HomeMy WebLinkAbout5 Insurance Package for 2002-2003 TDPUD STAFF REPORT
TO: Board of Directors
FROM: Mary Chapman, Administrative Services Manager
SUBJECT Consideration of approving insurance package for 2002-2003
DATE: April 12, 2002
AGENDA # 5
Attached is the insurance renewal proposal from Aon Risk Services for the District's 2002-
2003 property and liability insurance. The total premium for the District's basic insurance
package is $354,634. This is a substantial increase over last year for the same coverage.
A portion of the increase relates to increased property values and the acquisitions of both
Donner Lake and Glenshire water systems.
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 2002 budget is $275,399 for insurance. If we renew the insurance as
proposed, the renewal amount will be $79,236 over the budgeted amount.
Bob Brian 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 11 2002 TO MAY 13 2003
RENEWAL QUOTATION
Presented By:
Bob Brian
Aon Risk Services, Inc. of Northern California
199 Fremont Street, 15th Floor
San Francisco, CA 94105
(415)486-7202
TABLE OF CONTENTS
St. Paul Insurance Company:
ContentsPage.................................................................................................3-4
Commercial Package Policy.................................................................................5
BlanketCrime..................................................................................................6
Boiler&Machinery...........................................................................................7
Commercial General Liability...............................................................................8
Automobile Liability......................................................................................9-10
UmbrellaPolicy...............................................................................................11
PremiumSummary...........................................................................................12
Optional Coverage and Deductibles:
Comprehensive General Liability..........................................................................13
Automobile....................................................................................................I
Electra,Magnetic Field Liability...........................................................................14
Limited Above Ground Pollution Liability...............................................................15
St. Paul Boiler&Machinery................................................................................16
Other Coverages:
CNA Boiler&Machinery..................................................................................17
Travelers Energy Max.......................................................................................18
Earthquake & Flood (DIC).................................................................................19
FiduciaryLiability...........................................................................................20
Directors and Officers Liability(with Public Officials Extension)....................................21
Employment Practice Liability.............................................................................22
Rural Electric Utilities The St Mul
Underwriting Managers"
Truckee Donner - CA
Renewal
A Formal Proposal
Presented By
Bob Brian
San Francisco
April 10, 2002
SECURITY THAT ' S GROUNDED
IN FINANCIAL STABILITY
09/01/00 Ed.
a s a pp 1 s s �
a V
Rural Electric Utilities Underwriting Managers, St. Paul Fire and Marine Insurance Company
and Hartford Steam Boiler Inspection and Insurance Company, and Virginia Surety have joined
together to provide a comprehensive property and casualty insurance program specifically de-
signed for the Rural Electric Cooperatives.
We're committed to servicing the needs of the Rural Electric Cooperatives now and into the fu-
ture. Our combined years of experience have given us the technical expertise to design a com-
plete insurance program to include an effective loss control program and a knowledgeable claims
department.
Rural Electric Utilities Underwriting Managers and its affiliated agents have been associated
with the Rural Electric Cooperatives for over twenty years. During this time we have pioneered
many program improvements that have provided enhanced protection for the rural electric utili-
ties from their unique risks. Each representative broker is knowledgeable in program design and
coverage; service-oriented, and dedicated to meeting the specific needs of cooperatives across
the country.
Our claims adjusters take a reasonable, common—sense approach to the resolution of claims and
we base our claim decisions on timely and factual information. Our approach to claims handling
encompasses the best use of our people, our technology and our experience. We guarantee that
all claims will be handled fairly.
The Loss Control and Risk Management staff are loss control specialists that help you control
and prevent loss exposures. These designated and certified safety professionals have the training
and experience to work specifically with rural electric utilities.
