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HomeMy WebLinkAboutC-1726 - Excess Workmen's Compensation Insurance-71 ) 7;:70 By a w i vu;a ii RESOLUTION gNO. 79 -15 CITY F NEWPORT CaAO g I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORUNIA, REQUESTING AN AMENDMENT TO 2 SECTION 3202 OF THE LABOR CODE OF THE STATE OF CALIFORNIA i 4 6 11FEREAS, the City of Stanton is greatly concerned 6 about the costly abuses which have been occurring in the areas of 7 industrial injury and disability retirements; and 8 WHEREAS, the City of Stanton believes that the primary 9 reason for said abuses is the mandate to the courts as provided 10 in Section 3202 of the Labor Code, that these tribunals "liberally 11 construe" the provisions of Division IV and Division V "with the 12 purpose of extending their benefits for the protection of persons 13 injured in the course of their employment;" and 14 WHEREAS, Assemblyman Paul Bannai (Gardena) has proposed 16 legislation in the past in an attempt to amend Section 3202 of the 16 Labor code by substituting the words "fair and equitable" for the { 17 word "liberally," for consideration by the State Legislature; and 18 P:dEREAS, such proposed legislation is believed by the 19 City of Stanton to provide a significant contribution to the effort 20 of eliminating costly abuses which have been and are occurring in 21 the areas of industrial injury and disability retirements. 22 NOW, THEREFORE,-,,BE IT RESOLVED that the City Council of { 23 the City of Stanton, California, endorses legislation by the State 24 of California to amend Section 3202 of the Labor Code of th-e State 25 of California from "liberally construed" to "fair and equitable." 26 This resolution shall be directed to our State representatives and. 27. the League of California Cities. 28 ADOPTED, SIGNED AND APPROVED THIS =2 b "hARCH, 1979. so /sl_Martha iY. Weishauott 81 ATTEST: 7777 41) aciry O �9j9 Oql OF 1► Cq! /FB�Cy 1 2 3 9 6 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 81 32 I, ANDREW C. LAZZARETTO, City Clerk of the City of Stanton, California, do hereby certify that the foregoing resolution was introduced and adopted.at a regular meeting of the City Council by the following vote, to wit: AY S: COIINCILI4EN: Weishaupt, Wheeler, Marshott, Miller, Romagnino NOES: COUNCIT -MEN: None ABSENT: COUNCILMEN: None City rk C I T Y O F B U E N A P A R K C A L I F 0 R N I A 9 0 6 2 2 6650 BEACH BOULEVARD, P.O.BOX 5009, PHONE: AREA CODE (714) 521 -9900 4 7Q By aria vv:wviL ALL ORANGE COUNTY CITIES: c Zi M4, P \1F oar' OFFICE OF THE CITY CLERK Marguerite G. Courson March 23, 1979 Enclosed is a copy of Resolution No. 6511, adopted by the Buena Park City Council at its meeting of March 19, 1979, entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BUENA PARK REQUESTING AN AMENDMENT TO SECTION 3202 OF THE LABOR CODE OF THE STATE OF CALIFORNIA ". Very truly yours, Mar erite G. Courson City Clerk MGC:dh Enclosure r� �FgCb; it RESOLUTION NO. 6511 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BUENA PARK REQUESTING AN AMENDMENT TO SECTION 3202 OF THE LABOR CODE OF THE STATE OF CALIFORNIA WHEREAS, the City of Buena Park is greatly concerned about the costly abuses which have been occurring in the areas of industrial injury and disability retirements; and WHEREAS, the City believes that the primary reason for said abuses is the mandate to the courts as provided in Section 3202 of the Labor Code, that these tribunals "liberally construe" the provisions of Division IV and Division V "with the purpose of extending their benefits for the protection of persons injured in the course of their employment "; and WHEREAS, Assemblyman Paul Bannai (Gardena) has proposed legislation in the past, in an attempt to amend Section 3202 of the Labor Code by sub- stituting the words "fair and equitable" for the word "liberallyt_% for consideration by State Legislature; and WHEREAS, such proposed legislation is believed by the City of Buena Park to provide a significant contribution to the effort of eliminating costly abuses which have been-and are occurring in the areas of industrial injury and disability retirements. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Buena Park endorses legislation by the State of California to amend Section 3202 of the Labor Code of the State of California from "liberally construed" to "fair and equitable ". This resolution shall be directed to our State representatives, and the Orange County Division, League of California Cities. BE IT FURTHER RESOLVED that all Orange County cities are urged to submit a similar resolution to their State representatives. PASSED AND ADOPTED this 19th day of March 1979, by the following called vote: AYES: 5 COUNCILMEN: Davis, Griffin, Jarrell, Reese and Meyer NOES: 0 COUNCILMEN: None ABSENT: 0 COUNCILMEN: None G/ ATTEST: C11 CL MAR ^ A, CITY CLERK C iV OV Po €Wp)Ri AfACH CALIF. I hereby certify that the foregoing Resolution was ! regularly passed and adopted at a regular meeting of the City the City of Buena Park held this 19th day of March 1979. `7 CITY CLERK .EMPLOYERS REINSURANCE CORPORATION P.O. Box 2088, Kansas City, Missouri 64142 • (816) 283 -5000 • Telex 4 -2501 STIPULATION OF TERMINATION IT IS HEREBY STIPULATED AND AGREED, that Agreement No C -20671 is hereby terminated with respect to loss as a result of occurrences taking place at or after 12:01 A.M. August 11, 1977 IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed in duplicate. EMPLOYERS REINSURANCE CORPORATION Title. secoAd 'Vice President -� Assistant Vice City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 Title: Title: ERC 2153A cb RESOLUTION NO. 9 13 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING THE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND FRED S. JAMES AND COMPANY TO ADMINISTER THE CITY'S LEGALLY UNINSURED WORKERS' COMPENSATION INSURANCE PROGRAM, AND DELETING EXCESS COVERAGE WHEREAS, on July 1, 1973, the City of Newport Beach entered into an agreement with Fred S. James and Company for the administration of the City's legally uninsured Workers' Compensation Insurance Program; and WHEREAS, said agreement was amended on July 1, 1974 to provide that its term would be extended from year to year automatically unless terminated sooner upon written notice by either party; and that the City would pay for legal services up to Three Thousand Dollars ($3,000.00); and WHEREAS, Fred. S. James and Company wish to continue their existing agreement with the City, amended as follows: 1. City shall pay for legal services up to Six Thousand Dollars ($6,000.00); and 2. City shall assume the risk of Workers'Compensation Excess Insurance. NOW, THEREFORE, BE IT RESOLVED that the City Council I of the City of Newport Beach hereby approves the amendments to the agreement with Fred S. James and Company for services in connection with the administration of the City's Workers' Compensation Self- Insurance Program dated July 1, 1973, as amended. ADOPTED this 11th day of July 1977. ATTEST: City Clerk Mayor DDO /bc 7/6/77 July 13, 1976 i MEMO TO THE FILE Talked w /Bonnie this date & R -8843 confirms only that there is an agreement w /Fred S. James & Co. i When extension or amendment to agreement is made, it will require new action from the Council. • 0 RESOLUTION NO. 8 84 3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND FRED S. JAMES AND COMPANY TO ADMINISTER THE CITY'S LEGALLY UNINSURED WORKER'S COMPENSATION INSURANCE PROGRAM WHEREAS, on July 1, 1973, the City of Newport Beach entered into an agreement with Fred S. James and Company for the administration of the City's legally uninsured Worker's Compensation Insurance Program; and WHEREAS, said agreement was amended on July 1, 1974 to provide that its term would be extended from year to year automatically unless terminated sooner upon written notice by either party; and that the City would pay for legal services up to Three Thousand Dollars ($3,000.00); and WHEREAS, Fred S. James and Company wish to continue their existing agreement with the City under the same terms and conditions. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby confirms the agreement with Fred S. James and Company for services in connection with the administration of the City's Worker's Compensation Self - Insurance Program dated July 1, 1973 as amended July 1, 1974. ATTEST: City ADOPTED this /Z day of S k L , 1976. Mayor DDO:yz 7/7/76 rte-. CITY OF NEWPORT BEACH CALIFORNIA DATE =AWX.L1, 1975 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. C -1726 City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 Description of Contract Excess Worlanan's Ca wisation Insurance Fred S. James 8 Co. Authorized by Resolution No. 8532 adopted on 6 -23 -75 Effective date of Contract July 1, 1975 Contract with Fred S. James 8 Co. Address 3435 Wilshire Blvd. Los Angeles, CA 90010 Amount of Contract Rate $.176 ity C iefk TO SUBJECT ENO. 9 & 10 FOLD -NO, 9 FOLD - NO 10 FOLD -NO. 9 & 10 FOLD SPEED LETTER© S. JAMES & CO. 6 OF CALIFORNIA Bill Brown, *ety Director FROM Insurance Brokers and Consultants Since 1858 City of Newport Beach 8495 WILSHIRE BOULEVARD LOS ANGELES. CALIFORNIA 80010 TELEPHONE 885 -0545 EXCESS WORKERS' COMPENSATION POLICY MESSAGE DATE July 9, 1975 19 Enclosed please find Excess Workers' Compensation Policy C -20671 for City of Newport Beach, 7 -1- 75/7 -1 -76. Ilene Yess REPLY DATE n 19 SIGNED i G i,D9 SNAP-A -WAY" FORM 44 911P 3 PARTS T �- WILSON JOHNS COMPANY.p 1961 0 PRINTED IN D.S.A. RETAIN WHITE COPY, RETURN PINK COPY _,. ,^� 274 SPECIFIC EXCESS WO KMEN'S COMPENSATION REINSURA E AGREEMENT • EMPLOYERS REINSURANCE CORPORATION A Stock Company Kansas City, Missouri No. C— 20671 SCHEDULE 1. Employer: City of Newport Beach 3300 Newport Boulevard 2. Address: Newport Beach, California 92660 3. Locations: State of California 4. Effective Date: July 1, 1975 12:01 A.M. standard time at the address of the Employer as stated herein I 5. Anniversary Date in Each Year: July 1st 6. Retention Each Occurrence: $100,000. • 7. Limit of Indemnity Each Occurrence: $10,000,000. Classification Manual Estimated 8. of Operation Code No. Annual Payroll Firemen 7706 $1,529,579. Policemen 7720 2,250,195. Clerical 8810 1,573,692. Librarians 8838 377,792. Muni — Non /Manual 9410 599,181. Muni — All Others 9420 2,580,462. v� v 