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HomeMy WebLinkAboutC-2091(A) - Comprehensive liability insuranceWNDOR5EMENT C *cq I INSURING Admiral Insurance Company I No. 11 .. - -- TO POLICY NO.. - -- 9.0745 COMPANY-------- ------- - ---- ---------- - ---- -- ------ - ---- ---- --------------- --- --- (herein called "The Company") July 11) 1979 EFFECTIVE DATE ..................—.., ................ ---...----------------- ---- ---- NAMED City of Newport Beach INSURED.. - - . ... ............................... .......... ...... In consideration of the prci-uwa for w'Mch t'uis insurance is written, it is agreed that the Insured's Retained Limit may be satisfied with coverage purchased on behalf of the Named Insured by others. However, this shall only apply in such situations where it is the normal pro- cedure to have such coverage afforded to the Named Insured by others. All other terms and conditions remain unchanged. RED° .iY < i PUG•3� �g1 NEY'`rc.- p BY: Authorized FtepR ntelive JG-0012 CF0071 Reolacina-78 HWP 3043 INSURANCE CASUALTY POLICY ADMIRALCOMPANY 9 CSI 0745 A TEXAS STOCK COMPANY (herein called "ADMIRAL") DECLARATIONS I� I F City of Newport Beach, This insurance is issued pursuant to the ` NAMED a Municipal Corporation of the California Insurance Code, Sections 1160 j INSURED State of California through 1180, and is placed in an insurer Ij or insurers not holding a Certificate of MAILING 3300 Newport Blvd. Authority from or regulated by the Cali - ADDRESS LNewport Beach, CA 92663 forma Insurance Commissioner. POLICY PERIOD: From ...... 4.- 1.- 79 .............. ..... To. .4,71 -82.. ,.. ,..,,,...,... ` At 12:01 A.M. Standard Time at the address of the Named Insured as stated her In consideration of the payment of premium, in reliance upon the statements herein or attached hereto, and subject to all of the terms of this policy, ADMIRAL agrees with the Named Insured as follows: COVERAGES; Excess Comprehensive General and Automobile Liability (per form attached MS -22 (12/78). LIMITS OF LIABILITY: Per the acceptance portion of this policy: CONDITIONS #15 (per form attached MS -22 (12178). PP01IUM COMPUTATION: Minimum & Deposit Premium: $67,000.00 3% State Tax $ 2,010.00 .2% Stamping Fee $ 134.00 TOTAL $69,144.00 Countersigned On: -- Match- 24r__13Z4_ At: Haddonfield, New Jersey 08033 JC -00I3 (3)74) 1M JFRSEY/INTERNATIONAL, INC. Uaderluritinti Managers By: Authorized Ripresentative NUCLEAR ENERGY LIABILITY EXCLUSION This policy does not apply: a. Under any Liability Coverage, to bodily injury or property damage: (1) with respect to which an Insured under the policy is also an Insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, or Nuclear Insur- ance Association of Canada, or would be an Insured under any such policy but for its termination upon exhaustion of its limit of liability; or (2) resulting from the hazardous properties of nuclear material and with respect to which (a) any person or organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, or any law amenda- tory thereof, or (b) the Insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization; b. Under any Medical Payments Coverage, or under any Supplemental Payments provision relating to first aid, to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization; c. Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear material, if: (1) the nuclear material (a) is at any nuclear facility owned by, or operated by or on behalf of, an insured, or (b) has been discharged or dispersed therefrom; (2) the nuclear material is contained in spent fuel or waste at any time pos- sessed, handled, used, processed, stored, transported or disposed of by of on behalf of an insured; or (3) the bodily injury or property damage arises out of the furnishings by an Insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its terri- tories or possessions, or Canada, this exclusion (3) applies only to property damage to such nuclear facility and any property thereat; d. As used in this Exclusion: (1) "Hazardous properties" include radioactive, toxic, or explosive properties; (2) "Nuclear material" means source material, special nuclear material or byproduct material; (3) "Source material ", "special nuclear material ", and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; (4) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; (5) "Waste" means any waste material (a) containing byproduct material and (b) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (6), (a) or (b) thereof; (6) "Nuclear facility" means: (a) any nuclear reactor; (b) any equipment or device designed or used for (i) separating the isotopes of uranium or plu- tonium, (ii) processing or utilizing spent fuel, or (iii) handling, processing, or packaging waste; (c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the Insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; (d) any structure, basin, excavation, prem- ises or place prepared or used for the storage or disposal of waste; and (e) includes the site on which any of the foregoing is located, all operations conducted on such site, and all premises used for such operations; (7) "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material; (8) "Property damage" includes all forms of radioactive contamination of property. SERVICE OF SUIT (Not Applicable in Texas and New Jersey) It is agreed that in the event of the failure of ADMIRAL to pay any anwunt claimed to be due hereunder, ADMIRAL, at the request of the Insured, will submit to the jurisdiction of any court of competent jurisdiction within the United States of America or Canada and will comply with all requirements necessary to give such Court jurisdicton and a!I matters arising hereunder shall be determined in accordance with the law and with the practice of such Court. It is further agreed that service of process in such suit may be made upon DONALD H. GARLOCK, President of ADMIRAL, or his nominee at JERSEY /INTER- NATIONAL, INC., Underwriting Managers, 56 Haddon Avenue, P.O. Box 850, Haddon field, New Jersey 08033 and that in any suit instituted against any one of them upon this policy, ADMIRAL will abide by the final decision of such Court or by the final decision of the Appellate Court in the event of an appeal. The above -named is authorized and directed to accept service of process on behalf of ADMIRAL in any such suit and /or upon the request of the Insured to give a written undertaking to the Insured that it or they will enter a general appearance upon ADMIRAL's behalf in the event such a suit shall be instituted. Further, pursuant to any statute of any state, territory or district of the United States of America or province of Canada, which makes provision therefore, ADMIRAL hereby designates the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute, or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this contract of insurance, and hereby designate the above -named as the person to whom the said officer is authorized to mail such process or a true copy thereof. IN WITNESS WHEREOF, the ADMIRAL INSURANCE COMPANY has caused this policy to be signed by its President and Secretary, but this policy shall not be valid unless countersigned on the declarations page by a duly authorized representative of ADMIRAL. '�✓�� /, President ry •0 ATTACHED TO, AND FORMING A PART OF 9CM 0745 INSURING AGREEMENT In consideration of the payment of premium, in reliance upon the statements herein or attached hereto, and subject to all of the terms of this policy, the Company(s) agrees with the Named Insured and will indemnify the Insured for ultimate net loss in excess of the retained limit hereinafter stated which the Insured shall become legally obligated to pay by reason of liability imposed by law, including Chapter 1681 of the State of California Statutes of 1963, or liability assumed by contract, insofar as the Named Insured may le- gally do so, for damages because of: COVERAGE A - BODILY INJURY LIABILITY COVERAGE B - PROPERTY DAMAGE LIABILITY COVERAGE C - ERRORS AND OMISSIONS LIABILITY COVERAGE D - PERSONAL INJURY LIABILITY to which this policy applies, caused by an occurrence, during the policy period. DEFENSE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS The Company(s) shall have the right and opportunity to associate with the Insured in the defense and control of any claim or proceeding arising out of an occurrence reasonably likely to involve the Company(s). In such event, the Insured and the Company(s) shall cooperate fully. Should any occurrence appear likely to exceed the retained limit, no loss expense or legal expenses shall be incurred on behalf of the Company(s) with- out its prior consent. Such consent shall not be unreasonably withheld. Should any claim arising from such occurrence be adjusted prior to trial court judgment for a total amount not more than the retained limit, then no loss expenses or legal expenses shall be payable by the Company(s). However, should the total amount for which such claim might be adjusted prior to such judgment exceed the retained limit, then if the Company(s) consents to further trial court proceedings, it shall contribute to legal expenses in the ratio which its proportion of the liability for the judgment rendered, or settlement made, bears the whole amount of said judgment or settlement, however, in no event shall the Insured's participation in such legal expenses exceed the retained limit in Item 2A of the Acceptance Portion of this form. RETAINED LIMIT - COMPANY'S(S') LIMIT OF LIABILITY Regardless of the number of (1) Insureds under this policy, (2) persons or organizations who sustain injury or damage, or (3) claims made or suits brought on account of bodily injury, property damage, errors or omissions or personal injury, the Company's(s') liability is limited as follows: A. With respect to bodily injury, or property damage, or errors and omissions, or personal injury or any combination thereof, the Company's(s') liability shall be only for the ultimate net loss in excess of the Insured's Retained Limit as specified in Item 2A of the Limit(s) of Liability section of the Acceptance Portion of this form as a result of any one occurrence. MS -22 (12/78) Page I of 13 and then for an amount not exceeding the difference between the amount specified in Item IA of the Limit(s) of Liability section of the Accep- tance Portion of this form and the Insured's Retained Limit as specified in Item 2A as the result of any one occurrence. B. With respect to ultimate net loss in excess of the Insured's stop loss aggregate limit as specified in Item 2B of the Limits of Liability sec- tion of the Acceptance Portion of this form, the Company(s)' liability as the result of all occurrences during each annual policy period, or portion thereof, shall be only for the ultimate net loss in excess of the amount shown in Item 2B of the Limits of Liability section of the Acceptance Portion of this form but only for occurrences where the ultimate net loss is less than the amount shown in Item 3A of the Limits of Liability sec- tion of the Acceptance Portion of this form, and then only for an amount not exceeding the amount specified in Item 3B of the Limits of Liability section of the Acceptance