POISED FOR THE FUTURE CHARTER PLATINUM
MEMBERS OF THE NRECA
As your industry changes through deregulation, As part of our long—term commitment to serving
you can rely on us to help you through the tran- the Rural Utilities, the St. Paul and Rural Elec-
sition. Rural Electric Utilities Underwriting tric Utilities Underwriting Managers are proud
Managers and St. Paul Fire and Marine Insur- to be Charter Platinum Associate Members of
ance Company are experienced in handling the the NRECA. In addition, we receive first—hand
insurance coverage's for diverse industries that information on important business trends —
have undergone significant transformations. We particularly as they relate to changes in
will stand by our Rural Utility customers and insurance exposures, coverage's,and costs.
provide you with the assistance that you need to
meet any challenges the future holds.
The quality provided by The Rural Electric Utility Program
is made possible by the teamwork of three outstanding companies.
PROPERTY
COVERED PROPERTY LIMITS OF LIABILITY
Real&Personal Property, Substations $15,817,690
Tanks, Wells $5,600,000
Water Facility Equipment $2,450,000
Communication Equipment $80,700
Contractors Equipment(insured to value) $328,805
Motor Cargo $25,000
.Miscellaneous Tool Floater $49,540
Snowmobile $1,938
Computer Equipment-Hardware, Media &Extra Expense $500,000
Extra Expense $500,000
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 that is older than five
(5)years, actual cash value will apply.
Deductible: $5,000 per occurrence.
A. ADDITIONAL POLICY BENEFITS
COVERAGE LIMIT PROVIDED
Newly Acquired Buildings.................................................................................... $ 1,000,000
Newly Acquired Personal Property.........................................................................$ 500,000
PropertyIn Transit.................................................................................................. $ 500,000
Builders Risk/Course of Construction................................................................... $ 500,000
(must be reported within 6 months of construction)
Property Away From Premises........................._.................................................... $ 250,000
BlanketEarnings .................................................................................................... $ 100,000
Accounts Receivable Coverage............................................................................... $ 100,000
Valuable Papers Coverage..................................................................................._. $ 100,000
Building Codes Coverage................................................................... .................... $ 100,000
Computer Coverage;Hardware And Media (If Not Scheduled Above).................. $ 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.................._...................__ $ 25,000
Fire Department Service Charge............................................................................ $ 25,000
FineArts Coverage................... ............................................. ......................_....... $ 25,000
Tools owned by Employees (Any one tool$500/$5,000 any one loss).................. $ 5.000
� � l
COVERAGE BLANKET LISm
Blanket Employee Dishonesty * $.500,000
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 $500,000
Depositor's Forgery Protection $500,000
* Coverage extends to collection agents.
s
s sHMMEE
ELECTRICAL APPARATUS ASSUMPTION CLAUSE
MECHANICAL BREAKDOWN
COVERED PROPERTY L iMIT
Scheduled Locations and Substations Co- $ 7,500,000
Generation Facilities Excluded
Perils Insured. Refer to St. Paul Fire and Marine Boiler&Machinery
Quotation Attached
Comprehensive Coverage: Refer to St. Paul Fire and Marine Boiler& Machinery
Quotation Attached
Sublimits:
Expediting Expenses: $ 100,000 per accident
Extra Expense: S 50,000 per accident
Pollution Clean up &Ammonia Contamination: S 100,000 per accident
Spoilage: S 100,000 per accident
Water Damage: COVERED UNDER PROPERTY SECTION
Newly Acquired Locations: $100,000
Business Income: NOT COVERED
Deductible: Refer to St. Paul Fire and Marine Boiler&Machinery
Quotation Attached
Valuation: Refer to St. Paul Fire and Marine Boiler&Machinery
Quotation Attached
Other Conditions: Refer to St. Paul Fire and Marine Boiler&11lachinery
Ouotation Attached
Engineering Services
The following engineering services are available:
Transformer Oil Gas Analysis (TOGA)for both oil Infrared Thermograph Surveys of main transformers
screen testing and dissolved gas analysis tests of se- and electrical distribution equipment at selected substa-
lected oil cooled transformers 2,500 KVA and larger. tions. Facilities selected will be determined in coopera-
The appropriate substations will be selected with the tion with the insured. Information describing these tests
cooperation of the insured. Information describing and their benefits may be supplied upon request.
these tests and their benefits will be supplied upon Available on a per account basis
request.