0 N U K W 9. Reinsurance Premium: (a) Rate: $.176 (b) Minimum: $11,760.00 (c) Deposit: $15,680.00 10. Payroll reporting and premium adjustment period: Annual 11. Endorsement Serial Numbers: Countersignature Date EMPLOYERS REINSURANCE CORPORATION SPECIFIC EXCES� WORKMEN'S COMPENSATION REINS UKANCE AGREEMENT EMPLOYERS REINSURANCE CORPORATION A Stock Company Kansas City, Missouri (hereinafter called the Corporation) agrees with the Employer named in the Schedule made a part hereof, in consideration of the payment of the premium and subject to all of the terms of this agreement, as follows: SECTION I Application of This agreement applies to loss sustained by the Employer because of liability Agreement. imposed upon the Employer by: (a) the workmen's compensation act of each state named in Item 3 of the Schedule, or (b) law for damages, on account of personal injuries and occupational diseases sustained, by employees employed by the Employer and engaged in business operations specified in the Schedule or in such other business operations of the Employer as are incidental to those specified, as a result of occurrences taking place at or after the effective date specified in the Schedule. The reinsurance afforded by this agreement for loss because of liability imposed by law for damages applies only as respects operations in the named states including, however, employees who are employed and are regularly engaged in operations in the named states but who may be temporarily outside the named states in connection with operations within the named states. SECTION 11 • Retention and With respect to each occurrence, the Employer shall retain as its own net Indemnity. retention loss in the amount of the retention stated in the Schedule, and the Corporation hereby agrees to indemnify the Employer against loss in excess of such retention, subject to the limit of indemnity stated in the Schedule. SECTION III Self - Insurance. In the case of operations conducted by any person, firm or organization named in the Schedule as the Employer: (a) as respects which such Employer has rejected the workmen's compensation act of any of the named states or any part of such act, or (b) which are subject to the workmen's compensation act of any such state and are conducted at a time when such Employer is not a duly qualified self - insurer under such workmen's compensation act as respects such operations, the amount of loss resulting from such operations shall, for the purposes of this agreement, be considered not to exceed the amount of loss which would have been produced had such operations been subject to such act and had such Employer been a duly qualified self - insurer under such workmen's compensation act as respects such operations at the time such operations were conducted, but in no event shall this agreement apply to loss arising out of operations as respects which the Employer carries a full coverage workmen's com- pensation and employers' liability policy. SECTION IV Definitions. The term: • (a) "workmen's compensation act" shall include any separate occupational diseases act; (b) "law for damages" shall not include any workmen's compensation act; (c) "personal injuries" shall include death resulting therefrom, but shall not include ^� occupational disease; N V C Cage I W IV N W (d) "o*ational disease" shall include death ring therefrom; (e) "occurrence ", as applied to personal injuries, shall mean "accident ". Occupational disease sustained by each employee shall be deemed to be a separate occurrence • and the occurrence shall be deemed to take place on the date upon which the employee ceases work as a result of such occupational disease; (f) "loss" shall mean only such amounts as are actually paid in cash by the Employer in payment of benefits under the applicable workmen's compensation act, in settlement of claims, or in satisfaction of awards or judgments; but the word "loss" shall not include claim expenses or salaries paid to employees of the Employer; (g) "claim expenses" shall mean court costs, interest upon awards and judgments, and allocated investigation, adjustment and legal expenses; but the term "claim expenses" shall not include salaries paid to employees of the Employer; (hl "employees " —as respects liability imposed upon the Employer by the workmen's compensation act of each state named in Item 3 of the Schedule, the word "employees" shall include any person performing work which renders the Employer liable under such workmen's compensation act for personal injuries or occupa- tional disease sustained by such person. SECTION V Indemnity for The Corporation hereby further agrees that, as respects reinsurance Claim Expenses. afforded by the other terms of this agreement, the Corporation shall, with respect to each occurrence, indemnify the Employer against that proportion of claim expenses (other than appeal claim expenses handled as hereinafter provided) paid by the Employer that the amount of the loss ultimately borne by the Corporation bears to the total amount of the loss; and, as respects claim expenses connected with appeal taken by the Employer from an award, verdict or judgment