HomeMy WebLinkAboutR-2003-116 Marsh Advantage American Contract for insurance broker and risk management servicesRESOLUTION NO. R-2003- 116
A RESOLUTION authorizing the City Manager of the City of Yakima to execute a
professional services contract for property and casualty insurance broker
and risk management services with Marsh Advantage America.
WHEREAS, the City of Yakima requires professional services related to insurance
brokerage services for property and casualty insurance broker and risk management services for
the City of Yakima; and
WHEREAS, the City's current contract for property and casualty insurance broker and
risk management services expires on August 31, 2003; and
WHEREAS, Marsh Advantage America represents that it has the expertise necessary and
is willing to perform the professional services required by the City in accordance with the terms
and conditions of the Contract; and
WHEREAS, the City of Yakima and Marsh Advantage America desire to enter into a
Professional Services Contract for property and casualty insurance broker and risk management
services for a three-year term, from September 1, 2003 through August 31, 2006, with an option
to extend the Contract for an additional two years; and
WHEREAS, the City Council finds it to be in the best interest of the City to authorize the
City Manager to execute a Professional Services Contract for the property and casualty insurance
broker and risk management services with Marsh Advantage America; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Council authorizes the City Manager to execute the attached professional
services contract for property and casualty insurance broker and risk management services with
Marsh Advantage America.
ADOPTED BY THE CITY COUNCIL this 19th day of August, 2003.
ATTEST:
City Clerk
ry Place, Mayor
PROFESSIONAL SERVICES CONTRACT
THIS PROFESSIONAL SERVICES CONTRACT is made and entered into by and
between the City of Yakima, a Washington municipal corporation (hereinafter the "City"), and
Marsh Advantage America ("Marsh") (hereinafter the "Contractor").
WHEREAS, the City of Yakima requires professional services related to insurance
brokerage services for Property & Casualty Broker and Risk Management Services for the City
of Yakima.
WHEREAS, the Contractor represents that it has the expertise necessary and is willing to
perform the professional services required by the City in accordance with the terms and
conditions of this Contract.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and
agreements set forth herein, it is agreed by and between the City and Contractor as follows:
Section 1. Scope of Work
1.1 The minimum services that the Contractor will provide include:
(a) Market and advise the City on its insurance coverage;
(b) Prepare accurate quarterly and year-end claims reports promptly; and
(c) Provide risk management services, including but not limited to review of vendor
certificates of insurance to meet contract requirements; advise on wording for
insurance requirements and the amounts of appropriate insurance coverage in City
contracts; and training for City personnel as required.
1.2 Contractor shall provide the services and staff described in the text of the Professional
Services Contract, including all attachments, which are incorporated herein by this
reference. These attachments include the City Request for Proposal, and the Contractor's
Proposal. The Professional Services Contract, the City Request for Proposal, and the
Contractor's Proposal are referred to herein as the "Contract." The Contract specifies the
working relationship between the City and the Contractor, and specific obligations of
both parties.
1.3 Except as otherwise specifically provided in this Contract, Contractor shall furnish the
following, all as the same may be required to perform the services described in
paragraph 1.1 in accordance with this Contract: personnel, labor and supervision; and
technical, professional and other services. All such services, property and other items
furnished or required to be furnished, together with all other obligations performed or
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required to be performed, by Contractor under this Contract are sometime collectively
referred to in this Contract as the "Services."
1.4 All provisions of this Contract are intended to be complementary, and any Services
required by one and not mentioned in another shall be performed to the same extent as
though required by all. Details of the Services that are not necessary to carry out the
intent of this Contract, but that are not expressly required, shall be performed or furnished
by Contractor as part of the Services, without any increase in the compensation otherwise
payable under this Contract.
Section 2. Period of Performance
2.1 The period of performance under this Contract will be three (3) years, commencing on
September 1, 2003, and continuing until August 31, 2006. An additional extension of
two (2) years may be offered, at the option of the City, making the total contract term five
(5) years, to August 31, 2008. In the event the City elects to extend the Contract for the
additional two-year term, the City shall provide written notice to the Contractor at least
sixty (60) days prior to the end of the initial three-year Contract period, or on or before
July 2, 2006.- —
Section 3. Compensation
3.1 As full compensation for satisfactory performance of the Services, City shall pay
Contractor Thirty-five Thousand Dollars ($35,000.00) for the first year of the Contract,
Forty Thousand Dollars ($40,000.00) for the second year of the Contract, Forty-five
Thousand Dollars ($45,000.00) for the third year of the Contract, and Forty-five
Thousand Dollars ($45,000.00) for each remaining year thereafter, if the Contract is
extended.
3.2 Each annual fee shall be paid by the City to Contractor in three installments, in four-
month intervals. The three invoices that will be submitted each year by Contractor to the
City of Yakima will be submitted on or about January 1, May 1, and September 1 of each
year. The first invoice for the first year of the Contract will be submitted on or about
January 1, 2004. Each of Contractor's invoices shall set forth a description of the
Services performed during the applicable period, and any reimbursable costs and
expenses incurred in connection with such Services. With each invoice, the Contractor
will also submit a report to the City listing the City departments with whom the
Contractor worked and the issues that the Contractor worked on for the respective City
departments during the previous four month period.
3.3 City of Yakima shall pay each of Contractor's invoices within thirty (30) days after the
City's receipt and verification thereof; provided, however, that all such payments are
expressly conditioned upon Contractor providing services hereunder that are satisfactory
to the City.
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3.4 Any additional service(s) provided by the Contractor which are to be, paid by the City
must have prior written approval of the City.
3.5 If, at any time during the term of the Contract, the City of Yakima enters into or becomes
a member of a risk pool for liability coverage or for any other type of insurance coverage
covered by this Contract, then the parties agree that they will renegotiate the
compensation and services, since a reduction in compensation and services may be
warranted. This change will be done consistent with the provisions of Section 12 of this
Contract.
Section 4. Performance by Contractor
4.1 Delegation of Professional Services. The services provided for herein shall be performed
by Contractor, and no person other than regular associates or employees of Contractor
shall be engaged on such work or services. Contractor shall not (by contract, operation of
law or otherwise) delegate or subcontract performance of any Services to any other
person or entity without the prior written consent of the City. Any such delegation or
subcontracting without the City's prior written consent shall be voidable at the City's
option.
No delegation of subcontracting of performance of any of the Services, with or without
the City's prior written consent, shall relieve Contractor of its responsibility to perform
the Services in accordance with this Contract. Contractor shall be fully responsible for
the performance, acts and omissions of Contractor's employees, Contractor's
subcontractors, and any other person who performs or furnishes any Services
(collectively, the "Support").
