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HomeMy WebLinkAboutC-1658 - Workmen's Compensation Excess Insurance Policy- r 4� MAY 14 1979 By the CITY COUNCIL CITY. QF NWftRT VA,CH RESOLUTION NO. A RESOLUTION OF THE CITY OF SEAL BEACH (HEREINAFTER CALLED CITY), CALIFORNIA, RECOMMENDING LEGISLATIVE REFORM IN THE AREAS OF WORKER'S COMPENSATION AND DISABILITY RETIREMENT. WHEREAS, City recognizes the public purpose served by an equitable worker's compensation and retirement system; and WHEREAS, the costs associated with worker's compensation and disability retirement have been rising at an ever - increasing rate; and WHEREAS, in many instances this cost increase is attributable . to benefits which go far beyond the original purpose and intent of worker's compensation and disability retirement; and WHEREAS, this is particularly critical in view of Proposition 13; and WHEREAS, employersboth public and private have expressed concern over the spiraling worker's compensation costs; and WHEREAS, the increasing costs of worker's compensation and disability retirement are adequately documented in numerous resources including text published by the Institute for Local Self- Government entitled "Through the Roof - A Report on Escalating Compen- sation Costs;" and WHEREAS, City desires to seek a remedy for the current crisis and desires to encourage that other employers seek a similar remedy; and . WHEREAS, the basic problem causing the abuse is with the current State legislative scheme pertaining to worker's compensation and disability retirement. . 141- Z-�/, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Seal Beach, California, does hereby resolve as follows: Section 1. That the California State legislature give serious consideration to the numerous substantive revisions now being proposed throughout California with reference to creating a fair and equitable worker's compensation system, and eliminating the current excessive liberal construction mandates and presumptions which exist in State law. Section 2. That disability retirement benefits under the Public Employee Retirement System for safety employees be amended to address the following problems and recommendations: a. The abuses attendant to the so- called psychiatric - emotional stress cases. b. The lack of crediting for any outside income earned after a safety employee has been retired on disability. rr�tV LQ Cis" �4 OR1 BFFpCH �EWQ CPIIF• C. That worker's compensation determinations as to job - relatedness should not necessarily be as binding with regard to disability retire- ment applications. d. That disability retirement determinations for safety employees be made by the State Public Employee Retirement System rather than the governing body of the local agency. (Per former law). Section 3. That this resolution be transmitted to the members of the State legislature representing the City area and to all other legislators who participate on relevant committees dealing with the subject matter herein. Section 4. That the format of this resolution be transmitted to the Orange County Board of Supervisors and other entities of local government recommending their passage and transmittal to their respective legislators. Section 5. That copies of this resolution be forwarded to the League of California Cities and any other organizations or persons seeking legislative reform as regards the subject matter discussed herein. Section 6. That this resolution shall take effect immediately. Section 7. That the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which the same is passed and adopted. PASSED AND APPROVED on the day of , by the following vote: IF AYES: Councilmen NOES: Councilmen ABSENT: Councilmen 1979, Mayor ATTEST: April 19, 1979 Honorable Mayor and City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 Attached is Seal Beach City Council Resolution Xuwher 2866 adopted by the City Council on April 9, 1979 'Recommending Legislative Reform in the Areas of Worker's Compensation and Disability Retirer,.ent'. The Seal Beach City Council urges your consideration and support of these proposed legislative revisions. Very truly yours, s.) Je dys Weir, City Clerk City of Seal Beach Encl. JW /iy G"? ff BEN" i; F 3EaE:i1,� %� CAUF, N yt, CITY OP NEWPORT BEACH CALIFORNIA City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 DATE August 159 1974 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 1659 Description of Contract Workmmis Cmqwmation &moo Iraurstwe policy Authorized by Resolution No. 8338 , adopted on August 12, 1974 Effective date of Contract July 1, 1974 Contract with State Compensation Instmence Fund Address 525 Golden Gate Avenue San rroneisoo, CA 94102 Amount of Contract Sae Policy 1 . . . / CITY CLAW August 15, 1974 PERSONNEL DEPARTMENT CITY CLERK WORK*4EN' S COMPENSATION EXCESS INSURANCE POLICY C -1658 Attached are two copies of the above agreement for transmittal to State Compensation Insurance Fund as well as for your files. This agreement was authorized by the City Council on August 12, 1974 by the adoption of Resolution No. "338. Laura Lagios ewk ernc. 0 WORKMEN'S COMPENSATION EXCESS INSURANCE POLICY STATE COMPENSATION INSURANCE FUND OF THE STATE OF CALIFORNIA (Herein