All engineering services are performed by Hartford Steam Boiler Inspection and Insurance Company
without additional cost.
Please contact your REUprogram representative for more information regarding these services or to
request an inspection.
Electrical equipment inspection services
Electrical equipment requires expert inspection to ensure smooth operation. The services and underwrit-
ing for this aspect of the REUP are provided by Hartford Steam Boiler— the world's premier inspector
and insurer of industrial machinery and electrical equipment. As part of the Aon Risk Services/St. Paul
team, HSB utilizes its experienced engineering and loss control services to help ensure your substations
operate safely.
Should a loss occur, we are committed to helping you get your system back up as soon as possible.
Through HSB's National Supplier Referral Service, we can recommend reliable, qualified firms that can
supply and install any electrical equipment you may need.
MMEM im 0
COMPREHENSIVE GENERAL LIABILITY LIMIT OF LIABILITY
Bodily Injury, Property Damage $ 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 accidental $ 2,000,000 per occurrence
loss to tangible property owned/used by the Insured).
Weatherization Errors& Omissions Liability $ 2,000,000 per wrongful act
$ 2,000,000 annual aggregate
Livestock lnjuryCoverage $ 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
S Failure to Supply when loss results from accidental damage to utility generating or distrib-
uting equipment owned or used by insured.
Employees as Named Insureds
Fellow Employee Coverage
Host Liquor Law Liability
i Incidental Medical Malpractice
Pesticide or Herbicide application
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.
Coverage not subject to audit adjustment
Defense in addition to limit of liability
o 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
S Pollution Liability
e Nuclear Energy Liability
Care, Custody or Control of Property unless liability is assumed tinder a sidetrack agreement
Uninsured—Underinsured Motorist Liability
o Directors & Officers Liability exclusion
Please note that there is no Aggregate for the bodily injury property damage limit.
a
VEHICLES COVERED: Any owned, rented, teased 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 cov-
erage has been reduced or limited on the auto schedule.
COVERAGE LIMIT OF LIABILITY
Bodily Injury and $ 2,000,000 CSL each accident
Property Damage Liability
Uninsured/Underinsured Motorist Coverage $ 1,000,000 CSL each accident
Medical Payments—Private Passenger Only $ 1,000 per person
Physical Damage Coverage
Comprehensive $ 100 tied.per claim
r Collision $ 500 ded.per claim
Specified Perils— Trailers No Deductible Applicable
ADDITIONAL POLICY BENEFITS
Fleet Automatic applicable
Flat Premium—Policy not subject to audit adjustment
Employees as Insureds
? Fellow Employee Coverage
MCS 90 Motor Carrier Endorsement
Rental Reimbursement- 30 days
Expenses incurred to rent substitute equipment because of a loss to a covered automobile
Hired Physical Damage
Non—Owned&Hired Automobile Liability
A Full Glass Coverage
' • • • • OEM
COVERAGE EQUIPMENT- LIMIT OF LIABILITY
RENTAL DUE TO A COVERED LOSS
a Bucket Trucks, Digger Units or similar licensed $ 500 per day
equipment. 30 day limitation $ 15,000 per accident
b Other Vehicles $ 50 per day
$ 1,500 per accident
LOSS VALUATION
COVERER 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 simi-
lar kind and quality to be used for the same purpose.
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 de-
preciation. 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.
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.
' Except for the state of Louisiana and New York, which are five(5)years for covered autos and ten(10) years for
hydraulic equipment.
x l
333M ' o
This insurance provides liability insurance protection for your business in excess of the below listed pri-
mary insurance.
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 Injury, Property $ 2,000,000 Per Occurrence
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
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
Nuclear Energy Liability
Care, Custody or Control ofProperty unless liability is assumed under a Sidetrack-
Agreement
o Uninsured—Underinsured Motorist Liability
S Directors & Officers Liability Exclusion
s
COVERAGE PREMIUM
Property $54,025
Crime $1,500
Boiler&Machinery $15,750
General Liability $123,247
Automobile $40,216
Umbrella Liability $48,278
Program Premium $283,016
This proposal is not intended to describe all coverages
provided or available or all of their exclusions, condi-
tions 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 co verages af-
forded by the policies described herein.