4.2 Contractor shall at all times be an independent contractor and not an agent or
representative of the City with regard to performance of the Services. Contractor shall
not represent that it is, nor hold itself out as, an agent or representative of the City. In no
event shall Contractor be authorized to enter into any agreement or undertaking for or on
behalf of the City.
4.3 Contractor shall perform the Services in a timely manner and in accordance with the
standards of the profession. At the time of performance, Contractor shall be properly
licensed, equipped, organized, and financed to perform the Services in accordance with
this Contract. Subject to compliance with the requirements of this Contract, Contractor
shall perform the Services in accordance with its own methods.
4.4 Contractor shall take all reasonable precautions to protect against any bodily injury
(including death) or property damage that may occur in connection with the Services.
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Section 5. Compliance with Laws
5.1 Contractor shall comply with all applicable laws, ordinances, rules, regulations, orders,
licenses, permits, and other requirements, now in effect, of any governmental authority
(including, but not limited to, such requirements as may be imposed upon the City and
applicable to the Services). Contractor shall furnish such documents as may be required
to effect or evidence such compliance. All laws, ordinances, rules and orders required to
be incorporated in agreements of this character are incorporated in this Contract by this
reference.
Section 6. Taxes and Assessments
6.1 Contractor shall be solely responsible for and shall pay all taxes, deductions, and
assessments, including but not limited to federal income tax, FICA, social security tax,
assessments for unemployment and industrial injury insurance, and other deductions from
income which may be required by law or assessed against either party as a result of this
Contract. In the event the City is assessed a tax or assessment as a result of this Contract,
Contractor shall pay the same before it becomes due.
Section 7. Nondiscrimination Provision
7.1 During the performance of this Contract, Contractor shall not discriminate on the basis of
race, age, color, sex, religion, national origin, creed, marital status, political affiliation, or
the presence of any sensory, mental or physical handicap. This provision shall include
but not be limited to the following: employment, upgrading, demotion, transfer,
recruitment, advertising, layoff or termination, rates of pay or other forms of
compensation, selection for training, and the provision of Services under this Contract.
Section 8. Inspection: Examination of Records
8.1 The records relating to the Services shall, at all times, be subject to inspection by and
with the approval of the City, but the making of (or failure or delay in making) such
inspection or approval shall not relieve Contractor of responsibility for performance of
the Services in accordance with this Contract, notwithstanding the City's knowledge of
defective or non -complying performance, its substantiality or the ease of its discovery.
Contractor shall provide the City sufficient, safe, and proper facilities and equipment for
such inspection and free access to such facilities.
8.2 Contractor shall promptly furnish the City with such information related in the Services
as may be requested by the City. Until the expiration of three (3) years after final
payment of the compensation payable under this Contract, Contractor shall provide the
City access to (and the City shall have the right to examine, audit and copy) all of
Contractor's books, documents, papers and records which are related to the Services of
this Contract.
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Section 9. Property and Confidential Information -
9.1 Contractor shall not, without the prior written consent of the City, disclose to third parties
any information received in connection with the Services unless:
(a) information is known to Contractor prior to receiving the same directly or
indirectly in connection with the Services;
(b) information is in the public domain at the time of disclosure by Contractor; or
(c) information is received by Contractor from a third party who does not have an
obligation to keep the same confidential.
Section 10. Indemnification and Hold Harmless
10.1 Contractor agrees to protect, defend, indemnify, and hold harmless the City, its elected
officials, officers, employees and agents from any and all claims, demands, losses, liens,
liabilities, penalties, fines, lawsuits, and other proceedings and all judgments, awards,
costs and expenses (incl_ e' • _ • : : _ e •• : -, _ _. - • e e'. e rsements) resulting
from death or bodily injury to any person or damage or destruction to a third party or
third parties to the extent caused by any negligent act and/or omission of the Contractor,
its officers, employees, agents, and/or subcontractors, arising out of the performance of
this Contract.
10.2 Nothing contained in this Section or this Contract shall be construed to create a liability
or a right of indemnification in any third party.
Section 11. Insurance Provided by Contractor
At all times during performance of the Services, the Contractor shall secure and maintain
in effect insurance to protect the City and the Contractor from and against all claims,
damages, losses, and expenses arising out of or resulting from the performance of this
Contract. Contractor shall provide and maintain in force insurance in limits no less than
that stated below, as applicable. The City reserves the right to require higher limits
should it deem it necessary in the best interest of the public.
11.2 Commercial Liability Insurance. Before this Contract is fully executed by the parties,
Contractor shall provide the City with a certificate of insurance as proof of commercial
liability insurance with a minimum liability limit of One Million Dollars ($1,000,000.00)
per occurrence combined single limit bodily injury and property damage, and Two
Million Dollars ($2,000,000.00) general aggregate. The certificate shall clearly state who
the provider is, the coverage amount, the policy number, and when the policy and
provisions provided are in effect. Said policy shall be in effect for the duration of this
Contract. The policy shall name the City, its elected officials, officers, agents, and
employees as additional insureds, and shall contain a clause that the insurer will not
cancel or change the insurance without first giving the City thirty (30) calendar days prior
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written notice (any language in the clause to the effect of "but failure to mail such notice
shall impose no obligation or liability of any kind upon the company" shall be crossed
out and initialed by the insurance agent). The insurance shall be with an insurance
company or companies rated A -VII or higher in Best's Guide and admitted in the State of
Washington.
11.3 Commercial Automobile Liability Insurance. Before this Contract is fully executed by
the parties, Contractor shall provide the City with a certificate of insurance as proof of
commercial automobile liability insurance with a minimum liability limit of One Million
Dollars ($1,000,000.00) per occurrence combined single limit bodily injury and property
damage. Automobile liability will apply to "Any Auto" and be shown on the certificate.
The certificate shall clearly state who the provider is, the coverage amount, the policy
number, and when the policy and provisions provided are in effect. Said policy shall be
in effect for the duration of this Contract. The policy shall name the City, its elected
officials, officers, agents, and employees as additional insureds, and shall contain a clause
that the insurer will not cancel or change the insurance without first giving the City thirty
(30) calendar days prior written notice (any language in the clause to the effect of "but
failure to mail such notice shall impose no obligation or liability of any kind upon the
company" shall be crossed out and initialed by the insurance agent). The insurance shall
be with an insurance company or companies rated A -VII or higher in Best's Guide and
admitted in the State of Washington.
