HomeMy WebLinkAbout2000-04-19 Agenda Packet - Board (17) TDPUD STAFF REPORT
TO: Board of Directors
FROM: Mary Chapman, Administrative Services Manager
SUBJECT: Consideration of approving insurance package for 1999-2000
DATE: April 13, 1999
AGENDA # 6
Attached is the insurance renewal proposal from Aon Risk Services for the District's 2000-
2001 property and liability insurance. The total premium for the District's basic insurance
package is $206,203.54. A summary of the various policy costs is on the last page in the
attached proposal. There are also a few options for other levels of coverage and
deductibles that we can discuss at the meeting.
Included in the 2000 budget is $197,652 for insurance. If we renew the insurance as
proposed, the renewal amount will be $8551over the budgeted amount. There may be
ways for us to modify the coverage and remain within budget. We should discuss these
options with Robb Hubbard on Wednesday evening.
Robb Hubbard from Aon Risk Services will be at the meeting to present the proposal and
to answer any questions that you may have.
RECOMMENDATION:
That the Board renew the property and liability insurance as proposed by Aon Risk
Services subject to revisions as agreed upon by the Board.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
INSURANCE PROGRAM
May 1, 2000 to May 1, 2001
Renewal Quotations
Presented by:
Robb Hubbard
Aon Risk Services, Inc. of Northern California
One Market, Spear Tower, Suite 2100
San Francisco, CA 94105
(415) 543-9360
License# 0363334
TABLE OF CONTENTS
PAGE
INTRODUCTION
Aon Risk Services I
History and Renewal Parameters I
Report of Significant Changes I
CURRENT MARKET CONDITIONS 2-3
CURRENT PROGRAM OUTLINE 4
RENEWAL QUOTATIONS:
St Paul Insurance Company- Contents Page 5-6
Commercial Package Policy 7
Blanket Crime 8
Commercial General Liability 9
Automobile Liability 10-11
Umbrella Policy 12
PACKAGE PREMIUM SUMMARY 13
Optional Coverage and Deductibles:
Comprehensive General Liability 14
Electromagnetic Field Liability 15
Limited Above Ground Pollution Liability 16
Other Coverage:
Boiler& Machinery 17
Earthquake & Flood (DIC) 18
Fiduciary Liability 19
Public Officials & Employee Liability 20
PREMIUM COMPARISON SUMMARY 21
INTRODUCTION
Aon Risk Services
Aon, San Francisco, Public Entity Division has teamed up with our Chicago office to form Aon
Public Sector Alliance (APSA). Headquartered in San Francisco, we are the only nationwide
brokerage and insurance services firm with a dedicated staff to service all the insurance needs of
the public sector client. Our highly specialized group continues to make Aon the premiere public-
risk broker.
History and Renewal Parameters
For the past four years the District has taken the opportunity, as a member of National Rural
Electric Cooperative Association (NRECA), of purchasing coverage through St Paul's Rural
Electric Utility Program at a very reasonable price. The program includes the following
coverage, Commercial Package Policy, Blanket Crime, Boiler & Machinery, General Liability,
Automobile Liability, Umbrella coverage, and various optional coverages such as
Comprehensive Liability, Electric Magnetic Field Liability, and Above Ground Pollution.
As indicated in the following report of Current Market Conditions, the soft market that has run
for more than a decade, is finally ending. It has been suggested that insureds continue building
an even stronger relationship with their incumbent carriers to uphold current pricing. Despite St.
Paul's recent change in their renewal process, we feel that the District should continue to develop
their relationship with this carrier to ensure the best overall pricing for this type of program.
Report of Significant Changes
The District seeks generally the same coverage for the 2000-2001 policy term, as expiring. The
District has again reported an increase in number of water and electric consumers; 7,515
consumers of water and 10,514 consumers of electricity, as of December 31, 1999. The
following is a comparison between this year and last year:
12/31/1998 12/31/1999
Water Consumers 7,223 7,515
Electric Consumers 10,190 10,514
The following is a comparison between this year's revenue and last year's:
12/31/1998 12/31/1999
Gross Revenues $12,988,679 $13,364,000
Cost of Power $ 5.304.625 $ 4,814,903
$18,293,304 $18,782,903
1
CURRENT MARKET CONDITIONS
State of the Marketplace Report
The following overview has been assembled from sources including, A.M. Best, Business
Insurance, National Underwriter, Deloitte & Touche, Standard and Poor's and from Financial
Security Consultants in Aon's Corporate Headquarters in Chicago. Additionally, several public
entity underwriters at various insurance companies were contacted for input.
