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Workers' Compensation Excess InsuranceTHE CITY OF Dubuque -~ DUB E ""-~"~'~~~ ~ - Masterpiece on the Mississippi 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Workers' Compensation Excess Insurance DATE: June 26, 2009 After Cottingham and Butler received quotes on behalf of the City, Personnel Director Randy Peck is recommending approval of the renewal rate of $.12 per $100 of payroll submitted by Safety National and to increase the self-insured retention (each accident) from $450,000 to $500,000 effective July 1, 2009 through June 30, 2010, for the workers' compensation excess insurance. I concur with the recommendation and respectfully request Mayor and City Council approval. Mi ael C. Van Milligen MCVM:Iw Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Randy Peck, Personnel Director THE CITY OF DUbUgUe -~ ~T T~ E Ae-AmedcaC~y ~,J Masterpiece an the Mississippi 2007 TO: Michael C. Van Milligen, City Manage FROM: Randy Peck, Personnel Manager SUBJECT: Workers' Compensation Excess Insurance DATE: June 22, 2009 Cottingham and Butler presented the workers' compensation excess insurance renewal options for coverage effective July 1, 2009, I have attached the renewal proposal for your review. Quotes were obtained from our current carrier, Safety National, Midwest Employers Casualty Company, ACE and AIG. Safety National presented the most competitive proposal for the existing coverages. Safety National proposes a rate of $.12 per $100 of payroll effective July 1, 2009 through June 30, 2010. The renewal proposal provides for an estimated annual premium of $27,125 for Fiscal Year 2010. The current annual premium is $25,083. The increase is related to the increase in our payroll. Safety National presented a proposal to increase the self-insured retention (each accident) from $450,000 to $500,000. Increasing the retention amount would decrease the premium by $1,170. The estimated annual premium would be $25,995. Safety National also presented a proposal to include sworn police officers and firefighters medical claims under the self-insured retention. They presented a quote based on retention amounts of $450,000, $500,000 and $600,000. If we were to include sworn police officers and firefighters medical claims under the retention limit, the premium would increase between $13,000 and $54,000. Finance Director Ken TeKippe and I have discussed whether there would be any financial advantage to include sworn police officers and firefighters medical claims under the retention limit. Since we would be liable for all medical expenses up to the retention amount, we recommend to continue excluding sworn police officers and firefighter medical claims from the retention limit. Ken and I recommend that we continue with Safety National as our excess workers' compensation carrier effective July 1, 2009 through June 30, 2010. We also recommend increasing the self-insured retention (each accident) from $450,000 to $500,000 effective July 1, 2009. Cottingham and Butler has issued a binder to make sure that there would be no lapse in coverage on July 1, 2009. The requested action is for the City Council to pass a motion approving the renewal rate of $.12 per $100 of payroll submitted by Safety National and to increase the self-insured retention (each accident) from $450,000 to $500,000 effective July 1, 2009 through June 30, 2010, for the workers' compensation excess insurance. If you have any questions, please feel free to call. RP:tlb cc: Ken TeKippe, Finance Director Jenny Larson, Budget Director cess workers c.ompensat~on Insurance rt s for CITY OF DUBUQUE Presented by: Eric Larsen, Sales Executt've Policy Period: 2009-2010 This is a convenient coverage summary not a legal contract. This proposal is provided to facilitate your understanding of your insurance program. Please refer to the actual policies for specific terms conditions limitations and exclusions thnt will govern in the event of a loss. Specimen copies of all policies are available for review prior to the binding of covernge. In evaluating your exposures to loss, we hove been dependent upon information provided by you. If' there are any other areas that need to be evaluated prior to binding of covernge, please bring these areus to our attention. Should