1. COMPREHENSIVE GENERAL LIABILITY
a Voluntary Property Damage Endorsement Increase General Liability Premium By:
$ 500 Per Resident Consumer
$ 5,000 Per Occurrence $ 5,903
b Property Damage Deductible per Occurrence: Reduce General Liability Premium By:
$ 1,000 or $ 8,592
$ 2,500 or $ 16,571
$ 5,000 or $ 22,094
$ 10,000 or $ 25,777
$20,000 or $ Xot Available
$25,000 $ 30,687
2. AUTOMOBILE
a Optional Physical Damage Deductibles Reduce Automobile Premium By:
$250 Comprehensive $500 Collision $ 339
$500 Comprehensive $500 Collision $ 508
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;
r happens on or after the retroactive date and before the ending date of this
agreement; and
o is caused by an event.
Electromagnetic field devaluation of real estate: The policy will pay amounts any pro-
tected 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 $10,000 deductible will apply to each real estate sale.
Limit of Liability Annual Premium
$500,000 per Claim/$500,000 Annual Aggregate or $2,361
$1,000,000per Claim/$1,000,000 Annual Aggregate $5,903
• o a
2. LIMITED ABOVE GROUND POLLUTION LIABILITY— CLAIMS MADE
Pollution Liability: This policy will pay amounts any protected person is legally required to pay as dam-
ages 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 ifsuch emission, discharge, release or escape:
i begins on or after the retroactive date;
results from an accident;
o happens entirely above ground;
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 dis-
charge, dispersal, escape, or release ofpollutants at or from your premises which.-
begins while this agreement is in effect;
is caused by a named peril;
3 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 pollu-
tion work.
Pollution work means:
the testing for, monitoring cleaning zap, removing, containing, treating detoxifying,
or neutralizing of any pollutant; or
the responding to, or assessing, in anyway 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: $ 3,542
St. Paul Fire and Marine Insurance Company
Quotation for Equipment Breakdown Coverage
Property Protection Coverage Summary- Continued -Form No. 42497(8-90)
for use with Equipment Breakdown Endorsement-Form No. 42486(8-90)
ISSUED DATE: April 4,2002 QUOTE EXPIRES ON: May 19,2002
QUOTE NUMBER: EBE-0143563-00(04) DECLARATION NO: 1 of 1
NAMED INSURED: Truckee Donner Public Utility District
EFFECTIVE DATE: May 1,2002
ST PAUL POLICY NO: Client Company Policy No.:Not Provided
Coverage Options and Description:
❑ Basic Accident Coverage
Coverage includes boilers,vessels and piping.
® Comprehensive Accident Coverage
Includes but is not limited to boilers,pressure vessels,refrigeration or air conditioning equipment,
production and process machines, and any mechanical or electrical machine or apparatus used for the
generation, transmission or utilization of mechanical or electrical power.
Coverage Limit of Coverage
Property Damage S 7,500,000.
Coverage Extensions Limit of Coverage
Expediting Expense $ 100,000
Pollution Cleanup(Includes AMC) $ 100,000
Water Damage(As Result of Accident) Included
Optional Coverages Limit of Coverage
Business Income(BI) Not Covered
Blanket Earnings and Expense(EE) Not Covered
Extra Expense $ 50,000
Spoilage $ 100,000
Deductible
Your deductibles shown in the Property Protection Coverage Summary applicable to property damage,business
income or blanket earnings and expense apply to loss under this coverage unless a specific deductible is shown
below:
Combined,All Coverages $5,000.
Except Transformers $1.50 Per KVA,$5,000 Minimum
Except ICE/Generator units $30.00 Per Horsepower, $5,000 Minimum
Additional Notes:
Cogeneration Facilities are excluded.