Key trends are reshaping the Property/Casualty Industry:
Financial services converge as a result of the Glass-Steagall Act. In March, it will be disclosed
which banks have filed an application with the Office of the Comptroller of Currency to acquire
insurance companies. A. M. Best expects that more than half of the acquisitions will initially
involve banks buying life/health companies vs. property/casualty insurers. Banks will be more
cautious in their acquisitions of property/casualty insurers and will be more likely to instead
pursue marketing alliances. Citigroup at the forefront will be well positioned.
The integration of financial services and insurance will increase on-line commerce of insurance
because the insurance industry has lagged significantly behind banking institutions in internet
business. It is predicted that over the next five years, virtually all leading property/casualty
insurers will sell a good portion of their products online. Online transactions will lead to price
transparency and stiffer competition.
While the property/casualty industry currently trails it's financial service competitors in
developing open-architecture web sites, electronic commerce capabilities and robust customer
databases, financial services competitors will force insurers to react and catch up or lose. Many
insurers are saddled with complex legacy systems and organizational structures which remain
product focused rather than customer centric. Although Y2K issues have been thus far resolved
with less impact than anticipated, the industry's expense ratio will remain above 28% as industry
spending shifts from remediating legacy systems to investing in internet linked systems.
Innovative competitors are developing business models that will exploit areas of industry
inefficiency and will rapidly gain online traffic and customers. Proactive companies with strong
branding, services and products are realizing that first mover advantage is critical.
Power shift: deregulation and the rise of the intemet will transfer control of the transaction from
the financial service provider to the customer.
Roughly 1/3 of the 1,100 P/C insurance groups operating in 1998 are at risk of withdrawing from
the market by 2003. Deregulation, wider access to information, and global competition will
increase the pace of industry consolidation.
2
CURRENT MARKET CONDITIONS CONTINUED
Combined ratios, an integral measure of underwriting profitability, is expected to decline to 108
for 1999. Catastrophic losses decreased but remain near historical levels. Catastrophe losses
contributed 3.2 points to 1999 combined ratio, compared to 3.6 in 1998. The industry's after-tax
return on equity will fall from 0% to 5% in 2000. The combined ratio will deteriorate as
commercial underwriting results continue to deteriorate and bottom out. Rate hardening will be
seen as a result.
A.M. Best suggests that the industry remains over capitalized by $100 Billion or 30% which will
slow market constriction resulting in a sluggish but progressive climb in rates.
Rates, pricing and provisions in 2000
Business Insurance suggests that the soft market, that has run for more than a decade, is finally
ending. Rate increases are generally modest for most accounts but rate hikes are not universal.
Generally good accounts have seen increases in the low single digits while the bottom quarter
accounts average in the teen to 20+% increases. For the best accounts and in certain lines of
business you can still see small decreases. Multi-year rate guarantees are harder to secure.
Not to say you won't still see some crazy pricing or surprises. Overall industry experts note that
prices are up, reinsurance prices are up, both facultative and treaty, although reinsurance capacity
is certainly still strong and readily available.
Worker's compensation is seeing the worst of the tightening with first dollar coverage becoming
fairly rare on many of the larger accounts that were written just two years prior. Rates for
property and auto coverages are hiking up faster than general liability. Earthquake and flood
pricing is all over the board. Professional liability is actually the softest area.
Buying patterns may be changing: when faced with increases and shopping as a result, many
buyers are returning to their incumbent underwriters because of concerns about quality from the
competing insurers.
Analysis by National Underwriter depicts that the "cost of risk" has been rising, within insurance
as well as for those organizations self-insured. Both property and casualty losses have increased
in cost sending up some red flags and related commentary. It's suggested that guaranteed cost
insurance doesn't promote the goals of risk management and thus the soft market has had an
adverse impact on organizations controlling their losses.