which is in excess of the Employer's retention hereunder, the Corporation shall indemnify the Employer against that proportion of the claim expenses paid by the Employer connected with such appeal that the amount of such award, verdict or judgment in excess of the Employer's retention bears to the total amount of such award, • verdict or judgment. SECTION VI Liability Period. The term "normal liability period" shall mean a period of time as herein- after specified during which this agreement is in force. The first normal liability period shall commence at the effective date of this agreement, and shall end at 12:01 A.M. of the anniversary date, as specified in the Schedule, next following. Thereafter a new normal liability period shall commence at 12:01 A.M. on the anniversary date in each year and shall end at 12:01 A.M. on the anniversary date in the next succeeding year. The term "fractional liability period" applies only in case this agreement is cancelled effective at a date other than an anniversary date and shall mean that period of time between the beginning of the then current liability period and the effective date of cancellation. The unqualified term "liability period" shall mean either a normal liability period or a fractional liability period. SECTION VII Reinsurance At the beginning of each liability period, the Employer shall pay to the Cor- Premium. poration the deposit premium specified in the Schedule, which deposit premium shall be held for the Employer's account and shall be allowed as a credit against earned reinsurance premium for such liability period. For each liability period, the Employer shall compute the reinsurance premium as follows: (a) the remuneration earned during such liability period by all employees engaged in each classification covered by this agreement shall be computed in accordance with the rules set forth in the appropriate Manual of Workmen's Compensation and Employers' Liability Insurance; • (b) the remuneration so computed for employees engaged in each such classification shall be multiplied by the reinsurance premium rate per $100 of remuneration stated in the Schedule for such classification and the products so obtained shall be added together. Gage 2 Within 20.dofter the close of each payroll reporting•iod specified in the Schedule, the Employer shall render to the Corporation a payroll report upon a form satisfactory to the Corporation showing by classification the amount of such remuneration earned by employees • during such reporting period and showing the entire earned reinsurance premium computed as above indicated, and the Employer shall therewith pay to the Corporation the excess of the earned reinsurance premium over the deposit premium previously paid. In case the deposit premium exceeds the earned reinsurance premium, the Corporation shall return to the Employer the amount of such excess. In no event, however, shall the reinsurance premium due the Corporation in respect of any normal liability period be less than the minimum premium specified in the Schedule. The reinsurance premium due the Corporation in respect of the fractional liability period resulting in case this agreement be cancelled effective at a date other than the end of a normal liability period shall be: (a) either the earned reinsurance premium for such fractional liability period com- puted in accordance with the customary short rate table and procedure or the short rate portion of the minimum premium stated in the Schedule, whichever is the greater, if such cancellation is by the Employer; (b) either the earned reinsurance premium for such fractional liability period or the pro rata portion of the minimum premium stated in the Schedule, whichever is the greater, if such cancellation is by the Corporation. SECTION VIII Administration The Employer shall investigate and shall settle or defend all claims and of Claims. shall conduct the defense and appeal in all actions, suits and proceedings commenced against it, and shall give prompt notice to the Corporation of: (a) any action or suit commenced against the Employer, and •Ibl any proceeding, event or development which, in the judgment of the Employer, might result in a claim upon the Corporation hereunder, and shall forward promptly to the Corporation copies of such pleadings and reports of inves- tigation as may be requested by the Corporation. The Corporation, at its own election and expense, shall have the right to participate with the Employer in the defense or appeal of any action, suit or proceeding in which it may, in its judgment, become involved. The Employer shall not make any voluntary settlement involving loss to the Corporation hereunder except with the written consent of the Corporation. SECTION IX Subrogation The Employer shall prosecute all claims the Employer may have against any and Salvage. person, firm or corporation growing out of any occurrence resulting in the payment of loss by the Corporation hereunder, and should the Employer recover any reim- bursement from any source whatsoever on account of such loss, the net amount (gross amount less the expense incurred in effecting such