Workers' Compensation Excess Insurance RenewalMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Fiscal Year 2012 Workers Compensation Excess Insurance
DATE: June 28, 2011
Dubuque
herd
AN- America City
II I
2007
Cottingham and Butler presented workers' compensation excess insurance renewal
options to the City. Personnel Director Randy Peck is recommending approval of the
renewal rate of $.138 per $100 of payroll submitted by Safety National, maintaining the
retention limit of $500,000 (each accident) and including sworn police officer and
firefighter medical claims under a $600,000 retention limit effective July 1, 2011 through
June 30, 2012, for a total premium of $51,503. This is an increase from the current year
premium of $35,196.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Randy Peck, Personnel Manager
Midhael C. Van Milligen
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Randy Peck, Personnel Manager
SUBJECT: Fiscal Year 2012 Workers Compensation Excess Insurance
DATE: June 27, 2011
Dubuque
kettil
Ai-America my
2007
Cottingham and Butler presented the workers' compensation excess insurance renewal
options for coverage effective July 1, 2011. I have attached the renewal proposal for
your review. Quotes were obtained from our current carrier, Safety National, and NY
Magic, Midwest Employers, Ace, Discover and Chartis. The following is a summary of
the quotes:
• Safety National - $51,503
• NY Magic — minimum premium of $50,000 (this figure does not include an evaluation of current
losses)
• Midwest Employers —they will evaluate risks by reviewing all losses above $50,000. Last year's
quote, without the firefighter and police officers included in the plan, was $187,000
• Ace — minimum premium starts at $100,000
• Discover — minimum premium starts at $250,000
• Chartis — minimum premium starts at $100,000
Safety National has increased their rate per $100 of payroll from $.115 to $.138.
The increase is related primarily to one claim that has incurred $204,949 in expenses
and has a reserve of $709,401. The current premium is $35,196; however, the current
premium should have been $41,407. Cottingham and Butler failed to include their
commission of $6,211 in the current premium. The renewal proposal provided by
Safety National is $51,503. The increase is related to the increase in our payroll and
the increase in the rate per $100 of payroll.
Finance Director Ken TeKippe and I recommend that we continue with Safety National
as our excess workers compensation carrier effective July 1, 2011 through June 30,
2012. We recommend maintaining the retention limit of $500,000 (each accident) and
including sworn police officer and firefighter medical claims under a $600,000 retention
limit.
The requested action is for the City Council to pass a motion approving the renewal rate
of $.138 per $100 of payroll submitted by Safety National, maintaining the retention limit
of $500,000 (each accident) and including sworn police officer and firefighter medical
claims under a $600,000 retention limit effective July 1, 2011 through June 30, 2012 for
a total premium of $51,503. Cottingham and Butler has issued a binder to make sure
that there would be no lapse in coverage on July 1, 2011. If you have any questions,
please feel free to call.
RP:jmh
cc: Ken TeKippe, Finance Director
Jenny Larson, Budget Director
Dan Brown, Fire Chief
Mark Dalsing, Police Chief
Insurance Proposal
for
Presented by:
Eric Larsen, Sales Executive
Policy Period:
2011 -2012
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 that will govern in the event of a loss. Specimen copies of
all policies are available for review prior to the binding of coverage.
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 management and claims handling performed directly for the carriers.
C
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Cottingham & Butler
C &B Insurance I SISCO I HealthCorp I Safety Management
Established 1887
CITY OF DUBUQUE
TABLE OF CONTENTS
Cottingham & Butler — Who We Are
Assurex Global
Service Team
Marketing Summary
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 5 business days.
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1 CITY OF DUBUQUE
COTTINGHAM & BUTLER - WHO WE ARE
OUR MISSION
To PARTNER with our clients to PROTECT their most valuable assets
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 & 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
♦ 38` 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.
NIB
Cottingham & Butler
Ck5 *we Lim I IIeXIfq 1S.MT
Page 2
CITY OF DUBUQUE
ASSURER GLOBAL
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 Assurex 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 Assurex Global Partners.
Assurex Global Partners meet rigorous financial 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 Assurex Global. With Assurex 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 tenns, 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 minimwn of 5 business days.
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CITY OF DUBUQUE
SERU ICE AND MARKETING
Account Executive
Primary account responsibility and resource
Marketing Specialist
Amy Tanny, MBA, CPCU,
ARM, AU, CIC, AM
Maintains market relationships and researches market programs and appetites to
insure the best and most competitive insurance program.
Account Administrator Michelle Sommers, CIC, AAI
Primary contact for all aspects of insurance program.