3
CURRENT PROGRAM OUTLINE
1999 - 2000
RURAL ELECTRIC UTILITY PROGRAM: ST. PAUL FIRE & MARINE
The District's current insurance program consists of the following coverage. Premiums paid are
outlined in the "Premium Comparison Summary."
Package: Property (including Contractors' Equipment, Communications
Equipment, Electronic Data Processing Equipment, Mechanic's
Tools and Motor Truck Cargo)
Commercial General Liability
Limit: $2,000,000 Aggregate
Commercial Crime
Limit: $ 500,000 Blanket
Commercial Automobile: (including Liability and Physical Damage)
$2,000,000 Combined Single Limit
$1,000,000 Uninsured/Underinsured Motorist
$ 1,000 Medical Payments
Commercial Umbrella: St. Paul provides a $10,000,000 umbrella, providing coverage over
the underlying Commercial General Liability and Commercial
Automobile Liability coverages.
Pollution Liability: $1,000,000 Each Incident/$1,000,000 Aggregate
$ 100,000 Pollution cleanup costs
Electronic Field. $ 500,000 Each Event/$5,000,000 Aggregate
Other Coverages: Boiler and Machinery Insurance
CNA INSURANCE COMPANIES
Limit: $7,500,000 Per accident
Difference in Conditions/Earthquake Flood Insurance
ROYAL INDEMNITY COMPANY
Limit: $5,000,000 Per accident
Public Officials and Employees Liability
COREGIS INSURANCE COMPANY
Limit: $5,000,000 Each claim
Fiduciary Liability
LEGION INSURANCE COMPANY
Limit: $1,000,000 Each claim
4
..... ......
The 410'm
AON
Rural Electric Utilities Underwriting Managers aT Fhul
RURAL ELECTRIC UTILITIES PROGRAM
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
May 1, 2000 to May 1, 2001
Renewal Quotation
Presented by:
Aon Risk Services, Inc.
5
TABLE OF CONTENTS
Commercial Package Policy 7
Blanket Crime 8
Commercial General Liability Coverage 9
Automobile 10
Automobile (continued) 11
Umbrella Policy 12
Premium Summary 13
Optional Coverage and Deductible Options- Comprehensive General Liability 14
Electra Magnetic Field liability 15
Limited Above Ground Pollution Liability 16
COMMERCIAL PACKAGE POLICY
PROPERTY
6
COVERED PROPERTY LIMITS OF LIABILITY
Real& Personal Property, Substations S16,749,710
Contractors Equipment(insured to value) $268,761
Communications Equipment S78,200
Miscellaneous Tool Floater S49,540
Computer Equipment— Y2K exclusion applies to
inability of computer software to recognize the year $1,025,000
2000.
Hardware & Media
Extra Expense - Computer Related S500,000
Perils Insured: Against Risks of Direct Physical Loss or Damage (Excluding Flood
and Earthquake) subject to the Policy Terms, Conditions and
Exclusions
Coinsurance: Waived—(100%Insurance Values applicable)
Valuation: Replacement Cost except Contractors Equipment which is older than
five (5)years, actual cash value will apply.
Deductible: $500 per occurrence.
ADDITIONAL POLICYBENEFITs
COVERAGE LIMIT PROVIDED
NewlyAcquired Buildings....................................................................................................S 1,000,000
Newly Acquired Personal Property......................................................................................$ 500,000
PropertyIn Transit....................................................................._..............._._...............--S 500,000
Builders Risk/Course of Construction.................................................................................S 500,000
(must be reported within 6 months of construction)
Property Away From Premises...................................................... ............... ......................S 250,000
Blanket Earnings And Extra Expense...................................................................................$ 100,000
Accounts Receivable Coverage.............................................................................................S 100,000
Valuable Papers Coverage..............................................................—................ .................S 100,000
BuildingCodes Coverage.................................—..............---............................................$ 100,000
Computer Coverage; Hardware And Media(IfNotScheduledAbove)..........—.................. $ 50,000
(Includes any office files/documents converted to CD ROM)
Contractors Equipment—Rented or Leased(short term/3 months or less)_............ $ 50,000
Computer Equipment— Used in the field(owned, rented or leased).... _.................. ......... $ 50,000
Pollution Clean Up And Removal(due to a covered loss at your location).........................$ 25,000
Water Damage Due To Back—Up, Sewers And Drains_................. ..............—................—.S 25,000
Fire Department Service Charge............ .............................................................. ........ _S 25,000
FineArts Coverage........ ........................................ .__............_.............. —........................S 25,000
Tools owned by Employees (Any one tool S500/S5,000 any one loss)............ _................S 5,000
7
BLANKET CRIME
COVERAGE BLANKET ,LIMIT
Blanket Employee Dishonesty * 5500,000
Forgery or Alteration Protection $500,000
Money and Securities Protection
Loss Inside Your Building $500,000
Loss Outside Your Building $500,000
Computer Fraud Protection S500,000
Depositor's Forgery Protection 5500,000
* Coverage extends to collection agents.