called the Fund) The State Compensation Insurance Fund and the insured mutually agree to the terms, conditions, and limitations of this policy as follows: INSURING AGREEMENT, I. WORKMEN'S COMPENSATION AND EMPLOYERS' LIABILITY The Fund hereby agrees to indemnify the insured against excess loss which the insured shall become obligated to pay on account of: a. Compensation required of the insured by the Workmen's Compensation Laws of the State of California; and b. Damages imposed as the result of suits filed against the insured as an employer under the laws of the State of California by employees covered by this policy on account of bodily injuries or occupational diseases, including death therefrom. II. LIMIT OF INDEMNITY AND RETENTION The Fund's liability shall be for the amount in excess of the retention and up to the limit of indemnity as stated in this policy, provided that the retention and limit of indemnity shall apply: a. To bodily injury or death sustained by one or more employees in each accident, and b. Separately as to bodily injury or death caused by occupational disease sustained by each employee. III. INDEMNIFICATION a. For excess loss as provided for elsewhere in this policy. b. For allocated expenses in the same proportion as the loss ultimately borne by the Fund is to the total loss, providing that this provision shall apply to appeals from decisions of the Workmen's Compensation Appeals Board, or any court, only if the Fund agrees in advance of the filing of the appeal. STATE INSURAN'cE FUND M GOLDEN GATE AVE. SAN FRANCISCO. CALIFORNIA 9 4702 u 0 • Page 2 of 5 C. Indemnification for expenses under Section III (b), above, is in addition to the retention and limit of indemnity provided by this policy, d. Loss shall mean actual payments in money for benefits as provided for in Section I, parts (a) and (b) of this policy. e. "Allocated expenses" shall mean actual court costs, legal and allocated investigation expenses. f. Loss and allocated expenses shall not include salaries of insured's employees, expenses of adjusting claims or expenses of claims adjusting agencies. EXCLUSIONS This policy does not apply as respects Section I, part (b) of the Insuring Agreement to liability assumed by the insured under any written, oral, or implied contract or agreement. CONDITIONS I. PREMIUM AND AUDIT a. Premium shall be determined at the rates shown in the policy and shall be based upon the entire remuneration earned during the policy period by all employees. The insured agrees to maintain accurate records of the remuneration and to make such records available for examination and audit by the Fund. b. The premium stated in the declarations is an estimated premium. When earned premium exceeds the premium paid, the insured agrees to pay the difference to the Fund; when less, the Fund shall return the difference to the insured. The earned premium shall be the minimum premium for this policy. II. REIMBURSEMENT The insured agrees to provide a statement of expenditures for each claim covered by this policy. Proof of payment may be required by the Fund. Such statement shall be presented not less than four times per year and shall indicate the reason for each payment. The Fund shall make prompt reimbursement to the insured. III. CLAIMS ADMINISTRATION The insured agrees to investigate and settle all claims STATE CNSURANCE FUND 525 GOLDEN GATE AVE. - SAN FRANCISCO, CALIFORNIA 94102 ., I 0 • Page 3 of 5 and to conduct the defense and appeal in all actions, suits, and proceedings commenced against it, and shall give prompt notice to the Fund of: a. Any action or suit commenced against the insured; and any proceeding, event, or development which might result in a claim upon the Fund; and b. Shall forward promptly to the Fund copies of pleadings and reports of investigation; and other information or documents requested by the Fund. The Fund, at its own election and expense, shall have the right to participate with the insured in the defense or appeal of any action, suit, or proceeding in which the Fund deems it may become involved. The insured agrees not to make any voluntary settlement involving loss to the Fund except with the written consent of the Fund. The insured agrees to give written notice to the Fund of any claim which may eventually require indemnification. In addition, the insured agrees to notify and to keep the Fund informed as respects each claim: a. When the expected cost equals one -half the retention. b. When monies paid out reach one -half the retention. c. Involving paraplegics, quadriplegics, severe head injuries, bilateral amputations or blindness. The insured agrees to effectively pursue all subrogation and salvage rights it may have growing out of the claim as it deems appropriate. The Fund may at all reasonable times examine the books and records of the insured as respects all workmenls compensation insurance claims; but the Fund waives no rights and undertakes no responsibility by reason of such examination or the omission thereof. IV. OTHER INSURANCE If the insured has other excess insurance, reinsurance, or indemnity against a loss covered by this policy, the Fund shall not be liable to the insured hereunder for a greater proportion of such loss than the amount which would have been payable under this policy, had no such other excess insurance, reinsurance, or indemnity against loss existed, STATE `N.UR..ICE FUND 525 GOLDEN SATE AVE.