Portion of this form as the result of all occur- rences during the policy period. C. There is no limit to the number of occurrences during the policy period for which claims may be made, except that the liability of the Company(s) arising out of either the products hazard or the completed operations hazard, or both combined, or out of errors and omissions, because of all occurrences during each policy year shall not exceed the amount specified in Item 1B of the Limit(s) of Liability section of the Acceptance Portion of this form. For the purpose of determining the limit of the Company's(s') liability, all damages arising out of continuous or repeated exposure to substantially the same general conditions shall be considered as arising out of one occurrence. PERSONS INSURED Each of the following is an Insured to the extent set forth below: A. The Named Insured; B. While acting within the scope of his employment as such: (1) Any officer, servant or employee of the Named Insured, except that the insurance so provided any officer, servant or employee does not apply to bodily injury or to death of another officer, servant or employee of the Named Insured in the course of and arising out of his employment; (2) Any member of boards, governing boards, city councils, or commissions of the Named Insured; C. Under COVERAGES A and B, any person while using an owned automobile or hired automobile and any person or organization legally responsible for the use thereof, provided the actual use of the automobile is by or with the permission of the Named Insured. The Insurance with respect to any person or organization other than the Named Insured does not apply: (1) To any person or organization, or to any agent or employee thereof, MS -22 (12/78) Page 2 of 13 engaged in selling, repairing, servicing, delivering, testing, road testing, parking or storing automobiles, with respect to any occurrence arising out of any such occupation, if there is other valid and collect- ible insurance available to such person as Named Insured or as an agent or employee of a Named Insured under the policy with limits at least equal to the requirements of the applicable Financial Responsibility Laws; (2) With respect to any hired automobile, to the owner, or a lessee thereof other than the Named Insured, or to any agent or employee of such owner or lessee. EXCLUSIONS This policy does not apply: A. To liability arising out of the ownership, maintenance, loading or unloading, use or operation of any aircraft, airfields, runways, hangers, buildings or other properties in connection with aviation activities. B. To any obligation for which the Insured or any carrier as his insurer may be held liable under any workers' compensation, unemployment compensation or disability benefits law, or under any similar law; C. Except with respect to liability assumed by the Insured under contract, to bodily injury to or sickness, disease or death of any employee of the Insured arising out of and in the course of his employment by the Insured. D. To injury to or destruction of (1) property owned by the Insured, or (2) pro- perty rented to or leased to the Insured where the Insured has assumed liability for damage to or destruction of such property unless the Named Insured would have been liable in the absence of such assumption of liability, or (3) air- craft or watercraft in the care, custody or control of any Insured. E. Under COVERAGE C to (1) liability of the Insured arising in whole, or in part, out of any Insured obtaining renumeration or financial gain to which the Insured was not legally entitled, or (2) liability arising out of the willful violation of a penal code or ordinance committed by or with the knowledge or consent of any Insured; except that any fact pertaining to any one Insured shall not be imputed to any other Insured for the purpose of determining the application of these exclusions; F. Under COVERAGE C to (1) liability of any Insured arising out of estimates of probable costs or cost estimates being exceeded or for faulty pre- paration of bid specifications or plans, or (2) to injury to, destruction or disappearance of any tangible property (including money) or the loss of use thereof; G. To any liability arising out of or in any way connected with the operation of the principles of eminant domain, condemnation proceedings, or inverse condemnation, by whatever name called, whether such liability accrues directly against the Insured or by virtue of any agreement entered into by or on behalf of the Insured. H. To bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic MS -22 (12/78) Page 3 of 13 W chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants into or upon land, the atmosphere or any water course or body of water but this exclusion does not apply if such discharge, dispersal, release or escape is sudden and accidental. I. Nuclear Energy Liability Exclusion This policy does not apply: (1) Under any Liability Coverage, to bodily injury or property damage: (a) with respect to which an Insured under the policy is also an Insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters, or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) resulting from the hazardous properties of nuclear material and with respect to which -1- any person or organization is required to main- tain financial protection pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, or -2- the Insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization; (2) Under any Medical Payments Coverage, or under any Supplemental Payments provision relating to first aid, to expenses incurred with respect to bodily injury resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization; (3) Under any Liability Coverage, to bodily injury or property damage resulting from the hazardous properties of nuclear material, if: (a) the nuclear material -1- is at any nuclear facility owned by, or operated by or on behalf of, an insured, or -2- has been discharged or dispersed therefrom; (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an Insured; or (c) the bodily injury or property damage arises out of the furnishings by an Insured of services, materials, parts of equipment in connec- tion with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions, or Canada this exclusion (c) applies only to property damage to such nuclear facility and any property thereat; (4) As used in this Exclusion: (a) "Hazardous properties" include radioactive, toxic, or explosive properties; MS -22 (12178) page 4 of 13 it W (b) "Nuclear material" means source material, special nuclear material or byproduct material; (c) "Source material ", "special nuclear material ", and "byproduct material" have the meaning given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; (d) "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; (e) "Waste" means any waste material -1- containing byproduct material and -2- resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (f), -1- or -2- thereof; (f) "Nuclear Facility" means: -1- any nuclear reactor; -2- any equipment or device designed or used for (i) separating the isotopes of uranium or plutonium, (ii) processing or utilizing spent fuel, or (iii) handling processing, or packaging waste; -3- any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the Insured at the premises where such equipment or device is located con- sists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; -4- any structure, basis, excavation, premises or place prepared or used for the storage or disposal of waste; and -5- includes the site on which any of the foregoing is located, all operations conducted on such site, and all premises used for such operation; (g) "Nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- supporting chain reaction or to contain a critical mass of fissionable material; (h) "Property damage" includes all forms of radioactive contamination of property. J. To liability arising out of the failure to supply a specific amount of electrical power, fuel or water or to liability arising out of the interruption of the electrical power, fuel or water supply. DEFINITIONS AUTOMOBILE. Except where stated to the contrary, the word "automobile" means a land motor vehicle or trailer as follows: A. Owned Automobile - an automobile owned by the Named Insured; B. Hired Automobile - an automobile used under contract in behalf of or loaned to, the Named Insured provided such automobile is not owned by or registered in the name of (1) the Named Insured or (2) an officer, ser- vant or employee of the Named Insured who is granted an operating allowance of any sort for the use of such automobile. C. Non -owned Automobile - any other automobile. MS -22 (12/78) Page 5 of 13 The following described equipment shall be deemed an automobile while towed by or carried on an automobile not so described, but not otherwise: If of the crawler - type, any tractor, power crane or shovel, ditch or trench digger; any farm -type tractor; any concrete mixer other than of the mix -in- transit type; any grader, scraper, roller or farm implement; and, if not subject to motor vehicle regis- tration, any other equipment not specified below, which is designed for use prin- cipally off public roads. The following described equipment shall be deemed an automobile while towed by or carried on an automobile as above defined solely for purposes of transportation or while being operated solely for locomotion, but not otherwise: If of the non - crawler type, any power crane or shovel, ditch or trench digger; and any air compressing, building or vacuum cleaning spraying or welding equipment or well drilling machinery. USE. Use of an automobile or aircraft includes the loading and unloading thereof. COMPLETED OPERATIONS HAZARD. "Completed operations hazard" means bodily injury and property damage arising out of operations or reliance upon a representation or warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs after such operations have been completed or abandoned and occurs away from premises owned by or rented to the Named Insured. "Operations" include materials, parts or equipment furnished in connection therewith. Operations shall be deemed completed at the earliest of the following times: A. When all operations to be performed by or on behalf of the Named Insured under the contract have been completed, B. When all operations to be performed by or on behalf of the Named Insured at the site of the operations have been completed, or C. When the portion of the work out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. Operations which may require further service or maintenance work, or correction, repair or replacement because of any defect or deficiency, but which are otherwise complete, shall be deemed completed. The completed operations hazard does not include bodily injury or property damage arising out of: A. Operations in connection with the transportation of property, unless the bodily injury or property damage arises out of a condition in or on a vehicle created by the loading or unloading thereof; B. The existence of tools, uninstalled equipment or abandoned or unused materials, or; C. Operations for which the classification stated in the Company's(s') manual