any of your exposures change after coverage is bound, such as your beginning new operations, hiring employees in new states, barying udditional property, etc., please !et us know so proper coverage can be discussed. Cottingham & Butler, /nc. is compensated through fees and/or commissions for services provided to clients related to managing, reducing, and transferring risk. In addition, Cortingham & Butler, Inc. may enter into agreements with some insurance carriers through which it is compensated for services provided on behalf of the carriers. This compensation is based on several factors such as overall volume, growth, and in some cases profitability of the aggregate premium placed with such carriers. Cotringham & Butler subsidiaries may also receive compensation for services such ns uti[izrttiort review, case management and claims handling performed directly for the carriers. C~'- Cottingham ~ Butler C&B Insurance ~ SISCO ~ HealthCorp ~ Safety Management Established 1887 CITY OF LE OF NTE TS Cottingham & Butler -Who We Are Assurex Global Service Team Premium Summary and Payment Options Excess Workers' Compensation Appendix A - A.M. Best Rating & Analysis Additional Coverages Insurability of Punitive Damages Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of S business days. C= Cottingham & Butler Page ~ CITY OF DUBUQUE OUR MISSION To PARTNER with our clients to PROTECT their most valuable assess and to BUILD an exceptional company of passionate insurance professionals. Cottingham & Butler is a privately held firm headquartered in Dubuque, Iowa with an expanding set of office locations. Our regional offices are located throughout the United States to provide our clients with the best service possible. We provide the high-touch service you would expect from a local insurance broker combined with the high-end expertise you need in the increasingly complex world of employee benefits and risk management. As an owner of Assurex Global, the world's largest association of privately held insurance brokers, we can help you handle almost any insurance-related problem you may have! We offer a complete set of employee benefits and risk management services including: • Brokerage Expertise and Accountability • Safety & Loss Control Consulting Services • Claims Management • Captive & Program Management • International & Specialty Risks • Employee Benefits Brokerage 8t: Consulting • Medical Management Services • Wellness & Disease Management Solutions • Personal Insurance & Retirement Products Our business model is built around three simple tenets: 1. Sit on the same side of the desk with your client. 2. Focus on the total cost of risk, not just insurance costs. 3. Deliver what we design. This approach has served us well as evidenced by some highlights from our rich heritage: • In business since 1887 • 54~' largest insurance broker in the United States • Over 2,000 clients • Business in over 40 states • Over 13.5% average organic revenue growth per year over the last 20 years • National Underwriter Commercial Insurance AGENCY OF THE YEAR 2007 Our plan for the future is simple: we aim to continue providing the very best in insurance solutions and services for our clients through our team of highly motivated and talented insurance professionals. Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C= Cottingham & Butler Page 2 CITY OF DUBUQUE Assurex Global is the world's largest privately held risk management and commercial insurance brokerage group. Employing more than 20,000 insurance professionals on six continents, the 130-plus independent insurance brokers who constitute Assurex Global generate annual premiums in excess of $19 billion. Founded in 1954, Columbus, Ohio-based Assurex Global is a unique international corporation that marshals the experience, expertise, products and services of the world's most successful and respected independent risk management, commercial insurance and employee benefits professionals. Cottingham & Butler has been a member of Assurer Global since 1986. PARTNER SELECTION Only the best independent agency in each market area is invited to become an Assurex Global Partner. Each is carefully selected on the basis of its premier market position, history of growth, quality, breadth of services, integrity, and commitment to