11.4 Professional Liability Insurance. Before this Contract is fully executed by the parties,
Contractor shall provide the City with a certificate of insurance as evidence of
Professional Errors and Omissions Liability Insurance with coverage of at least Three
Million Dollars ($3,000,000.00) per occurrence and an annual aggregate limit of at least
Three Million Dollars ($3,000,000.00). Thecertificate shall clearly state who the
provider is, the amount of coverage, the policy number, and when the policy and
provisions provided are in effect. The insurance shall be with an insurance company
rated A -VII or higher in Best's Guide. If the policy is on a claims made basis, the
retroactive date of the insurance policy shall be on or before the inception date of the
Contract, or shall provide full prior acts. The insurance coverage shall remain in effect
during the term of this Contract and for a minimum of three (3) years following the
termination of this Contract.
Section 12. Changes
12.1 The City may, at any time by written notice thereof to Contractor, make changes in the
Services within the general scope of this Contract (including, but not limited to, additions
to or deletions from any Services, suspension of performance and changes and location of
performance).
12.2 If any change under paragraph 12.1 causes a significant increase or decrease in the cost of
the time required for performance of the Services, an equitable adjustment in the
compensation and schedules under this Contract shall be negotiated to reflect such
increase or decrease, and this Contract shall be modified in writing accordingly. Such
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equitable adjustment shall constitute full compensation to Contractor for such change. If _
any change under paragraph 12.1 results in a decrease in the Services to be performed,
Contractor shall not be entitled to anticipated profit on Services not performed and the
loss of anticipated profit shall not reduce the decrease in compensation under this
Contract resulting from such exchange. Further, Contractor shall not be entitled to any
reallocation of cost, profit or overhead.
12.3 Notwithstanding any dispute or delay in arriving at a mutually acceptable equitable
adjustment under paragraph 12.2, Contractor shall immediately proceed with
performance of the Services as changed pursuant to paragraph 12.1. If Contractor intends
to assert a claim for equitable adjustment under paragraph 12.2, Contractor must, within
sixty (60) days after Contractor's receipt of any notice under paragraph 12.1 that does not
set forth an acceptable adjustment, submit to the City a written statement of the basis and
nature of the adjustment claimed. Contractor shall not be entitled to any adjustment
unless such written statement is submitted by Contractor to the City within the applicable
period.
Section 13. Termination
13.1 The City may, by giving the Contractor thirty (30) calendar days written notice of
termination, terminate this Contract as to all or any portion of the Services not then
performed, whether or not Contractor is in breach or default, and with or without cause.
Upon receipt of any such notice of termination, Contractor shall, except as otherwise
directed by the City, immediately stop performance of the Services to the extent specified
in such notice. Contractor shall have the same termination rights as the City in
Section 13.
13.2 In the event of termination pursuant to paragraph 13.1, an equitable adjustment shall be
made in the compensation payable to Contractor under this Contract, provided that such
compensation as so adjusted shall in no event exceed a percentage of the total
compensation otherwise payable under this Contract equal to the percentage of the
Services satisfactorily completed at the time of termination. Further, Contractor shall not
be entitled to any reallocation of cost, profit or overhead. Contractor shall not in any
event be entitled to anticipated profit on Services not performed on account of such
termination. Contractor shall use its best efforts to minimize the compensation payable
under this Contract in the event of such termination.
13.3 If the City purports to terminate or cancel all or any part of this Contract for Contractor's
breach or default when Contractor is not in breach or default which would permit such
termination or cancellation, such termination or cancellation shall be deemed to have
been a termination by the City pursuant to paragraph 13.1 and the rights of the parties
shall be determined accordingly.
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Section 14. Miscellaneous
14.1 Assignment. This Contract, or any interest herein, or claim hereunder, shall not be
assigned or transferred in whole or in part by Contractor to any other person or entity
without the prior written consent of the City. In the event that such prior written consent
to an assignment is granted, then the assignee shall assume all duties, obligations, and
liabilities of Contractor stated herein.
14.2 No Conflict of Interest. Contractor represents that it or its employees do not have any
interest and shall not hereafter acquire any interest, direct or indirect, which would
conflict in any manner or degree with the performance of this Contract. Contractor
further covenants that it will not hire anyone or any entity having such a conflict of
interest during the performance of this Contract.
14.3 No Insurance. It is understood that the City does not maintain liability insurance for
Contractor and/or its employees.
14.4 Severability. If any portion of this Contract is changed per mutual agreement or any
portion is held invalid, the remainder of the Contract shall remain in full force and effect.
14.5 Integration. This written document constitutes the entire agreement between the City and
Contractor. There are no other oral or written Contracts between the parties as to the
subjects covered herein. No changes or additions to this Contract shall be valid or
binding upon either party unless such change or addition be in writing and executed by
both parties.
14.6 Rule of Construction. In the event of an inconsistency in this Contract, unless otherwise
provided herein, the inconsistency shall be resolved by giving precedence in the
following order:
(a) "Professional Services Contract."
(b) City Request for Proposal.
(c) Contractor's Proposal.
14.7 Notices. Unless stated otherwise herein, all notices and demands shall be in writing and
sent or hand delivered to the parties to their addresses as follows:
TO CITY:
Rita Anson, Finance Director, AND TO: Sue Ownby, Purchasing Manager
City of Yakima Finance Department City of Yakima
City Hall — First Floor City Hall — First Floor
129 North Second Street 129 North Second Street
Yakima, WA 98901 Yakima, WA 98901
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TO CONTRACTOR:
Joel Pearson, Senior Vice President
Deborah Krautwurm, Vice President
Marsh Advantage America
1430 North 16th Avenue
P. O. Box 2547
Yakima, WA 98907
or to such other addresses as the parties may hereafter designate in writing. Notices
and/or demands shall be sent by registered or certified mail, postage prepaid, or hand
delivered. Such notices shall be deemed effective when hand delivered at the addresses
specified above, or three (3) days after the date of mailing to the addresses specified
above.
14.8 Governing Law. This Contract shall be governed by and construed in accordance with
the laws of the State of Washington.
14.9 Venue. The venue for any action to enforce or interpret this Contract shall lie in the
Superior Court of Washington for Yakima County, Washington.
CITY OF YAKIMA: MARSH ADVANTAGE AMERICA:
ByC��� By
Richard A. Zais, Jr., City Manager Joel
Date: / — O 3
ATTEST:
By6V c -Q -i.,.---
City Clerk
City Contract No. ,o3-22
rson, Senior Vice President
Date: 1)./3/o3
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STATE OF WASHINGTON )
) ss.
COUNTY OF YAKIMA )
I hereby certify that I know or have satisfactory evidence that Joel Pearson is the person
who appeared before me, and said person acknowledged that he signed this instrument, and on
oath stated that he was authorized to execute the instrument and acknowledged it as the Senior
Vice President of Marsh Advantage America to be the free and voluntary act of such party for
the uses and purposes mentioned in the instrument.
DATED: atArr.. 31 2430 3 .
