stated in the
Agreement Declarations as "aggregate" shall ap-
ply separately to the first Fund Year beginning at the
inception of the Agreement through the next Sep-
tember 30, and to each consecutive Fund Year
thereafter.
XII. REIMBURSABLE DEDUCTIBLE
3 of 32
It is agreed that:
A. The Fund's obligation under this Agreement to
pay damages and claim expenses on behalf of
a Member or Covered Party shall be subject to
the limits of liability stated herein less the stated
deductible amount;
B. The deductible amounts stated in the Declara-
tions apply:
1. Separately to each occurrence or wrongful
act; and
2. To, all damages and claim expenses as a
result of that occurrence or wrongful act.
For Automobile Physical Damage and
Automobile Catastrophe Coverage,
deductibles apply separately as stated in Sec-
tion III D of Part V, Automobile Physical Dam-
age Coverage;
C. The terms of this Agreement, including those
with respect to (1) the Fund's rights and duties
with respect to the defense of suits and (2) the
Member's duties in the event of an occurrence
apply irrespective of the application of the deduct-
ible amount; and
L 200
10 -1 -ss
0, The Fund may pay any part or all of the deductible
amount to effect settlement of any claim and
upon notification of the action taken, the Member
shall promptly reimburse the Fund for such part of
the deductible amount as has been paid by the
Fund.
Xlll. EXPOSURE SUMMARY
Any unintentional error or omission made by the
Member or Covered Party in completing the expo-
sure summary shall not void or impair the coverage
hereunder, provided the Member reports to the
Fund such error or omission as soon as reasonably
possible after discovery. in respect to the section
"Exclusions Applicable to All Coverages this provi-
sion does not limit or in any way after Exclusion O.
XIV. SUPPLEMENTARY PAYMENTS
The Fund will pay, subject to the reimbursable
deductible as stated In the Agreement, and in addi-
tion to the applicable limits of liability provided by this
Agreement:
A. All expenses incurred by the Fund, including all
claim expenses, all costs levied against the
Member or Covered Party in any suit defended
by the Fund, prejudgment interest and all interest
on the entire amount of any judgment therein
which accrues after entry of the judgment and
before the Fund has paid or tendered or depos-
ited in court that part of the judgment which does
not exceed the limit of the Fund's liability thereon;
B. Premiums on appeal bonds required in any such
suit, premiums on bonds to release attachments
In any such suit for an amount not in excess of the
applicable limit of liability of the Agreement, and
the cost of bail bonds required of the Member or
Covered Party because of accident or traffic law
violation arising out of the use of any vehicle to
which the Agreement applies, not to exceed
$250 per bail bond, but the Fund shall have no
obligation to apply for or furnish any such bonds;
C. Expenses incurred by the Member or Covered
Party, - for first aid of others at the time of an
accident for bodity Injury to which the Agree-
ment applies; and
D. The Fund shall not be obligated to pay any
amounts under this Extension of Coverage after
the applicable limit of the Fund's liability has been
exhausted.
L 200
10-1-99 4 of 32
I
C
C
Fl -
Whenever the following words or phrases appear
throughout the Plan, they are defined as follows:
A. ADVERTISING INJURY means injury arising out of
an offense committed during the Agreement Period
occurring in the course of the Member's advertising
activities, if such injury arises out of libel, slander,
defamation, violation of right of privacy, piracy, unfair
competition or infringement of copyright, title or
slogan.
B. AGREEMENT means the Interlocal Agreement
executed between the Fund and the Member and
the Declarations of Coverage designating those
coverages, limits and deductibles of the Plan adopted
by the Member.
C. AGREEMENT PERIOD means the continuous pe-
riod since the Member became a Member of the
Fund for the particular coverage excluding, how-
ever, any periods of time therein thatthe Member did
not participate as a Member of the Fund for that
coverage.
D. AGREEMENT TERRITORY, except as otherwise
provided herein, means anywhere in the world, pro-
vided the original suit for such damages Is brought
within the United States of America, except automo-
bile liability territory shall mean the United States of
America, its territories or possessions or Canada.
E. AIRCRAFT means a landplane, seaplane, amphib-
ian helicopter, ultra -light or balloon and shall include
the engines, propellers, rotor blades, tools and re-
pair equipment therein which are standard for the
make and type of the aircraft, and operating and
navigation instruments and radio equipment usually
attached to the aircraft, including parts temporarily
detached and not replaced by other similar parts.
F. AUTOMOBILE means a land motor vehicle, trailer
or semi -trailer designed for travel on public roads
(including any machinery, equipment, tools, orappa-
ratus attached thereto and not Intended to be re-
moved for use off of or away from the vehicle), but
does not include mobile equipment.
G. AUTOMOBILE BUSINESS means the business or
occupation of selling, repairing, servicing, storing or
parking automobiles.
H. BODILY INJURY means bodily injury, sickness or
disease sustained by any person, including death at
any time resulting therefrom.
PART II
DEFINITIONS
1. CLAIM means a demand or suit against any Cov-
ered Party for damages because of an occurrence
or wrongful act. All ciaiims and damages arising
out of a single wrongful act, interrelated wrongful
acts or a series of related wrongful acts by one or
more Covered Party(les) shall be considered a
single wrongful act
J. CLAIM EXPENSES means all allocated expenses
(those expenses applicable to a particular Claim but
not including claims service fees paid to the claims
subcontractor) incurred by the Fund, or by a Mem-
ber or other Covered Party with the Fund's con-
sent, in the investigation, negotiation, arbitration,
settlement and defense of any claim or suit includ-
ing payments under the `Supplementary Payments"
provisions of this Agreement.
K. COMMANDEERED AUTOMOBILE and COMMAN-
DEERED BOAT means an automobile or boat that
the Member seizes, confiscates, or takes arbitrarily
by force into the Member's temporary care, custody
or control while using it as part of an emergency
situation. Commandeered automobile and com-
mandeered boat does not include an automobile or
a boat owned or available to an employee or volun-
teerof the Memberfrom whom the Member has tacit
approval to use the automobile or boat.
L EMERGENCY SITUATION means an unexpected
situation demanding immediate official action.
M. COMPLETED OPERATIONS HAZARD includes
bodily injury and property damage arising out of
operations or reliance upon a representation or war-
ranty made at any time with respect thereto, but only
If the bodily injury or property damage occurs after
such operations have been completed orabandoned
and occurs away from premises owned by or rented
to the Member. Operations include materials, parts
or equipment furnished in connection therewith.
5 of 32
Operations shall be deemed completed at the earil-
est of the following times:
1. When all operations to be performed by or on
behalf of the Member under a contract have
been completed;
2. When all operations to be performed by or on
behalf of the Member at the site of the operations
have been completed; or
L 200
10-1.99
3. When the portion of the work out of which the
Injury or damage arises has been put to its
intended use by any person or organization other
than anothercontractororsubcontractorengaged
in performing operations for a Member as a part
of the same project
Operations which may require further service or
maintenance work or correction, repair or replace-
ment because of any defect or deficiency, but
which are otherwise complete, shall be deemed
completed.
The Completed Operations Hazard does not in-
clude bodily Injury or property damage arising out
of:
1. Operations in connection with the transporta-
tion of property, unless the bodily Injury or
property damage arises out of a condition in
or on a vehicle created by the loading or
unloading thereof; or
2. The existence of tools, uninstalled equipment
or abandoned or unused materials.
N. CONTRACT means any contract or agreement
relating to or arising out of the conduct of the
Member's business.
O. COVERED PARTY is defined in each of the cover-
age sections of this document. Covered Party shall
also include the heirs, estates, assigns or legal
representatives of any person qualifying as a
Covered Party.
P. DAMAGES means monetary judgment, award,
pre -judgment interest thereon or settlement, but does
not include fines, civil penalties, of whatever kind or
nature, damages for which insurance is prohibited by
law, or attorneys' fees unless those attorneys' fees
are awarded in connection with a covered damage.
Q. DECLARATIONS means the document which sets
forth information that identifies, by Fund Member,
the types of coverage to be provided bythe Fund, the
amounts of any deductible, the coverage period, the
limits of liability of the Fund including any.aggregate
limit, the Fund contribution and any endomementsto
this self-insurance plan that may be appended to the
declaration or referred to in the declaration, and
such other information matters as determined by the
Fund operator and/or the Fund administrator.
R. FUND means the Texas Municipal League Joint
Self -Insurance Fund.
S. FUND MEMBER means the political subdivision
within the State of.Texas which is a present partici-
pant in the Fund.
T. FUND YEAR means the twelve month period
following the effective date set forth in the declara-
tions.
U. HIRED AUTOMOBILE means an automobile not
owned by the Member which is used by contract by
or on behalf of, or lent to, the Member, but does not
include automobiles owned by or registered in the
name &.
1. An officer, director, elected or appointed official,
or any member of a board or commission of the
Member; or
2. An employee or agent of the Member who is
granted an operating allowance of any sort for the
use of such automobile.
V. INSURANCE means the "sell -insurance' provided
under the Agreement.
W. JOINT VENTURE under this Agreement shall mean
a relationship by which the Member and one or more
other persons, organizations or legal entities com-
bine their labor, property or resources for mutual
benefit in a singI9 undertaking for either a definite
period or on a continuing basis.
X. LAW ENFORCEMENT ACTIVITIES means the
actions and functions that are required or within the
defined scope of duties for a Member's or Covered
Party's Law Enforcement Agency which include but
are not limited to, actions towards the prevention and
control of crime. The term Law Enforcement Activi-
ties does not include the employment or personnel -
related actions or activities of a Member's or Cov-
ered Party's Law Enforcement Agency.
Y. • MEMBER means Fund Member.
Z MEMBER'S PRODUCTS means goods or products
manufactured, sold, handled or distributed by the
Member or by others trading in its name, including
any container thereof (other than a vehicle), but
Member's Products shall not include a vending
machine or any property other than such container
rented to or located for use of others but not sold.