A ccount Service Representative Amy Brunsman, AAI
Assists client with account service requests such as Certificates of Insurance,
policy changes, Auto ID cards, and Bond placement.
CLAIMS MANAGEMENT
Brokerage Claims Advocate
Claims Management review and advocacy.
Brokerage Claims Representative Janelle Clasen
Claim reporting of all claims outside of Workers Compensation, verification of
carrier claim receipt, and assisting with claims advocacy.
SAFETY MANAGEMENT
Vice President, Safety Management
Services
Responsible for the operations of the Safety Management Services Department
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
1 ADDRESS
PO Box 28
Dubuque, IA 52004 -0028
SERVICE TEAM
Eric Larsen, CIC
Patti Garberg, J.D.
Dave Franson, CSP, ARM
(563) 583-7344 • (800) 793-5235
www.cottinghambutler.com
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Cottingham & Butler
n . n e w . . . I W O WNK., I,..,
Page 4
800 Main Street
Dubuque, IA 52001
Phone: 563 -587 -5602
Cell: 563 -580 -1831
elarsen@cottinghambutler.com
Phone: 563 -587 -5106
atanny@cottinghambutler.com
Phone: 563 -587 -5387
msommers@cottinghambutler.com
Phone: 563- 587 -5342
abrunsman@cottinghambutler.com
Phone: 763 -473 -3617
pgarberg@cottinghambutler.com
Phone: 563- 587 -5544
jclasen@cottinghambutler.com
Phone: 563- 587 -5152
dfranson@cottinghambutler.com
PIII sICAL ADDRESS
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.
CITY OF DUBUQUE
MARKETING SUMMARY
Safety National — At renewal this year Cottingham & Butler made adjustments for the pricing
discrepancy that occurred on the terms last year. Last year's premium should have been $41,407 vs.
$35,196 as proposed. Since commission was not included in last year's proposed pricing you will
notice that there was an automatic premium increase at renewal. Please see the proposal for further
details.
In addition Safety National has decided to take a 20% rate increase ($0.115 rate to a $.138 rate). This
is due to the large loss that occurred on 7/27/07 to Terry Dolan which has negatively developed
considerable since last year's renewal currently at $790,401 in total incurred losses. Thus this claim is
anticipated to go over the SIR layer in place making Safety National responsible for paying the claim
above this threshold.
Cottingham & Butler has worked diligently with the actual claims representative handling this claim to
verify it is reserved accurately as well as provided updated litigation status directly from the attorney in
which is handling the possible subrogation opportunity. Unfortunately at this time Safety National
feels that there are still many uncertainties with the claim and will be open for some time. At this
point, they cannot reduce their pricing as the rate increase that they are seeking is needed on the
account. Unfortunately this is a relatively small risk and Safety National feels the amount of premium
that they are collecting is inadequate in terms of funding for future losses that may occur. Overall have
collected $230,184 in premium dollars; however, it does appear that the Terry Dolan claim could at
some point pierce the SIR and thus making the account unprofitable.
NY Magic — Indicated their Minimum Premium starts at $50K which would not make sense to proceed
since there would be no premium savings involved if they did offer terms.
Midwest Employers — Evaluates risks by reviewing all losses above $50K. We approached at
renewal last year and without the Firemen/Police payrolls they were significantly higher in premium at
$187K. Did not feel they could compete even at the adjusted renewal rate.
Ace — Indicated their Minimum Premium starts at $100K which would not make sense to proceed
since there would be no premium savings involved if they did offer terms.
Discover — Minimum Premium starts at $250K.
Chartis — Minimum Premium starts at $100K
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.
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Cottingham & Butler
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Page 5
CITY OF DUBUQUE
COVERAGES:
Excess Workers' Compensation
TOTAL ESTIMATED ANNUAL PREMIUM
PAYMENT TERMS:
Full Annual Premium Due. Agency Billed.
PREMIUM SUMMARY
2010/2011 2011/2012
$41,407 $51,503
$41,407 $51,503
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 DIRECT 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 management and claims handling performed directly for 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.
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CITY OF DUBUQUE
PREMIUM SUMMARY
II \l'I.ISS 1W1tI.1.:ItS ( \S_> 1111\
l'ro.ram Ilet :Iih:
Deductible (each accident/disease besides Police/Fire)
Deductible each accident/disease for Police/Fire)
Em u to ers Liabilit Limit
Premium Basis - (u a oll)
Annual Standard Premium
C &B 5 ear Pro'ected Loss Pick
FI \FI) COSTS:
Sub'ect Premium
Rate • r $100 u a roll
7/ 1/l 11- I I'"
Safet Natio I'rupo,cd
15IIIII‘. SI IL 016110k. Police /Fi
711/10.11
Salcl■ National - 1 ulna!