Print Name: SvSctY+,cy_g P:r,"y
NOTARY PUBLIC in and for the StatA of
Washington,. residing at Ev*-. r ",
My appointment expires: 3'vl i 3 12 a c712
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.* /3
For Meeting Of August 19. 2003
ITEM TITLE: Consideration of resolution authorizing a Professional Services Contract for property
and casualty insurance broker and risk management services with Marsh Advantage America.
SUBMITTED BY: Finance, Purchasing and Legal Departments
CONTACT PERSON/TELEPHONE: Rita Anson, Finance Director, 575-607p C _.
SUMMARY EXPLANATION: This resolution authorizes approval and execution of a contract
for property and casualty insurance broker and risk management services with Marsh Advantage
America ("Marsh"). The City's insurance broker advises the City on insurance coverage and markets
its insurance coverage for various types of insurance, including property, excess liability, boiler and
machinery, and excess workers compensation insurance. Joel Pearson and Deborah Krautwurm of
Marsh work on the Marsh service team, and have provided insurance and risk management services
to the City since the 1980's. The current contract with Marsh will expire August 31, 2003.
The City formed a team to establish the selection process; this team consisted of Sue Ownby
(Purchasing Manager), Helen Harvey (Assistant City Attorney), Cindy Epperson (Financial Services
Manager), Edna Pettyjohn (Accountant) and Rita Anson (Finance Director). The selection team
prepared a RFP, reviewed and assessed applications, conducted interviews and prepared their
recommendation for Council's consideration. The City's Request for Proposal No. 10314 for
property and casualty insurance broker and risk management services was published in the newspaper
on May 18 and 19, 2003, and also was mailed to 36 insurance companies. Marsh and one other
insurance broker submitted responses to the Request for Proposal. Both insurance brokers were
experienced and responsible brokers. Based on various factors, including cost, the selection team is
recommending Marsh. The team recommends that Council approve the enclosed insurance broker
contract which is for a three-year period commencing September 1, 2003 through August 31, 2006,
with an option to extend the Contract for an additional two years. The compensation under the
Contract for each year of the three-year period is S35,000, $40,000 and S45,000 respectively, to be
paid in three annual installments. Note: a copy of the proposed contract is enclosed; however, we had
not received a signed copy from Marsh at time of printing. We expect to have the contract signed
prior to the Tuesday Council meeting.
Resolution X Ordinance Other (Specify)
Contract X Mail to (name and address): Joel Pearson. Senior Vice President, Marsh
Advantage America. P. 0. Box 2547. Yakima. WA 98907 Phone: (509) 248-7460
Funding Source Risk Management
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Adopt Resolution.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:_ Resolution adopted. RESOLUTIO NO. R-2003--116
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Marsh Advantage America
1430 N. 16th Avenue
P 0 Box 2547 (98907)
Yakima, WA 98902
509-248-7460 Fax 509-248-9007
800-572-9170
MARSH
An MMC Company
July 25, 2002
City of Yakima
Attn: Archie Sutton
129 N. 2nd Street
Yakima, -WA 98901
INSURANCE POLICY
Dear Archie:
Enclosed is your renewal insurance book containing:
Directory of Client Service Team
Schedule of Insurance
Broker Service Agreement
Insurance Policy - Excess Workers' Compensation Policy
Thank you for allowing us to serve as your insurance broker.
Sincerely,
oel Pearson c.
Senior Vice President
jmb
Enclosure
2 6 2002
Hamar Resources Division
Marsh Advantage America is a service of SEABURY & SMITH
Dept. of Labor & Industries
Self -Insurance Section
P 0 Box 44891
Olympia, WA 98504-4891
SELF-INSURED EMPLOYER
CERTIFICATE OF EXCESS INSURANCE
It is necessary to complete this form if your firm elects to reinsure its workers' compensation liability.
Please have your insurance provider assist you in properly completing this form. This information is
required in accordance with RCW 51.14.020 (5) and WAC 296-15-050
Official Use only
UBI
Account ID
Self -Insurer
City of Yakima
Excess Insurer
Employers Reinsurance Corporation
Address of Excess Insurer
5200 Metcalf, PO Box 2991, Overland Park, KS 66201-1391
X
Type of Policy
Policy Number
0006397
New Policy
Policy Renewal (Old Policy Number of changed): 0006397
Change to Policy
Cancellation of Policy (Effective Date of Cancellation):
Reinstatement of Policy
Policy Period
From: July 1, 2002 To: July 1, 2003
WC -$25,000,000
X SPECIFIC: Retention $500,000 Maximum Liability of Excess Insurer EL -$1,000,000
AGGREGATE: Retention
(Stop Loss)
Maximum Liability of Excess Insurer
This policy contains the following endorsements:
® Yes 0 No This policy is not intended to provide for the payment of any costs, benefits or
compensation which the self-insured employer may be obligated to pay pursuant to the provisions of
Title 51 RCW, in excess of 80 % of any such liabilities , as required by RCW 51.14.020(5).
® Yes D No It is further understood that this excess insurance company and its personnel do not
participate in the administration of the responsibilities of the self-insured er- • le 5 VV.
DATE
July 9, 2002
EXCESS INSURER
Employers Reinsurance Corporation
BY
Russell Simmons, CPCU, ARe
F207-095-000 Self-insured employer Certificate of excess insurance 1-89
Revised 01/02 PG -20 (Washington)
Official use only
LINUS
LOTUS
Marsh Advantage America
SCHEDULE OF YOUR CURRENT INSURANCE
CITY OF YAKIMA
129 N. 2ND STREET
YAKIMA, WA 98901
COVERAGE AMOUNTS POLICY TERM
COMPANY & POLICY NUMBER OR LIMITS COMMENTS
EXCESS WORKERS' COMPENSATION POLICY 07/01/2002 TO 07/01/2003
EMPLOYERS REINSURANCE/0006397 Premium: $25,000.00
EXCESS WORKERS' COMPENSATION
Workers Compensation Limit:
Each Accident $25,000,000
Each Employee for Disease $25,000,000
Employer's Liability Limit:
Each Accident $1,000,000
Each Employee for Disease $1,000,000
Self -Insured Retention:
Each Accident $500,000
Each Employee for Disease $500,000
Paae 1 of 4
Marsh Advantage America
IMPORTANT INFORMATION
The insurance schedule is only a general outline of your insurance program and does not amend, extend or
alter the coverage afforded by your insurance policies. For specific coverage information including limitations
and exclusions, please refer to your actual insurance policies.
In the course of your business operations, you may sign leases, contracts and other agreements that
transfer financial obligations to you. We suggest that you have your attorney and a Marsh representative
review these documents before you sign them to make sure you are not accepting risk that will not
be covered by your insurance policies.