AA. MOBILE EQUIPMENT means any of the following
types of land vehicles, including any attached ma-
chinery or equipment:
L 200
rar-ss 6 of 32
1. Bulldozers, farm machinery, forklifts and other
vehicles designed for use principally off public
roads;
2. Vehicles maintained for use solely on or next to
premises owned by or rented to the Member and
not licensed for highway use;
3. Vehicles that travel on crawler treads;
.%
4. Vehicles, whether
' tained primarily to
nently mounted:
self-propelled or not, main -
provide mobility to perma-
a. power cranes, shovels, loaders, diggers or
drills; or
b. road constrtxttion or resurfacing equipment
such as graders, scrapers or rollers;
S. Vehicles not described in 1, 2, 3 or 4 above that
are not self-propelled and are maintained prima-
rily to provide mobility to permanently attached
equipment of the following types:
a. air compressors, pumps and generators
includl(r spraying, welding, building dean-
ing, geophysical exploration, lighting and well
servicing equipment; or
b. cherry pickers or similar devices used to raise
or lower workers;
6. Vehicles not described in 1, 2, 3 or 4 above
maintained primarily for purposes other than the
transportation of persons or cargo.
However, self-propelled vehicles with the follow-
ing types of permanently attached equipment are
not mobile equipment but will be considered
automobiles:
a. equipment designed primarily for.
(1) snow removal;
(2) road maintenance, but not construction
or resurfacing;
(3) street cleaning;
(4) firefighting.
b. cherry pickers and similar devices mounted
on automobile or truck chassis and used to
raise or lower workers; and
c. air compressors, pumps and generators,
Including spraying, welding, building
cleaning, geophysical exploration, lighting and
well servicing equipment.
BB. NON -OWNED AUTOMOBILE means an automo-
bile which is neither an owned automobile nor a
hired automobile of the Fund Member.
CC. OCCURRENCE shall mean each accident or event,
including continuous or repeated exposure to condi-
tions, which results in bodily injury, advertising
Injury, personal injury, or property damage nei-
ther expected nor intended from the standpoint of the
Member or Covered Party.
Occurrence shall include any intentional ad by or
at the direction of the Member or Covered Party
which results in bodily injury, property damage or
personal Injury If such Injury arises solely from the
use of reasonable force for the purpose of protecting
persons or property.
All injury or damage arising out of continuous or
repeated exposure to substantially the same general
conditions shall be considered as arising out of one
occurrencs.
With respect to Advertising Injury Coverage, all
damages involving the same injurious material or
act, regardless of the frequency of repetition thereof,
the number or kind of media used and the number
of claimants, shall be deemed to arise out of one
occurrence.
With respect to Law Enforcement Liability Coverage
only, occurrence shall mean an event, including
continuous or repeated exposure to conditions which
result in personal injury, bodily injury, or property
damage sustained during the Fund Year, by any
person or organization, and arising out of the
Member's law enforcement activities. All claims
arising out of (a) rbt or insurrection; (b) a' civil
disturbance resulting in an official proclamation of a
state of emergency; (c) a temporary curfew; or
(d) martial law shall be deemed to constitute one
occurrence.
DD. PERSONAL INJURY means injury arising out of one
or more of the following offenses:
7 of 32
1. False arrest, detention or Imprisonment;
2. Malicious prosecution;
3. Wrongful entry, eviction or other invasion of the
right of private occupancy;
4. The publication or utterance of a libel, slander or
other defamatory or disparaging material, or pub-
lication or utterance in violation of an individual's
right of privacy;
5. False, erroneous or improper service of civil
papers; or
6. Assault and battery.
For the purposes of Law Enforcement Liability
Coverage only, the following are included within the
definition of personal injury:
1. Violation of property rights; or
2. Violation of civil rights.
L 200
10-1-98
EE. PLAN means the plan of self-insurance offered its
Members by the Fund and as more specifically
designated in the Agreement.
FF. PRIOR ACTS PERIOD means the Agreement
Period as defined herein during which the Member
has been a Member of the Fund for a particular
coverage plus the period of time, if any, between the
retroactive date stated in the Declarations as appli-
cable to a particular coverage and the beginning of
the Agreement Period for the Member for that
particular coverage.
GG. PRODUCTS HAZARD includes bodily injury and
property damage arising out of the Member's
Products or reliance upon a representation or war-
ranty made at any time with respect thereto, but only
if the bodily injury or property damage occurs
away from premises owned by or rented to the
Member and after physical possession of such prod-
ucts has been relinquished to others.
HH. PROPERTY DAMAGE means:
1. Physical injury to or destruction of tangible prop-
erty which occurs during the Agreement Period,
including the loss of use thereof at any time
resulting therefrom; or
2. Loss of use of tangible property which has not
been physically injured or destroyed, provided
such loss of use is caused by an occurrence
during the Agreement Period.
Property damage shall include damage arising out
of the handling of or performing post-mortem exami-
nations on human bodies.
11. SUIT means a proceeding before a judicial court of
law and does not include a proceeding before an
administrative agency. However, suit shall include
responding to claims filed with the Equal Employ-
ment Opportunity Commission or the Texas Com-
mission on Human Rights.
JJ. WRONGFUL ACT means any actual or alleged
error, misstatement,. misleading statement, act or
omission, neglect or breach of duty including misfea-
sance, malfeasanceanonfeasance, including wrong-
ful acts relating to the administration of Employee
Benefits Program by the Member and employment
practices including but not limited to hiring or failure
to hire, improper dismissal or discipline, improper
promotion or failure to promote, discrimination in
employment practices or allegations related to such
employment practices of the Member by a Member
or Covered Party while acting in his or her official
capacity, which occurs during the prior acts period.
L 200
10-1-99 8 of 32
With respect to the definition of Wrongful Act:
i. EMPLOYEE BENEFITS PROGRAM means the
administration of group life insurance, group
accident or health insurance, profit sharing plans,
pension plans and stock subscription plans, un-
employment insurance, social security benefits,
workers' compensation and disability benefits or
any other similar plan; and
2. ADMINISTRATION means the counseling of
employees, including their dependents and ben-
eficlaries, with respect to the Employee Benefits
Program, the handling of records in connection
with the Employee Benefits Program or effect-
Ing
ffectIng or terminating any employee's participation
In a plan included in the Employee. Benefits
Program.
r
C
Y
PART III
GENERAL LIABILITY COVERAGE
1. INSURING AGREEMENT Ill. LIMITS OF LIABILITY
The Fund will pay on behalf of the Member or
Covered party all sums which the Member or Cov-
ered Party shall become legally obligated to pay as
damages arising out of an occurrence that takes
place during the Fund Year and within the Agree-
ment Territory:
A. Because of bodily injury, property damage,
advertislgo injury, or personal Injury to which
this self-insurance applies as stated in the Agree-
ment, including claims within the completed
operations hazard and the products hazard;
and
B. Because of bodily injury that arises from
rendering or failure to render.
1. Incidental medical services or first aid
(including transportation) at the scene of an
accident or injury by any Covered Party not
regularly engaged in the medical profession;
or
2. Medical services (including transportation)
by emergency medical technicians, paramed-
ics, nurses and aides employed by or volun-
teering on behalf of the Member's emer-
gency medical service, if any, while in the
course of their employment or duties as such.
If. COVERED PARTIES
Each of the following is a Covered Party under this
Part of the Uability Coverage Document to the extent
set forth below:
A. The Member,
Regardless of the number of (1) Members or Cov-
ered
overed Parties under this Agreement. (2) persons or
organizations who sustain bodily Injury, property
damage, personal Injury or advertising Injury, or
(3) claims made or suits brought on account of
bodily injury, property damage, personal injury,
or advertising Injury, the Fund's lability for the
applicable Fund Year is limited as follows:
A. The total liability for the Fund for all damages,
including damages for care and loss of services,
because of bodily injury, property damage,
personal injury, or advertising Injury sustained
by one or more persons as the result of any one
occurrence shall not exceed the limit of liability
stated in the Declarations for General Liability for
the applicable Fund Year as applicable to 'each
occurrence.'
B. With respect to the Member's liability arising out
of any joint venture to which this self-insurance
applies, the Fund shall not be liable for an amount
greater than the pro rata share of any damages
based on the number of participants in the joint
venture, unless the Member's liability is ex-
pressed otherwise contractually in the joint
venture agreement.
C. For the purpose of determining the limits of the
Fund's liability, all bodily injury, property dam-
age, personal injury, and advertising injury
arising out of continuous or repeated exposure to
substantially the same general conditions or con-
tinuous or repeated publication or dissemination
of substantially the same information shall be
considered as arising out of one occurrence.
B. Any officer, director, elected or appointed official, D. Subject to the above provisions applicable to
any member of a board or commission of the each occurrence, the total liability of the Fund
Member and anyemployee of the Member, when for all damages because of bodily Injury,
such person is acting within the scope of their property damage, advertising injury, or
duties or employment as such; and personal injury, regardless of the number of
occurrences taking place during the Fund Year,
C. Any volunteer while acting within the scope of shalt not exceed the limit of liability stated in the
duties assigned by the Member and while under Declarations for the applicable Fund Year as
the general supervision of an officer, director, "aggregate
elected or appointed official, member of a board
or commission of the Member or an employee of
the Member.
9 of 32
L 200
10-1.99
IV. EXCLUSIONS
A. For the purpose of General Liability Coverage
only, Exclusion B of the "Exclusions Applicable to
All Coverages' shall not apply with respect to:
I. Bodily Injury that arises at an airport or while
on board an almr*A which is on the ground,
from rendering or failure to render.
a. incidental medical services or first aid
(including transportation) at the scene
of an accident or injury by any Covered
Party not regularly engaged in the medical
profession; or
b. medical services (including transporta-
tion) by emergency medical technicians,
paramedics, nurses and aides employed
by the Member's emergency medical
service, if any, while in the course of their
employment as such;
2. Any premises which, although on premises
designated as airport premises, are separate
and distinct from those premises normal and
customary to the operation of an airport or
ownership, servicing, maintenance or opera -
ton of aircraft.
B. In addition to those other matters excluded from
coverage in the "Exclusions Applicable to All
Coverages; this General Liability Coverage does
not appy to:
1. Any occurrences, claims or damages ads -
Ing out of the law enforcement activities of
the Member or any Covered Party including,
but not limited to, the prevention and control
of crime, but this exclusion shall not apply to
losses which arise solely from defects in
premises occupied by or used bylaw enforce-
ment or police departments;
2. The ownership, operation, use, loading,
unloading or maintenance of an automobile;
3. Any occurrences, claims or damages for
whichooverage is otherwise afforded, orwould
have beenaffordedif the Memberhad elected
the coverage under the Automobile Liability,
Law Enforcement Liability or Errors and Omis-
sions Liability Coverages, it being intended
by the parties that this coverage not overlap
nor apply in addition to those coverages to the
same occurrences, claims or damages;
and
L 200
10.1.99 10 of 32
4. Claims or suits against the Memtter or ,
Covered Party for the recovery of damages
orattomey's fees based upon the Member's:
a. enactment or enforcement of allegedly
invalid, unlawful or discriminatory ord'
nances, regulations, requirements, of
restrictions; or
b. alleged noncompliance with or violation
of applicable municipal, state or federal
laws and regulations, unless such non-
compliance or violation results in actual
physical damages to property or act ma
bodily injury to a person.
