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HomeMy WebLinkAbout~Master - Rescission of Resolution No. 14-334 and accepting alternate quotation for Excess Workers' Compensation Insurance RESOLUTION NO. 14-354 RESOLUTION APPROVING RESCISSION OF RESOLUTION NO. 14-334 AND ADOPTING NEW RESOLUTION ACCEPTING ALTERNATE QUOTATION FOR EXCESS WORKERS' COMPENSATION INSURANCE FOR 2014/15 FOR THE CITY OF AMES,IOWA WHEREAS, during the June 10, 2014, meeting, the Council approved Resolution 14-334 approving renewal of Excess Workers'Compensation insurance,brokered by Holmes Murphy,with Safety National; and, WHEREAS,the marketplace for this type of coverage is very limited, and prior to the June 10, 2014, Council meeting, the Safety National proposal was the only one received; and, WHEREAS, after the June 10 meeting, City staff contacted Holmes Murphy to inform it of the Council's approval, and the broker advised staff that a new proposal from another insurance company had just been received; and, WHEREAS, the second proposal was unexpected and was from an insurer that had been approached numerous times on Ames' behalf during this and prior renewals; and, WHEREAS,Holmes Murphy asked that the City seriously consider this new quote,and this insurer had previously required ten years' electronic loss history before making a proposal; and, WHEREAS, according to the broker, Midwest Employers Casualty Company (MWECC) changed its position and decided that Ames' five years of loss history was sufficient and that the trend data of the claims was within its acceptable risk guidelines; and, WHEREAS, since City staff had not given the broker instructions to confirm the coverage with Safety National prior to receipt of the MWECC quote, the broker believed it would be acceptable to communicate it to the City; and, WHEREAS,the MWECC quote includes an aggregate coverage layer option not offered by Safety National that reduces the City's exposure in the event of a catastrophic event involving multiple, serious injuries; and, WHEREAS, it also includes coverage for injury leave wages, also known as "indemnity" payments, which Safety National excludes; and, WHEREAS,the cost of the MWECC proposal for the same basic type of individual per claim excess,that pays 100% of individual claims that exceed$500,000, is $1,385 lower than the Safety National proposal at $87,100; however, it includes indemnity claims (injury leave wages), which Safety National excludes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that rescission of Resolution No. 14-334 is hereby approved, and the option received on June 11, 2014,from Holmes Murphy for Excess Workers'Compensation coverage for 2014/15 from Midwest Employers Casualty Company for individual claim coverage that pays in excess of $500,000, including indemnity expenses(injury leave wages),plus a 100%covered layer of$2,000,000 for all claims after City claim payments reach the amount of$2,713,825; and, for claims incurred above the$2,000,000 covered layer,it reverts to the individual excess coverage that pays above$500,000 per individual claim hereby be further approved. ADOPTED THIS 24th day of June, 2014. `� cam'• �a�+�. Diane . Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Corrieri Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 241h day of June, 2014.