'1,5IIUI' SIR IN600I' I'olicc /Firer
7/1111 -12
Saf ct.N N:1111111:11- Itcnenal
15 SI 1~611111♦ I'nlicc /I ircl
$500,000
$600,000
$1,000,000
$36,005,935
$1,695,876
$942,051
$35,196
$0.098
$500,000
$600,000
$1,000,000
$36,005,935
$1,695,876
$942,051
$41,407
$0.115
$500,000
$600,000
$1,000,000
$37,320,685
$1,891,468
$1,555,598
$51,503
$0.138
TOTAL ESTIMATED FIXED COSTS
35,196 $
*Based on annual 'remiums. We added the Police/Firemen ' a rolls on 7/18/11 last ear thus the . olic was , ro - rated accordin :l .
41,407 $
51,503
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.
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CITY OF DUBUQUE
EXCESS WORKERS' COMPENSATION COVERAGE SPECIFICATIONS
INCLUDING POLICE & FIRE:
2010/2011 2010/2011
Company: Safety National Safety National
A.M. Best Rating: A, X A, X
Status: Admitted Admitted
Rating and Status as oft 12/13/10 12/13/10
Limits:
Workers' Compensation (each accident) Statutory Statutory
Employer's Liability (each accident) $1,000,000 $1,000,000
Self - Insured Retention (each accident)
All Other
Police/Fire
Aggregate Protection
Estimated Payroll
Rate per $100 of Payroll
Policy subject to Annual Audit:
TOTAL ESTIMATED ANNUAL PREMIUM
Minimum Premium
Note: Higher limits may be available. Please let us know if you would like a quote for higher limits.
Exclusions include but are not limited to the following:
Punitive Damages
W Injury to employees knowingly illegally employed
• Intentional Injury
Serious and willful misconduct of the employer including intentional acts or omissions resulting in an injury
Injuries outside of U.S., its territories and possessions, and Canada
Employment Related Practices
W Crew Members of any vessel
Fines or Penalties
W 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)
W Relating to any employer owned, leased, or regularly chartered aircraft
Other exclusions and coverage limitations apply.
Additional Options:
® Voluntary Compensation
• Foreign Voluntary Compensation and Employer's Liability Coverage
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.
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Page 8
$500,000 $500,000
$600,000 $600,000
None None
$36,005,935 $37,320,685
.115 .138
Yes
$41,407
$41,407
Yes
$51,503
$51,503
l FAR
2011/12
P: 11 ROLL
$38,320,685
SIR
$500,000/$600,000
PREJIR NI
$51,503
R I E
0.1380
2010/11
$36,005,935
$500,000/$600,000
$41,407
0.1150
2009/10
$22,494,289
$500,000
$25,995
0.1150
2008/09
$21,173,596
$450,000
$25,408
0.1200
2007/08
$20,066,743
$450,000
$24,080
0.1250
2006/07
$18,663,445
$450,000
$23,329
0.1250
2005/06
$18,014,517
$450,000
$22,538
0.1250
2004/05
$17,117,579
$450,000
$21,689
0.1220
2003/04
$17,117,579
$400,000
$26,532
0.1550
2002/03
$16,215,344
$400,000
$25,134
0.1550
2001/02
$15,395,087
$400,000
$15,041
0.0980
2000/01
$14,325,457
$400,000
$12,105
0.0845
1999/00
$14,617,494
$400,000
$13,010
0.0890
1998/99
$13,423,771
$400,000
$12,587
0.0937
1997/98
$13,061,678
$400,000
$15,165
0.1161
1996/97
$12,731,058
$400,000
$15,061
0.1183
1995/96
$12,427,146
$400,000
$14,801
0.1191
1994/95
$12,033,330
$400,000
$14,332
- 0.1191
1993/94
$11,695,318
$400,000
$13,508
0.1299
CITY OF DUBUQUE
EXCESS WORKERS' COMPENSATION COVERAGE SPECIFICATIONS -
CONTINUED
Historical Rates:
TOTAL
PREMIUM $413,225
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 minimwn of 5 business days.