5. Any medical services performed at any
location specifically designed or used for the
purpose of providing such medical services,
Including all hospitals * and other medical
facilities where overnight medical care is
provided or any clinic where emergency
medical services are provided, but this ex-
clusion shall not apply to losses arising out of
operations of emergency medical personnel
who are not employees of such medical
facility, while in training or moving injured
persons Into or out of such facility, except
that the coverage shall be excess of any
other insurance available to the Member or
Covered Party.
6. Any occurrences, claims or damages aris
ing from employment matters with employ-
ees or officials of the Member.
C. For the purpose of this coverage only, subpara-
graph 1.d.(1) of the Exclusion D of the "Exclu-
sions Applicable to All Coverages" shall
not apply to bodily Injury or property damage
arising out of the escape of fuel, lubricants or
other operating fluids that are needed to perform
the normal electrical, hydraulic or mechanical
functions necessary for the operation of mobile
equipment or its parts, if such fuels, lubricants or
operating fluids escape from a vehicle part de-
signed to hold, store or receive them. Subpara-
graph 1.d.(1) of said Exclusion D shall apply if the
fluids, lubricants or other operating fluids are
Intentionally discharged, dispersed or released,
or if such fuels or lubricants or other operating
fluids are brought on or to the premises, site or
location with the intent to be discharged, dis-
persed or released as part of the operations
being performed by the Member or any contrac-
tor or subcontractor.
PART IV - A
AUTOMOBILE LIABILITY COVERAGE
. I. INSURING AGREEMENT
The Fund will pay on behalf of the Member or
Covered Party all sums which the Member or Cov-
ered Party shall become legally obligated to pay as
damages arising out of an occurrence that takes
place during the Fund Year and within the Agree-
ment Territory because of bodily injury or prop-
erty damage, to which this self-insurance applies as
stated in the Agreement arising out of the owner-
ship, operation,` use, loading, unloading or mainte-
nance of an automobile.
If. COVERED PARTIES
Each of the following is a Covered Party under this
Part of the Liability Coverage Document to the extent
set forth below:
A. The Member,
B. Any officer, director, elected or appointed official,
any member of a board or commission of the
Member and any employee of the Member, when
such person is acting within the scope of their
duties or employment as such (subject to para-
graphs D, E, and F with respect to the use of
automobiles);
C. Any volunteer while acting within the scope of
duties assigned by the Member and while under
the general supervision of an officer, director,
elected or appointed official, member of a board
or commission of the Member or an employee of
the Member (subject to paragraphs D, E and F
with respect to the use of automobiles);
D. With respect to use of an owned automobile or
one hired by or on the behalf of the Member, any
person or organization, provided the actual use is
with the permission of the Member, however,
such coverage shall not extend to the owner or
lessor of an automobile hired by or on behalf of
the Member unless coverage for such owner or
lessor is required by contract. However, this self-
insurance shall not extend to any person with
respect to the loading or unloading of such owned
or hired automobile unless that person or orga-
nization is:
1. A lessee or borrower of the automobile or an
employee of such lessee or borrower, or
2. A Covered Party as defined in A. B and C
above;
E. Any officer, director, elected or appointed official,
employee, volunteer, or any memberof a board or
commission of the Member with respect to use of
a non -owned automobile while such automo-
bile is being used in the business of the Member;
and
F. This self-insurance does not apply to any person
while employed in or otherwise engaged in duties
In connection with an Automobile Business,
otherthan an Automobile Business operated by
the Member.
Ill. EXTENSION OF COVERAGE
AGREEMENT TERRITORY is extended to include
infrequent trips to Mexico that:
1. Do not exceed twenty-five (25) miles from the
boundary of the United States of America; and
2. Do not exceed ten (10) days at any one time.
This extension applies only to Covered Parties who
live in the United States of America, and an automo-
bile which is principally garaged and used in the
United States of America. If either of these two
requirements is not met, this extension will not apply.
AUTOMOBILE ACCIDENTS IN MEXICO ARE
SUBJECTTO THE LAWS OF MEXICO ONLY -NOT
THE LAWS OFTHE UNITEDSTATES OFAMERICA.
UNLIKE THE UNITED STATES, THE REPUBLIC
OF MEXICO CONSIDERS AN AUTOMOBILE AC-
CIDENT A CRIMINAL OFFENSE AS WELL AS A
CIVIL MATTER.
IN SOME CASES, THE COVERAGE UNDER THIS
AGREEMENT MAY NOT BE RECOGNIZED BY
MEXICAN AUTHORITIES AND THE FUND MAY
NOT BE ALLOWED TO IMPLEMENTTHIS COVER-
AGE AT ALL IN MEXICO. THE COVERED PARTY
SHOULD CONSIDER PURCHASING AUTOMO-
BILE COVERAGE FROM A LICENSED MEXICAN
INSURANCE COMPANY BEFORE DRIVING INTO
MEXICO.
IV. LIMITS OF LIABILITY
11 of 32
Regardless of the number of (1) Members or Cov-
ered Parties under this Agreement, (2) persons or
organizations who sustain bodily injury or property
damage, or (3) claims made or suits brought on
account of bodily injury or property damage, the
Fund's liability for the applicable Fund Year is
limited as follows:
L 200
10.1-99
A. The total liability for the Fund for all damages,
including damages for care and loss of services,
because of bodily Injury or property damage
sustained by one or more persons as the result of
any one occurrence shall not exceed the limit of
liability stated in the Declarations for Automobile
Liability for the applicable Fund Year as appli-
cable to "each occurrence
B. With respect to the Member's liability arising out
of any joint venture to which this self-insurance
applies, the Fund shall not be liable foran amount
greater than the pro rata share of any damages
based on the number of participants in the joint
venture, unless the Member's liability is ex-
pressed ot4brwise contractually in the joint ven-
ture agreement; and
C. For the purpose of determining the limits of the
Fund's liability, all bodily Injury and property
damage arising out of continuous or repeated
exposure to substantially the same general con-
ditions shall be considered as arising out of one
occurrence.
V. EXCLUSIONS
A. For the purpose of this coverage only, Exclusion
B of the "Exclusions Applicable to All Coverages'
shall not apply with respect to the ownership,
operation, use, loading, unloading or maintenance
of automobiles at an airport, except when such
automobiles are on runways or other airport
premises where aircraft are operated, serviced,
maintained or stored.
B. For the purpose of this coverage only, Exclusion
D of the "Exclusions Applicable to All Coverages"
shall not apply to:
1. Bodily Injury or property damage arising
out of the overturn or collision of an
automobile; or
2. Pollutants (as defined in Exclusion D of the
"Exclusions Applicable to All Coveragesl that
are needed for or result from the normal
electrical, hydraulic or mechanical function-
ing of an automobile or its parts if:
a. the pollutants escape, seep, migrate or
are discharged, dispersed or released
from an automobile part designed to
hold, store, receive or dispose of such
pollutants; and
b. the bodily Injury or property damage
does not arise out of the operation of any
equipment listed in paragraph 6.c of the
definition of mobile equipment.
L 200
10-1-99 12 of 32
C. This coverage does not apply to those matters
excluded in the "Exclusions Applicable to All
Coverages" portion of this Agreement, nor to the
following:
Any occurrences, claims or damages for
which coverage is otherwise afforded, orwould
have been afforded ifthe Member had elected
the coverage underthe General Liability, Law
Enforcement Liability or ERors and Omis-
sions Liability Coverages, it being intended
by the parties that this coverage not overlap
nor apply In addition tothose coverages to the
same occurrences, claims or damages.
D. This coverage does not apply to claims or sults
for damages that arise out of the use of an
automobile by the Member's Law Enforcement
Agency in pursuit of a criminal offender, unless
those damages are the result of physical contact
with the pursuit vehicle.
VI. FINANCIAL RESPONSIBILITY LAWS
A. When the Agreement is certified as proof of
financial responsibility for the future under the
provisions of any motor vehicle financial respon-
sibility law, such self-insurance as is provided by
the Agreement for bodily injury liability or for
property damage liability shall comply with the
provisions of such law to the extent of the cover-
age and limits of liability required by such law.
The Member agrees to reimburse the Fund for
any payment made by the Fund which the Fund
would not have been obligated to make under the
terms of the Agreement except the agreement
contained in this paragraph.
B. if under the provisions of a motor vehicle financial
responsibility law or a motor vehicle compulsory
insurance law or any similar law of any state or
province, a nonresident is required to maintain
insurance with respect to the operation or use of
a motor vehicle in such state or province and such
insurance requirements are greater than the self-
insurance provided by the Agreement, the limits
of the Fund's liability and the kinds of coverage
afforded by the Agreement shall be as set forth in
such law, in lieu of the self-insurance otherwise
provided by the Agreement, but only to the extent
required by such law and only with respect to the
operation or use of a motor vehicle in such state
or province, provided that the self-insurance un-
der this provision shall be reduced to the extent
that there is other valid and collectible insurance
under this or any other motor vehicle insurance
policy. In no event shall any person be entitled
to receive duplicate payments for the same
elements of loss.
1
C
PART iV - B
AUTOMOBILE MEDICAL PAYMEiVTS COVERAGE
1. INSURING AGREEMENT
The Fund will pay reasonable expenses incurred for
necessary medical and funeral services to or for an
eligible person who sustains bodily injury caused
by an accident involving a covered automobile.
11. LIMITS OF COVERAGE
A. Regardless of the number of covered automo-
biles, etigi4lb persons, claims made orvehicles
involved in an accident, the most the Fund will
pay for bodily injury for any one eligible person
is $25,000, unless a different limit of liability is
stated in the Declarations for the applicable
Fund Year, but in no event shall the Fund pay
more than $10,000 for funeral services.
B. Any amounts otherwise payable for expenses
under this coverage shall be reduced by any
amounts paid or payable for the same expenses
under the General and Automobile Liability Cov-
erages provided by the Fund.
C. No payment will be made unless the eligible
person or that person's legal representative
agrees in writing that such payment shall be
applied to, and the Fund shall receive credit
toward, any judgment that person may ultimately
obtain against the Fund Member or Covered
Party, and payable by the Fund on behalf of its
Member or Covered Party under its Automobile
Liability Coverage.