serve the clients of all Assurer Global Partners. Assurex Global Partners meet rigorous fmancial and leadership standards to be admitted into the organization. They are re-evaluated every 3 years. PARTNER REVIEW: Every Assurex Global Partner periodically undergoes an in-depth evaluation to ensure they continue to meet stringent qualifications. Factors considered are growth, creativity and their ability to provide the highest level of professional services. A hallmark of Assurex Global is the fact that all Partners, regardless of city and country, are committed to providing an immediate and professional response to other Partners' requests for advice on local insurance conditions, assistance with local coverage's, and other local services, including claims and loss control. Worldwide, the sun never sets on Assurer Global. With Assurer Global, you enjoy access to the most experienced local brokers, delivering the best insurance products and services in every country of the world. Wherever clients have assets at risk, hands-on advice and services are available from local Assurex Global brokers familiar with the regulatory environment and customs of each country. Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the pohcy u available for renew. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C COttiIlghaln SL BUt12I Page 3 CITY OF DUBi~QUE Sales Executive Eric Larsen Phone: 563-587-5602 Cell: 563-580-1831 Eric.Larsen @ cb-sisco.com Account Administrator Michelle Sommers Phone: 563-587-5387 Michelle.Sommers @ cb-sisco.com Account Service Representative Jill Kalb Phone: 563-587-5169 & Certificate Requests Jill.Kalb@cb-sisco.com Brokerage Claims Representative Sheri Risley Phone: 563-587-5245 Sheri.Risley @ cb-sisco.com After Hours Emergency Claim Reporting: Direct to Insurance Companies: Go to cb-sisco.com; click on report a claim; under #2 click on the link; if yes "click here" to see a list of carrier telephone numbers PO Box 28 800 Main Street Dubuque, IA 52004-0028 Dubuque, IA 52001 (563) 583-7344 ~ • (800) 793-5235 www.cb-sisco.com Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C= COttiD$~]dID ~ B1ItleT o..-... ~ ~ ~ x. ~. ~ y.. ~..- Page 4 CITY OF DUBUQUE PREMIUM SUMMARY 2008/2009 2009/2010 COVERAGES: Excess Workers' Compensation $25,083 $27,125 TOTAL ESTrniATED ANNUAL PREMIUM $25,083 $27,125 PAYMENT TERMS' Full Annual Premium Due. Agency Billed. PREMIUM PAYMENT POLICY AGENCY BILLED POLICIES During the policy period, if cancellation of a policy(s) results due to non-payment of premium, coverage will be reinstated only twice. If a policy(s) is cancelled a third time, Cottingham & Butler, Inc. will not reinstate coverage or present a renewal offer on any coverages. FINANCED AND DII2ECT BILLED POLICIES If cancellation and reinstatement of a policy(s) takes place more than twice during the policy period, Cottingham & Butler, Inc. will not present a renewal offer on any coverages. Note: Higher limits may be available. Please let us know if you would like a quote for higher limits. In evaluating your exposures to loss, we have been dependent upon information provided by you. If there are any other areas that need to be evaluated prior to binding of coverage, please bring these areas to our attention. Should any of your exposures change after coverage is bound, such as your beginning new operations, hiring employees in new states, buying additional property, etc., please let us know so proper coverage can be discussed. Cottingham & Butler, Inc. is compensated through fees and/or commissions for services provided to clients related to managing, reducing, and transferring risk. In addition, Cottingham & Butler, Inc. may enter into agreements with some insurance carriers through which it is compensated for services provided on behalf of the carriers. This compensation is based on several factors such as overall volume, growth, and in some cases profitability of the aggregate premium placed with such carriers. Cottingham & Butler subsidiaries may also receive compensation for services such as utilization review, case mana ement and claims handlin a ormed directl or the carriers. Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C ~ Cottingham & Butler Page 5 CITY OF DUBUQUE j WORKERS' COMPENSATION COVERAGE SPECIFICATIONS F... 2008/2009 2009/2010 2009/2010 { Company: Safety National Safety National Safety National A.M. Best Rating: A, X A, X A, X Status: Admitted Admitted Admitted Rating and Status as of.