recovery) of the recovery as does not exceed the Corporation's loss shall be paid to the Corporation. Should the Employer have such a claim against any person, firm or corporation growing out of any occurrence resulting in the payment of loss by the Corporation hereunder, which it fails or neglects to enforce within a reasonable time, the Corporation shall be subrogated to such claim and the Employer shall execute any and all papers and documents necessary to vest full right, title and interest in said claim in the Corporation, and the Corporation may prosecute said claim in its own name or in the name of the Employer. The Employer shall cooperate to the fullest extent with the Corporation in the enforcement of any such claim. The net proceeds derived from such claim shall first be used by the Corporation to pay its N loss, and any excess shall be paid to the Employer. N V WGage 3 SECTION X Inspection he books and records of the Employer an the books and records of all agents and Audit. and representatives of the Employer shall be open to the Corporation and its representatives at all times during usual business hours for inspection of records and audit of payrolls. SECTION XI Other Insurance. Should the Employer have other excess insurance, reinsurance or indem- nity against a loss covered hereby, the Corporation shall not be liable for a greater proportion of such loss than the applicable limit of the Corporation's liability bears to the total applicable limit of liability of all valid and collectible excess insurance, reinsurance and indemnity against such loss. SECTION XII Assignment. No assignment of the Employer's interest hereunder shall be binding upon the Corporation. SECTION XIII Change or The terms of this agreement shall not be waived or changed except by endorse - Waiver. ment issued to form a part hereof, signed by a duly authorized representative of the Corporation. SECTION XIV Cancellation. The Employer may cancel this agreement at any time by giving to the Cor- poration 30 days' previous notice. The Corporation may cancel this agreement at any time by giving to the Employer 30 days' previous notice. Any such notice shall be sent by regis- tered mail and shall state the date upon which cancellation shall become effective. This agreement does not apply to loss as a result of occurrences taking place after the effec- tive date of such cancellation. � SECTION XV Acceptance. By acceptance of this agreement the Employer agrees that each of the persons, firms or organizations named in the Schedule as the Employer is qualified, and will operate with the permission of the proper authorities, as a self- insurer under the workmen's com- pensation acts of each of the named states; that the statements in the Schedule are the Employer's agreements and representations; that this agreement is issued in reliance upon the truth of such representations; that this agreement embodies all agreements existing between the Employer and the Corporation or any of its agents relating to this excess reinsurance and that full compliance by the Employer with all the terms of this agreement is a condition precedent to the Corporation's liability hereunder. IN WITNESS WHEREOF, the Corporation has caused this agreement to be signed by its President and Secretary and countersigned on the Schedule page by an authorized represen- tative of the Corporation. Secretary 0 0 N N U K w EMPLOYERS REINSURANCE CORPORATION Valle 4 CY President SPEED 1E11E18 � F D. S. JAMES & CO. OF CALIFORNIA TO Mr. Bill Brown FROM Insurance Brokers and Consultants Since 1858 Safety Director 3435 WILSHIRE BOULEVARD CITY OF NEWPORT BEACH LOS ANGELES. CALIFORNIA 90010 TELEPHONE 385 -0545 SUBJECT EXCESS WORKERS COMPENSATION BINDER MESSAGE DATE June iW 19 75 Attached please find Binder NO: 3022, Employers Reinsurance Corporation on Excess Workers Compensation, effective July 1, 1975. I I SIGNED REPLY DATE 19 s �2EiENED PERSONNEL 9 b� 'o;N,z raAW5, to OF CITY gLWFORT BEACH, IO FOLD SIGNED ® "9N.0.4MAY" WRY- .I -BO2Y 9 P.RTB 1`RION JCRRR DYNPANY • ® 1961 • PRINTED IN U.S.b RETAIN 474 � WHITE COPY, RETURN PINK COPY ISSUED BY l� M. B. Bl#TTNER E COMPANY• INC. INSURANCE • REINSURANCE • CORRESPONDENTS WITH LLOYD'S OF LONDON .• • •„ 3325 WILSHIRE BOULEVARD, LOS ANGELES, CALIFORNIA 90010 213/389 -2114 • CABLE ADDRESS "BUDLOS" • TELEX 67 -3521 _ BINDER N° 3022 THIS IS TO CERTIFY that the undersigned have procured insurance as hereinafter specified from soti�iHx6dA6f6liidRi6xR6tiACxitSRbAfix Employers Reinsurance Corporation Assured City of Newport Beach Address Newport Beach, California Amount or Limits$ $10,000,000 Excess of $100,000 SIR Coverage Excess Workmens Compensation Remarks Subject to standard wording on file w ith M.B.BUETTNER 6 CO. Subject to 60 day cancellation clause. The above insurance is subject to the conditions and terms of the current Certificate(s) now in use by Underwriters and /or Insurance Companies. This Binder may be cancelled at any time by the Assured or the Undersigned giving the other notice in writing. A pro -rata premium charge will be made for this Binder, unless a Cerdficate(s) is /are accepted by the Assured