D. Payments under this provision shall only be for
medical services rendered within ninety (90) days
of the date of the accident.
Ill. ADDITIONAL DEFINITIONS
A. ACCIDENT means the collision of a covered
automobile with another object or with a vehicle
to which it is attached, or upset of such covered
automobile.
B. COVERED AUTOMOBILE means an automo-
bile with a design capacity of six passengers, in
addition to the driver, or less which Is owned or
leased by the Fund Member or an automobile
while temporarily used as a substitute for an
owned covered automobile that has been with-
drawn from normal use because of its breakdown,
repair, servicing, loss ordestruction. (This cover-
age is only applicable to passengers in covered
automobiles with a design capacity in excess of
six passengers if an endorsement Iothat effect is
a part of the Declarations.)
C. ELIGIBLE PERSON means any person who
sustains bodily injury while occupying a cov-
ered automobile with the reasonable belief that
such person Is entitled to do so. Persons in the
custodyofthe MemberaftWoutofthe Member's
Law Enforcement Activities are not eligible
persons.
D. OCCUPYING means in; upon; or getting in, on,
out. or off.
IV. EXCLUSIONS
13 of 32
This coverage does not apply to bodily injury.
A. To any employee of the Fund Member while in
the course and scope of his or her duties;
B. To any volunteer or elected orappointed official of
the Fund Member while in the course and scope
of their duties as such if the volunteer or elected
or appointed official is entitled to receive workers'
compensation benefits;
C. To any eligible person who, as a result of their
Injuries in an accident, is entitled to workers'
compensation benefits under applicable laws.
This exclusion applies whetherthe injured person
Is an employee of the Fund Member or someone
else;
D. For that portion of medical or funeral expenses
which any eligible person is entitled to collect
from any insurance company or insurance plan or
self-insurance plan. This exclusion does not
appy.to deductibles or co-insurance payments
which must be paid by or on behalf of the eligible
person; or
E. For any medical or funeral expenses which are
payable under any other section of the Fund's
Agreement.
L 200
10 -1 -ss
V. ADDMONAL CONDITIONS
A. In the event that the Fund makes any payment
under this coverage, the Fund shall be subro-
gated to the eligible person's rights of recovery
against any other person or organization, and the
eligible person shall execute and deliver instru-
ments
nstarments and papers and do whatever else is neces-
sary to secure such rights. If the eligible person
recovers from another party. he or she shall hold
the proceeds in trust for the Fund and reimburse
the Fund to the extent of the Fund's payment.
B. This coverage shall be non-contributory with any
other coverage or insurance. To the extent any
other coverage or insurance Is available to the
eligible person, whether on a primary or excess
basis, this coverage shall not apply.
C. No person or entity otherthan the eligible person
or his or her heirs or legal guardian shall have any
claim against the Fund under this coverage.
Vi. DEDUCTIBLE
Payments under this provision will be subject to the
Automobile Liability Coverage deductible shown on
the Declarations.
L 200
10-1-e9 14 of 32
PART V
AUTOMOBILE PHYSICAL DAMAGE COVERAGE
1. INSURING AGREEMENT
The Fund will pay for loss to covered automobiles
which occurs during the Agreement Period while
the covered automobile is within the Agreement
Territory.
11. COVERAGES
A. COMPREHENSIVE - from any cause except
collision; but; for the purpose of this coverage,
breakage of glass or loss caused by missiles,
falling objects, fire, theft or larceny, windstorm,
hail, earthquake, explosion, riot or civil commo-
tion, malicious mischief orvandalism, water, flood
or colliding with a bird or animal shall not be
deemed loss caused by collision;
B. COLLISION - caused by collision of a covered
automobile with another object or with a vehicle
to which it is attached, or upset of such covered
automobile.
Ili. LIMIT OF LIABILITY AND DEDUCTIBLES
A. The limit of the Fund's liability for We to any one
covered automobile shall not exceed the actual
cash value of such covered automobile or, if the
loss is to a part thereof, the actual cash value of
such part at the time of loss less any applicable
deductible.
B. Such insurance and respective deductible apply
separately to each covered automobile. A land
motor vehicle and one or more trailers or semi-
trailers attached thereto shall be held to be sepa-
rate covered automobiles with respect to limits
of liability and any deductible provisions appli-
cable thereto.
C. The maximum deductible a Member must pay for
all covered automobiles for bas arising out of
a single occurrence Involving more than one
covered autonuAft is the amount shown on
the Declarations as the Automobile Physical
Damage 'occurrence deductible
D. Any deductibles applicable to any loss covered
by this Automobile Physical Damage Coverage
section shall not be reduced by any deductibles
applicable to any othercoverage provided through
the Fund, and such other applicable deductibles
shall not be reduced because of the deductibles
applicable under this coverage. However, if, in a
single occurrence, a loss to an automobile(s)
is covered by this Automobile Physical Damage
Coverage and the personal property in the
automobile(s) Is covered by the Fund under its
Property Coverage Document, but there is no
loss to any structure or premise identified in the
property schedule referenced in the Property Cov-
erage Document, the total deductible shall not
exceed the largest deductible which is applicable
either under this Automobile Physical Damage
Coverage or the Property Coverage Document.
IV. SUPPLEMENTARY PAYMENTS
In addition to the applicable limits of liability, the
Fund will, with respect to such transportation insUr-
ance as is afforded herein, pay towing, handling and
storage charges for which the Member becomes
legally liable, reimburse the Member in the event of
a theft covered by this Insurance of an entire cov-
ered
overed automobile or expense incurred for the rental
of a substitute for such automobile during the period
commencing forty-eight (48) hours after such theft
has been reported to the Fund and the police. This
period will terminate, regardless of expiration of the
Agreement Period, when such automobile is re-
turned to use or the Fund pays for the loss; but, as
to any one such theft, such reimbursement shall not
exceed $20 for any one day nor $600 total.
V. ADDITIONAL DEFINITIONS
When used in reference to this coverage:
15 of 32
A. ACTUAL CASH VALUE means the lesser of:
1. The cost to repair,
2. The cost to replace with like kind and quality
less proper deduction for depreciation; or
3. The amount actually expended to replace, if
replaced.
B. AGREEMENT TERRITORY means the United
States of America, its territories or possessions or
Canada, including infrequent trips to Mexico that:
1. Do not exceed twenty-five (25) miles from the
boundary of the United States of America;
and
2. Do not exceed ten (10) days at anyone time.
L 200
10-1-99
C. COVERED AUTOMOBILE means an automo-
bile:
1. Owned by the Member or leased for six
months or longer by the Member, and for
which the Automobile Schedule attached to
the Declarations indicates that Automobile
Physical Damage Coverage is provided; or
2. Rented, leased ,borrowed orcommandeered
for less than six months by the Member,
provided that -the Automobile Schedule at-
tached to the Declarations indicates that
Automobile Physical Damage Coverage is
provided for one or more automobiles owned
by the Member or leased for six months or
longer.
D. FLEET AUTOMATIC BASIS means coverage Is
afforded for automobiles for which the
Automobile Schedule attached to the Declara-
tions at inception indicates that Automobile Physi-
cal Damage Coverage is provided and for all
newly acquired automobiles. By endorsement
to the Member's Declaration, Fleet Automatic
may be defined to apply only to automobiles
equal to or exceeding specific age and/or actual
cash value requirements, or other conditions as
agreed to by the Fund and Fund Member.
E. LOSS means direct and accidental loss or
damage.
VI. EXCLUSIONS
This coverage does not apply:
A. To damage which Is due and confined to:
1. Wear and tear,
2. Freezing; or
3. Mechanical failure;
unless such damage is the result of other Was
covered by this Insurance.
B. To tires, unless:
1. Loss is determined to be coincidental with
and from the same cause as other loss cov-
ered by this Insurance; or
2. Damaged by fire, malicious mischief,
vandalism or stolen.
C. To loss to:
1. Any device or instrument designed for the
recording, reproduction or recording and re-
production of sound unless such device or
instrument is permanently installed in the
covered automobile;
L 200
10449 16 of 32
2. Any tape, wire, record disk or other medium
for use with any device or instrument de-
signed for the recording, reproduction or re-
cording and reproduction of sound.
D. To loss resulting from hostile or warlike action it
time of peace orwar, including action in hindering, -
combatting or defending against an actual, im-
pending or expected attack: _
1. By any government or sovereign power
(de jure or de facto) or by any authority
maintaining or using military, naval or air
forces;
2. By military, naval, or air forces; or
3. By an agent of any such government; power,
authority or forces.
E. To losses resulting from rebellion, revolution,
civil war, usurped power or action taken by gov-
emmental authority in hindering, combatting or
defending against such occurrence.
F. To losses resulting from seizure ordestnuction by
order of public authority, except destruction by
order of public authority to prevent the spread. of
fire or explosion.
G. Against risks of contraband or illegal trade.
Notwithstanding the above provision, this
Agreement shall cover loss or damage directly
caused by acts committed by agent of any gov-
emment, party or faction engaged in war, hostili-
ties or warlike operation, provided such agent is
acting secretly and not in connection with any
operation of armed forces (whether military, naval
or air forces) in the country where the property is
situated. Nothing in the foregoing shall be con-
strued to include any loss, damage or expense
caused by or resulting from any of the risks or
perils excluded above, excepting only the acts of
certain agents expressly covered herein, but in no
event shalt this coverage include any loss, dam-
age or expense caused by or resulting from any
weapon of war employing atomic fission or radio-
active force whether in time of peace or war.
N. Nuclear reaction, nuclear radiation or radioactive
contamination, all whether controlled or uncon-
trolled, and whether such loss be direct or indi-
rect, proximate or remote, or be in whole or in part
caused by, contributed to or aggravated by the
peril(s) covered in this Agreement, except:
1. If fire ensues, liability is specifically assumed
for direct loss by such ensuing fire bu
not including any loss due to nuclear reac-
tion, nuclear radiation or radioactive
contamination;
1
1
, 2. The Fund shall be liable for loss or damage
caused by sudden and accidental radioactive
contamination, including resultant radiation
damage for each occurrence from material
used or stored or from the processes con-
ducted on covered premises, provided at the
time of loss there is neither a nuclear reaction
capable of sustaining,nuclear fission in a self-
supporting chain reaction nor any new or
used nuclear fuel on the insured premises.
For the purpose of this coverage section only,
all exclusions in the "Exclusions Applicable to All
Coverages" shall not apply.