specifies "including completed operations ". ERRORS AND OMISSIONS. "Errors and omissions" means misfeasance, malfeasance or nonfeasance by any Insured. MS -22 (12/78) page 6 of 13 INSURED. "Insured" means any person or organization qualifying as an Insured under the Persons or Entities Insured section of this policy. The word "Insured" includes the Named Insured. NAMED INSURED'S PRODUCTS. "Named Insured's products" means goods or products manufactured, sold, handled or distributed by the Named Insured or by others trading under his name, including any container thereof (other than a vehicle) but "Named Insured's products" shall not include a vending machine or any property other than such a container, rented to or located for use of others but not sold. OCCURRENCE. As respects COVERAGES A and B, "occurrence" means an accident, or event including continuous or repeated exposure to conditions, which results during the policy term, in bodily injury or property damage neither expected nor intended from the standpoint of the Insured; as respects COVERAGE C, "occurrence" means any actual or alleged errors or omissions by an Insured during the policy term, which results in injury or damage neither expected nor intended from the standpoint of the Insured; as respects COVERAGE D, "occurrence" means any injury or damages sustained during the policy term, by any person or organization and arising out of personal injury as defined herein. PERSONAL INJURY. "Personal Injury" means (a) false arrest, detention, or im- prisonment or malicious prosecution; (b) publication or utterance of a libel or slander or of other defamatory or derogatory material, or a publication or utterance in violation of an individual's right of privacy except when any of the foregoing of this part (b) arises from publications or utterances in the course of or related to advertising, broadcasting, or telecasting activities conducted by or on behalf of the Named Insured; (c) wrongful entry or eviction or other invasion of the right of private occupancy; (d) assault and battery, not committed by or at the direction of the Named Insured unless committed for the purpose of protecting persons or property; (e) racial or religious discrimination, not committed by or at the direction of the Named Insured. BODILY INJURY. "Bodily Injury" means bodily injury, sickness or disease, including death at any time resulting therefrom and also includes care and loss of services by any person or persons. POLICY TERRITORY. "Policy territory" means anywhere in the world. PRODUCTS HAZARD. "Products Hazard" includes bodily injury and property damage arising out of the Named Insured's products or reliance upon a representation of warranty made at any time with respect thereto, but only if the bodily injury or property damage occurs away from premises owned by or rented to the Named Insured and after physical possession of such products has been relinquished to others. PROPERTY DAMAGE. "Property Damage" means (1) physical injury to or destruction of tangible property which occurs during the policy period, including the loss of use thereof at any time resulting therefrom, or (2) loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an occurrence during the policy period. ULTIMATE NET LOSS. "Ultimate Net Loss" means the sum actually paid or payable in cash in the settlement or satisfaction of losses for which the Insured is liable either by adjudication or compromise with the written consent of the Company(s) after making proper deduction for all recoveries and salvages collectible, and includes attorney's fees, court costs and interest on any judgment or award, but MS -22 (12/78) Page 7 of 13 00 excludes all loss adjustment expenses and all salaries of employees and office expenses of the Inusred, the Company(s) or any underlying insurer so incurred. CONDITIONS 1. PREMIUM The premium for this policy is as stated in the policy certificate and is an estimated premium only. Upon expiration, or not later than thirty (30) days after each annual policy period or upon termination of coverage if sooner, the Insured shall report the Total Workers' Compensation Payroll recorded during the policy period and pay the premium earned thereon at the premium rate prevailing during that period. The advance premium shall then be returned to the Insured less any earned premium due to the Company(s). Such return premium shall be subject to the minimum premium as stated in the Declarations. 2. INSPECTION AND AUDIT The Company(s) shall be permitted but not obligated to inspect the Insured's property and operations at any time. Neither the Company's(s') right to make inspections nor the making thereof nor any report hereon shall constitute an undertaking, on behalf of or for the benefits of the Insured or others, to determine or warrant that such property or operations are safe or healthful, or are in compliance with any law, rule or regulations. The Company(s) may examine and audit the Insured's books and records at any time during the policy period and extensions thereof and within three years after the final termination of this policy, as far as they relate to the subject matter of this insurance. 3. SEVERABILITY OF INTEREST The term "the Insured" is used severally and not collectively, but the inclusion herein of more than one Insured shall not operate to increase the limits of the Company's(s') liability. 4. INSURED'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR SUIT (a) In the event of any occurrence, written notice containing particulars sufficient to identify the Insured and also reasonably obtainable infor- mation with respect to the time, place and circumstances thereof, and the names and addresses of the injured and of available witnesses, shall be given by or for the Insured to the Company(s) or any of its authorized agents as soon as practicable. (b) If claim is made or suit is brought against the Insured, the Insured shall immediately forward to the Company(s) every demand, notice, summons or other process received by him or his representative. (c) The Insured shall cooperate with the Company(s) and, upon the Company's(s') request, assist in making settlements, in the conduct of suits and in enforc- ing any right of contribution or indemnity against any person or organization who may be liable to the Insured because of injury or damage with respect to which insurance is afforded under this policy; and the Insured shall attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense; MS -22 (12/78) Page 8 of 13 M to however, in the event that the amount of ultimate net loss becomes certain either through trial court judgment or agreement among the Insured, the claim- ant and the Company(s), then the Insured may pay the amount of ultimate net loss to the claimant to effect settlement and, upon submission of due proof thereof, the Company(s) shall indemnify the Insured for that part of such payment which is in excess of the retained limit, or, the Company(s) will, upon request of the Insured, make such payment to the claimant on behalf of the Insured. 5. APPEALS In the event the Insured or the Insured's underlying insurer elects not to appeal a judgment in excess of the retained limit, the Company(s) may elect to do so at its own expense, and shall be liable for the taxable costs, dis- bursements and interest incidental thereto, but in no event shall the liability of the Company(s) for ultimate net loss exceed the amount specified in the Limits of Liability section of the Acceptance Portion of this form plus the taxable costs, disbursements and interest incidental to such appeal. 6. ACTION AGAINST THE COMPANY(S) No action shall lie against the Company(s) unless, as a condition precedent thereto, the Insured shall have fully complied with all the terms of this policy, nor until the amount of the Insured's obligation to pay an amount of ultimate net loss in excess of the retained limit shall have been finally determined either by judgment against the Insured after actual trial or by written agreement of the Insured, the claimant and the Company(s). The Insured shall make a definite claim for any loss in which the Company(s) may be liable within a reasonable time after such final determination. If any subsequent payments are made by the Insured on account of the same occurrence, the Insured shall make additional claims from time to time and these claims shall be payable within thirty (30) days after proof in con- formity with this policy. Any person or organization or the legal representa- tive thereof who has secured such judgment or written agreement shall there- after be entitled to recover under this policy to the extent of the insurance afforded by this policy. Nothing contained in this policy shall give any person or organization any right to join the Company(s) as a co- defendant in any action of bankruptcy, or the insolvency of the Insured shall not re- lieve the Company(s) of any of its obligations hereunder. 7. OTHER INSURANCE If collectible insurance with any insurer is available to the Insured covering a loss also covered hereunder, the insurance hereunder shall be in excess of, and not contribute with, such other insurance provided, however, this does not apply to insurance which is written as excess insurance over the Company(s)' Limit of Liability provided in this policy. When both this insurance and other insurance apply to the loss on the same basis, whether primary, excess or contingent, the Company(s) shall not be liable under this policy for a greater proportion of the loss than that stated in the applicable contribution provision below: (a) Contribution by Equal Shares. If all of such other valid and collectible insurance provides for contribution by equal shares, the Company(s) shall not be liable for a greater proportion of such loss than would be payable if each insurer contributes an equal share until the share of each insurer equals the MS -22 (12/78) Page 9 of 13 10 qV lowest applicable limit of liability under any one policy or the full amount of the loss is paid, and with respect to any amount of loss not so paid the remaining insurers then continue to contribute equal shares of the remaining amount of the loss until each such insurer has paid its limit in full or the full amount of the loss is paid. (b) Contribution by Limits. If any of such other insurance does not pro- vide for contribution by equal shares, the Company(s) shall not be liable for greater proportion of such loss than the applicable limit of liability under this policy for such loss bears to the total applicable limit of liability of all valid and collectible insurance against such loss. 8. SUBROGATION The Company(s) shall be subrogated to the extent of any payment hereunder to all the Insured's rights of recovery therefor; and the Insured shall do nothing after loss to prejudice such rights and shall do everything necessary to secure such rights. Any amount so recovered shall be apportioned as follows: Any interest (including the Insured's) having paid an amount in excess of the retained limit plus the limit of liability hereunder shall be reimbursed first to the extent of actual payment. The Company(s) shall be reimbursed next to the extent of its actual payment hereunder. If any balance then remains unpaid, it shall be applied to reimburse the Insured or any underlying insurer, as their interest may appear. The expenses of all such recovery pro- ceedings shall be apportioned in the ratio of respective recoveries. If there is no recovery in proceedings conducted solely by the Company(s), it shall bear the expenses thereof. 