Marsh Advantage America and its affiliated companies ("Marsh") may have agreements with insurers
providing the insurance coverage which is placed by Marsh, pursuant to which Marsh may derive
compensation contingent upon such factors as the size, growth and/or overall profitability of total business
placed by Marsh with such insurers. Such contingent compensation is considered an industry standard
and would be in addition to any other compensation Marsh may receive such as retail and wholesale
brokerage fees or commissions, administrative fees, etc.
Crhizrii / Infn Chicmo..+
Page 2 of 4
Name and Position
Joel Pearson
Account Executive
Jana Bland
Account Coordinator
Alison Freisz
Account Assistant
Becky Anseth
Claims
Ronda Ide
Employee Benefits
Carla L. Savage
Employee Benefits
Ann Bowen
Accounting
Rachael Birdwell
Bonds and/or Aviation
Schedule / Directory
Dn.,ioinn nolo• 1 1 Onr11
Marsh Advantage America
TEAM CONTACT DIRECTORY
OUR PHONE NUMBER IS:
(509) 248-7460
1-800-572-9170
Fax: (509) 248-9007
Phone
Extension Internet Address
211 joel.pearson@seabury.com
226 jana.m.bland@seabury.com
201 alison.j.freisz@seabury.com
229 becky.l.anseth@seabury.com
232 ronda.r.ide@seabury.com
240 caria.l.savage@seabury.com
202 ann.m.bowen@seabury.com
235 rachael.birdwell@seabury.com
OUR MAILING ADDRESS IS:
P.O. BOX 2547, YAKIMA, WA 98907-2547
OUR STREET ADDRESS IS:
1430 N. 16TH AVENUE, LAKE ASPEN, YAKIMA, WA 98902-1381
Page 3 of 4
Printad• 7/95/9009
Marsh Advantage America
BROKER SERVICES AGREEMENT
"Marsh Advantage America insurance services outlined below will be provided
as long as we are your broker of record / consultant."
11> Review your insurance needs with you.
IE:==> Prepare insurance specifications and market your insurance coverages with
appropriate carriers.
El=> Place coverage with sound carriers, meeting Marsh's security requirements.
ILE Review insurance policies for accuracy.
lr==> Prepare schedules of your insurance coverage.
IE > Submit claims to the insurance carrier on your behalf and assist in settlement of
the claim when necessary.
it > Answer insurance related questions which may arise.
lg=> Review insurance requirements in contracts when requested.
u=> Issue Insurance Certificates as requested.
Schedule / BSA
Page 4 of 4
Drin#orh 7/9c/9(1(19
SPECIFIC EXCESS WORKERS COMPENSATION AND
EMPLOYERS LIABILITY INDEMNITY POLICY
EMPLOYERS REINSURANCE CORPORATION
No. 0006397
SCHEDULE
1. Insured: City of Yakima
2. Mailing address: 129 N. 2nd Street
Yakima, WA 98901
3. Named states: Washington
4. Excluded states: None
5. Policy Period:
(a) From: July 1, 2002
(b) To: July 1, 2003
Both days at 12:01 A.M. standard time at the
Insured's address shown in Item 2 of this Schedule
6. Retention:
(a) Each accident: $500,000
(b) Each employee for disease: $500,000
7. Limit each accident:
(a) Policy Part One, Workers Compensation: $25,000,000
(b) Policy Part Two, Employers Liability: $1,000,000
8. Limit each employee for disease:
(a) Policy Part One, Workers Compensation: $25,000,000
(b) Policy Part Two, Employers Liability: $1,000,000
ERC -2120 I
9. Premium:
(a)
(b) Minimum:
(c) Deposit:
• .. !! ..
$25,000.00
$25,000.00
: Rate: $0.0187 per worker hour*
*Salaried personnel included at 40 hours per week each person
10. Endorsement serial numbers:
Endorsement No. 1 - S-38
Endorsement No. 2 - S-45 (12/97)
Endorsement No. 3 - SC -77
Endorsement No. 4 - S-78
Endorsement No. 5 - 'SAC -WA
Countersigned
Licensed Resident Agent
ERC -2120 I
Date
EMPLOYERS REINSURANCE CORPORATION
HOME OFFICE - 5200 Metcalf, P.O. Box 2991
Overland Park, Kansas 66201
(913) 676-5200 or 1-800-255-6931
Authorized Representative
SPECIFIC EXCESS ANNUAL RETENTION ENDORSEMENT
Schedule Item 6 shall read as follows:
6. Retention each accident or each employee for disease:
(a) As respects loss comprised of medical expenses, rehabilitation expenses and periodic
income benefits:
(b)
The first $150,000 incurred during the first retention period
The first $125,000 incurred during the second retention period
The first $100,000 incurred during the third retention period
The first $ 75,000 incurred during each subsequent retention period
$500,000, as respects loss:
(i) comprised of liability imposed by law for damages
(ii) comprised of lump sum benefits (including lump sum benefits payable in
installments) rather than periodic income benefits
(iii) for which you purchase an annuity or make other financial arrangement to
discharge your liability for payment of periodic income benefits
(iv) for which any governmental entity requires you to make a deposit to fund the
payment of periodic income benefits
(c) subject to a maximum retention of $500,000
Page 1 of 2
All other terms and conditions of this policy shall remain unchanged.
This endorsement forms a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 1
EMPLOYERS REINSURANCE CORPORATION
Endorsement Serial No. S-38
�tcu �.la9 ,4-d4.
President & CEO secretary
SPECIFIC EXCESS ANNUAL RETENTION ENDORSEMENT
With respect to this endorsement:
(1)
Claim expenses (listed in Subparagraph 3 of the definition of loss) shall be included with the
above described kind of loss to which they pertain.
(2) The term "retention period" shall mean consecutive twelve month periods of time commencing
on the date the accident or disease exposure occurs and on each anniversary of that date.
Each medical service is incurred upon the date the medical service is furnished. Each
rehabilitation expense is incurred upon the date that your payment is due for the rehabilitative
service provided Each periodic income benefit is incurred during the period of time to which the
income benefit pertains.
(3)
Page 1 of 2
All other terms and conditions of this policy shall remain unchanged.
This endorsement forms a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 1
EMPLOYERS REINSURANCE CORPORATION
Endorsement Serial No. S-38
President a CEO secretary
BROAD FORM COVERAGE ENDORSEMENT
I. In consideration of the premium charged, it is hereby understood and agreed that:
A. Federal Acts Coverage
1. Part One of the policy shall also apply to loss paid by you because of liability imposed upon you by:
(i) The Longshore and Harbor Workers Compensation Act (33 USC Sections 901-950).
(ii) The Defense Base Act (42 USC Sections 1651-1654).
(iii) The Outer Continental Shelf Lands Act (43 USC Section 1333.c).
(iv) The Nonappropriated Fund Instrumentalities Act (5 USC sections 8171-8173).