• 06/05/2009 06/05/2009 06/05/2009 Limits: Workers' Compensation (each accident) Statutory Statutory Statutory Employer's Liability (each accident) $1,000,000 $1,000,000 $1,000,000 Self-Insured Retention (each accident) $450,000 $450,000 $500,000 Aggregate Protection None None None Estimated Payroll $20,902,496 $22,604,201 $22,604,201 Rate per $100 of Payroll .12 .12 .115 Policy subject to Annual Audit: Yes Yes Yes TOTAL ESTIMATED ANI~TIJAL PREMIUM $25,083 $27,125 $25,995 Minimum Premium $25,083 $27,125 $25,995 Note: Higher limits may be available. Please let us know if you would like a quote for higher limits. Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by lirse of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of s business days. C COttlrlgl]aTn ST But12I Page 6 CITY OF DUBUQUE FOR RS OMPEN ~I~l~~OVER~E~P-EC~II~'~~TT-O~C•O~NTIlQIIED OPTIONS -INCLUDING POLICE & FIRE: 2009/2010 2009/2010 Company: Safety National Safety National A.M. Best Rating: A, X A, X Status: Rating and Status as of.• Limits: Admitted Admitted 06/05/2009 06/05/2009 2009/2010 2009/2010 Safety National Safety National A, X A, X Admitted Admitted 06/05/2009 06/05/2009 Workers' Compensation (each accident) Statutory Statutory Statutory Statutory Employer's Liability (each accident) $1,000,000 $1,000,000 $1,000,000 $1,000,000 Self-Insured Retention (each accident) All Other Police/Fire $450,000 $500,000 $450,000 $500,000 $600,000 $600,000 $450,000 $500,000 Aggregate Protection None None None None Estimated Payroll $33,993,351 $33,993,351 $33,993,351 $33,993,351 Rate per $100 of Payroll .12 .115 _ .24 .2124 Policy subject to Annual Audit: Yes Yes Yes Yes TOT~,I. ESTIMATED AivNtrai. PREMIUM $40,792 $39,092 $81,584 $72,202 Minimum Premium $40,792 $39,902 $81,584 $72,202 Note: Higher limits may be available. Please let us know if you would like a quote for higher limits. Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead Time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C Cottingham & Buffer Page 7 CITY OF DUBUQUE WORKERS' COMPENSATION COVERAGE SPECIFICATIONS -CONTINUED Rating Basis: IA 0106 Tree Prunin $173,601 IA 3724 Millwri ht Work NOC & Drivers $123,670 IA 5192 Parkin Meters Install Service or Re air $116,583 IA 5506 Street or Road Construction Pavin /Re avin $876,559 IA 7382 Bus Co-All Other Em to ees & Drivers $945,005 IA 7403 Aircraft of Helico ter O s: Air Carrier-Scheduled or Su lemental $375,504 IA 7403 Aircraft of Helico ter O s: Sales or Service A enc All Other Em to ees Included Above IA 7520 Waterworks O eration & SD $1,215,555 IA 7580 Sewa a Dis osal Plan O eration & Drivers $1,129,381 IA 8385 Business Co-Cara e Em to ees $73,058 IA 8392 Automobile Stora a Gara a or Parkin Station & Drivers $613,778 IA 8810 Clerical Office Em to ees $9,426,795 IA 8810 Public Libr Museum Professional Em to ees Included Above IA 8831 Hos ital Veterin & Drivers $64,517 IA 8835 Public Health Nursin Association-All Em to ees $108,971 IA 9015 Buildin NOC-O erated b Owner $654,711 IA 9015 Swimmin Pool Public O eration Included Above IA 9016 Skatin Rink O s & Drivers $0 IA 9060 Club-Coup $253,817 IA 9101 All Other Em to ees $95,462 IA 9182 Park NOC-All Other Em to ees & Drivers $1,451,683 IA 9154 Theater NOC-All Other Em to ees $0 IA 9402 Street Cleanin & Drivers $472,926 IA 9410 Munici al, Townshi ,Coun or State Em to ees $2,844,049 IA 9419 Munici al, Townshi Coun or State Em to ees NOC Included Above IA 9403 Garba a and Refuse Collectin in Containers & Dum in $1,588,576 Total Estunated Annual Pa oll $22,604 Ol TO ADD POLICEMEN & FIREMEN: IA 7720 Police O cers $6, 059,122 IA 7710 Fire hters $5,330,028 Total Estimated Annual Pa roll $33,993,351 Please refer to the policy for speci, fc terms, conditions, [imitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assign:ed Risk policies wil~l+vary by state, but generally is a minimum of 5 business days. C ~ Cottingham ~ Butler Page 8 CITY OF DUBUQUE - W O~t1~R~rC-01~IPEN~~TI01~T~-O ~PE-CIFrC-A~ON~ _ ~O Exclusions include but are not limited to the following: ~ Punitive Damages ~ Injury to employees knowingly illegally employed ~ Intentional Injury ~ Serious and