9. CHANGES Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this policy or estop the Company(s) 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. 10. ASSIGNMENT Assignment of interest under this policy shall not bind the Company(s) until its' consent is endorsed hereon; if, however, the Named Insured shall be adjudged bankrupt or insolvent, such insurance as is afforded by this policy shall apply (a) to the Named Insured's legal representative, as the Named Insured, but only while acting within the scope of his duties as such, and (b) with respect to the property of the Named Insured, to the person having proper temporary custody thereof, as Insured, but only until the appointment and qualification of the legal representative. 11. THREE YEAR POLICY If this policy is issued for a period of three years, the limits of the Company(s)' liability shall apply separately to each consecutive annual period thereof. MS -22 (12/78) Page 10 of 13 M � 12. CANCELLATION This policy may be. cancelled by the Named Insured by surrender thereof to the Company(s) or any of its authorized agents or by mailing the Company(s) written notice stating when thereafter the cancellation shall be effective. This policy may be cancelled by the Company(s) by mailing to the Named Insured, at the address shown in the policy, written notice stating when not less than sixty (60) days thereafter such cancellation shall be effective. However in the event of non - payment of premium, the Company(s) may cancel this policy by sending ten (10) days prior written notice of such cancellation to the Named Insured at the address shown on the Declarations Page. In the event of non - renewal by the Company(s), notice shall be given the Named Insured not less than forty -five (45) days prior to expiration. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or the effective date and hour of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the Named Insured or by the Company(s) shall be equivalent to mailing. If the Named Insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the Company(s) cancel, earned premium shall be computed pro rata. When this policy insures more than one Named Insured, cancellation may be effected by the first named of such Named Insureds for the account of all Named Insureds. Notice of cancellation by the Company(s) to the first named Named Insured shall be deemed notice to all Named Insureds and payment of any unearned premium to such first named Named Insured shall be for the account of all Named Insureds. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender or unearned premium is not a condition of cancellation. 13. COMPANY(S)' RIGHT OF APPROVAL The Company(s) reserves the right to approve defense council for losses likely to exceed the Insured's retained limit. 14. CONTRIBUTING PRIMARY INSURANCE Unless endorsed hereon, the Insured agrees with the Company(s) and warrants that coverage afforded by this policy is excess of the applicable self insured retentions shown in item 2A and 4A and that no other insurance cov- erages will be purchased that would provide either primary, excess or contri- buting insurance for losses which would otherwise be retained by the Insured in accordance with the provisions of this policy. 15. ACCEPTANCE By acceptance of this policy, the Named Insured agrees that this policy embodies all agreements existing between himself and the Company(s) or any of its' agents relating to this insurance. A. Audit Period: Annual, unless otherwise stated. B. Endorsement attached to policy at inception: !11_9 MS -22 (12/78) Page 11 of 13 so 4M C. Limit(s) of Liability: The Company(s) limit of liability shall be: Item IA. $ 1,000,000 any one occurrence, less the Insured's Retained Limit, as specified in Item 2A, arising out of Bodily Injury Liability, Personal Injury Liability, Property Damage Liability or Errors and Omissions Liability or any combination thereof. Item 1B. $ 500,000 in the aggregate as a result of all occurrences during each policy year, subject to the aggregate limit provisions of this policy - see "Retained Limit Company(s) Limit of Liability ", paragraph C. The Insured's Retained Limit shall be: Item 2A. $ 500,000 any one occurrence arising out of Bodily Injury Liability, Personal Injury Liability, Property Damage Liability or Errors and Omissions Liability, or any combination thereof, subject to the pro- visions of Item 2B. Item 2B. $ N/A Stop Loss Aggregate for each annual policy period, or any portion thereof if the policy period is less then one year, resulting from all occurrences re- tained by the Insured. The St Loss Aggregate ? is adjustable at a rate of .$ per $100 of Workers' Compensation payroll, as reported for the policy period, but in no even shall the Stop Loss Aggregate be less than $ N/A It is further agreed that in the event the Insured exhausts the Stop Loss Aggregate as specified in Item 2B, the Company(s)' Limit of Liability, solely in respect of losses within the Insured's Retained Limit shall be: Item 3A. $ N/A any one occurrence arising out of Bodily Injury Liability, Personal Injury Liability, Property Damage Liability or Errors and Omissions Liability or any combination thereof, subject to: Item 3B. $ N/A in the aggregate as a result of all occurrences provided for in Item 3A during the policy period. In the event that the Company(s) Stop Loss Aggregate as specified in Item 3B is exhausted, the Insured's Retained Limit shall be: Item 4A. $ N/A any one occurrence arising out of Bodily Injury Liability, Personal Injury Liability, Property Damage Liability or Errors and Omissions Liability or any combination thereof. MS -22 (12/78) Page 12 Of 13 D. Premium Computation: Estimated Workers Compensation Payroll N/A Total Advance Premium $67,000. r^ k--A Rate per $100 Payroll N/A Minimum Premium $67,000. i Countersigned by MS -22 (12/78) Page 13 Of 13 Authorized Agent INSURING. Admiral Insuran ompany COMPANY----- --------------I----------------- ----- --- -- (he,e'm called "the Company") .NAMED Cit of Newport Beach Cali INSURED. ----- -- ---- -- - - ---- y--- ------�= 'P..- --- --- -- '- -------- 16.0012 110177) ENDORSEMENT NO, ---- - -1 ........... "POLICY NO ....... 9.CM0745 ................. .° EFFECTIVE DATE ...-...---.. 4- 1- 79 ---------- .--------------------------------- -° Anniversary Rate Endorsement It is agreed that the rates, rating basis, limits, retentions, and premium stated in the acceptance portion of this policy may be adjusted as of each anniversary date of the policy. Such adjustment, if any, shall apply only to the unexpired portion of the policy period. Deposit Premium 4/1/79: $67,000.00 Deposit Premium 4/1/80: TED Deposit Premium 4/1/81: TBD BY: �. 4 A.01.,iad Repr�.enl. live INSURING COMPANY....... Admiral -- Insurance -- Company.. (herein called "the Company ") NAMED City of Newport Beach INSURED .------------ .....-- -- -- -- -- -- ------- -- --- OWDORSEMENT NO. -2 - - - -- TO POLICY NO. APIK .W74 EFFECTIVE DATE....... April.l , - 1979 ............ .. AMENDMENT OF EXCLUSION "J" In consideration of the premium charged, it is agreed that Exclusion "J" of form MS -22 (12/78) is amended as follows: THIS POLICY DOES NOT APPLY: (J) To liability arising out of the failure to supply a specific amount of electrical power, fuel or water or to liability arising out of the interruption of the electrical power, fuel or water supply except this exclusion shall not apply to damages caused as a result of physical damage to tangible property that causes an interruption, reduction or failure to supply electrical power, fuel or water. BY: JG -0012 (W/77) Authorized Representative INSURING Admiral Insurance Company COMPANY-- ------------------ --- ---------- --------------------------- (herein called "the Company ") NAMED City of Newport Beach INSURED------------------- ------------ .------------------------------ .- ------ -- - ----- WDORSEMENT NO..- .--- 3 . . . .... .......TO POLICY NO.. -9CM .. 0 745 l , EFFECTIVE DATE ............. ..... Apri...... 1.._ .1-9. ADDITIONAL INSURED In consideration of the premium charged, it is hereby agreed that the State of California is included as an Additional Insured but only as respects land leased for a turn around area for autos at the West End of Seashore Drive at Santa Ana River, Newport Beach. All other terms and conditions remain the same. ir. BY: Authosi.d Representative JO.0012 (7apl) INSURING Admiral Insurance Company COMPANY .- --- ---- --------------- ------------- - - ---- (herein called "the Company ") NAMED City of Newport Beach INSURED. - -- ..... . . . . .. ...... .......... ...... --- ...... NO. .. -4 ... ....... ..... POLICY NO ----- 9CM 0745----------- ----- EFFECTIVE DATE ... ...... .. -April 1, 1979 ADDITIONAL INSURED In consideration of the premium charged, it is hereby agreed that the following entity is included in coverage provided by this policy but only as respects operations of the Named Insured at or from the premises developed for a marine facility at Newport Harbor Patrol Headquarters: County of Orange General Services Agency /Real Estate Division P.O. Box 4106 Santa Ana, California 92702 It is further agreed that 30 days written notice shall be given in the event of cancellation by the Insuror. BY JG -0014 (10177) Authorimd Repme ntative OWDORSEMENT INSURING NO........5.... TO POLICY NO. ....9CM 0745----- --- ---- -- - - - - -- COMPANY______ Admiral Insurance Company .. - - -- (herein called "the Company") EFFECTIVE DATE April 1 -,.- 1979 _________ __________ ________ NAMED it INSURED - - - - -- ....,Cy of Newport Beach ADDITIONAL INSURED SCHEDULE It is hereby agreed that the interest of the following is included as Additional Insured under the coverage provided by this policy but only as respects the revenue sharing agreement of January 3, 1978: County of Orange, its Board of Supervisors, Officers, and Employees C.A.O. Revenue Sharing 511 North Sycamore Santa Ana, California 92701 Attention: Ms. Lois Wax, Administrative Analyst BY: Authorisd Representative JG -0012 (10177( 4WOPSEMENT INSURING NO. -- ... 6... COMPANY_ - - - - -- -COmpAny --------------------- - - . - I.. TO POLICY NO. 9010M ---------- (herein called "the Company") EFFECTIVE DATE ----- ------ --- ----- ---- .... --- --- NAMED City of Newport Beach INSURED--- -- ---------- - -- - ------------ ------- .............. ......... --------------------- I ---------------------- I ----------------------- ............. ADDITIONAL INSURED SCHEDULE It is hereby agreed that the interest of the following is included as Additional Insured under the coverage provided by this policy but only as respects the use of land where air samples are collected: The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 BY: Authorized Representative JG 0012 (10177) INSURING Admiral Insurance Company COMPANY-•-------------- �----------- ---- --------- -- - ° ------------ --- (herein called "the Company") NAMED City Newport INSURED - .