2. Part Two of the policy shall also apply to loss paid by you because of liability imposed upon you by:
(i) The Jones Act (46 USC Section 688 ).
(ii) The Federal Employers Liability Act (45 USC Sections 51-60).
(iii) The Migrant and Seasonal Agricultural Worker Protection Act (29 USC Sections
1801-1872).
B. Voluntary Compensation Coverage
Part One of the policy shall also apply to payments you gratuitously make because of bodily injury by
accident or disease sustained by any employee included within either group described below (or to the
employee's dependent) for benefits indicated in the workers compensation law of the state where the
employee is normally employed, but only if that state is named in Schedule Item 3.
Employees: a) those employees not covered under the worker's compensation law of a
state listed in Schedule Item 3; or
b) those employees who sustain a bodily injury while traveling or temporarily (less than 2
years) working outside of the United States of America.
This voluntary compensation coverage does not apply:
(a) unless the gratuitous benefits are paid as a result of an accident or disease exposure occurring during the
policy period and in the course of employment; or
(b) if the employee (or dependent) is entitled to benefits under any workers compensation law; or
(c) to bodily injury intentionally caused or aggravated by you; or
(d) in the event an employee who receives gratuitous payments from you for a bodily injury brings a
common law action against you based on that bodily injury, in which event, policy Part Two will apply.
This voluntary compensation coverage does apply:
(a) to bodily injury resulting from diseases endemic to a region outside the United States of America; and
Page 1 of 2
Endorsement Serial No. S-45(12/97)
II.
(b) to limited repatriation expenses such that Part One loss will include the amount of transportation
expenses you incur returning an employee who sustains a bodily injury while traveling or temporarily
working outside the United States of America (or, in the case of death, returning the employee's body) to
the location where the employee is normally employed which exceeds the cost of returning the employee
in an uninjured condition.
This voluntary compensation coverage will be reduced, in the event the employee is eligible for benefits
under a foreign workers compensation law and you are paying premiums for that coverage, by any workers
compensation benefits payable under the foreign law.
It is also understood and agreed that:
A. Unintentional Failure to Report
Your unintentional failure to disclose or accurately identify all hazards existing as of the inception date of
this policy shall not constitute grounds for a declination of coverage by us.
B. Waiver of Subrogation
If you enter into a written contract with another party that requires you to waive your right of subrogation
against the party, the last paragraph ("Recovery From Others") contained in Part One and Part Two of the
policy will not apply with respect to the party with whom you contracted.
C. Cancellation
The second sentence of Paragraph E of policy Part Five is amended to read as follows:
We may cancel this policy by giving you at least 90 days advance notice (30 days when
we cancel for non-payment of premium) by registered mail stating the cancellation date.
D. Punitive Damages - Employers Liability
Exclusion 3 contained in Paragraph H of policy Part Two does not apply with respect to jurisdictions where
insurance of punitive damages is peiiuitted by applicable law.
Page 2 of 2
All other tennis and conditions of this policy shall remain unchanged.
This endorsement forms a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 2
EMPLOYERS REINSURANCE CORPORATION
,
President & CEO Secretary
Endorsement Serial No. S-45(12/97)
MODIFIED CLAIMS REPORTING DUTIES
Paragraph B of Part Three of the policy is amended to read as follows:
B. Your Claims Reporting Duties. You must give us written notice as soon as you learn of any of the
following events involving loss which exceeds (or might in the future exceed) 50% of your retention:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
claim;
award;
verdict;
action;
suit;
proceeding;
judgment.
All other terms and conditions of this policy shall remain unchanged.
This endorsement fowls a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 3
EMPLOYERS REINSURANCE CORPORATION
Endorsement Serial No. SC -77
President 8 CEO Secretary
CLARIFICATION OF EMPLOYERS LIABILITY EXCLUSION
Exclusion 8 contained in Paragraph H of Part Two of the policy is amended to read as follows:
8. damages arising out of coercion, criticism, demotion, evaluation, reassignment, discipline,
defamation, harassment, humiliation, discrimination against or termination of any employee, or
any personnel practices, policies, acts or omissions.
All other terms and conditions of this policy shall remain unchanged.
This endorsement forms a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 4
EMPLOYERS REINSURANCE CORPORATION
g-e(L.,,
Endorsement Serial No. S-78
4 .
President Si CEO Secretary
WASHINGTON ENDORSEMENT
In accordance with the prohibitions contained in RCW 51.14.020(5):
A. The indemnity afforded by Part One of the policy pertaining to the workers compensation law of
Washington shall be limited to 80% of your liability under that law.
B. We do not participate in the administration of your responsibilities under the workers
compensation law of Washington.
All other terms and conditions of this policy shall remain unchanged.
This endorsement forms a part of the policy to which attached, effective on the inception date of the
policy unless otherwise stated herein.
(The information below is required only when this endorsement is issued subsequent to the preparation of
the policy.)
Endorsement Effective July 1, 2002
Named Insured City of Yakima
Countersigned
Authorized Representative
Policy No. 0006397 Endorsement No. 5
EMPLOYERS REINSURANCE CORPORATION
ga(ZL---
President & CEO Secretary
Endorsement Serial No. SAC -WA
SPECIFIC EXCESS WORKERS COMPENSATION AND
EMPLOYERS LIABILITY INDEMNITY POLICY
In return for the payment of the premium and subject to all terms of this policy, we agree with you as
follows:
GENERAL SECTION
A. Self -Insurance. Your acceptance of this policy indicates that you are now and will remain until
the end of the policy period a duly qualified self -insurer in each state named in Schedule Item 3.
If you are not a duly qualified self -insurer with respect to any loss covered by this policy, this
policy will apply as if you were.
B. The Policy. This policy includes the Schedule and the endorsements listed in Schedule Item 10.
It is a contract of insurance between you (the Insured named in Schedule Item 1) and us (the
Insurer named on the Schedule). The only agreements relating to this insurance are stated in this
policy. The terms of this policy may not be changed or waived except by endorsement issued by
us to be a part of this policy. Endorsements amending Schedule Items 1, 3, 4, 6, 7 or 8 apply
with respect to accidents and disease exposures occurring at or after 12:01 A.M. on the
endorsement's effective date.
C. Policy Period means the period of time covered by this policy as shown in Schedule Item 5. If
this policy is cancelled, the policy period will end at 12:01 A.M. on the cancellation date.
D. Workers Compensation Law includes occupational disease law. It does not include the
provisions of any law that provide non -occupational disability benefits.