' t
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s
COMMERCIAL GENERAL LIABILITY COVERAGE
COMPREHENSIVE GENERAL LIABILITY LIMIT OF LIABILITY
Bodily Injury, Property Damage 1 $ 2,000,000 per occurrence
Personal Injury $ 2,000,000 per occurrence
Advertising Injury $ 2,000,000 per occurrence
Products and Completed Work $ 2,000,000 per occurrence
$ 2,000,000 annual aggregate
Fire Legal Liability $ 500,000 per occurrence
Premises Medical Payments $ 10,000 per accident
Fire Suppression $ 1,000,000 per occurrence
Pesticide or Herbicide Application $ 2,000,000 per occurrence
Failure to Supply(when loss results from $ 2,000,000 per occurrence
accidental loss to tangible property owned/used
by the Insured).
Weatheriaation Errors& Omissions Liability $ 2,000,000 per wrongful act
$ 2,000,000 annual aggregate
Livestock Injury Coverage $ 5,000 per animal
$ 20,000 max.per occurrence
Employee Benefits Liability- $1,000 Ded. $ 2,000,000 per wrongful act
$ 2,000,000 annual aggregate
COVERAGE INCLUDED:
Fire Suppression in accordance with the Federal Land Policy and Management Act of 1976
Blanket Contractual
3 Failure to Supply when loss results from accidental damage to utility generating or
distributing equipment owned or used by insured.
Employees as Named Insureds
Fellow Employee Coverage
Host Liquor Law Liability
} Incidental Medical Malpractice
Pesticide or Herbicide application
o Watercraft Liability, respect to watercraft less than 50 feet long and is not being used to
carry people or property for a charge.
Non—Owned Watercraft Liability: watercraft less than 75 feet long.
o Coverage not subject to audit adjustment
Defense in addition to limit of liability
3 Contingent Line Movement Expense Reimbursement
Non-owned Aircraft Liability (chartered with a crew &pilot, not used to carry persons or
property for a charge)
EXCLUSIONS
Pollution Liability
Nuclear Energy Liability
Care, Custody or Control of Property unless liability is assumed under a sidetrack agreement
Uninsured—Underinsured Motorist Liability
Directors & Officers Liability exclusion
Please note that there is no Aggregate for the bodily injury property damage limit.
9
AUTOMOBILE
VEHICLES COVERED: Any owned, rented, leased or borrowed auto. It includes hired, non—
owned, newly acquired, replacement and temporary substitute autos, but
does not include autos owned by your employees or members of their
households, borrowed private passenger type autos, or autos where
coverage has been reduced or limited on the auto schedule.