willful misconduct of the employer including intentional acts or omissions resulting in an injury W Injuries outside of U.S., its territories and possessions, and Canada ~ Employment Related Practices W Crew Members of any vessel ~ Fines or Penalties ~ Damages to any employee under the USL&H Act, the Federal Employer's Liability Act, or Migrant and Seasonal Agricultural Worker Protection Act. W Monopolistic States are not covered: North Dakota, Ohio, Washington, West Virginia, and Wyoming W Failure to comply with any health, safety, or notification law or regulation W Firefighter and Policy Officer Employees (see option for Medical Benefits Only) ~ Relating to any employer owned, leased, or regulazly chartered aircraft Other exclusions and coverage limitations apply. Additional Options: ® Voluntary Compensation ^ United States Longshore & Hazborman's Act (USL&H) ^ Jones Act ^ Alternate Employer ^ Scheduled Waivers of Subrogation ^ Blanket Waiver of Subrogation ® Foreign Voluntary Compensation and Employer's Liability Coverage ^ Repatriation ^ Endemic Disease ^ Stop Gap (Coverage for Monopolistic States) Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time far Assigned Risk policies wi~ll^+.vary by state, but generally is a minimum of 5 business days. V ~ Cottingham ~ Butler Page 9 ~. CITY OF DUBUQUE A.M. BEST RATING & ANALYSIS The objective of Best's rating system is to provide an opinion as to an insurer's financial strength and ability to meet ongoing obligations to policyholders. A.M. Best's opinions are derived from an evaluation of a company's balance sheet strength, operating performance and business profile as compared with Best's quantitative and qualitative standards. Level Cate or Level Cate o Level Cate~o A++, A+ Su erior B, B- Fair D Poor A, A- Excellent C++, C+ Mar final E Under Re ulato Su ervision B++, B+ Ve Good C, C- Weak F In Li uidation S Ratin Sus ended Financial Size Categories (In $000 of Reported Policyholders' Surplus Plus Conditional Reserve Funds) Assigned to all companies and reflects their size based on their capital, surplus and conditional reserve funds in millions of US dollars, using the scale below. To enhance the usefulness of our ratings, A.M. Best assigns each company a Financial Size Category (FSC). The FSC is designed to provide the subscriber with a convenient indicator of the size of a company in terms of its statutory surplus and related accounts. Many insurance buyers only want to consider buying insurance coverage from companies that they believe have sufficient financial capacity to provide the necessary policy limits to insure their risks. Although companies utilize reinsurance to reduce their net retention on the policy limits they underwrite, many buyers still feel more comfortable buying from companies perceived to have greater financial capacity. FSC I Up to 1,000 FSC IX 250,000 to 500,000 FSC II 1,000 to 2,000 FSC X 500,000 to 750,000 FSC III 2,000 to 5,000 FSC XI 750,000 to 1,000,000 FSC N 5,000 to 10,000 FSC XII 1,000,000 to 1,250,000 FSC V 10,000 to 25,000 FSC XIII 1,250,000 to 1,500,000 FSC VI 25,000 to 50,000 FSC XIV 1,500,000 to 2,000,000 FSC VII 50,000 to 100,000 FSC XV 2,000,000 or more FSC VIII 100,000 to 250,000 Best's Insurance Reports, published annually by A.M. Best Company, Inc., presents comprehensive reports on the financial position, history, and transactions of insurance companies operating in the United States and Canada. Companies licensed to do business in the United States are assigned a Best's Rating which attempts to measure the comparative position of the company or association against industry averages. Copies of the Best's Insurance Reports on the insurance companies aze available upon your request. Cottingham & Butler uses A.M. Best & Co.'s rating services to evaluate the financial condition of insurers whose policies we propose to deliver. The rating of the carrier and the year of publication of that rating are indicated. Cottingham & Butter makes no representations and wan•anties concerning the solvency of any carrier, nor does it make any representation or warranty concerning the rating of the carrier which may change. j ADIVIITTED/NON-ADMITTED/GUARANTY FUND DATA The term admitted or authorized carrier refers to an insurer, which has been approved (authorized) by