--- _-------- ..y - - - -- - - - -- Beach - --------------------- --- --------- -- - - I ---- - ...... .------------------------ OWDORSEMENT NO......... - 7 .............. TO POLICY NO. _ 9CM 0745 --------------------- A EFFECTIVE DATE .._.... p-ril ---- 1 �'- --1979 --� .................._. ... .... ..- --�--- i ADDITIONAL INSURED SCHEDULE It is hereby agreed that the interest of the State of California, Depart- ment of Transportation, is included as Additional Insured under coverage provided by this policy but only as respects the following properties: 1) Account 110027069- 001 -01 Location South Corner of Seashore Drive and 54th Street Easement 2) Account 110018188- 001 -01 Location N.E. Corner of Seashore and 54th Street Easement 3) Account 110036741- 001 -03 Location Pacific Coast Highway and Newport Blvd. Fenced in Parking Lot BY 1G 0012 (10177) Authorized Repmuntelive Nip INSURING Admiral Insurance Company COMPANY -------- ---------- ---------- ------° --------------- --- (herein called "the Company') NAMED City of Newport Beach INSURED-------------------- .... ..........- ----- ------- -----... --- ---- -- --- --------- -- --- - - -- - ---- -- _ -- --------- ------------------------- . -- -- NO.....$ ............... . . . .TO POLICY NO....- 9CM 0745_- __- __- _- ____.____ EFFECTIVE DATE........ April 1, 1979 ADDITIONAL INSURED It is hereby agreed that the interest of the following is included as Additional Insured under the coverage provided by this policy but only as respects posting of banners advertising the City of Newport Beach Arts Festival on land owned by the Irvine Company during the period May 1 to May 31, 1979: The Irvine Company 550 Newport Center Drive Newport Beach, California 92660 6Y: 1G 0012 (10177) Audmrimd AepmeenW ive INSURING COMPANY - - - - -- Admiral_, Insurance - Company-- - - -. -_ (herein called "the Company ") NAMED INSURED.......... City. of__ Newport.. Beach_____ ____ _________________ NO. ..-9-------- TO POLICY NO...-9CM --- 0745 --------------------- EFFECTIVE DATE ------- Apri- 11 -,,.. 1979--------------------------------------- It is agreed that all liability arising out of the existance of Big Canyon Dam or the collapse of Big Canyon Dam and any resulting damage from same is excluded in its entirety from the coverage afforded by this policy. All other terms and conditions remain unchanged. Signed and Accepted Title Date BY: Aulhorimd Repres nW ive 1G 0012 (10171) MILUM /GARVEY INSURANCE BROKERS, INC. C 3720 Campus Drive Newport Beach, California 92660 Telephone (714) 549 -9952 To: City of Newport Beach DATE: April 12, 1979 3300 Newport Boulevard Newport Beach, California 92660 SUBJECT: Attention: Mr. Bill Brown Re: Admiral Insurance Company j General Liability Certificate No. 78 HWP 3043 Dear Bill: I have attac hed herewith original endorsement No naming the Irvine Company as additional insured as respects the use of land where air samples are collected. A copy of this endorsement is being sent to Mr. Howell under separate cover. Sincerely, c Ginny McC is Office Manager Enclosure cc: Mr. Virgil Howell a . , :y naming the Irvine Company as additional insured as respects the use of land where air samples are collected. A copy of this endorsement is being sent to Mr. Howell under separate cover. Sincerely, c Ginny McC is Office Manager Enclosure cc: Mr. Virgil Howell ENDORSEMENT NO. 10 ADDITIONAL INSURED SCHEDULE It is hereby agreed that the interest of the following is included as Additional Insured under the coverage provided by this policy but only as respects the use of land where air samples are collected: The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Attached to and forming a part of R*mdmxxMax Certificate No. 78 HWP 3043 Issued To: City of Newport Beach Insuring Company: Admiral Insurance Company Effective Date: March 20, 1979 Dated At: Encino, California Date: March 27, 1979 /dz H & W INSURANCE SERVICES BY: /�, POLICY XL ® 1589 Nenewal of ) XL New EXCESS LIABILITY POLICY onMIDLAND INSURANCE COMPANY One State Street Plaza, New York, New York 10004 DECLARATIONS Item 1. Name Insured and Address: (No., street, Town, County, state) CITY OF NEWPORT BEACH 3300 Newport Blvd. Newport Beach, California 94663 Item 2. Policy Period: FromApril 1, 1979 to April 1, 1980 12:01 A. M., standard time at the address of the named insured as stated herein. STOCK COMPANY PRODUCER H & W Insurance Services 16255 Ventura Blvd., Suite 406 Encino, California 91436 EXCESS MUNICIPALITY LIABILITY l 3. Underlying Insurance: Comprehensive Liability ADMIRAL INSURANCE COMPANY Difference between underlying Self Insured Retention of $500,000 each occurrence and $1,000,000. Combined Single Limit each occurrence aggregate Itam4. Limut(OofCoverage $4,000,000.00 Combined Single Limit each occurrence /aggregate Hereunder: excess of limits stated in Item # 3 Item s. Premrum: $45,843.00 Endorsements Nam 6. Cancellation: HW /eb Date: 4/2/79 Form) No. UND -202 (8/76) 4M 1 (Municipalities), 2 (E -Z) forty five (45) days MI-ALAN11 INSURANCE rAIMP ANY (A stock insurance company, herein called the company.% in edrisideration of the payment c; the premium, in re!iasca upon the statairelts in the declarat!o..s made a Dar' hereof and subject 'o aii tem ril ths elicy, gees with the insured named in Item I of the I �eclarations as follows: TF,'RMIS AND CONDITIONS INSURING ,GREEMFNT 1. 7,- -`I-T-Ipany I lett:oy imdernnifies the .:Is ti;'d ;Ilitc ne. I I i and . -1T!1It!I't U I i f! Q, 1117n d% covered .1nd L 1.-Inc, iii ,,! " 'Ii �11, .: !*��— . . 4 . .1 1),�l ord- tan'! 1! a".0,M1 o0t ShCV; _Pi -2 ent as exch liul n a. in s g In 7 -1 :eduction ui' such hmit :. ;I ms ccide �is or ol-currenc-1- �i� i I. - . - :; , In - . 1 1. 1 . I , !�: i, . F�% cy bi-ii z? the -,en: i �k �1� !-.s;.:.ed com-:1,d U.�'css aggregate and 4 C. I" '1 i--hes 'Kith resoe::t i i:nI:!s in -Ycess (i!' tI:., iwo,qt7%, !";r samu 1!! 0111 U:: ;Ier;yzng il:,urancr and does na: tip 'y anv (w,"cilying insta-o,-c '1 01, C Lrt ol P11 c m or aggregate limits (if any) n the t;nderi,, n,,, Insurance. 5. If ag regate limits are specifically stated in Item 3 arid 4 of tire Declarations, this Policy 9 wilt apply' In excess of' reduced underlying insurance provided such reduction in the underlying Insurance is solely the result of accidents or occurrences happening after the inception date of this Policy. The Insured shall give the Company written notice as stion as possible of any reduction or exhaustion of such aggregate limit in the underlying insurance, 6. If more than o-e insured is named in the Declarations such additional Insured(s) shall not have the effect of increasing the Company's limit of liability for each accident or occurrence stated in Item 4 of the Declarations. PREMIUM 7. Premium due the Company for this excess insurance shall be that amount shown in Item 5 of the Declarations and is payable upon delivery of this Policy, NOTICE OF LOSS 8. The Insured shall immediately advise the Company of any accident or occurrence which appears likely to result in liability under this Policy and of subsequent developments likely to affect the Company's liability hereunder. At no time shall the Company be called upon to assume charge of the settlement or defense of any claims made or suits brought or proceedings instituted against the Insured, but the Company shall have the right and shall be given the opportunity to associate with the Insured or its underlying insurer or insurers, or both, in the control; defense and/or trial of any claims, suits or proceedings which, in the opinion of the Company, involves or appears reasonably likely to involve the Company. If the company avails itself of such right and opportunity, the insured, any underlying insurer or insurers and the Company shall cc-operate in the control, defense and/or trial of such claims, suits or proceedings, so as to affect a final determination thereof. Failure on the part of the Insured or the underlying insurer or insurers to cooperate shall ielieve the Company, at its option, of liability tinder this Policy. 9. The Insured shall be solely responsible for the investigation. settlement, defense and final disposition of any claim made or suit brought or proceeding instituted against the Insured to which this Policy would apply and which no underlying insurer or insurers is obligated to defend. The Insured shall use due diligence and prudence to settle all such claims and suits which in the exercise of sound judgment should be settled, provided, however, that the Insured shall not make or agree to any settlement for any sum, in excess of the underlying insurance, without the approval of the Company. 10. The Insured shall (a) cooperate with the underlying insurer or insurers, asrequired by the terms of the underlying insurance. (b) comply with all ilic terms and conditions thereof and (c) enforce any right of contribution or indemnity against any person or organization who may be liable to the Insured, because of liability with respect to which insurance is afforded under this Policy and . the underlying insurance:. LOSSPAYABLE 1. The Company's obligation io pay ally ultimate net loss and costs with respect I I tine accident or occiur-ite falling within the terms of this Pblicy shall not attach unit! the arnounz of the jndcwviilg wo i %ls Oc[o lai,s ly -I oi! henall of ile lio.,ured T such oxidant oi occurrenc-,. f' I, snail :niikc %:Liku I,. � a::v 011 � oil tiff offs o n id c ois I,l:!, 7ins w-flim a per. �J of not excceciin,� twelve month., 3•Ter. ii I th-, !'cured shaii lum, il!:,; E. i0IN L-,, 1. i t C I I In e Im 1 whil Iop-;.t to anv ac.. dent Or •Z s. ,iii her by :ijd ;oient aga:,isi the a.,tt" i� _17 0:1 at s. by flik presented ind proper pool of payment of uhml:oe twl 1:;:' 1 ilo I I W., N ENDORSEMENT +� POLLUTION EXCLUSION - ABSOLUTE AS RESPECTS WATER In consideration of the premium charged and notwithstanding anything contained herein to the contrary it is hereby agreed that such insurance as is afforded by this policy does not apply to Personal Injury or Property Damage arising out of the discharge, dispersal, release or escape of smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste materials, or other irritants, contaminants, or pollutants, into or upon land or the atmosphere, but this exclusion does not apply if such discharge, dispersal, release or excape is sudden and accidental. It is further agreed, that this policy does not apply as respects any loss, damage, clean up cost, cost liability, expense, fine or penalty, punitive or exemplary damages, of any kind or nature whatsoever incurred by the Insured, directly or indirectly, in consequence of, or with respect to, the actual or potential discharge, emission, spillage or leakage upon or into the seas, or any watercourse or body of water anywhere in the world, of any pollutant, including but not limited to oil, petroleum products, chemicals, or other substances of any kind or nature whatsoever. It is further understood and agreed that in no event shall coverage provided by this policy for Contamination and Pollution be broader than that provided by the Underlying Insurances set forth in the Schedule of Underlying Insurance. Effective Anri 1 1- 1979 12:01 AM Standard Time, this Endorsement No. TWO attached to and made a part of Policy No. XL 158987 of Midland Tncllranr_e CnmpAny issued to city of Newnnrt Rparh (The Information above is required only when this endorsement is issued subsequent to preparation of the policy.) Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreements or limitations of this policy other than as above stated. HW /eb 4/2/79 By ,�/.: r Authorized Representative cne) -uan (4Je) ORIGINAL • MUNICIPALITIES •• ENDORSEMENT 8. Bodily injury or property damage due to: A. The rendering of or failure to render; 1. Medical, surgical, dental, x -ray or other treatment by a physician, osteopath, chiropractor or any other medical practioner with the exception of paramedics acting within the course and scope of their authority; 2. Any service or treatment conducive to health except by paramedic, or; 3. Any cosmetic or tonsorial service or treatment; B. The furnishing or dispensing of drugs or medical, dental or surgical supplies or appliances except by a paramedic. C. The handling of or performing of autopsies on dead bodies. Page 2 of 2 Effective ...— ..p,prl1__2,_1979 _ 12:01 A'd Slandaru T�n:e, this E�Itinrsement No. One attached to and made a part of Policy No. XL 158987 _ of MIDLAND INSURANCE COMPANY issued to City of NewDO 62�Ch--------- ....._ - -. -- - -- ..--- - -_ - -- - -_ -- n�H1W /e/bb7 (The information above is required only when this endorsement is Issued subsequent to preparatian of the policy. Gt�lr;%erein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreements or limitations of this policy other than as above stated. HW -1 I—) _ ........ M.S. Chenault, President MUNICIPALITIES ENDORSEMENT • In consideration of the Premium charged, it is understood and agreed that this policy shall not apply to any liability for personal injury or property damage arising out of: 1. Liability arising out of the failure to supply a specific amount of electrical power, fuel or water or to liability arising out of the interruption of the electrical power, fuel or water supply 2. Liability arising out of the ownership, maintenance, loading or unloading, use or operation of any aircraft, airfields, runways, hangers, buildings or other properties in connection with aviation activities. 3. Any liability arising out of or in any way connected with the operation of the principles of eminant domain, condemnation proceedings, or inverse condemnation, by whatever name called, whether such liability accrues di- rectly against the Insured or by virtue of any agreement entered into by or on behalf of the Insured. 4. Bodily injury or property damage arising out of the total or partial collapse or failure of any dam to retain water. &Ocx?c�sxaga���xts;�x'idiam8c 7aw8x�aax7c�ca�c�aatgactex�aaglaggxaaxa# S�ic�c�r�zG�isil�xg8gxl��FWFgis `�i� 5. Any claim based upon the Employee Retirement Income Security Act of 1974, Public Law 93 -406, commonly referred to as the Pension Reform Act of 1974, and amendments thereto. 6. Racial or religious discrimination committed by or at the direction of the Named Insured. 7. Any liability arising out of the ownership, operation, maintenance, or use, including loading or unloading of any automobile operated for the purpose of transporting persons or property for fee or hire, except this exclusion shall not apply to automobiles classified as "minibusses" or automobiles used in "Dial -a- ride" type programs or automobiles used to transport persons or prop- erty solely incidental to non - transportation operations of the Insured. Page 1 of 2 April 1, 1979 One Effective _.. —. P_ — -- -..._. _._. - - -.__ _ _. .._ .... _ _ " ctrl Starr -i 0 7-,,:r th•,, Cadrisemeat No. attached to aril made a par, at No. XI 159C) 7,_ _—MID LAND _.. MIDLAND INSURANCE COMPANY — issuedto — City of Newport Beach iThe information above is required only when this endorsement is :ssued suosequeut to preparation of the policy.) Nothing herein contained shcH be held to vary, alter, waive or extend any of the terms, condi ;ions, agreements or limitations of this policy other than as above stated. 4/2/79 I'll I nw /eb ........................... ............. ......._ .................. M.S. Cneneurt, President ULTIMATE NET LOSS AND COSTS "t is c l snouh I Inasmuch as this Policy is Execs. Iusulance, the I mrreof ; right of r,: cover i. against any person cannot be exclusively subrogated to the company. It Is, therefore, undersolild and agreed that in rase I,t any payment hereunder, the Company will act hl concert with all other parties )including the Insured) concerned, to the exercise of such rights of recovery. The apportioning of any amounts which may be so recovered shall follow the principle that anv parties (including the Insured) that shall have paid an amount „ver and shove anv payment hereunder, shall first be reimbursed up ;o the amount paid by them, the company is then to be reimbursed out of any halance then remaining up to the amount paid hereunder, lastly the parties (including the Insured) of whom this coverage is in excess are entitled to claim the residue, if anv - Expenses necessary to the recovery of any such amounts shall be apportioned between the parties (including the Insured) concerned, in the ratio of their respective recoveries as finally settled. 18. Nothing herein contained shall be construed to mean that the Insured shall be required to enforce by legal action any right of subrogation or indemnity before the Company shall pay any loss covered hereunder. TERM 19. This Policy applies only to ac :SdeutS hl occurrences happening between the effective and expiration dates shown in Item 2 of the Declarations, unless otherwise Call( "Iled- NUCLEAR INCIDENT EXCLUSION 20. It is agreed that this Policy doi' clot apply: 1. Under any Liabuite Coverl;e. to injury, sickness, disease, death or destruction (a) with respect to which t:n insured under this Policy is also an insured tinder a nuclear energy liability policy issued by Nuclear F!iergy Liabtl.y Insurance Association, Mutual Atomic Energy Liability Underwriters Or Nuclear Insurance Association of Cawv?'l. ,,; wou.,i be an insured under any such policy but for its termination upon exhaustion of its limit of habllitv4 or (h) resulting from 'he hazardous properties of nuclear material and with respect to which (I j any person or organization i.s required to mar r,in finanem, on "ec lot m.rsuan" :o t;i Atomic Energy Act of e54, or any '.aw amendatory thereof, or ('t) the .cured is, nr had this poncV not bee— issue,, .would be :r.titled In, -ndemcrty from the United States of America. it anv agency thereof, under any agicn.'ment catered into by the United State'; of .America. or any agency thereof, with any person, or organization. II. Under any Medical Payments Coverage, or under any Sapp;'r:lentarv?avments !'.-,)visions relating to immediate medical or surgical relief, to expenses incurred with respect :o bodily injury. sickness, disease or death resulting front hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. 111. Under any Liability Co v e� injury, sickness, disease, death or destruct on Ring from the hazardous properties of nuclear material. if t...,I ,d n1 'he ,',n.LCa 11 -_' J ll i ' i >. aulount P —il rlltrin,lic' /v i lot :'r,t: .:: :. `. -.:C:. -:. .i'il 11 t " J` V1 .the :- .,.I i. :e rt. n 'r .'.uli'ni tilde: u' >...; .,.. 1 -, :!:k:. :'. ':.! - �iila, : -..fr ,I .' ;ink -.IZ -.. .. .r in }mil l:t e! -. _ .. .v. :- .Olaf) :A : .A."'" or I'.. ilill - yllu ; =:I wa ,.. I, ii;!. -� ..I, . .:. 1 I_r: ._ SUBROGATIO ?s AND SALVAGE 16- All sAvaaes recover ;k, o� p. , -,'lc t, c� .., 1,I kt a. k. arh -t -q ; ,. 3o _ :-Icnullt his Policy y char be applied a= it recovered or ceivtd pl,nr In sure .It u.: vin -sa`v edj.ls.l.lcw , <hal, ttmn t.. la.:d1: n.. vc� . .n< i :elocd anti the Company: provided always that nothuy: to tills C , -.u, t -o lk Lc 1'01�..ucd : 1 That m"c's t lick) this Policy ,:c .nt recoverable untd the Insured's ultimate net loss has beer: )madly :e,c' ^l.uv : :'d. I Inasmuch as this Policy is Execs. Iusulance, the I mrreof ; right of r,: cover i. against any person cannot be exclusively subrogated to the company. It Is, therefore, undersolild and agreed that in rase I,t any payment hereunder, the Company will act hl concert with all other parties )including the Insured) concerned, to the exercise of such rights of recovery. The apportioning of any amounts which may be so recovered shall follow the principle that anv parties (including the Insured) that shall have paid an amount „ver and shove anv payment hereunder, shall first be reimbursed up ;o the amount paid by them, the company is then to be reimbursed out of any halance then remaining up to the amount paid hereunder, lastly the parties (including the Insured) of whom this coverage is in excess are entitled to claim the residue, if anv - Expenses necessary to the recovery of any such amounts shall be apportioned between the parties (including the Insured) concerned, in the ratio of their respective recoveries as finally settled. 18. Nothing herein contained shall be construed to mean that the Insured shall be required to enforce by legal action any right of subrogation or indemnity before the Company shall pay any loss covered hereunder. TERM 19. This Policy applies only to ac :SdeutS hl occurrences happening between the effective and expiration dates shown in Item 2 of the Declarations, unless otherwise Call( "Iled- NUCLEAR INCIDENT EXCLUSION 20. It is agreed that this Policy doi' clot apply: 1. Under any Liabuite Coverl;e. to injury, sickness, disease, death or destruction (a) with respect to which t:n insured under this Policy is also an insured tinder a nuclear energy liability policy issued by Nuclear F!iergy Liabtl.y Insurance Association, Mutual Atomic Energy Liability Underwriters Or Nuclear Insurance Association of Cawv?'l. ,,; wou.,i be an insured under any such policy but for its termination upon exhaustion of its limit of habllitv4 or (h) resulting from 'he hazardous properties of nuclear material and with respect to which (I j any person or organization i.s required to mar r,in finanem, on "ec lot m.rsuan" :o t;i Atomic Energy Act of e54, or any '.aw amendatory thereof, or ('t) the .cured is, nr had this poncV not bee— issue,, .would be :r.titled In, -ndemcrty from the United States of America. it anv agency thereof, under any agicn.'ment catered into by the United State'; of .America. or any agency thereof, with any person, or organization. II. Under any Medical Payments Coverage, or under any Sapp;'r:lentarv?avments !'.-,)visions relating to immediate medical or surgical relief, to expenses incurred with respect :o bodily injury. sickness, disease or death resulting front hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. 