COVERAGE LIMIT OF LIABILITY
Bodily Injury and S 2,000,000 CSL each accident
Property Damage Liability
Uninsured l Underinsured Motorist Coverage S 1,000,000 CSL each accident
Medical Payments S 1,000 per person
Personal Injury Protection Statutory
Physical Damage Coverage
Comprehensive $ 250 ded per claim
r Collision S 250 ded.per claim
ADDITIONAL POLICY BENEFITS
Fleet Automatic applicable
: Flat Premium—Policy not subject tok
audit adjustment ' r
r Employees as Insureds
S Fellow Employee Coverage
MCS 90 Motor Carrier Endorsement
Rental Reimbursement- 30 days
r Expenses incurred to rent substitute
equipment because of a loss to a
covered automobile
r Hired Physical Damage
Non—Owned&Hired Automobile
Liability
Full Glass Coverage
10
AUTOMOBILE CONTINUED
COVERAGE EQUIPMENT— LIMIT OF LIABILITY
RENTAL DUE TO A COVERED LOSS
aG Bucket Trucks, Digger Units or similar licensed $500 per day
equipment. 30 day limitation $15,000 per accident
bl Other Vehicles S50 per day
$1,500 per accident
LOSS VALUATION
COVERED AUTOS TEN(10)YEARS OLD OR NEWER
For covered autos that are ten (10)years old or newer at the time of the loss, if those covered autos have
the following type of mounted equipment:
bucket trucks power shovels
cranes diggers
drills generators
air compressors or similar equipment.
We'll pay the cost of repairing or replacing the damaged auto without deduction for depreciation. But we
won't pay more than the smallest of the following:
The amount it would cost to replace the damaged auto at the time of the loss with a new auto
of similar kind and quality to be used for the same purpose.
o The actual cash value(ACV) of the damaged or stolen property at the time of the loss, if the
damaged property is not repaired or replaced within 365 days of the loss.
Hydraulic Equipment 15 Years Old Or Newer
For hydraulic equipment that is fifteen(15)years old or newer, and is attached to a covered auto at the
time of the loss, we'll pay the cost of repairing or replacing the damaged auto without deduction for
depreciation. But we won't pay more than the smallest of the following:
The amount you actually spend in repairing the damage.
The amount it would cost to replace the damaged property at the time of the loss with new
property of similar kind and quality to be used for the same purpose.
3 The actual cash value(ACV)of the damaged or stolen property at the time of the loss, if the
damaged property is not repaired or replaced within 365 days of the loss.
UMBRELLA POLICY
Except for the state of Louisiana and New York, which are five (5)years for covered autos and ten(10)years for
hydraulic equipment.
11
This insurance provides liability insurance protection for your business in excess of the below
listed primary insurances.
LIMIT OF LIABILITY
$ 10,000,000 Each Occurrence
$ 10,000,000 Annual Aggregate
$ 10,000 Self—Insured Retention
SCHEDULE OF UNDERLYING PRIMARY INSURANCE
Commercial General Liability (Bodily $ 2,000,000 Per Occurrence
Injury, Property Damage, Personal Injury)
Products, Completed Operations $ 2,000,000 Per Occurrence
$ 2,000,000 Annual Aggregate
Advertising Injury $ 2,000,000 Per Occurrence
Employee Benefit $ 2,000,000
Fire Suppression $ 1,000,000
Weatherization $ 2,000,000
Automobile Liability
Bodily Injury and Property Damage $ 2,000,000 Combined
Employers Liability
i Bodily Injury By Accident $ 500,000 Each Accident
:• Bodily Injury By Disease $ 500,000 Policy Limit
Bodily Injury By Disease $ 500,000 Each Employee
EXCLUSIONS
Pollution Liability
Electra Magnetic Field Liability
3 Nuclear Energy Liability
Care, Custody or Control of Property unless liability is assumed under a Sidetrack
Agreement
o Uninsured-Underinsured Motorist Liability
Directors & Officers Liability Exclusion
12
PREMIUM SUMMARY
COVERAGE PREMIUM
Property $30,203
Crime $1,500
General Liability $85,551
Automobile $22,792
Umbrella Liability $22,809
Pollution $2,477
EW Liability $1,7,13.54 Includes SLA tax and fees
Program Premium $167,045.54
it
I
This proposal is not intended to describe all coverages provided or available or all of
their exclusions, conditions or limitations. It is designed to give you an outline of your
insurance/risk management program, but it does not amend, alter, or extend the
coverages afforded by the policies described herein.
13
OPTIONAL COVERAGE AND DEDUCTIBLE OPTIONS
1. COMPREHENSIVE GENERAL LIABILITY
a) Voluntary Property Damage Endorsement
$ 500 Per Resident Consumer $ 4,128 Annual Prem.