VII. AUTOMOBILE CATASTROPHE COVERAGE
OPTION
With respect to covered automobiles on which the
Declarations indicate that Automobile Physical Dam-
age Coverage is rejected but a limit and deductible
are shown for Automobile Catastrophe Coverage,
the following exclusions are added to the "Exclu-
sions" under paragraph VI of Part V, Automobile
Physical Damage Coverage:
A. To Collision Coverage;
B. To loss to any automobile other than a covered
automobile;
C. To loss to any covered automobile unless two
or more covered automobiles are damaged in
the same occurrence and the total damages to
all covered automobiles exceeds the deductible
for Automobile Catastrophe Coverage shown on
the Declarations.
Vlll. ADDITIONAL COVERAGE FOR AUTOMOBILES
OWNED BY VOLUNTEER FIREFIGHTERS AND
VOLUNTEER EMERGENCY MEDICAL SERVICE
PERSONS
The Fund will pay up to $500 for the cost of repairs
for an automobile owned by avolunteerfirefighteror
volunteer emergency medical service person if such
automobile is damaged when such volunteer is
utilizing such automoblie in responding to an emer-
gency for the Member. If the volunteer has other
insurance which is applicable to such automobile,
the Fund will pay either up to $500 for the cost of
repairs to such automobile or the amount of the
deductible of such other insurance, whichever amount
is less. The payments to be made by the Fund under
this provision shall not be subject to any deductible
amount.
IX. CONDITIONS
A. DEFINED WORDS
Whenever words or phrases appear in this Plan in
bold type, they are used as defined in the Defini-
tions Section or in the Coverage Parts of this
Plan.
B. REQUIREMENTS IN CASE OF LOSS
1. The Member shall give immediate notice to
the Fund or any of its -authorized agents of
any loss, claim or suit, and as soon as is
practicable give written information with re-
spect to the time, place, persons or witnesses
involved and the circumstances of the loss,
claim or suit.
2. The Member shalt cooperate with the Fund
and, upon the Fund's request, assist in mak-
ing settlement in the conduct of suits and in
enforcing any right of contribution or indem-
nity against any person or organization who
may be liable to the Member because of
injury or damage with respect to which insur-
ance is afforded under the Agreement.
17 of 32
3. When a loss takes place, the Member -shall
give notice thereof to the proper police au-
thority d the loss involves a violation of the
law.
C. OTHER INSURANCE
The Insurance afforded by this Agreement is
primary insurance except when stated herein or
in this Agreement to apply in excess of or contin-
gent upon the absence of other insurance. When
this Insurance Is primary and the Member has
other insurance which is stated to be applicable to
the loss on an excess or contingent basis, the
amount of the Fund's liability under this Agree-
ment shall not be reduced by the existence of
such other insurance. When both this insurance
and other insurance apply to the loss on the same
basis, whether primary, excess or contingent, the
Fund shall not be liable under this Agreement for
a greater proportion of the loss than stated in this
applicable contribution provision below:
1. CONTRIBUTION BY EQUAL SHARES - If all
of such other valid and collectible insurance
provides for contribution by equal shares, the
Fund shall not be liable for a greater propor-
tion of such loss than would be payable if
each insurer orthe Fund contributes an equal
share until the share of each insurer or the
Fund equals the lowest applicable limit of
liability under any one policy or Agreement,
L 200
10 -1 -ss
or the full amount of the loss is paid; and with
respect to any amount of loss not so paid, the
remaining insurers or the Fund then continue
to contribute equal shares of the remaining
amount of the loss until each such insurer or
the Fund has paid Its limit in full or the full
amount of the loss is paid; or
2. CONTRIBUTION BY LIMITS - If any such
other insurance does not provide for contribu-
tion by equal shares, the Fund shall not be
liable for a greater proportion of such loss
than the applicable limit of liability under this
Agreement for which such loss bears to the
total applicable limit of liability of all valid and
collectible Insurance against such loss.
D. APPRAISAL
If the Member and the Fund fail to agree as to the
amount of loss, each shall, upon the written
demand either of the Member or of the Fund
made within sixty (60) days after receipt of proof
of loss by the Fund, select a competent and
disinterested appraiser. The appraisers shall
then select a competent and disinterested um-
pire. If they should fail for fifteen (15) days to
agree upon such umpire, then upon the request of
the Member or of the Fund, such umpire shall be
selected by a judge of a court of record in the
county and state in which such appraisal is pend-
ing. Then, at a reasonable time and place, the
appraisers shall appraise the loss, stating sepa-
rately the value at the time of loss and the amount
of loss. If the appraisers fail to agree, they shall
submit their differences to the umpire. An award
in writing by any two shalt determine the amount
of loss. The Member and the Fund shall each
pay its chosen appraiser and shall bear equally
the other expenses of the appraisal and of the
umpire.
E. PAYMENT FOR LOSS
With respect to any loss covered by this
Insurance, the Fund may pay for said loss in
money, or may:
1. Repair or replace the damaged or stolen
property;
2. Return at its expense any stolen property to
the Member, with payment for any resultant
damage thereto, at any time before the loss
is so paid or the property is so replaced; or
3. Take all or any part of the damaged or stolen
property at the agreed or appraised value;
but there shall be no abandonment to the Fund.
L 200
10.1-99 18 of 32
F. LOSS PAYABLE
Loss, if any, shall be adjusted with and payable to
the Member, whose receipt shall constitute a
release in full of all liability under this Agreement
with respect to such loss.
G. NO BENEFITS TO BAILEE
None of the provisions of this Agreement shall
inure directly or indirectly to the benefit of any
carrier or other bailee for hire.
H. SUIT AGAINST THE FUND
No suit or action on this Agreement for the
recovery of any claim shall be sustainable In any
court of law or equity unless the Member shall
have fully complied with all the requirements of
this Agreement. The Fund agrees that any
action or proceeding against it for recovery of any
loss under this Agreement shall not be barred if
commenced within the time prescribed therefor in
the statutes of the State of Texas.
SUBROGATION
1. Any release from liability entered into by the
Member prior to loss hereunder shalt not
affect this Agreement or the right of the
Member to recover hereunder. The right of
subrogation against the Member Is waived.
2. In the event of any payment under this
Agreement, the Fund shall be subrogated to
the extentof such paymenttoall the Member's
rights or recovery therefor. The Member
shall execute all papers required and shall do
anything that may be necessary at the ex-
pense of the Fund to secure such right. The
Fund will act in concertwith all other interests
concerned, i.e., the Member and any other
entity or individual participating in the pay-
ment of any loss as primary or excess insur-
ers, in the exercise of such rights of recovery.
If any amount is recovered as a result of such
proceedings, the net amount recovered after
deducting the costs of recovery shall be di-
vided between the interests concerned in the
proportion of their respective interests. if
there should be no recovery, the expense of
proceedings shall be borne proportionately
by the interests instituting the proceedings.
J. SALVAGE AND RECOVERIES
All salvages, recoveries and payments, exclud-
ing proceeds from subrogation and underlying
insurance recovered or received subsequent to a
loss settlement under this Agreement, shalt be
applied as if recovered or received prior to the
said settlement and all necessary adjustments
shall be made to the parties involved.
K. TITLES OF PARAGRAPHS
The titles of the paragraphs of this Agreement
and of endorsements and supplemental con-
tracts, if any, now or hereafter attached hereto
are inserted Isolely for convenience of reference
and shall nOt be deemed in any way to limit or
affect the provisions to which they relate.
L ERRORS OR OMISSIONS
Any unintentional error or omission made by the
Member in making reports shall not void or impair
the coverage hereunder, provided the Member
reports such error or omission as soon as reason-
ably possible after discovery.
M. REPORTING AND CONTRIBUTIONS
Prior to the beginning of each Fund Year, the
Member agrees to report to the Fund either the
actual cash values or the original cost new of all
automobiles to be covered automobiles for
Automobile Physical Damage Coverage. Contri-
butions shall be increased or reduced for the next
Fund Year based on the current report.
L 200
19 of 32 10-1-99
.PART.VI
LAW ENFORCEMENT LIABILITY COVERAGE
1. INSURING AGREEMENT
The Fund will pay on behalf of the Member or
Covered Party all sums which the Member or
Covered Party shall become legally obligated to
pay as damages arising out of an occurrence that
takes place during the Fund Year and within the
Agreement Territory:
A. Because of bodily Injury, property damage,
advertlsing'injury or personal Injury to which
this self-insurance applies as stated in this
Agreement that arises from the Member's law
enforcement activities.
B. Because of bodily injury that arises out of the
Member's law enforcement activities from ren-
dering or failure to render incidental medical
services or first aid (including transportation) at
the scene of an accident or injury by any Cov-
ered Party not regularly engaged in the medical
profession.
11. COVERED PARTIES
Each of the following is a Covered Party under this
Part of the Liability Coverage Document to the
extent set forth below:
A. The Member;
B. Any law enforcement commission, board,
authority, administrative department orothersimi-
lar law enforcement unit operated by and under
the jurisdiction of the Member,
C. Any duly elected or appointed official or member
of a governing body of a public entity which is a
Covered Party under A or B above, while acting
within the scope of his or her law enforcement
duties; and
D. Any employee of the Member or authorized
volunteer, but only while carrying out their duties
related to the Member's law enforcement ac-
tivities.
Ill. LIMITS OF LIABILITY
Regardless of the number of (1) Members or
Covered Parties under this Agreement, (2) per-
sons or organizations who sustain bodily Injury,
property damage, personal Injury or advertising
Injury, or (3) claims made or suits brought on
account of bodily injury, property damage, per-
sonal Injury or advertising Injury, the Fund's
liability for the applicable Fund .Year is limited as
follows:
A. The total liability for the Fund for an damages,
including damages for care and loss of services,
because of bodily Injury, -property damage,
personal injury or advertising injury sustained
by one or more persons as the result of any one
occurrence shall not exceed the limit of liability
stated in the Declarations for Law Enforcement
Liability for the applicable Fund Year as appli-
cable to "each occurrence'
B. For the purpose of determining the limits of the
Fund's liability, all bodily injury, property dam-
age, personal Injury and advertising Injury
arising out of continuous or repeated exposure to
substantially the same general conditions orcon-
tinuous or repeated publication or dissemination
of substantially the same information shal[L be
considered as arising out of one occurrence;
C. With respect to the Member's liability arising out
of any joint venture to which this self-insurance
applies, the Fund shall not be liable foran amount
greater than the pro rata share of any damages
based on the number of participants in the joint
venture, unless the Member's liability is ex-
pressed otherwise contractually in the joint ven-
ture agreement; and
D. Subject to the above provisions applicable to
each occurrence, the total liability of the Fund for
all damages because of bodily injury, property
damage, advertising injury or personal Injury,
regardless of the number of occurrences taking
place during the Fund Year, shall not exceed the
limit of liability stated in the Declarations for the
applicable Fund Year as "aggregate'
IV. EXCLUSIONS
L 200
10-1-N 20 of 32
For the purpose of this coverage only, Exclusion H 7
in the "Exclusions Applicable to All Coverages' part
shall not apply with respect to property that has been
seized or impounded in the course of the Member's
law enforcement activities while such property is in
the care, custody or control of a Covered Party.