whereupon coverage hereunder shall be null and void. Beginning at 12OlAM on the Is t day of July, 1975 and ending atl201AM on the is t day of August 1975. I Date of Issue 6 -20 -75 By spb Producer Fred S. James SLP 5179 S. SUETTNER E COMPANY, INC. 4- M SPECIFIC EXCESS g RKMEN'S COMPENSATION REINSUTMNCE AGREE S RECEIVED O EMPLOYERS REINSURANCE CORPORA N PERSPdNEL A Stock Company b J UN 2 71975 r Kansas City, Missouri CITY OF ` r NEWPORT BEACH, ..:.i' thereinafter called the Corporation) CALIF, t ti tr: agrees with the Employer named in the Schedule made a part hereof, in con ' V the payment of the premium and subject to all of the terms of this agreement, as follows: SECTION I Application of This agreement applies to loss sustained by the Employer because of liability Agreement. imposed upon the Employer by: (a) the workmen's compensation act of each state named in Item 3 of the Schedule, or (b) law for damages, on account of personal injuries and occupational diseases sustained, by employees employed by the Employer and engaged in business operations specified in the Schedule or in such other business operations of the Employer as are incidental to those specified, as a result of occurrences taking place at or after the effective date specified in the Schedule. The reinsurance afforded by this agreement for loss because of liability imposed by law for damages applies only as respects operations in the named states including, however, employees who are employed and are regularly engaged in operations in the named states but who may be temporarily outside the named states in connection with operations within the named states. SECTION II Retention and With respect to each occurrence, the Employer shall retain as its own net Indemnity. retention loss in the amount of the retention stated in the Schedule, and the Corporation hereby agrees to indemnify the Employer against loss in excess of such retention, subject to the limit of indemnity stated in the Schedule. SECTION III Self- Insurance. In the case of operations conducted by any person, firm or organization named in the Schedule as the Employer: (a) as respects which such Employer has rejected the workmen's compensation act of any of the named states or any part of such act, or (b) which are subject to the workmen's compensation act of any such state and are conducted at a time when such Employer is not a duly qualified self - insurer under such workmen's compensation act as respects such operations, the amount of loss resulting from such operations shall, for the purposes of this agreement, be considered not to exceed the amount of loss which would have been produced had such operations been subject to such act and had such Employer been a duly qualified self - insurer under such workmen's compensation act as respects such operations at the time such operations were conducted, but in no event shall this agreement apply to loss arising out of operations as respects which the Employer carries a full coverage workmen's com- pensation and employers' liability policy. SECTION IV Definitions. The term: (a) "workmen's compensation act" shall include any separate occupational diseases act; (b) "law for damages" shall not include any workmen's compensation act; (c) "personal injuries" shall include death resulting therefrom, but shall not include �y occupational disease; lj y Pogo 1 (d) 'oC ational disease" shall include death rcv Iting, therefrom; (e) "osence ", as applied to personal injuries, 6I mean "accident ". Occupational disease sustained by each employee shall be deemed to be a separate occurrence and the occurrence shall be deemed to take place on the date upon which the employee ceases work as a result of such ocCUpational disease; (f) "loss" shall mean only such amounts as arc actually paid in cash by the Employer in payment of benefits under the applicable workmen's compensation act, in settlement of claims, or in satisfaction of awards or judgmcnts; but the word "loss" shall not include claim expenses or salaries paid to employees of the Employer; (g) "claim expenses" shall mean court costs, interest upon awards and judgments, and allocated investigation, adjustment and legal expenses; but the term "claim expenses" shall not include salaries paid to employees of the Employer; (h) "employees " —as respects liability imposed upon the Employer by the workmen's compensation act of each state named in Item 3 of the Schedule, the word "employees" shall include any person performing work which renders the Employer liable under such workmen's compensation act for personal injuries or occupa- tional disease sustained by such person. SECTION V Indemnity for The Corporation hereby further agrees that, as respects reinsurance Claim Expenses. afforded by the other terms of this agreement, the Corporation shall, with respect to each occurrence, indemnify the Employer against that proportion of claim expenses (other than appeal claim expenses handled as hereinafter provided) paid by the Employer that the amount of the loss ultimately borne by the Corporation bears to the total amount of the loss; and, as respects claim expenses connected