Transformers with windings=>30 years old:valued at Actual Cash Value
Annual Premium: $15,750
BOILER & MACHINERY
Type of Insurance: Boiler and Machinery
Carrier: Continental Casualty Company(CNA)
A.M.Best's Rating: A XV(Excellent)
Policy Term: May 1,2002 to May 1,2003
Annual Premium: $12,930
Sub-Station Locations: 1. Southeast comer of Keiser Ave&Jibboom Street,Truckee, CA
2. Southside of Donner Lake Road between I-80 &Cedar Point
Drive,Donner Lake, CA
3. East of Skislope Way between Bermgarten Road&Northwoods Blvd.,
Tahoe Donner,CA
4. North of Riverview Drive, South of Truckee River,Truckee,CA
Description of Coverage: Comprehensive Boiler&Machinery Coverage,excluding production machin-
ery. 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
$ 100,000 Ammonia Contamination
$ 100,000 Water Damage
Deductibles: $ 10,000 All Objects except Transformers
$ 1.501KVA Transformers,subject to a minimum of$10,000
Valuation: Actual Cash Value applicable objects 20 years old or older
Transformers will be considered new as of date of last rewind
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"
•Underground electrical wiring not in conduit whether damaged directly or
indirectly as the result of an accident
ENERGY MAX
Type of Insurance: Boiler and Machinery
Carrier: Travelers
A.M.Best's Rating: A++
Policy Term: May 1, 2002 to May 1,2003
Annual Premium: $17.866
Sub-Station Locations: 1. Southeast comer of Keiser Ave&Jibboom Street,Truckee, CA
2. Southside of Donner Lake Road between I-80&Cedar Point
Drive,Donner Lake, CA
3. East of Skislope Way between Bermgarten Road&Northwoods Blvd.,
Tahoe Donner, CA
4. North of Riverview Drive, South of Truckee River,Truckee, CA
Description of Coverage: Comprehensive Boiler&Machinery Coverage. Coverage includes breakdown
of critical mechanical or electrical equipment,including:boilers,pressure ves-
sels,air conditioning units, transformers and electrical switchgear.
Special Features: • Definition of"Object"includes production machinery,telephone systems,
computers, office equipment, fiber optic cables,and air conditioning units
and systems.
•No "solely supplying requirement for Off Premises Service Interruption.
•New Generation Extension coverage pays for replacing damaged equipment
with new,more efficient technology,at up to 125%of replacement value.
•No sublimits for loss of CFC Refrigerants,Equipment Breakdown,and/or
Computer Equipment. All are included under the full Direct Damage
coverage limit.
•Additional coverages include Media,Ordinance or Law,Newly Acquired
Locations,Errors in Description,Defense,Brands and Labels,and Loss
Adjustment Agreement.
Limits of Liability: $7,500,000 Any one accident including Property Damage
$ 100,000 Expediting Expenses
$ 100,000 Hazardous Substance/Cleanup &Disposal
$ 100,000 Ammonia Contamination
$ 100,000 Water Damage
$ 100,000 Ordinance or Law
$ 100,000 "Media"
$ 100,000 Newly Acquired Locations(90 days)
$ 100,000 Error in Description
Deductibles: $ 40,000 All "Objects" at the four scheduled substation locations
$ 10,000 All other"Objects"
Valuation: Actual Cash Value applicable objects 20 years old or older
Transformers will be considered new as of date of last rewind
Provisions: • Joint Loss Agreement
(including but not limited to) • Computer Equipment
•New Generation
• In Use/Connected Ready for Use
• Repair or Replacement
•Perils Elimination Endorsement BMT3800200
• Y2K Exclusion Endorsement ILT355
EARTHQUAKE & FLOOD
(DIFFERENCE IN CONDITIONS)
Type of Insurance: Difference in Conditions Including Earthquake&Flood
Carrier: Royal Indemnity Company
A.M.Best's Rating: A YIV(Excellent)
Term: May 1,2002 to May 1,2003
Annual Premium: $30,632
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.