For the purpose of this coverage only, Exclusion B of
the "Exclusions Applicable to All Coverages" part
shall not apply with respect to the law enforcemeW
activities of the Member while engaged in law
enforcement activities at an airport or while on
board an aircraft which is on the ground.
In addition to those other matters excluded from
coverage in the'Exclusions Applicable to All Cover-
ages' part of this Agreement, this Agreement does
r not apply to:
A. Bodily injury or property damage arising out of
the ownership, maintenance, operation, use, load-
ing and unloading of:
1. Any automobile or aircraft owned or oper-
ated by or rented or loaned to any Member; or
2. Any other automobile or aircraft operated
by any Gerson in the course of his or her
employment by any Member.
This exclusion does not apply to damages that arise
from the use of either commandeered automobiles
or an automobile by the Member's Law Enforce-
ment Agency in pursuit of a criminal offender K such
damages are not the result of physical contact with
the pursuit vehicle; and
B. Any occurrences, claims or damages for which
coverage Is otherwise afforded, or would have
been afforded if the Member had elected the
coverage under the General t.iability and Auto-
mobile Liability Coverages, it being intended by
the parties that this coverage not overlap nor
apply in addition to those coverages to the same
occurrences, claims or damages.
L 200
21 of 32 10-1.99
PART V,11
ERRORS AND OMISSIONS LIABILITY COVERAGE
1. INSURING AGREEMENT
A. LIABILITY OF MEMBER OR COVERED PARTY
The Fund will pay on behalf of the Member or
Covered Party all monetary damages which the
Member or Covered Party shall be legally obli-
gated to pay for any civil claim or claims because
of a wrongful act which occurs during the Fund
Year and within the Agreement Territory.
11. COVERED PARTIES
Each of the following is a Covered Party under this
Part of the Liability Coverage Documentto the extent
set forth below:
A. The Member
B. Any officer, director, elected or appointed official,
any member of a board or commission of the
Member, and any employee of the Member when
such Covered Parties are acting within the scope
of their duties or employment as such; or
C. Any volunteer while acting within the scope of
duties assigned by the Member and while under
the general supervision of an officer, director,
elected or appointed official, member of a board
or commission of the Member or an employee of
the Member.
Ill. LIMITS OF LIABILITY
Regardless of the number of (1) Members or other
Covered Parties under this Agreement, (2) per-
sons or organizations who sustain damages pay-
able under this Agreement, or (3) claims made or
suits brought during the applicable Fund Year within
the Errors and Omissions Coverage afforded by this
Agreement, the Fund's liability is limited as follows:
A. The total liability for the Fund for all damages
arising out of a wrongful act shall not exceed the
limit of liability stated in the Declarations for
Errors and Omissions Liability Coverage for the
applicable Fund Year;
B. For the purpose of determining the Fund's limit of
liability, all claims and damages arising out of a
single wrongful act, interrelated wrongful acts
or a series of related wrongful acts by one or
more Covered Party(les) shall be considered a
single wrongful act. If such wrongful act takes
place over more than one Fund Year in which
coverage is provided to the Member by this
Agreement, the wrongful act shall be deemeL
to have taken place during the first Fund Year
during which any of the related wrongful acts
occurred and coverage was provided under this
Agreement and only the limit of liability during
said first Fund Year shall apply;
C. With respect to the Member's liability arising out
of any Joint venture to which this self-insurance
applies, the Fund shalt not be liable for an amount
greater than the pro rata share of any damages
based on the number of participants in the Joint
venture, unless otherwise expressed contractu-
ally in the Joint venture agreement; and
D. Subject to the above provisions, the Fund's total
limit of liability for all damages arising out of
claims made forwrongful acts, regardless of the
number of claims, Members or other Covered
Parties involved, shall not exceed the amount
statedin the Declarations for the applicable
Fund Year as "aggregate
IV. EFFECTIVE DATES
For those Members participating in the Fund for
Errors and Omissions Coverage prior to June 1
1985, this coverage shall extend to include wrongful
acts occurring prior to the date that the Member first
joined the Fund for Errors and Omissions Coverage
If the Member did not give notice of such wrongful
act to any prior insurers or the Member had no
knowledge of such wrongful act likely to give rise to
a claim. For those Members joining after June 1,
1985, this coverage begins on the actual date they
entered the Fund for Errors and Omissions Cover-
age and will not provide coverage for any claim or
claims arising from wrongful acts which took place
prior to the Prior Acts Period.
V. RETROACTIVE DATE
Except as provided otherwise under IV, Effective
Dates above, this coverage does not apply to a
wrongful act which occurred before the Retroactive
Date, if any, shown in the Declarations.
VI. ADDITIONAL COVERAGE FOR REIMBURSE-
MENT OF CRIMINAL DEFENSE EXPENSES
L 200
10-1-e9 22 of 32
A. Notwithstanding any exclusions in this Agree-
ment, the Fund shall reimburse any Covered
Party, where allowed by law, for reasonabir
attorney fees; and reasonable and necessary
costs, excluding loss of income, when incurred in
defense of any criminal proceeding arising out
of what otherwise would be within the course and
scope of the Covered Party's duties or employ-
ment by the Member.
B. Reimbursement shall be made only If the Cov-
ered Party is exonerated by a court of law from all
charges or all charges are subsequently with-
drawn or dismissed without any admission of
guilt.
C. When a Covered Party is one of two or more
defendants represented by the same attorney or
law firm, payment shall be limited to the Covered
Party's proportionate share of the total of the
reasonable attorney fees and the reasonable and
necessary costs paid.
D. The term "Covered Party" shall be as defined in
Section II of this Errors and Omissions Liability
Coverage.
E. The term "criminal proceeding" means the crimi-
nal prosecution of a Covered Party commenced
by the filing with the court of an information or an
indictment, alleging that the Covered Party had,
during the Fund Year, and within the Agreement
Territory, committed one or more crimes. Any
such prosecution shall be considered a single
"criminal proceeding," notwithstanding the fact
that the prosecution may involve multiple incl -
dents, multiple counts or charges, and/or multiple
trials and /or multiple appellate proceedings.
F. LIMITS OF LIABILITY
1. The limit of liability of the Fund for each
criminal proceeding shall not exceed
$10,000, regardless of the number of Cov-
ered Parties that may be defendants in the
criminal proceeding.
2. in the event there are multiple Covered Par-
ties as defendants in the same criminal pro-
ceeding, payment or reimbursement shall be
limited or divided between the Covered Par-
ties according to each Covered Party's pro-
portionate share of the total of all reasonable
attorney fees and reasonable and necessary
costs paid.
G. DEDUCTIBLE
1. Any deductible under this Agreement shall
not apply to this additional coverage for reim-
bursement for criminal defense expenses.
VIL EXCLUSIONS
23 of 32
A. For the purpose of this coverage only, Exclusion
B in the "Exclusions Applicable to All Coverages'
part, shall not apply with respect to any airport
board or commission of the Member.
B. In addition to those matters excluded from
coverage in the "Exclusions Applicable to Al
Coverages" part of this Agreement, the Fund
shall not be obligated to make any payment, nor
to defend any lawsuit in connection with any
claim made against any Member or Covered
Party:
1. Based on or attributable to the Member or
Covered Party gaining any personal profit or
advantages to which the Member or Cov-
ered Party was not legally entitled;
2. For the return by the Member or Covered
Party of any remuneration paid to the Mem-
ber or Covered Party In violation of law;
3. Brought about or contributed to by the
dishonesty or fraudulent acts of the Covered
Party; however, notwithstanding the forego -
Ing, the Member or Covered Party shall be
protected under the terms of this Agreement
as to any claims upon which suit is brought
against them by reason of any alleged dis-
honesty orfraudulent acts on the partofthem,
unless a judgment or other final adjudication
thereof adverse to them shall establish that
acts of active and deliberate dishonesty or
fraud committed by them with actual dishon-
est or fraudulent purpose and intent were
material to the cause of action so adjudicated;
4. For the loss of, criminal abstraction of, dam-
age to or destruction of any tangible property
or the loss of use of such property by reason
of the foregoing;
S. For any damages or claim expense arising
out of the law enforcement activities of the
Member;
6. For any damages which result from a wrong-
ful act committed intentionally with knowl-
edge of wrong -doing; however, the Fund will
provide a defense to the Member or Covered
Party for suits containing those allegations;
7. Arising from a Member's or Covered Party's
activities in a fiduciary capacity with respect
to public property and funds, bond obligations
and employee benefit and retirement funds
and obligations;
1200
10-1.99
EL Arising from activities of any attorney-at-law,
medical personnel, architect, engineer or
accountant in the scope of their professional
duties; however, notwithstanding the forego -
Ing, the Member or Covered Party shall be
protected under do terms of this Agreement
as to any ciatna made against them solely
as public officials or as employees of the
Member;
9. Arising from a Member's or any Covered
Party's failure to purchase insurance cover-
age; or
10. For any damages, whether direct, indirect or
consequential, arising from or caused by
bodily injury, property damage, advertis-
ing injury, personal Injury, mental anguish
or mental injury, except that damages for
mental anguish or mental injury shall not be
excluded from coverage when those dam-
ages are sought in connection with the al-
leged violation of a civil right guaranteed by
the U.S. Constitution, the Constitution of the
State of Texas or any state or federal statute.
This exclusion does not apply to the publica-
tion or utterance of a libel, slander, or other
defamatory or disparaging material, or publi-
cation or utterance in violation of the
individual's right of privacy which arises out
of the employment matters of the Member.
C. This coverage does not apply to any occurrence,
claim or damages for which coverage Is other-
wise afforded, or would have been afforded if the
Member had elected the coverages, under the
General Liability and Automobile Liability or the
Law Enforcement Liability Coverages, it being
Intended by the parties that this coverage not
overlap nor apply in addition to any of the other
coverages to the same occurrence, claim or
damages.
