HomeMy WebLinkAboutC-1658 - Workmen's Compensation Excess Insurance Policy- r
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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.
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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.
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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.
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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