E. State means any state of the United States of America and the District of Columbia.
PART ONE - WORKERS COMPENSATION
A. How This Part Applies. Part One applies to loss paid by you because of liability imposed upon
you by the workers compensation law of any state named in Schedule Item 3. Part One also
applies to loss paid by you because of liability imposed upon you by the workers compensation
law of any other state which is not shown in Schedule Item 4. LIABILITY MUST RESULT
.I -ROM BODILY INJURY BY ACCIDENT OR BODILY INJURY BY DISEASE SUSTAINED
BY AN EMPLOYEE YOU NORMALLY EMPLOY IN A STATE NAMED IN SCHEDULE
HEM 3. Bodily injury includes resulting death.
Bodily injury by accident must occur during the policy period. A disease is not bodily injury by
accident unless it results directly from bodily injury by accident.
Bodily injury by disease must be caused or aggravated by the conditions of your employment.
The employee's last day of last exposure to the conditions causing or aggravating such bodily
injury by disease must occur during the policy period. Bodily injury by disease does not include
disease that results directly from bodily injury by accident.
ERC 2120 I Page 1
B. Your Retention. You must retain loss as shown in Schedule Item 6. Your retention applies to
Part One loss and to Part Two loss together. IT IS IMPORTANT FOR YOU TO
UNDERSTAND THAT YOUR RETENTION FOR DISEASE APPLTFS SEPARATELY TO
EACH EMPLOYEE. Naming more than one Insured in Schedule Item 1 does not increase your
retention.
C. Our Indemnity. We will indemnify you for loss paid by you in excess of your retention. This
indemnity may be reduced by a late reporting penalty.
D. Our Limit. The most loss we will reimburse you for with respect to each accident is shown in
Schedule Item 7(a). The most loss we will reimburse you for with respect to each employee for
disease is shown in Schedule Item 8(a). Naming more than one Insured in Schedule Item 1 does
not increase our limit.
E. Late Reporting Penalty. As respects each accident or each employee for disease:
1. If you .c(o:roNgive us written notice within one year of when required. by,Part Three, our
indexri F — will be reduced by 15%. xy
If you do not give us written noticewithin three years of whe =required by Part Three, our
indemnity will be reduced by 40%.
F. Loss means the amount actually paid by you for regular benefits provided under the workers
compensation law in effect upon the date the accident or disease exposure occurs. Loss includes:
1. the amount paid by you in settlement of claims for regular benefits under the workers
compensation law;
2. the amount paid by you in satisfaction of awards or judgments for regular benefits under
the workers compensation law;
3. court costs, interest upon awards and judgments, and allocated investigation, adjustment
and legal expenses pertaining to workers compensation claims. This subparagraph 3 does
not include:
(i) salaries paid to your employees;
(ii) service company fees;
(iii) claims administrator fees.
G. Exclusions. Part One does not cover:,
1. loss insured by full coverage workers compensation or employers liability insurance;
2. loss payable under the workers compensation law of any state which is not named in
Schedule Item 3, if you are protected from the loss by any other insurance;
3. punitive or exemplary damages because of bodily injury sustained by any employee;
ERC 2120 I Page 2
4. punitive, exemplary or compensatory damages because of your conduct, or the conduct of
anyone acting for you:
(a) in the investigation, trial or settlement of any workers compensation claim;
(b) in failing to pay or delay in payment of any workers compensation claim;
5. any assessment made upon self -insurers, whether imposed by statute, regulation or
otherwise.
H. Payments You Must Make. You are responsible (without reimbursement from us) for any
payments in excess of the benefits regularly provided by the workers compensation law including
those required because:
J.
1. of your serious and willful misconduct;
2. you knowingly employ an employee in violation of law;
3. you fail to comply with a health or safety law or regulation; or
4. you discharge, coerce or otherwise discriminate against any employee in violation of the
workers compensation law.
Other Insurance. If, as respects any state named in Schedule Item 3, any other insurance exists
protecting you against loss covered by this insurance, this insurance shall apply in excess of the
other insurance.
Recovery From Others. We have your rights, and the rights of persons entitled to compensation
benefits from you, to recover our loss from anyone liable for the injury. You will do everything
necessary to protect those rights for us and to help us enforce them. The recovered loss
remaining after deducting our recovery expenses will first be used to reduce our loss. Then we
will pay the balance, if any, to you.
PART TWO - EMPLOYERS LIABILITY
A. How This Part Applies. Part Two applies to loss paid by you for damages imposed upon you by
the law of any state shown in Schedule Item 3. Part Two also applies to loss paid by you for
damages imposed upon you by the law of any other state which is not shown in Schedule Item 4.
DAMAGES MUST RESULT FROM BODILY INJURY BY ACCIDENT OR BODILY
INJURY BY DISEASE SUSTAINED BY AN EMPLOYEE YOU NORMALLY EMPLOY IN
A STATE NAMED IN SCHEDULE 1'1'EM 3. Bodily injury includes resulting death.
Bodily injury must arise out of and in the course of the injured employee's employment by you.
Bodily injury by accident must occur during the policy period. A disease is not bodily injury by
accident unless it results directly from bodily injury by accident.
Bodily injury by disease must be caused or aggravated by the conditions of your employment.
The employee's last day of last exposure to the conditions causing or aggravating such bodily
injury by disease must occur during the policy period. Bodily injury by disease does not include
disease that results directly from bodily injury by accident.
ERC 2120 I Page 3
B. Your Retention. You must retain loss as shown in Schedule Item 6. Your retention applies to
Part One loss and to Part Two loss together. IT IS IMPORTANT FOR YOU TO
UNDERSTAND THAT YOUR RETENTION FOR DISEASE APPLIFS SEPARATELY TO
EACH EMPLOYEE. Naming more than one Insured in Schedule Item 1 does not increase your
retention.
C. Our Indemnity. We will indemnify you for loss paid by you in excess of your retention. This
indemnity may be reduced by a late reporting penalty.
D. Our Limit. The most loss we will reimburse you for with respect to each accident is shown in
Schedule Item 7(b). The most loss we will reimburse you for with respect to each employee for
disease is shown in Schedule Item 8(b). Naming more than one Insured in Schedule Item 1 does
not increase our limit.
E. Late Reporting Penalty. As respects each accident or each employee for disease:
1. If you dost otugive us written notice within one year of when required, byPart Three, our
indertix) wi11 be reduced by 15%.
If you do not give us written not cewithin three years of when. required by Part Three, our
indemnity will be reduced by 40%.
F. Loss means the amount actually paid by you for damages imposed upon you by law. Loss
includes:
1. the amount paid by you in settlement of claims for legal damages;
2. the amount paid by you in satisfaction of awards or judgments for damages;
3. court costs, interest upon awards and judgments, and allocated investigation, adjustment
and legal expenses pertaining to employers liability claims. This subparagraph 3 does not
include:
(i) salaries paid to your employees;
(ii) service company fees;
(iii) claims administrator fees.