- SAN FRANCISCO, CALIFORNIA 94102 • Page 4 of 5 bears to the sum of said amount and the amounts which would have been payable under each other policy applicable to such loss, had each such policy been the only policy so applicable. V. SUBROGATION AND SALVAGE The insured agrees to prosecute all claims it may have against any person or entity which result, or may result, in the payment of loss by the Fund. If the insured makes recovery, such recovery shall first be applied against indemnity and expenses paid by the Fund on account of the claim or claims involved in the subrogation or salvage. If the insured does not prosecute any such claim within a reasonable time, the Fund shall be subrogated to such claim; and the insured agrees to execute any and all papers and documents necessary to vest full right, title, and interest in said claim; and the Fund may prosecute said claim in its own name or in the name of the insured. The insured agrees to cooperate to the fullest extent with the Fund in the enforcement of any such claim. The net proceeds derived from such claim shall first be used by the Fund to pay its loss and expenses, and any remainder shall be paid to the insured, VI. CHANGES Notice to any representative of the Fund or knowledge possessed by any representative of the Fund or by any other person shall not effect a waiver or a change in any part of this policy or estop the Fund from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorsement issued to form a part of this policy, signed by a duly authorized repre- sentative of the Fund. VII. ASSIGNMENT The interest of the insured in this policy cannot be assigned. VIII. CANCELLATION This policy may be cancelled by either party at any time upon written notice mailed to the other stating when, not less than 30 days after the date of the notice, cancellation shall be effective. If cancelled, the earned premium shall be computed upon the entire remuneration of all employees for the period of time the policy was in effect. STATECOMPENSAON INSURANCE FUND 525 GOLDEN GATE AVE.- SAN FRANCISCO, CALIFORNIA 94703 .44W., Page 5 of 5 • • IX. THE CONTRACT This policy, including the declarations, and all endorse- ments or riders hereon, constitutes the entire contract of insurance. No condition, provision, agreement, or understanding not set forth in the policy or in such declarations, endorsements, or riders shall affect such contract or any rights, duties, or privileges arising therefrom. v ■ATE CNSURANCE FUND 525 GOLDEN GATE AVE. • SAN FRANCISCO, CALIFORNIA 94102 F r POLICY NO. INSURED ADDRESS • DECLARATIONS XS 734 -74. CITY OF NEWPORT BEACH • i 3300. NEWPORT BOULEVARD, NEWPORT BEACH, CALIFORNIA 926.60 As a condition precedent, this policy is null and void unless the total initial premium stated herein is tendered to the Fund on or before JULY 21, 1974 at 12:01 A.M. standard time. The period during which this policy shall remain in force, unless cancelled, shall be from JULY 1, 197.4 at 12:01 A.M. standard time to JULY 13 1975 at 12:01 A.M. standard time. LIMIT OF INDEMNITY: .$10,000.,0o.0..OVER $100.300.0. RETAINED BY INSURED INITIAL PREMIUM: $4600 . ADJUSTMENT: SEMI ANNUAL BILL - $46.00 In Witness Whereof, the State Compensation Insurance Fund has caused this policy to be signed by its Underwriting Manager but the same shall not be binding upon the Fund unless countersigned by a duly authorized officer or representative of the Fund. Countersigned at San Francisco, this date JUNE 20,,, 1974 Authorized Representative STATECOMPENSAON INSURANCE FUND 525 GOLDEN GATE AVE. - SAN FRANCISCO, CALIFORNIA 94102 ESTIMATED PAYROLL RATE PER $100 PAYROLL ESTIMATED PREMIUM $8,7.7332.42.. $o..lo49 $920.3:13 In Witness Whereof, the State Compensation Insurance Fund has caused this policy to be signed by its Underwriting Manager but the same shall not be binding upon the Fund unless countersigned by a duly authorized officer or representative of the Fund. Countersigned at San Francisco, this date JUNE 20,,, 1974 Authorized Representative STATECOMPENSAON INSURANCE FUND 525 GOLDEN GATE AVE. - SAN FRANCISCO, CALIFORNIA 94102 0 APPROVED AS TO FORM: Assistant City Attorney u CITY OF NEWPORT BEACH AU 12 ISA By A6 CITY COUNCIL CITY " i ASH 0 of RESOLUTION NO. 8 33 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE STATE COMPENSATION INSURANCE FUND OF THE STATE OF CALIFORNIA AND THE CITY OF NEWPORT BEACH PERTAINING TO WORKMEN'S COMPENSATION EXCESS INSURANCE POLICY WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain agreement between the City of Newport Beach and the State Compensation Insurance Fund of the State of California, pertaining to Workmen's Compensation excess insurance policy; and WHEREAS, the City Council has considered the terms and conditions of said excess insurance policy agreement and found them to be fair and equitable, and in the best interests of the City; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach. ADOPTED this 12th day of August, 1974. Mayor ATTEST: City Clerk mh 8/9/74