with appeal taken by the Employer from an award, verdict or judgment which is in excess of the Employer's retention hereunder, the Corporation shall indemnify' The Employer against that proportion of the claim expenses paid by the Employer connected with such appeal that the amount of such award, verdict or judgment in excess of the Employer's retention bears to the total amount of such award, verdict or judgment. SECTION VI Liability Period. The term "normal liability period" shall mean a period of time as herein- after specified during which this agreement is in force. The first normal liability period shall commence at the effective date of this agreement, and shall end at 12:01 A.M. of the anniversary date, as specified in the Schedule, next following. Thereafter a new normal liability period shall commence at 12:01 A.M. on the anniversary date in each year and shall end at 12:01 A.M. on the anniversary date in the next succeeding year. The term "fractional liability period" applies only in case this agreement is cancelled effective at a date other than an anniversary date and shall mean that period of time between the beginning of the then current liability period and the effective date of cancellation. The unqualified term "liability period" shall mean either a normal liability period or a fractional liability period. SECTION VII Reinsurance At the beginning of each liability period, the Employer shall pay to the Cor- Premium. poration the deposit premium specified in the Schedule, which deposit premium shall be held for the Employer's account and shall be allowed as a credit against earned reinsurance premium for such liability period. For each liability period, the Employer shall compute the reinsurance premium as follows: (a) the remuneration earned during such liability period by all employees engaged in each classification covered by this agreement shall be computed in accordance with the rules set forth in the appropriate Manual of Workmen's Compensation and Employers' Liability Insurance; (b) the remuneration so computed for employees engaged in each such classification shall be multiplied by the reinsurance premium rate per $100 of remuneration stated in the Schedule for such classification and the products so obtained shall N be added together. N J .. U Page Z .W Within 20 da fter the close of each payroll reporting iod specified in the Schedule, the Employer shaender to the Corporation a payroll re* upon a form satisfaciory to the Corporation showing by classification the amount of such remune. ation earned by employees during such reporting period and showinE, the entire earned reinsurance premium computed as above indicated, and the Employer shall therewith pay to the Corporation the excess of the earned reinsurance premium over the deposit premium previously paid In case the deposit premium exceeds the earned reinsurance premium, the Corporation shall return to the Employer the amount of such excess. In no event, however, shall the reinsurance premium due the Corporation in respect of any normal liability period be less than the minimum premium specified in the Schedule. The reinsurance premium due the Corporation in respect of the fractional liability period resulting in case this agreement be cancelled effective at a date other than the end of a normal liability period shall be: (a) either the earned reinsurance premium for such fractional liability period com- puted in accordance with the customary short rate table and procedure or the short rate portion of the minimum premium stated in the Schedule, whichever is the greater, if such cancellation is by the Employer; (b) either the earned reinsurance premium for such fractional liability period or the pro rata portion of the minimum premium stated in the Schedule, whichever is the greater, if such cancellation is by the Corporation. SECTION VIII Administration The Employer shall investigate and shall settle or defend all claims and of Claims. shall conduct the defense and appeal in all actions, suits and proceedings commenced against it, and shall give prompt notice to the Corporation of: (a) any action or suit commenced against the Employer, and (b) any proceeding, event or development which, in the judgment of the Employer, might result in a claim upon the Corporation hereunder, and shall forward promptly to the Corporation copies of such pleadings and reports of inves- tigation as may be requested by the Corporation. The Corporation, at its own election and expense, shall have the right to participate with the Employer in the defense or appeal of any action, suit or proceeding in which it may, in its judgment, become involved. The Employer shall not make any voluntary settlement involving loss to the Corporation hereunder except with the written consent of the Corporation. SECTION IX Subrogation The Employer shall prosecute all claims the Employer may have against any and Salvage. person, firm or corporation growing out of any occurrence resulting in the payment of loss by the Corporation hereunder, and should the Employer recover any reim- bursement from any source whatsoever on account of such loss, the net