G. Damages includes:
1. damages for which you are liable to a third party by reason of a claim or suit against you by
that third party to recover the damages claimed against such third party as a result of injury
to your employee;
2. damages for care and loss of services; and
3. damages for consequential bodily injury to a spouse, child, parent, brother or sister of the
injured employee; provided that these damages are the direct consequence of bodily injury
that arises out of and in the course of the injured employee's employment by you; and
4. damages because of bodily injury to your employee that arises out of and in the course of
employment, claimed against you in a capacity other than as employer.
ERC 2120 I Page 4
H. Exclusions. Part Two does not cover:
1. liability assumed under a contract. This exclusion does not apply to a warranty that your
work will be done in a workmanlike manner;
2. loss payable under the law of any state which is not named in Schedule Item 3, if you are
protected from the loss by any other insurance;
3. punitive or exemplary damages because of bodily injury sustained by any employee;
4. punitive, exemplary or compensatory damages because of your conduct, or the conduct of
anyone acting for you:
(a) in the investigation, trial or settlement of any employers liability claim;
(b) in failing to pay or delay in payment of any employers liability claim.
5. bodily injury to an employee while employed in violation of law with your actual
knowledge or the actual knowledge of any of your executive officers;
6. any obligation imposed by a workers compensation, occupational disease, unemployment
compensation, or disability benefits law, or any similar law;
7. bodily injury intentionally caused or aggravated by you. This exclusion does not apply to
claim expenses (listed in subparagraph 3 of the definition of loss) related to the injury;
8. damages arising out of the discharge of, coercion of, or discrimination against any
employee in violation of law.
I. Other Insurance. If, as respects any state named in Schedule Item 3, any other insurance exists
protecting you against loss covered by this insurance, this insurance shall apply in excess of the
other insurance.
J.
Recovery From Others. We have your rights to recover our loss from anyone liable for an
injury covered by this insurance. You will do everything necessary to protect those rights for us
and to help us enforce them. The recovered loss remaining after deducting our recovery expenses
will first be used to reduce our loss. Then we will pay the balance, if any, to you.
PART THREE - CLAIMS
A. Your Claims Handling Duties. It is your responsibility to investigate, settle, defend and appeal
any claim made against you. It is also your responsibility to investigate, settle, defend and appeal
any suit brought or other proceeding instituted against you.
ERC 2120 1 Page 5
B. Your Claims Reporting Duties. You must give us written notice as soon as you learn of:
1. any of the following events involving loss which exceeds (or might in the future exceed)
50% of your retention:
(a) claim;
(b) award;
(c) verdict;
(d) action;
(e) suit;
(f) proceeding;
(g) judgment;
2. any accident involving:
(a) disability for a period of nine months or more;
(b) spinal cord injury;
(c) a peuuanent total disability as defined in the workers compensation law;
(d) serious burn injury;
(e) brain injury.
C. Claims Information. You agree to send to us any claim information which we may request.
D. Claims Participation By Us. At our own election and expense, we have the right to participate
with you in the settlement, defense or appeal of any claim, suit or proceeding which might
involve a loss to us.
E. Settlements. You agree not to make any voluntary settlement involving loss to us without our
written consent.
PART FOUR - PREMIUM
A. Deposit and Adjustment Premiums. At the beginning of the policy period you must pay us the
deposit premium shown in the Schedule. At the end of the policy period:
1. you will owe us the amount by which the final premium is greater than the deposit
premium; or
2. we will owe you the amount by which the deposit premium is greater than the final
premium.
B. Payroll Report. Within 45 days after the end of the policy period, send us a report showing the
amount of payroll earned by your employees during the policy period.
C. Final Premium. The final premium due us for the policy period will be computed as shown in
Schedule Item 9(a). Unless this policy is cancelled, final premium will be at least the minimum
premium shown in the Schedule.
ERC 2120 I Page 6
If we cancel this policy, final premium will be calculated pro rata based on the time this policy
was in force. Final premium will not be less than the pro rata share of the minimum premium.
If you cancel this policy, final premium will be more than pro rata; it will be based on the time
this policy was in force, and increased by the customary short rate table and procedure. Final
premium will not be less than the short rate portion of the minimum premium.
D. Payroll means the gross pay to your employees for the policy period plus other amounts and
items received by your employees as part of their pay for the policy period. We will send you a
payroll reporting foiul describing what is included in payroll.
E. Records. You will keep records of information needed to compute premium. You will provide
us with copies of those records when we ask for them.
F. Audit. You will let us or our representatives examine and audit all your payroll records. The
audits may be conducted during your regular business hours.
PART FIVE - CONDITIONS
A. Agreement Upon Terms. Your acceptance of this policy means that you agree with us upon the
tent's of this policy.
B. Sole Representative. The Insured first named in Schedule Item 1 will act on behalf of all
Insureds to change this policy, accept loss payments, receive return premium and give or receive
notice of cancellation.
C. Bankruptcy or Insolvency. Your bankruptcy or insolvency will not relieve us from the payment
of any claim covered by this policy.
D. Transfer of Your Rights and Duties. Your rights or duties under this policy may not be
transferred without our written consent. This provision does not apply to duties transferred to a
service company or a claims administrator.
E. Cancellation. You may cancel this policy by giving us at least 30 days advance notice by
registered mail stating the cancellation date. We may cancel this policy by giving you at least 30
days advance notice by registered mail stating the cancellation date. Our mailing of registered
notice to your address shown in Schedule Item 2 will be sufficient proof that we cancelled this
policy.
We have executed this policy by printing below the facsimile signatures of our President and
Secretary and by the actual signature of our authorized representative on the Schedule.
EMPLOYERS REINSURANCE CORPORATION
(2,e(L,
President & CEO secretary
ERC 2120 I Page 7
LEGAL DEPARTMENT
200 South Third Street
Yakima, Washington 98901-2830
December 4, 2003
Joel Pearson
Senior Vice President
Marsh Advantage America
P.O. Box 2547
Yakima, WA 98907
Dear Joel:
Enclosed is a conformed copy of the Professional Services Contract
between the City of Yakima and Marsh Advantage America. This copy shows
your signature as well as the signatures of the City Manager and the City Clerk.
We appreciate your cooperation and assistance in this matter. The City
looks forward to working with you and Deb and the employees at Marsh in the
coming years.
Sincerely,
Helen A. Harvey
Assistant City Attorney
HAH/klw
Enclosure
cc/enc: Deb Krautwurm
?rck Zais, City Manager
Rita Anson, Finance Director
Cindy Epperson, Financial Services Manager
Sue Ownby, Purchasing Manager
rani Division (509) 575-6030 Criminal Division (509) 575-6033 ' Fax (509) 57.E-6160