a given state's ~ insurance department to write business within that state. An admitted or authorized carrier is protected by the State f- Guaranty Fund should an insolvency (bankruptcy) of the insurer occur. Anon-admitted or unauthorized carrier in a given state is not protected by the Guazanty Fund in that state should the carrier become insolvent. It is important to keep in mind that an admitted or non-admitted status as well as the resulting applicability of any state's guazanty fund aze issues only if/when a carrier is declared insolvent. Please refer to the po&cy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of S business days. C= Cottingham & Butler Page 10 CITY OF DUBUQUE DDITIONAL OVERAGES Additional coverages that may be available but not limited to the following: Auto Liability Auto Physical Damage Uninsured/tTnderinsured Motorist Coverage General Liability Employee Benefits Liability Garage Liability Garagekeepers Property Equipment Breakdown Flood Earthquake Directors & Officers Liability Crime/Employee Dishonesty Fiduciary Liability - (The responsibility on trustees, employers, fiduciaries, professional administrators, and the plan itself with respect to errors and omissions in the administration of employee benefit programs as imposed by the Employee Retirement Income Security Act of 1974) Kidnap & Ransom Higher Liability Limits Higher Umbrella Limits Deductible Options Pollution Employment Practices Liability - (Wrongful termination, sexual harassment, sexual discrimination, etc.) Business Income Extra Expense Professional Errors and Omissions Internet Liability Product Recall Foreign/International Coverages If you are interested in pricing for any of the above coverages or any other coverages, please contact our office. In evaluating yoltr exposures to loss, we have been dependent upon information provided by you. If there are any other areas that need to be evaluated prior to binding of coverage, please bring these areas to our attention. Should any of your exposures change af7er coverage is bound, such as your beginning new operations, hiring employees in new States buying additional property etc please let us know so proper coverage can be discussed. Please refer to the policy for specific tenns, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead lime required to secure coverage. Adequate lead time will vary by line of coverage and compa~:y, but generally is a minimum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C Cottingham & Butler Page 11 COMPANY NAME INSURABILITY OF PUNITIVE DAMAGES PER STATEI Punitive Damages are Insurable: Alabama Alaska Arizona Delaware Georgia Hawaii Idaho Iowa Louisiana Michigan Mississippi Montana New Hampshire New Mexico Puerto Rico South Carolina Vermont Virgin Islands Washington Wisconsin Wyoming Punitive Damages are NOT Insurable if directly assessed for an intentional wrong: Arkansas Dist. Columbia Nevada North Cazolina North Dakota Oregon Tennessee Texas West Virginia Punitive Damages are NOT Insurable unless awarded out-of-state or vicariously assessed: California Punitive Damages are NOT Insurable if directly assessed and not statutorily imposed: Connecticut Punitive Damages are NOT Insurable if directly assessed: Florida Illinois Indiana Kansas Missouri Ohio Pennsylvania Rhode Island South Dakota Punitive Damages are NOT Insurable if assessed for an intentional wrong: Kentucky Punitive Damages are NOT Insurable unless awarded out-of-state: New York Punitive Damages are NOT Insurable unless vicariously assessed for ne~liQence: Oklahoma Punitive Damages. are_NOT Insurable unless assessed for Bodily Iniurv caused by unintentional conduct: Virginia Punitive Damages are NOT Insurable: Colorado Maine Massachusetts Minnesota Nebraska New Jersey Utah t Information obtained from International Risk Management Institute, Inc. (IRMI), as of November 2006 Please refer to the policy for specific terms, conditions, limitations, and exclusions. A specimen copy of the policy is available for review. Adequate lead time required to secure coverage. Adequate lead time will vary by line of coverage and company, but generally is a minunum of 48 hours. Adequate lead time for Assigned Risk policies will vary by state, but generally is a minimum of 5 business days. C Cottingham ?x Butler Page 12