Total Insurable Values: $23,116,979
Limits of Liability: $5,000,000 per Occurrence and in the Annual Aggregate
$5,000,000 per Occurrence and in the Annual Aggregate for Flood
$5,000,000 per Occurrence and in the Annual Aggregate for Earthquake
$ 367,500 Sublimit for Extra Expense
Deductible: $ 25,000 Per Occurrence All Other Perils except:
5%of values at time and place of loss, subject to a
$25,000 per occurrence minimum for Flood
$25,000 per occurrence minimum for Earthquake
Valuation: Replacement Cost except Actual Loss Sustained on Time Element
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;
e) Materials used in repair,construction,renovation or remodeling.
d) Maintenance.
• Power interruption or power failure.
• Exclusion&-Limited Additional Coverage for Fungus—IM&Manuscript
•Total Exclusion—Electronic Property and Virus
• Exclusion of Terrorism
FIDUCIARY LIABILITY
Type of Insurance: Corporate Fiduciary Liability(Claims-Made)
Carrier: U.S. Specialty Insurance Company
A.M. Best's Rating: A+
Term: May 1,2002 to May 1,2003
Premium: $2,000
Limits of Liability: $1,000,000 full Cap penalty coverage and defense for man-
aged care exposures
Covered Plan: Truckee Donner Public Utility District Defined Benefit Pen-
sion 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 Pe-
riod,for a Wrongful Act committed or allegedly committed by
the Insured or by any person for whom the Insured is legally
responsible.
"Insured"means:
I. the Sponsor Organization named as Truckee Donner Pub-
lic Utility District in item 2 of the Declarations
2. the Employee Benefit Plan named in item 1 of the Decla-
rations including the Truckee Donner Public Utility Dis-
trict 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 ac-
tual or alleged wrongful acts of the spouse who is an In-
sured under this definition.
Deductible: None
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.
� r
DIRECTORS AND OFFICERS LIABILITY
(WITH PUBLIC OFFICIALS EXTENSION)
Type of Insu ran cc: Directors and Officers Liability(with Public Officials Extension)
Carrier: Royal Indemnity Company
A.M.Best's Rating: A+IX
Term: May 1,2002 to May 1,2003
Limits of Liability:
Option 1 $5,000,000
Option 2 $3,000,000
Retention: $25,000 Each Claim
Annual Premium:
Option 1 $30,000
Option 2 $22,400
Endorsements and Exclusions: (Including but not limited to)
•Nuclear Energy Liability Exclusion
•Allocation and Change in Exposure endorsement
• Marital Estate Extension
• Public Officials Extension—Defense within the limit
•Prior&pending litigation
•Bilateral Discovery Endorsement— 1 year at 75%a/p
•Professional E&O Exclusion—POL.
Subjectivities Prior to Binding: • Original fully completed signed and dated RSUI main form D&O application
•Originally fully completed signed and dated RSUI Entity Coverage Extension
questionnaire
• Complete copy of the by-laws
• Current audited financials
• Complete loss history
EMPLOYMENT PRACTICE LIABILITY
Type of Insurance: Employment Practice Liability
Carrier: National Union Fire Insurance Company of Pittsburgh
A.M. Best's Rating: A++
Term: May 1, 2002 to May 1,2003
Limits of Liability: $5,000,000
Deductible:
Option 1 $25,000 Each Wrongful Act
$25,000 Each Employment Practices Violation
Option 2 $50,000 Each Wrongful Act
$50,000 Each Employment Practices Violation
Annual Premium:
Option 1 $29,100
Option 2 $26,794
Endorsements and Exclusions: (Including but not limited to)
• California Cancellation/NonRenewal
• Capacity Commitment Exclusion
•Bond Exclusion
•Professional Liability Exclusion(architects,engineers, lawyers)
•Absolute War&Terrorism Exclusion
•Intellectual Property Exclusion
•Utility endorsement#POLNUTIL.NL N
•Water-Sewer-Sanitation Authorities#POLNNWSA.man
Subjectivities Prior to Binding.