Cottingham & Butler
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S1
IA
CLASS
COIF
0106
CI.9SSIIIC : 1 " 110y
Tree Pruning
11/12
ESTI\I:k I LI)
P1112011
$180,319
IA
3724
Millwright Work NOC & Drivers
$121,633
IA
5192
Parking Meters Install Service or Repair
$67,055
IA
5506
Street or Road Construction Paving/Repaving
$905,675
IA
7382
Bus Co—All Other Employees & Drivers
$1,067,308
IA
7403
Aircraft of Helicopter Ops: Air Carrier- Scheduled or Supplemental
$389,847
IA
7403
Aircraft of Helicopter Ops: Sales or Service Agency All Other Employees
Included Above
IA
7520
Waterworks Operation & SD
$1,297,222
IA
7580
Sewage Disposal Plan Operation & Drivers
$1,201,567
IA
8385
Business Co Garage Employees
$76,185
IA
8392
Automobile Storage Garage or Parking Station & Drivers
$636,768
IA
8810
Clerical Office Employees
$10,228,994
IA
8810
Public Library Museum Professional Employees
Included Above
IA
8831
Hospital Veterinary & Drivers
$70,250
IA
8835
Public Health Nursing Association —All Employees
$113,105
IA
9015
Building NOC Operated by Owner
$697,848
IA
9015
Swimming Pool Public Operation
Included Above
IA
9016
Skating Rink Ops & Drivers
$0
IA
9060
Club— Country
$265,256
IA
9101
All Other Employees
$94,157
IA
9182
Park NOC —All Other Employees & Drivers
$1,717,611
IA
9154
Theater NOC —All Other Employees
$0
IA
9402
Street Cleaning & Drivers
$533,950
IA
9410
Municipal, Township, County or State Employees
$2,932,694
IA
9419
Municipal, Township County or State Employees NOC
Included Above
IA
9403
Garbage and Refuse Collecting in Containers & Dumping
$1,664,261
IA
7720
Police Officers
$7,300,939
IA
7710
Firefighters
$5,698,041
Total Estimated Annual Payroll
$37,320,685
CITY OF DUBUQUE
EXCESS WORKERS' COMPENSATION COVERAGE SPECIFICATIONS -
CONTINUED
Rating Basis:
Please refer to the policy for specific terns, 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.
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Level
Category
Level
Category
Level
Category
A + +, A+
Superior
B, B-
Fair
D
Poor
A, A-
Excellent
C + +, C+
Marginal
E
Under Regulatory Supervision
B + +, B+
Very Good
C, C-
Weak
. F
In Liquidation
S
Rating Suspended
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.
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 )II 2,000 to 5,000 FSC XI 750,000 to 1,000,000
FSC IV 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 are 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 &
Butler makes no representations and warranties concerning the solvency of any carrier, nor does it make any representation
or warranty concerning the rating of the carrier which may change.
ADMITTED/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
Guaranty Fund should an insolvency (bankruptcy) of the insurer occur. A non - admitted or unauthorized carrier in a given
state is not protected by the Guaranty 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
guaranty fund are issues only if/when a carrier is declared insolvent.
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.
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CITY OF DUBUQUE
ADDITIONAL COVERAGES
Additional coverages that may be available but not limited to the following:
Auto Liability
Auto Physical Damage
Uninsured/Underinsured 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 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.
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.
OB
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COMPANY NAME
Punitive Damages are Insurable:
Alabama
Iowa
Puerto Rico
Arkansas
Texas
INSURABILITY OF PUNITIVE DAMAGES PER STATE1
Alaska
Louisiana
South Carolina
Arizona
Michigan
Vermont
Punitive Damages are NOT Insurable if directly
Dist. Columbia Nevada
West Virginia
Delaware
Mississippi
Virgin Islands
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
Rhode Island South Dakota
Indiana
Kansas Missouri
Punitive Damages are NOT Insurable if assessed for an intentional wrong:
Kentucky
Punitive Damages are NOT Insurable unless awarded out - of - state:
New York
Georgia
Montana
Washington
assessed for an intentional wrong:
North Carolina North Dakota Oregon
Punitive Damages are NOT Insurable unless vicariously assessed for negligence:
Oklahoma
Punitive Damages are NOT Insurable unless assessed for Bodily Injury caused by unintentional conduct:
Virginia
Punitive Damages are NOT Insurable:
Colorado Maine Massachusetts
Minnesota Nebraska
l Information obtained from International Risk Management Institute, Inc. (IRMI), as of November 2006
Please refer to the policy for specific terns, 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.
B
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Hawaii
New Hampshire
Wisconsin
New Jersey Utah
Idaho
New Mexico
Wyoming
Tennessee
Ohio Pennsylvania