L
1--09 24 of 32
1
1
PART VIII
EXCLUSIONS APPLICABLE TO ALL COVERAGES
Jnless otherwise provided in the Agreement Declara- 2) If the operations are to test for, monitor,
Vona, under specific coverages or by endorsement, the clean up, remove, contain, treat, detoxify
self-insurance provided in this Agreement does not apply or neutralize or in any way respond to, or
to or provide coverage for the following: assess the affects of the pollutants;
A. Claims or suits for damages arising out of the ,
ownership, maintenance, operation, use, loading or
unloading of any aircraft owned or operated by or
rented or loaned to any Member or Covered Party;
B. Liability arising put of the ownership, maintenance or
use of any airport;
C. Claims or suits for damages claimed as a result of the
Member's failure to supply gas, oil, water, electricity or
steam or the Member's failure to supply sufficient gas,
oil, water, electricity or steam to meet demand. This
exclusion does not apply if the failure to supply suffi-
cient quantities results from the sudden and accidental
injury to tangible property owned or used by the
Member to procure, produce, process or transmit the
gas, oil, water, electricity or steam;
D. 1. Claims or suits for damages arising out of the
actual, alleged or threatened discharge, seep-
age, migration, dispersal, release or escape of
pollutants:
a. at or from any premises, site or location
which is or was at any time, owned, rented or
occupied by the Member;
b. at or from any premises, site or location
which is or was at any time used by or for the
Member or others for the handling, storage,
disposal, processing or treatment of waste;
c. which are or were at any time transported,
handled, stored, treated, disposed of or pro-
cessed as waste by orfor the Member or any
person or organization for whom the Mem-
ber may be legally responsible; or
d. at or from any premises, site or location on
which the Member or any contractors or
subcontractors working directly or indirectly
on the Member's behalf are performing
operations:
1) if the pollutants are brought on or to the
site or location in connection with such
operations by the Member, contractor or
subcontractor, or
e. which arises from exposure included within
the completed operations hazard.
Subparagraphs a. and d.1) of paragraph 1. of
this exclusion do not apply to bodily Injury or
property damage caused by heat, smoke or
fumes from a hostile fire. A hostile fire means one
which becomes uncontrollable or breaks out from
where it was intended.
This exclusion D.1. shall not apply to the claims
within the products hazard.
This exclusion D.1. shall not appy to any claim
or suit for damages which resulted from a sud-
den event that takes place during the Fund Year
and within the Agreement Territory, and which
was caused by an actual, alleged or threatened
discharge, dispersal, release or escape of pollut-
ants.
"Sudden event shall mean an accident where
the pollution resulting therefrom and the injury
resulting from such pollution all occur within 45
days following the accident. A related series of
accidents shalt be deemed to be a single event.
In the case of a related series of accidents, the
sudden event shall be deemed to have taken
place when the first accident in the related series
of such accidents took place. "Accident" shall
mean an abrupt discharge, dispersal, release or
escape of pollutants neither expected nor in-
tended from the standpoint of the Member or
Covered Party.
Subject to the provisions in this Agreement
concerning limits of liability applicable to each
occurrence under the General Liability Cover-
age and the limits of liability for each occurrence
stated in the Declarations for sudden events
involving pollutants, the total liability of the Fund
for all damages resulting from bodily injury,
property damage, or personal injury within the
sudden event exception described above, re-
gardless of the number of sudden events, shall
not exceed the limits of liability stated in the
Declarations for the applicable Fund Year as
"aggregate" for General Liability Coverage.
L 200
25 of 32 10.1-e9
2. Any loss, cost or expense arising out of any
" governmental direction or request that the Mem-
ber treat for, monitor, clean up, remove, contain,
treat, detoxify or neutralize pollutants.
'Pollutants' means any solid, liquid, gaseous or thermal
Irritant or contaminant, including smoke, vapor, soot,
fumes, acids, alkalis, chemicals and waste, but does not
include chlorine used for the treatment of water at
swimming pools, water treatment plants or sewage
treatment plants. Waste includes materials to be re-
cycled, reconditioned -or reclaimed;
E Claims or suits due to war, whether or not de-
clared, civil war, insurrection, rebellion or revolution
or to any acts or condition incident to any of the
foregoing; `
F. Any obligation for which the Member or any carrier
as its insurer may be held liable under the workers'
compensation, unemploymentcompensation ordis-
ability benefits law, or under any similar law; nor any
claims or sults by or damages to volunteers,
elected officials, or appointed officials if the Mem-
ber provided or could have provided coverage to
the volunteer, elected official or appointed official
under the above laws;
G. Claims or suits for damages due to bodily injury
to any employee of the Member arising out of and
in the course of his or her employment by the
Member provided, however, this exclusion shall not
apply to claims asserted under the Jones Act, 46
U.S.C. §688, or liability assumed by the Member
under a written contract to indemnify another against
claims, suits or damages due to bodily Injury to
an employee of the Member,
H. Claims or suits for property damage to:
1. Personal property rented or leased by a Mem-
ber or Covered Party; or equipment on loan to
the Member or Covered Party;
2. Real property orto structures orportions thereof
rented to or occupied by the Member or Cov-
ered Party, including fixtures permanently at-
tactred thereto.ThIs exclusion shall not apply to
property damage byfire to real property rented
to the Member or Covered Party;
3. Property while on premises owned by or rented
to the Member or Covered Party for the pur-
pose of having operations performed on such
property by or on behalf of the Member;
4. Property in the custody of the Member or
Covered Party which is to be installed, erected
or used in construction by the Member,
L Poo
10-1-e9 26 of 32
S.- Work performed by or on behalf of the Member
or Covered Party arising out of such work
or any portion thereof, or out of such materials,
parts or equipment fumished in connection
therewith;
6. That particular part of any property, not on
premises owned by or rented to the Member or
Covered Party, upon which operations are
being performed by or on behalf of the Member
or Covered Party;
7. Property being used by'the Member or Cov-
ered Party, or in the care, custody or control of
the Member or Covered Party, or as to which
the Member or Covered Party Is for any pur-
pose exercising physical control, .except for
property damage by fire to real property rented
to the Member or Covered Party to the extent
addressed under Paragraph H 2. above. This
exclusion shall not apply to commandeered
automobiles and commandeered boats or to
the coverage provided under Part V of this
Agreemententitied `Automobile Physical Dam-
age Coverage;' or
S. Real property which the Member has sold,
given away or abandoned, if the property dam-
age arises out of any part of that real property;
I. Claims and suits for damages due to loss of use of
tangible property which has not been physically
Injured or destroyed resulting from:
1. A delay in or lack of performance by or on behalf
of the Member of a contract or agreement; or
2. The failure of the Member's Products or work
performed by or on behalf of the Member to
meet the levet of performance, quality, fitness
or durability warranted or represented by the
Member.
But this exclusion does not apply to loss of use of
other tangible property resulting from the sudden
and accidental physical injury to or destruction of
the Member's Products or work performed by or
on behalf of the Member after such products or
work have been put to use by any person or organi-
zation other than the Member,
J. Claims and sults for property damage to the
Member's Products arising out of such products or
any part of such products;
K. Claims and suits for damages claimed for or due
to the withdrawal, inspection, repair, replacement
or loss of use of the Member's Products or work
completed by or for the Member or of any propert,
of which such products or work form a part, if such
t _ products, work or property are withdrawn from the
market or from use because of any known or sus-
pected defect or deficiency therein;
L Liability assumed under any ordinance, resolution,
contract or agreement. This shall not, however,
exclude liability so assumed to indemnify another
acting at the direction of -or on the behalf of the
Member or with whom the Member is liable to
another, nor liability for damages the Member or
Covered Party would have in the absence of the
contract, unless the occurrence, conduct, wrong-
ful act or claim made the basis of liability of the
Insured or the indemnitee is otherwise excluded
from coverage under this Agreement. In no event
shall this selinsurance apply to provide coverage
for liability to indemnify another for punitive or ex-
emplary damages of whatever kind or nature;
M. Any claim or suit for or based upon contractual
penalties or retainages, breach of contract, cost
estimate overruns on any contract or project or
failing to maintain adequate insurance protection.
For purposes of this exclusion, the term "contract
shall include express contracts, implied in fact con-
tracts, and implied in law contracts;
N. Any claims or suits for damages due to:
1. The rendering of or failure to render
a. medical, surgical, dental, x-ray or nursing
service or treatment, or the furnishing of
food or beverages in connection therewith;
or
b. any service ortreatment conducive to health
of a professional nature;
2. The furnishing or dispensing of drugs or medi-
cal, dental or surgical supplies or appliances;
3. The handling of or performing of autopsies on
dead bodies; or
4. Any liability of any Member or Covered Party
arising out of the Member's ownership, opera-
tion, control or direction of any hospital or other
premises providing medical services where over-
night bedcare is provided.