• Latest Financials
• Loss Runs
• Employee Handbook
• Completed and Signed MumPro application
•Information regarding outstanding litigation activities(as mentioned in the
Agenda,USA Media and One additional potential litigation)
•Latest audited financials
• 2002 Budget including revenues and expenditures
While we believe this Insurance Quotation fairly represents the terms, conditions 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.
Truckee Donner PUD
Premium Comparison Summary
Coverage Proposed Premiums Actual Premium Actual Premium Actual Premium
Description 2002/ 2003 2001/2002 2000/2001 1999/2000
Property,Cargo
Equipment,Inland $ 54,025 $ 43,935 $ 30,203 $ 29,920
Marine
Crime $ 1,500 $ 1,500 $ 1,500 $ 1,500
General Liability $ 123,247 $ 84,544 $ 70,242 $ 68,517
Automobile Liability $ 40,216 $ 31,322 $ 22,792 $ 19,175
Umbrella $ 48,278 $ 25,163 $ 22,809 $ 22,400
Pollution Liability $ 3,542 $ 2,696 $ 2,477 $ 2,488
Voluntary Property $ 5,903 $ 4,493 $ 4,128 $ 4,147
Damage
EMF Liability $ 2,361 $ 1,797 $ 1,714 $ 1,714
Boiler&Machinery $ 10,352 $ 9,002 $ 8,492
CNA Quote* $ 12,930
Traneler'r B&MQuote* $ 17,866
St.Paul,Quole* $ 15,750
Earthquake& Flood $ 30,632 $ 23,565 $ 15,500 $ 15,500
$25,000/$SMM limit
Fiduciary Liability $ 2,000 $ 2,200 $ 2,200 $ 2,200
1 MMLirnit/$0 Deductible
Public Officials D&O $ 14,561 $ 12,456 $ 11,288
Option I-$9,000,000/$29,000 Ded* $ 30,000
Option 2-$3,000,000/$25,000 Ded* $ 22,400 $ 246,128 $ 195,023 $ 187,341
Employment Practices Liability
Option 1 -$5,000,000/$25,000 Ded* $ 29,100
Option 2-$5,000,000/$50,000 Ded* $ 26,704
*Quotes with Optional Coverage Purchases
Truckee Donner PUD
Premium Comparison Summary
Coverage Proposed Premiums Actual Premium Actual Premium Actual Premium
Description 2002/2003 2001/2002 2000/2001 1999 J 2000
Property,Cargo
Equipment,Inland $ 54,025 $ 43,935 $ 30,203 $ 29,920
Marine
Crime $ 1,500 $ 1,500 $ 1,500 $ 1,500
General Liability $ 123,247 $ 84,544 $ 70,242 $ 68,517
Automobile Liability $ 40,216 $ 31,322 $ 22,792 $ 19,175
Umbrella $ 48,278 $ 25,163 $ 22,809 $ 22,400
Pollution Liability $ 3,542 $ 2,696 $ 2,477 $ 2,488
Voluntary Property $ 5,903 $ 4,493 $ 4,128 $ 4,147
Damage
EMF Liability $ 2,361 $ 1,797 $ 1,714 $ 1,714
Boiler&Machinery $ 10,352 $ 9,002 $ 8,492
CNA Quote* $ 12,930
Traveler's B&MQuote* $ 17,866
St.Paul Quote* $ 15,750
Earthquake&Flood $ 30,632 $ 23,565 $ 15,500 $ 15,500
$25,000/$5MM Limit
Fiduciary Liability $ 2,000 $ 2,200 $ 2,200 $ 2,200
1 MMLimit/$0 Deductible
Public Officials D&O $ 14,561 $ 12,456 $ 11,288
Option l-$9,000,000/$29,000 Ded* $ 30,000
Option 2-$3,000,000/$25,000 Ded* $ 22,400 $ 246,128 $ 195,023 $ 187,341
Employment Practices Liability
Option 7 -$5,000,000/$25,000 Ded* $ 29,100
Option 2-$5,000,000/$50,000 Ded* $ 26,704
*Quotes with Optional Coverage Purchases
All RED equals $ 354,634