amount Igross amount less the expense incurred in effecting such recovery) of the recovery as does not exceed the Corporation's loss shall be paid to the Corporation. Should the Employer have such a claim against any person, firm or corporation growing out of any occurrence resulting in the payment of loss by the Corporation hereunder, which it fails or neglects to enforce within a reasonable time, the Corporation shall be subrogated to such claim and the Employer shall execute any and all papers and documents necessary to vest full right, title and interest in said claim in the Corporation, and the Corporation may prosecute said claim in its own name or in the name of the Employer. The Employer shall cooperate to the fullest extent with the Corporation in the enforcement of any such claim.. The net proceeds derived from such claim shall first be used by the Corporation to pay its 1 loss, and any excess shall be paid to the Employer. •v J 'J J :1 J SECTION X Inspection `hooks and records of the Employer Ale books and records of all agents and Audit. and representatives of the Employer shall be open to the Corporation and its representatives at all times during usual business hours for inspection of records and audit of payrolls. SECTION XI Other Insurance. Should the Employer have other excess insurance, reinsurance or indem- nity against a loss covered hereby, the Corporation shall not be liable for a greater proportion of such loss than the applicable limit of the Co .-poration's liability bears to the total applicable limit of liability of all valid and collectible excess insurance, reinsurance and indemnity against such loss. SECTION XII Assignment. No assignment of the Employer's interest hereunder shall be binding upon the Corporation. SECTION X111 Change or The terms of this agreement shall not be waived or changed except by endorse - Waiver, ment issued to form a part hereof, signed by a duly authorized representative of the Corporation. SECTION XIV Cancellation. The Employer may cancel this agreement at any time by giving to the Cor- poration 30 days' previous notice. The Corporation may cancel this agreement at any time by giving to the Employer 30 days' previous notice. Any such notice shall be sent by regis- tered mail and shall state the date upon which cancellation shall become effective. This agreement does not apply to loss as a result of occurrences taking place after the effec- tive date of such cancellation. SECTION XV Acceptance. By acceptance of this agreement the Employer agrees that each of the persons, firms or organizations named in the Schedule as the Employer is qualified, and will operate with the permission of the proper authorities, as a self- insurer under the workmen's com- pensation acts of each of the named, states; that the statements in the Schedule are the Employer's agreements and representations; that this agreement is issued in reliance upon the truth of such representations; that this agreement embodies all agreements existing between the Employer and the Corporation or any of its agents relating to this excess reinsurance and that full compliance by the Employer with all the terms of this agreement is a condition precedent to the Corporation's liability hereunder. IN WITNESS WHEREOF, the Corporation has caused this agreement to be signed by its President and Secretary and countersigned on the Schedule page by an authorized represen- tative of the Corporation. EMPLOYERS REINSURANCE CORPORATION Secretary President G.Ye 4 ISSUED BY M. B. BU &TNER 6 COMPANY, INC. INSURANCE • REINSUHANCE • CORRESPONDENTS WITH LLOYD'S OF LONDON f 3325 WILSHIRE EOULEVARD. LOS ANGELES. CALIFORNIA 90010 213/3 89 -2114 • CAOLE AODRESS "SUD(_OS' • TELEX 67 -3521 BINDER NP 3022 THIS IS TO CERTIFY that the undersigned have procured insurance as hereinafter specified from ar�isx6da6�9i3Ri6uRFt 4�ui6KxiufdillpAiii@ fix Employers Reinsurance Corporation Assured City of Newport Beach Address Newport Beach, California Amount or Limits$ $10,000,000 Excess of $100,000 SIR Coverage Excess Workmens Compensation Remarks Subject to standard wording on file w ith M.B.BUETTNER 6 CO. Subject to 60 day cancellation clause. The above insurance is subject to the conditions and terms of the current Certificate(s) now in use by Underwriters and /or Insurance Companies. This Binder may be cancelled at any time by the Assured or the undersigned giving the other notice in writing. A pro -rata premium charge will be made for this Binder, unless a Certificate (s) is /are accepted by the Assured whereupon coverage hereunder shall be null and void. Beginning at 120 1A on the is t day of July, 1975 and ending at1201AM on the is It day of August 1975. Dateof Issue 6 -20 -75 By spb Producer Fred S. James SLP 5179 S. SUETTNER B COMPANY. INC. No 0 RESOLUTION NO. 8 5 3 2 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF y AN AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH AND FRED S. JAMES & CO. 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 Fred S. James & Co., 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 23rd day of June , 1975. ATTEST: City Clerk Mayor DDO /bc 6/19/75