$ 5,000 Per Occurrence
b) Property Damage Deductible per Occurrence:
$1,000or $ (5,954) Credit
$2,500or $ (11,482) Credit
$5,000 or $ (15,309) Credit
$10,000 $ Credit
14
ELECTRIC MAGNETIC FIELD LIABILITY
The policy will pay amounts any protected person is legally required to pay as damages for covered
bodily injury or property damage that:
results from any electromagnetic field;
happens on or after the retroactive date and before the ending date of this
agreement; and
is caused by an event.
Electromagnetic field devaluation of real estate: The policy will pay amounts any
protected person is legally required to pay as damages for covered devaluation of real
estate that:
results from any electromagnetic field, and
happens on or after the retroactive date and before the ending date of this
agreement
A $IQ,000 deductible will apply to each real estate sale.
Limit of Liability Annual Premium
$500,000 per Claim/$500,000 Annual Aggregate or $1,659
$1,000,000 per Claim/$1,000,000 Annual Aggregate $4,128
LIMITED ABOVE GROUND POLLUTION LIABILITY
15
2. LIMITED ABOVE GROUND POLLUTION LIABILITY— CLAIMS MADE
Pollution Liability: This policy will pay amounts any protected person is legally required to pay as
damages for covered bodily injury or property damage that results from covered pollution incidents.
Covered pollution incident means the emission, discharge, release or escape of pollutants from your
premises or worksites. But only if such emission, discharge, release or escape.-
begins on or after the retroactive date;
results from an accident;
happens entirely above ground;
o begins and ends within 72 hours; and
results in environmental damage.
$1,000,000 Each Event/$1,000,000 Annual Aggregate
Pollution Cleanup Costs Endorsement
Pollution Cleanup Costs: The policy will pay covered pollution cleanup costs that result from the
discharge, dispersal, escape, or release of pollutants at or from your premises which:
begins while this agreement is in effect;
is caused by a named peril;
happens entirely above ground;
must be reported within 30 days of discovery
Pollution cleanup costs means any reasonable and necessary cost or expense incurred by you for
pollution work
Pollution work means:
the testing for, monitoring, cleaning up, removing, containing, treating, detoxifying
or neutralizing of any pollutant; or
r the responding to, or assessing, in any way the effects of any pollutant.
Named peril means:
collision with an aircraft, auto, rolling stock, or other vehicle;
explosion;
fire;
hail;
lighting;
malicious mischief or vandalism;
riot or civil disturbance;
smoke; or
windstorm.
Limit: $25,000 Each Event/$100,000 Annual Aggregate
* Pollution Claims MUST be reported within 30 days of the discovery in order for coverage to apply.
Additional Premium: 2,477
16
BOILER & MACHINERY
Type of Insurance: Boiler and Machinery
Carrier: Continental Casualty Company(CNA)
A.M. Best's Rating: A XV(Excellent)
Policy Term: May 1,2000 to May 1,2001
Annual Premium: $9,002.00
Sub-Station Locations: 1. Southwest Comer Keiser Avenue/Jibboom Street,Truckee,CA
2. South Side Donner Lake between I-80 and Cedar Point Drive,
Donner Lake,CA
3. East Ski Slope Way between Bermgarten Road and Northwoods
Boulevard,Tahoe Donner,CA
4. North of Riverview Drive,Truckee,CA
Description of Coverage: Comprehensive Boiler&Machinery Coverage, excluding production machinery.
Pays for direct damage to property you own,property in your care,custody and
control,and for which you are legally liable, caused by an"Accident"to an
"Object,"as defined.