In reference to subparagraphs 1, 2, and 3 above,
coverage shall not be excluded to the extent specifi-
cally provided by paragraph 6 of Section I of Part III,
General Liability Coverage;
O. The liability of the Member or any Covered Party
arising out of its activities or participation in a joint
venture with others involving amusement parks,
skateboard facilities, dams and water reservoirs,
jails, prisons or any facility utilized to confine or
detain those confined under legal process, nursing
homes and sanitariums, day care for minors (other
than temporary recreation programs), electric or gas
utility operations, railroads, sewage treatment plants,
water treatment plants, wharves or other facilities for
boats or vessels unless:
1. Disclosed In the application for coverage for the
applicable Fund Year, or
2. If commenced during the Fund Year, reported to
the Fund within thirty (30) days of.commence-
ment and the appropriate additional contribution
paid to the Fund;
P. Claims and suits for.
1. Damages arising out of any publication or
utterance, if the first injurious publication orutter-
ance of the same or similar material by or on
behalf of the Member was made prior to the
effective date of this self-insurance; or
27 of 32
2. Damages arising out of any publication or
utterance of material concerning any person or
organization or goods, products or services, or in
violation of an individual's right of privacy, made
by or at the direction of the Member or Covered
Party with actual malice;
3. Damages arising out of:
a. failure of performance of a contract, but this
exclusion does not apply to the unauthorized
appropriation of ideas based upon alleged
breach of implied contract;
b. infringement of trademark, service mark or
trade name, other than titles or slogans, by
use thereof on or in connection with goods,
products or services sold, offered for sale or
advertising; or
c. incorrect description or mistake in adver-
tised price of goods, products or services
sold, offered for sale or advertised;
4. Damages arising out of any Member or
Covered Party in the business of advertising,
broadcasting, publishing or telecasting;
L 200
10-1.99
L 200
10-1-99 28 of 32
..Q. Claims and suits for damages arising from:
V. Claims or sults for damages arising out of the
ownership, maintenance, operation, use, loading
1. Any dishonest, fraudulent, criminal or mall-
or unloading of any watercraft In excess of twenty-
cious act or omission of any Member or
six (26) feet in length owned or operated by or
Covered Party;
rented or loaned to any Member or Covered
2. Acts or omissions performed by a Covered
Party; but this exclusion does not apply to water -
Party for personal financial gain; or
craft while ashore on premises awned by, rented
to or controlled by the Member,
3. Acts or omissions by a Covered Party who
knowingly violated a Nle, regulation, ordi-
W. Any claims or suits for damages, including sufts -
nance or law of the Member or the State of
for devaluation of property based upon the
Texas or of the United States;
Member's or Covered Party's exercise of or
failure to exercise its zoning or subdivision
R. Any claim or suit for damages, or portion thereof,
regulatory powers, except where or to the extent
for
that such claim or suit seeks damages, unless
otherwise excluded from coverage under this
1. Back salary or wages, front pay In lieu of
Agreement;
reinstatement, any damages under the Fair
Labor Standards Act, the refund of any gov-
X. Claims or suits against the Member or Covered
emmental grant or subsidy, or any benefits
Party which do not seek civil damages or mon-
wrongfully withheld under federal, state or
etary relief other than costs of court or attorney's J
local law; or
fees for prosecuting the suit, such as, but not
limited to: criminal prosecutions and proceed -
2. The refund of taxes, assessments, fees or
ings; election contests; actions for injunctive or
charges as a result of an improper or illegal
declaratory judgments; actions to enforce or In -
levy, tax, imposition, assessment or valuation
validate ordinances, city darter provisions=or
of property;
code provisions; actions specifically to enforce
or Invalidate contracts with the Member or go
Notwithstanding the foregoing, the Fund shall
between the Member and others; actions- by
pay as damages 50% of backsalary or back
government agencies against the Member or
wages, not to exceed a maximum payment by the
Covered Party to require compliance with appii-
Fund of $25,000, for Members participating in
cable law or regulation; and actions by anj
the Fund for Errors and Omissions Coverage.
person seeking exemption from applicable ordi-
Such payment shall be subject to the temps,
nances or regulations of the Member; except
conditions, limits of liability, and deductible for
claims or suits filed with the Equal Employment
Errors and Omissions Coverage. However, the
Opportunity Commission or the Texas Commis -
Fund shall not pay any damages or wages
sion on Human Rights shall not be excluded.
awarded under the Fair Labor Standards Act.
Y. Liability assumed under a contract:
S. Fines imposed by law, or matters which may be
deemed uninsurable under the law pursuant to
1. If the Member or Covered Party is acting in
which this Agreement shall be constructed;
the capacity of or providing the services of an
architect, engineer or surveyor, for damages
T. Claims or suits based upon the operation of the
arising out of the rendering or providing or
principles of eminent domain, including condem-
failure to render or provide such architect,
nation proceedings or inverse condemnation by
engineer or surveyor services by such Cov-
whatever name called, whether such liability ac-
ered Party, including:
crues directly against the Member or by virtue of
any agreement entered into by or on behalf of the
a. the preparation orapproval of maps, plats,
Member,
drawings, opinions, reports, surveys,
change orders, designs or specifications;
U. Any claim or suit for damages whether direct,
and
indirect or consequential to any exposure to
asbestos or lead, nor shall the Fund have the
b. supervisory, Inspection or engineering
duty to defend any such action. This exclusion
services;
shall not apply to the claims within the products
hazard.
L 200
10-1-99 28 of 32
4
r 2. If the indemnitee of the Member or Covered
Party is an architect, engineer or surveyor, to
the liability of the indemnitee, his agents or
employees, arising out of:
a. the preparation or approval or the failure
to prepare or approve maps, plats, draw-
ings, opinions, reports, surveys, change
orders, designs or specifications; or
b. the giving of or the failure to give direc-
tions or instruction by the indemnitee, his
or her agents or employees, provided
such giving orfailure to give is the primary
cause of the damages; and
r+
3. That indemnifies any person or organization
for damage by fire to premises rented or
loaned to the Member or Covered Party.
Z Claims or suits for damages of any kind or
character arising out of the bursting, breach,
failure or structural defect of any dam or water
reservoir disclosed each Fund Year in the appli-
cation for coverage under this Agreement and for
which coverage would otherwise be provided
under this Agreement, where such bursting,
breach or failure occurs while the dam is classi-
fied as "unsafe" by the United States Army Corps
of Engineers, the Texas Water Commission or
successor agencies; and
AA. Claims or suits for damages of any kind or
character by the Member against any of the
Member's officers, elected or appointed officials,
any member of a board or commission of the
Member, any volunteer of the Member or any
employee of the Member.
L 200
29 of 32 10-1-99
r. PART IX
NUCLEAR ENERGY LIABILITY EXCLUSION
THIS EXCLUSION MODIFIES THE PROVISIONS OF 2. The nuclear material is contained in spent
THE AGREEMENT. fuelorwasteatanytime possessed, handled,
used, processed, stoned, transported or dis.-
1. It is agreed that the Agreement does not appy: posed of by or on behalf of a Member; or
A. Under any liability coverage to bodily Ilnjury or .
property damage:
1. With respect to which a Member under the
Agreement is also an insured undera nuclear
energy liability policy issued by the Nuclear
Energy Liability Insurance Association, Mu-
tual Atomic Energy Liability Underwriters or
Nuclear Insurance Association of Canada, or
would be an insured under any such policy
but for its termination upon exhaustion of its
limit of liability; or
2. Resulting from the hazardous properties of
nuclear material and with respect to which:
a. any person or organization is required to
maintain financial position pursuant to
the Atomic Energy Act of 1954, or any law
amendatory thereof, or
b. the Member is or, had the Agreement
not been entered into, would be entitled
to indemnity from the United States of
America, or any agency thereof, under
any agreement entered into by the United
States of America, or any agency thereof,
with any person or organization;
B. Under any "Extensions of Coverage provision
relating to first aid, to expenses incurred with
respect to bodily injury resulting from the haz-
ardous properties of nuclear material and aris-
ing out of the operation of a nuclear facility by
any person or organization; or
C. Under any liability coverage, to bodily injury or
property damage resulting from the hazardous
properties of nuclear material, if:
1. The nuclear material
a. is at any nuclear facility owned by, or
operated by, or on behalf of a Member; or
b. has been discharged or dispersed
therefrom;
3. The bodily Injury or property damage arises
out of the furnishing by a Member of services,
materials, parts or equipment in connection
with the planning, construction, maintenance,
operation or use of any nuclear facility, but
If such facility is located within the United
States of America, its territories or posses-
sions or Canada, this exclusion C.3 applies
only to property damage to such nuclear
facility and any property thereafter.
II. DEFINITIONS
As used in this exclusion:
A. HAZARDOUS PROPERTIES include radioac-
tive, toxic or explosive properties;
B. NUCLEAR FACILITY means:
1. Any nuclear reactor,
2. Any equipment or device designed or used
for:
a. separating the isotopes of uranium or
plutonium,
b. processing or utilizing spent fuel, or
c. handling, processing or packaging waste;
3. Any equipment or device used for the pro-
cessing, fabricating or alloying of special
nuclear material, if at any time the total
amount of such material in the custody of the
Member at the premises where such equip-
ment or device is located consists of or con-
tains more than 25 grams of plutonium or
uranium 233 or any combination thereof or
more than 250 grams of uranium 235; or
4. Any structure, basin, excavation, premises or
place prepared or used for the storage or
disposal of waste, and includes the site on
which any of the foregoing is located, all
operations conducted on such site and all
premises used for such operations;
L 200
10-1.99 30 of 32
Cr NUCLEAR MATERIAL means source material,
special nuclear material or byproduct
material;
D. NUCLEAR REACTOR means any apparatus de-
signed or used to sustain nuclear fission in a self-
supporting chain reaction or to contain a critical
mass of fissionable material;
E. PROPERTY DAMAGE includes all forms of ra-
dioactive contaminations of property;
F. SOURCE MATERIAL, SPECIAL NUCLEAR MA-
TERIAL and BYPRODUCT MATERIAL have the
meanings given them in the Atomic Energy Act of
1954 or inAny law amendatory thereof;
G. SPENT FUEL means any fuel element or fuel
component, solid or liquid, which has been used
or exposed to radiation in a nuclear reactor; and
H. WASTE means any waste material:
1. Containing byproduct material other than
the tailings or wastes produced by the extrac-
tion or concentration of uranium or thorium
from any ore processed for its source mate-
rial content, and
2. Resulting from the operation by any person or
organization of any nuclear facility included
underthe first two paragraphs of the definition
of nuclear facility.
L 200
31 of 32 0.1-99
CITY OF LUBBOCK
MEMO
TO: Legal Department DATE: May 26, 2000
FROM: Victor Kilman, Purchasing Manager
SUBJECT: Request for Legal Services
1. Request for Legal Services (please be specific): Resolution authorizing the Mayor to
execute for and on behalf of the City of Lubbock a contract for AIRPORT DIRECTORS
AND OFFICERS INSURANCE, attached herewith, by and between the City of Lubbock
and TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL of AUSTIN,
TEXAS and any associated documents, which Agreement shall be spread upon the
minutes of the Council and as spread upon the minutes of this Council shall constitute
and be a part of this Resolution as if fully copied herein in detail.
2. Do you desire an initial conference with an attorney on your request? No.
3. Phone number where you maybe reached for follow-up on this request. Ext. 2168
4. Background information (please state any background information which will assist the
attorney in handling your request):
5. Documentation (please state any document that concerns this request and attach a copy
of it to this request if possible): RFP #00-085
6. EMERGENCY STATUS (I hereby request that this matter be handled as an emergency
and given expedited consideration by the Legal Department for the following- reasons):
7. Desired completion date: May 30.2000
Signature: V—`t�
RECEIVED BY LEGAL:
RECEIVED BY ATTORNEY:
Anticipated Completion Date:
Actual Completion Date:
5/26/0WRao.Doc/CC