Limits of Liability: $ 7,500,000 Any one accident including Property Damage
$ 100,000* Expediting Expenses
$ 100,000* Hazardous Substance/Cleanup&Disposal
S 100,000* Ammonia Contamination
$ 100,000* Water Damage
Deductibles: S 10,000 All Objects except Transformers
$ 1.50/KVA Transformers, subject to a minimum of$10,000
Major Exclusions: Enforcement of Ordinance or Law
(including but not Nuclear Hazard
limited to) War and Military Action
• Explosion,except loss caused by or resulting from an explosion of a
covered"object"(see Object Definitions Endorsement)
• Fire or explosion that occurs at the same time as or ensues from an
"accident,"or an"accident"that is the direct or indirect result of an
explosion or fire
• Water damage as a result of attempt to extinguish fire
• Lightning
• Flood
• "Accident"to an"object" while being tested
• Earth Movement
• Power Failure
• Business Interruption
• Any indirect result of an"accident"to an"object"
Whle we beleive this Insurance Quotation fairly represents the terms,condititions and exclusions found in the insurance policy,in the event of
any differences between the policy and quotation,the policy will direct any resolution. This quotation does not replace or supersede the policy.
17
EARTHQUAKE & FLOOD (DIC)
Named Insured: Truckee Donner Public utility District
Type of Insurance: Difference in Conditions Including Earthquake& Flood
Carrier: Royal Indemnity Company
A.M. Best's Rating: A XIV(Excellent)
Terns: May 1,2000 to May 1,2001
Annual Premium: $15,500.00 (A!P is$112.00 to increase Extra Expense to$500,000)
Description of Coverage: Provides coverage for all risks to direct physical loss, including Earthquake and
Flood,up to the policy limit. Limits subject to the deductible,where applicable.
Totallnsurable Values: $18,222,180
Limits of Liability: $ 5,000,000 For loss or damage to real and/or personal property, including
Improvements and Betterments,and all other classes of
coverage stated in the property schedule on file with the
insurance company.
$ 367,500 Sublimit for Extra Expense
$ 10,000 Year 2000 Systems Failure Coverage Building, Business
Personal Property, Business Income and/or Extra Expense,
all Subject to terms, conditions and exclusions defined in the
policy.
Deductible: $25,000 Per Occurrence All Perils except Earthquake and Flood, 5%of TIV,
Subject to$100,000 Minimum per occurrence
Valuation: Replacement Cost
Major Exclusions. (Including but not limited to)
• Loss or Damage covered under a standard property policy including, but not
limited to: fire, lightening,vandalism,malicious mischief and sprinkler
leakage•,
• War,insurrection,rebellion,revolution, civil war;
• Nuclear reaction or radiation;
• Electrical injury or disturbance;
• Explosion or rupture of pressure vessels;
• Wear and tear,deterioration, mechanical breakdown, vermin,termites,or
other insects, etc.;
• Failure to act or decide, of any persons,organization or governmental body;
a) Zoning development and/or site preparation;
b) Design,repair,construction, renovation or compaction;
c) Materials used in repair,construction, renovation or remodeling.
d) Maintenance.
Power interruption or power failure.
While we beleive this Insurance Quotation fairly represents the terms,condititions and exclusions found in the insurance policy,in the event of
any differences between the policy and quotation,the policy will direct any resolution. This quotation does not replace or supersede the policy.
18
FIDUCIARY LIABILITY
Named Insured: Truckee Donner Public Utility District
Type of Insurance: Corporate Fiduciary Liability
(Claims-Made)
Carrier: Legion Insurance Company
A.M. Best's Rating: A VII (Excellent)
Term: May 1,2000 to May 1,2001
Premium: $2,200.00
Limits of Liability: $1,000,000 Each claim and in the Aggregate including defense costs
Covered Plan: Truckee Donner Public Utility District Defined Benefit Pension Plan and any
plan as defined in section 3 (1)of ERISA
Description of Coverage: Pays on behalf of Insured for all Loss and Defense Costs which the Insured is
legally obligated to pay solely because of a claim first made against the Insured
during the Policy Period,for a Wrongful Act committed or allegedly committed
by the Insured or by any person for whom the Insured is legally responsible.
"Insured"means:
1) the Sponsor Organization named as Truckee Donner Public Utility District
in item 2 of the Declarations
2) the Employee Benefit Plan named in item I of the Declarations including
the Truckee Donner Public Utility District Defined Benefit Pension Plan as
endorsed,and
3) any past,present,or future director,officer,employee,or trustee of the
Sponsor Organization or Sponsored Plan,or the estates,heirs, legal
representatives,or assign of such persons who are decreased, or
incompetent, and the spouses of such persons,but only to the extent that
claims are asserted against spouses arising solely out of any actual or
alleged wrongful acts of the spouse who is an Insured under this definition.
Deductible: Intone
Major Exclusions: The Carrier shall not be liable to pay any Loss or Defense Costs with
Respect to any claim made against any Insured:
• Based on or involving facts the Insured has reasonable basis to believe
might lead to a claim at the original effective date;
• Based on or involving facts or circumstances which the Insured has notified
to a prior insurer;
• For Bodily Injury and Property Damage, including libel and slander;
• For failure to procure or maintain adequate insurance;
• Based on or involving seepage, pollution or contamination of any kind.
While we beleive this insurance Quotation fairly represents the terms,condititions and exclusions found in the insurance policy,in the event of
any differences between the policy and quotation,the policy will direct any resolution. This quotation does not replace or supersede the policy.
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PUBLIC OFFICIALS AND EMPLOYEES LIABILITY
Named Insured: Truckee Donner Public Utility District
Type of Insurance: Public Officials and Employees Liability
(Claims-Made)
Carrier: Coregis Insurance Company
A.M.Best's Rating: A VIll(Excellent)
Term: May 1,2000 to May 1,2001
Annual Premium: $12,456.00 (The increase in premium is due to an increase in receipts)
Description of Coverage: Coverage A—Pays on behalf of the"Insureds"for all Loss for which the Insureds shall be legally
obligated to pay for civil claims)first made against them during the policy period because of a
Wrongful Act,provided that written notice of such claim(s) is received by the Coregis Insurance
Company during the policy period,within 60 days thereafter, or during the discovery period.
Coverage B—Reimburses the Public Entity for all loss, for which the Public Entity is required by
law to indemnify the Insureds for any civil claim(s)resulting from a Wrongful Act during the
policy period,within 60 days thereafter,or during the discovery period.
Limits of Liability: $ 5,000,000 Each loss and in the aggregate for the policy period
Retention: $ 7,500 Each loss
Coverage Extensions: Definition of"Insured" is amended by endorsements to include utilities and volunteers.
12-month extended discovery clause available upon cancellation or non-renewal of policy subject
to 30-day notice and payment within 10 days of additional premium computed at 100%of the
policy's last annual premium,
Major Exclusions: (Including but not limited to)
• Gaining of personal profit to which you were not legally entitled;
• Return by you or remuneration if payment held by courts to be in violation of law;
• Loss brought about or contributed to by you deliberate dishonesty;
• Any fees,expenses, claims,demands or actions seeking relief or redress, in any form other
than money damages;
• Any damages arising from bodily injury, personal injury, sickness, disease,or death;
• Loss or criminal abstraction(removal)of,damage to or destruction of any tangible property or
loss of use of this property as a result of any of the foregoing;
• False arrest;assault and battery;detention or imprisonment; malicious prosecution;
defamation(including but not limited to libel or slander); publication or utterance in the
course of or related to advertising, broadcasting or telecasting activities conducted by or on
behalf of you; wrongful entry or eviction; inverse condemnation; strikes,riots or civil
commotion.
While we beleive this insurance Quotation fairly represents the terms,condititions and exclusions found in the insurance policy,in the event of
any differences between the policy and quotation,the policy will direct any resolution. This quotation does not replace or supersede the policy.
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PREMIUM COMPARISON SUMMARY
1999/2000 2000/2001
St. Paul Rural Electric Utilities Program
Package Policy includes:
Property, Truck Cargo, Contractors Equipment,
Inland Marine $ 29,920.00 $ 30,203.00
Crime 1,500.00 1,500.00
General Liability 68,517.00 85,551.00
Automobile Liability 19,175.00 22,792,00
Umbrella 22,400.00 22,809.00
Pollution 2,488.00 2,477.00
EMF Liability 1,713.54 1,713.54
$145,713.54 $167,045.54
Coverage placed outside the REUP:
Boiler& Machinery $8,492.00 $9,002.00
Earthquake & Flood (DIC) 15,500.00 15,500.00
Fiduciary Liability 2,200.00 2,200.00
Public Officials E & O 11,288.00 12 456.00
$37,480.00 $39,158.00
TOTAL: $183,193.54 $206,203.54
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