111. Under any Liability Co v e� injury, sickness, disease, death or destruct on Ring from the hazardous properties of nuclear material. if i• N (a) the nuclear material (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (2) has been discharged or dispersed therefrom; (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored, transported or disposed of by or on behalf of an insured; or (c) the injury, sickness, disease, death or destruction arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility. IV. As used herein: "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material or byproduct material; "source material ", "special nuclear material ", and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor "waste" means any waste material (1) containing byproduct material and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing spent fuel, or (3) handling, processing or packaging waste, (c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self- support- ing chain reaction or to contain a critical mass of fissionable material; With respect to injury to or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of property. 21. This Policy may be cancelled by either party upon written notice, such notice to be not less than the number of days set forth in Item 6 of the Declarations. If cancellation is at the request of the Insured, adjustment of premium shall be at short rate and if cancelled by the Company, adjustment shall be pro rata. However, in the event of cancellation or non - renewal of the underlying insurance immediately preceding this Policy, this Policy terminates as of the same date without notice to the Insured. The Company may. however, cancel this Policy absolutely on five (5) days' notice for non - payment of premium due. Notice shall be Riven by the Insured to the Company at One State Street Plaza, N.Y., N.Y. 10004 and by the Company to the, Insured at the latter's address as shown in the Declarations. Notice by the Company to the first Named Insured, if more than one, shall be deemed notice to any other interests included as an Insured. IN WITNESS WHEREOF the Midland Insurance Company has caused this Policy to be signed by its President and Secretary, but same shall not be binding upon the Company unless countersigned by an authorized representative of the Company. L ` r" ✓` E Secretary President 0 • 0 dvJ'::AL CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER MARCH 22, 1979 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: 1979 -80 PUBLIC LIABILITY INSURANCE COVERAGE C - ,Dvq I Council Agenda Item H -2(d) In .recent years it has been difficult to obtain liability insurance due in part, to the glut of renewals in the insurance market at the end of the fiscal year. It is proposed that the City's public liability insurance policy renewal date be changed to 4 -1 -79, a time of the year when it is expected that competition in the insurance market will be more favorable. The City's Broker of Record, Mr. Robert Milum of Milum and Garvey Insurance Brokers, has succeeded in obtaining insurance proposals, for this purpose, with coverage similar to that of the preceeding policy year (see EXHIBIT B Summary of Coverage) and, if accepted, will afford the City a reduction in annual premium costs of $31,638.00. The Staff recommends Plan #1 of the alternatives shown in EXHIBIT A. This plan provides a $500,000.00 self- insured retention and insures the City against public liability up to $5,000,000.00. The cost of Plan #1 is $116,454.00 which compares with premium costs of $148,092.00 for the current policy year. This does not include claims adjuster fees, attorney's fees, and other administrative costs. A comparison of program costs for the current as well as proposed policy years is shown in EXHIBITS C and D. The Staff has deemed it advisable to accept the $500,000.00 per claim, self- insured retention of Plan #1 rather than the lower retention of Plan #2, due to the savings in premium dollars. In this connection the City in it's history has not experienced a single claim loss exceeding $85,000.00. Thus, the greater retention level does not necessarily represent an expected additional claims expense. Robert L. Wynn `ca F H m H 2 X W O W 1 O 4t O n 1 d' K d W } } U J O d J Q { w z w K } H J m ¢ J J Q K W Z W (D E E a) C i ro d d c v a) v L d ro L �k .O > O U E E W i d N c ro d 0 Is E a) i- .-� !Z C ro d N m ro S- 0 U 40 • 0 O O 0 v n n 0 C). N rn O 1\ W4 P G i O O C3 . of K O H LO N N v k4 O O O O H O to m tR O O to V to N off O O O O .4- . O O O O O O N O ^ a) ^ O U O to V to to W KT H m to O O O O O O O O to O n O a) O O U O to X m b4 W b4 O O O M Q C O O O O O O 4- O 000 O N O O N O O a) O . U Vt X E W H} O O O M n O O O O O O O 4- O O O O O o O O n O O a) O ^u C X Ail W tf w 00 C3 0 0 0 H v W 0 0 00 0 0 C) 0 0 o v- o O, O InO O OO � K O O a)O O In CD CD V) O UO O NO to Lo X to O N O aq ER W >a U O T X r U • O b tqW tR X H R 4J U O 1 O S- U m U o O on r O_ a) x N m C C H z H •r U t u+ 4 *' ro c O G o v t i F al roCJ H 4� dro 4N (0 Etn C i •- a) U [o •O a) ¢ m •r C HI d � G i O O C3 . of K O H LO N N v k4 O O O O H O to m tR O O to V to N off O O O O .4- . O O O O O O N O ^ a) ^ O U O to V to to W KT H m to O O O O O O O O to O n O a) O O U O to X m b4 W b4 O O O M Q C O O O O O O 4- O 000 O N O O N O O a) O . U Vt X E W H} O O O M n O O O O O O O 4- O O O O O o O O n O O a) O ^u C X Ail W tf w K U H W U T � K 1 ro Q ro c CL K 1 n o E O Z U • O to R 4J U Z U H O C H r m v a) x H V H Y U t u+ F- 0 a) = F- c m J L.K CO ro C roCJ H O L m J N m CL _0 � HI H al L C G ¢ C L J 41 Q i v7 rt E L to O •.- v I v a) x - v C1_ U to Q m W 0 O 0 N m C co V M 0 0 6 O O O O O to O O to to N M O O O O CO C O O m H} O O V m 64 O O O O O O O O to lf� N J Q H 0 H rn n 1 N to N () S- .1 Q X W T u O a CL) L) c ro i 7 to C it F 3 0 0 0 EXHIBIT B I. COMPREHENSIVE LIABILITY The Admiral Insurance Company will insure the City of Newport Beach from 4 -1 -79, to 4-1-80, against liability imposed by law, including Chapter 1681 of the State of California Statutes of 1963, or liability assumed by contract, insofar as the Named Insured may legally do so, for damages because of: A. Bodily Injury and Personal Injury (1) Bodily injury, sickness or disease, including death at any time resulting therefrom and also including care and loss of services, sustained by any person or persons, or (2) Any other injury a person may suffer to his person, reputation, character or feelings, in- cluding but not limited to malpractice, false arrest, detention or imprisonment, malicious prosecution, libel, slander, defamation of character, invasion of privacy, wrongful evic- tion or wrongful entry. B. Property Damage Injury to or destruction of property, including the loss of use thereof. C. Errors or Omissions Liability Any claim for breach of duty made against the insured by reason of any negligent act, error or omission of the insured and discovered during the policy period or within twenty -four months after termination of the policy. D. Automobile Liability The policy insures against liability arising out of the ownership or operation of automobiles. E. Persons Insured (1) The policy insures: (a) The City of Newport Beach EXHIBIT B - CONTINUED • • • y (b) While acting within the scope of his employment as such: Note: any officer, servant or employee of the named insured, except that the insurance so pro- vided any officer, servant or employee does not apply to bodily injury to or death of another officer, servant or employee of the named in- sured injured in the course of or arising out of his employment; any member of the governing body of the named insured. any member of boards or commissions of the named insured. Plan # 2 (Exhibit A) offers additional coverage as follows: The Stop Loss Option limiting the City's Aggregate Losses to $1,000,000.00, at an additional cost of $3,894.77 5 0 EXHIBIT C 0 FINANCIAL ACTIVITY PUBLIC LIABILITY INSURANCE POLICY YEAR 1979/80 SUMMARY OF PROPOSED EXPENSES: Plan # 1 Premiums (from Exhibit A) Less Credit for return of premium Claims Adjusting Agency (employed as a condition of the insuring agreement) Self- insured Retention (SIR) Fund (a condition of the insuring agreement) Notes: $116,454.00 30,030.00 Total expected insurance activity 0 86,424.00 12,000.00 $500,000.00 598,424.00 In the current policy year (1978/79) the City has paid losses of $2,197.00 to date under it's present $500,000.00 retention provision. Future costs are expected to be an additional $100,822.00 (est.) for claims occurring in this policy year. Establishing, and increasing the SIR Fund in future years will enable the City to assume greater insurance risks on a sound financial basis and thus retain flexibility in the event of extreme annual rises in insurance premiums that have occurred in recent years. It is suggested that the eventual sum to be maintained in the SIR Fund be based on five years of incurred loss history. In the immediately preceeding five year period the City's total incurred losses have been $765,983.00. 0 Malfttll FINANCIAL ACTIVITY PUBLIC LIABILITY INSURANCE Policy Year 1978/79 (Current) COVERAGE City of Newport Beach - -Self- Insured $500,000.00 Retention (SIR) Admiral Insurance Company $500,000.00 (Primary coverage) excess of $500,000.00 Pine Top Insurance Company $4,000,000.00 (Excess Insurance Company) excess of $1,000,000.00 Total Cost: Expense -- Claims Adjusting Agency per insuring agreement Incurred Costs: (year -to -date) Paid losses: $2,197.00 Reserves: $100,822.00 SIR fund - -a condition of the insuring agreement �J PREMIUM 46 $77,400.00 $70,692.00 GRAND TOTAL: Funds budgeted at beginning of period: *Total *Conditional to maintaining the SIR Fund at $500,000.00 148,092.00 10,000:00 103,019.00 $500,000.00 761,111.00 $500,000.00 $261,111.00 -) Oq 1 RESOLUTION NO. -9532 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AWARDING A CONTRACT FOR COMPREHENSIVE PUBLIC LIABILITY INSURANCE COVERAGE TO ADMIRAL INSURANCE COMPANY AND AWARDING A POLICY OF EXCESS INSURANCE TO THE MIDLAND INSURANCE COMPANY WHEREAS, the City of Newport Beach has sought proposals to renew the City's comprehensive public liability insurance; and WHEREAS, the City has received proposals for the provision of said comprehensive public liability insurance coverage; and WHEREAS, the City Council finds and determines that it is in the best interest of the City to accept a $500,000.00 self- insured retention; to award a policy of insurance for coverage of $500,000.00 over the self- insured retention to the Admiral Insurance Company; and to award a policy of excess insurance for coverage of $4,000,000.00 over the $1,000,000.00 lower insurance to the Midland Insurance Company; and WHEREAS, the cost of the combined programs of Admiral Insurance Company and the Midland Insurance Company is in line with other insurance available to the City on the insurance market, and the entering into the proposed contract is fair and equitable, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby accepts the proposal to provide comprehensive public liability insurance coverage from the Admiral Insurance Company and the Midland Insurance Company for a one -year period commencing April 1, 1979, and continuing through April 1, 1980. BE IT FURTHER RESOLVED that all funds set aside for I payment of liability losses shall be established and I encumbered in a special liability insurance reserve fund and shall not be used for any other municipal purpose until all incurred liability losses within the self- insurance retention are actually paid or settled. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute any agreement that is necessary to carry out the purpose of this Resolution. ADOPTED this 26th day of March ATTEST: City Clerk Mayor -2- 1979. DDO /kb 3/20/79 STUDY SESSION NO. 11 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER June 21, 1978 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: 1978 -79 PUBLIC LIABILITY INSURANCE COVERAGE Again this year the City experienced difficulty in obtaining Public Liability Insurance. Three of four brokerage firms accepted invitations to offer proposals - -two have presented insurance programs. The City is again faced with a large self - insured retention level due to the extreme costs of plans with lower deductibles. The Staff recommends Plan #1 of the six alternatives shown in EXHIBIT A. This plan provides a $500,000.00 self- insured retention (SIR) and insures the City against public liability up to $5,000,000.00. The cost of premiums for Plan #1 is $148,052.00 which compares with premiums costs of $248,491.00 for the lapsing policy year. This does not include the estimated attorney's fees, claims adjuster fees, and other administrative costs. A comparision of total program costs for the current as well as coming policy years is shown in EXHIBITS C and D. Adding all insurance activities will require an appropriation of approximately $658,052.00, (EXHIBIT C) for the coming year. The Staff has deemed it advisable to accept the burden of a $500,000.00 per claim, self- insured retention level rather than recommending renewal at the present retention of $100,000.00, due to the savings in premium dollars. In this connection the City in its history has not experienced a claim loss of $100,000.00, thus the greater deductible does not necessarily represent an expected additional claims expense. The insuring agreement requires establishing a loss fund to pay losses within the self - insured retention. Thus, it is recommended that such a fund be established and that the surplus from the preceeding policy year be allotted to that fund. Mr. Virgil Howell, President of Mund, McLaurin & Company, has reviewed the proposal received by the City of Newport Beach, I have requested both Mr. Howell and Mr. Milum, Insurance Broker, to be at the study session to assist in the review of this subject in greater detail. r Attachments ROBERT L. WYNN ad co1-- m 2 x W Ol h LA N L LO 0 co h Ln N 1 LY ¢ W Y Y U J O d J Q 3 w Z W LY I- J m Oc Q J J w W Z 41 U M C ro r CL Vi C ro r CL E E N L d ti C CL Cl I 1 I I 1 1 O O O 0 0 o0-1 Lc) . r N tqv 0 0 O O O _ O K I! � N r O O O 0 C)_ O K O LO Ln A T 1 c t O U •r ro Y d C m 4J +� N i K O Gl� G) v Ql S- 0. 1 r r U N 0 0 0 t- o df O O O <D N CO N N v V ^ M h U1•r N Co Cn h r N to b4 bq r ro •C O O O O d O O O O O O O O O O 4 O4-O O O OO 0 00 O C) 0 v 0 C) no o 0 ^ ^ C) O Ln O o alLn oo oao ro LO U Ln PU O W X, Oi X r r bq W V4 bq W tR tR O O O O O O b N CO N M LO V M w h r N co h Ln r D} N to � 4,q C m O O O ro O O O O o 0 0 0 0 0 •4- • O4-O O O 00 O 00 O O O ro • O N O C N C C ^ N ^ O mCD O O N O O N O O to U^ ^ U ^ 00 X V X r Ln 8q W tq ti1 W bq 6q i N O Cl O O O O J YY N N O Cl) LO N Cl) O h ^ H K i i r W LD N h VI Y Y tq tR M E N O O O L •O O O O Cl O N N CD'~C� X (D N •r QCO O4-O O 0 00 0 00 0 0 0 CD no C no C ^ N ^ O n O O 0010 O NO O O U O U Ln X Lo d' X r Ln /fJ La] t4 Vi W bq tR t- df C O Ln Ln O � M N U1•r N Y r ro •C d W ro •r (� O U Z O v E •r E ¢ Y oY � ro Q U i O CL O U LT d Z W ro �-+ O C L--• - Q) h U} U} D} Y O > C C- C m NQ N m ro F'• ro¢ L C ro • U ro r Y co m c C lT CT s C ++ i--iY ro •r U1 •r i N �--� YY CY ro V J YY 0 O ro ro ro CC CC x CL' N H K i i Y = Q1 CL N • Y VI Y Y I V W L E N L N o25 N L •O U c 0 m a Q1 N N L C X (D N •r QCO W m Nm H ro W 11 COS t- o+ n N I O F- 00 to N C Q W Y r U J O J 3 W Z W C' Y r_ _J C) J ¢J C W z W C7 E d L C. C ro d E E v i d LO C ro d E a L d C C ro CL • Z J L O 0 O a o .W O n O O O O O 0 O _ M O C 64 O O O O 94- CD O O 0 0 C) CJ 0 0 C' 64 wN O 0 O O A� O U r- N O O O O C) M N 94-9 Q n co 04-0 0 O O 00 J O O Z O O Y O1 O �o ro C C VI OlY O 0C) L C ro O a) C) a, •r o_ O Y Y O a) O r ro 0 1� X" i d' a) ct X r G N O MWfR Q) Y •r 00 X L N � ¢ u) � m Q Q) Q O O a) c7 In Y W ro v OI N 2 bR O O O O O O o .W O O 0 C) O O O O O 0 O _ ^ N ^ O C O O OLn U O UO r !n Ot X r tRv b4 W b4 O O V Ln V V N va 0 0 O O O O w o -4- . C) 000 O O O O_ O NO N 0 OC O (vO C) O U O N M X r b4� b4 W tq 0 0 O Cl O o O O o 0 0 04-0 N N O 1� c7 M n O 0 to O LLD W lD C) CJ M X r N 64 64 M O O O O N O O O O C) M • 94-9 to n co 04-0 O O 00 O 00 O O O O O O O �o O 0 C ^ v O 0C) O O a) C) O N O O O O a) O O 1� X" V X ct X r M Wb4 MWfR 64 00 X X ¢ u) C Q) Q Q L a) 4J In Y W ro U L OI Y O 2 N C V) C Y ro Y Y Y Y ro O C ro N r-K U C7. 0 i ro a a CL Y C Y N 0 0 V N Y C f0 a) OJ 4- N _ U C] _C OM O H O O J t O N Y UO M Y () co M I� C> a, o M b4 � N J Q H O r N O O O O O O c O O O O 04-0 O O O O O O O O O O 0 to O O O O •r V CJ M X r r 64 W 69 tR O O O O N l0 M co M 1� to n co N b4 64 O O . O O O O 04-0 O 0 00 0 C nC C O V O O O a) O O ct X r 69 W fR {R N J Q H O r N C) ae ae c O O M N •r 0) a) Y Z n ro •r U v - v E ¢ u) C O Y C 4J In L O N U L O ro 2 U •r 0— U 0 O X C a) V I� Y C) a) a) 4- V •r O� H Y U} J t t Y O Y C Y Y () C m J S- CC ro C U O- a) L Q C O Co O.� 7 ro V ro Vf ¢_ 3 a) J Z O �--� •r ro •r VI •r L a) N Y Y Y C Y ro U Y C (0 N ro ro d i. O ro m K O .-i 0 ro K C v' a) I L Y 2 a) d N T4- r Y VI Y Y a) W a1 Y L Y E L ex5 rn C r aj a) a) r 0 w a a) 1 L C X r a •r W Co S N J Q H O r N 0 0 0 0 EXHIBIT B SUMMARY OF PUBLIC LIABILITY INSURANCE COVERAGE I. COMPREHENSIVE LIABILITY The Admiral Insurance Company will insure the City of Newport Beach from June 25, 1978, to June 25, 1979, against liability imposed by including Chapter 1681 of the State of California Statutes of 1963, or liability assumed by contract, insofar as the Named Insured may legally do so, for damages becuase of: A. Bodily Injury and Personal Injury (1) Bodily injury, sickness or disease, including death at any time resulting therefrom and also including care and loss of services, sustained by any person or persons, or (2) Any other injury a person may suffer to his person, reputation, character or feelings, in- cluding but not limited to malpractice, false arrest, detention or imprisonment, malicious prosecution, libel, slander, defamation of character, invasion of privacy, wrongful evic- tion or wrongful entry. B. Property Damage Injury to or destruction of property, including the loss of use thereof. C. Errors or Omissions Liability Any claim for breach of duty made against the insured by reason of any negligent act, error or omission of the insured and discovered during the policy period or within twenty -four months after termination of the policy. D. Automobile Liabili The policy insures against liability arising out of the ownership or operation of automobiles. E. Persons Insured (1) The policy insures: (a) The City of Newport Beach r EXHIBIT B- CONTINUED • • • (b) While acting within the scope of his employment as such: Note: any officer, servant or employee of the named insured, except that the insurance so pro- vided any officer, servant or employee does not apply to bodily injury to or death of another officer, servant or employee of the named in- sured injured in the course of or arising out of his employment; any member of the governing body of the named insured. any member of boards or commissions of the named insured. Plan N6 (Exhibit A) offers additional coverage as follows: Property damage liability (excess of $150,000.00 retention) Liability arising from the use of buses. $500,000.00 aggregate loss feature. Stop -loss of $150,000.00 all claims arising out of one occurrence. • EXHIBIT C 0 0 FINANCIAL ACTIVITY PUBLIC LIABILITY INSURANCE POLICY YEAR 1978/79 SUMMARY OF PROPOSED EXPENSES: Plan #1 Premiums (from Exhibit A) F. L. Kautz & Co. agency employed as insuring agreement Claims processing a condition of the Self - insured Retention (SIR) Fund - A condition of the insuring agreement Notes: $148,052.00 $ 10,000.00 $500,000.00 Total expected insurance activity: $658,052.0- In the current policy year the City has paid $5,153.00 to date under its present $100,000.00 retention provision. Future costs are expected to be an additional $85,432.00 for claims occurring in this policy year. Setting aside a 'SIR Fund of $500,000.00 merely ensures the ability to pay claims of that magnitude. Establishing, and increasing the SIR Fund in future years, will enable the City to assume greater insurance risks on a sound financial basis and thus be in a position to avoid the extreme annual rises in insurance premiums that are expected to continue. It is suggested that the eventual sum to be maintained in the SIR Fund be based on five years of incurred loss history. In the immediately pre - ceeding Five year period the City's total incurred losses have been $765,983.00. R't I 0 • EXHIBIT 0 FINANCIAL ACTIVITY PUBLIC LIABILITY INSURANCE Policy Year 1977/78 0 • R. L. Kautz & Co.-- Claims processing 8,000.00 agency per insuring agreement. Incurred Costs: (year to date) Paid losses: $ 5,153.00 Reserves 85,432.00 90,586.00 SIR Fund - -a condition of the insuring agreement 100,000.00 Grand Total: 447,076.00 Funds Budgeted at beginning of period: $456,000.00 Surplus: 8,924.00 COVERAGE PREMIUM City of Newport Beach -- Self - insured $100,000.00 -- Retention (SIR) Admiral Insurance Company 300,000.00 $97,730.00 (Primary coverage) Midland Insurance Company -- Excess 700,000.00 insurance coverage excess of 400,000.00 85,000.00 Puritan Insurance Company 2nd 4,000,000.00 excess insurance coverage excess of 11000,000.00 65,761.00 Total Cost 248,491.00 R. L. Kautz & Co.-- Claims processing 8,000.00 agency per insuring agreement. Incurred Costs: (year to date) Paid losses: $ 5,153.00 Reserves 85,432.00 90,586.00 SIR Fund - -a condition of the insuring agreement 100,000.00 Grand Total: 447,076.00 Funds Budgeted at beginning of period: $456,000.00 Surplus: 8,924.00 r RESOLUTION NO. 939 i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AWARDING A CONTRACT FOR COMPREHENSIVE PUBLIC LIABILITY INSURANCE COVERAGE TO ADMIRAL INSURANCE COMPANY, FIRST STATE INSURANCE COMPANY AND THE S AND H INSURANCE COMPANY AND AWARDING A POLICY OF EXCESS INSURANCE TO THE PINE TOP INSURANCE COMPANY WHEREAS, for the provision and WHEREAS, provision of said coverage; and WHEREAS, the City of Newport Beach has sought proposals of comprehensive public liability insurance; the City has received two proposals for the comprehensive public liability insurance the City Council finds and determines that it is in the best interest of the City to accept a $500,000.00 self- insured retention; to award a policy of insurance for coverage of $500,000.00 over the self- insured retention to a combination of the Admiral Insurance Company, the First State Insurance Company, and the S and H Insurance Company; and to award a policy of excess insurance for coverage of $4,000,000.00 over the $1,000,000.00 lower insurance to the Pine Top Insurance Company; and WHEREAS, the cost of the combined programs of Admiral Insurance Company, First State Insurance Company, S and H Insurance Company and the Pine Top Insurance Company is in line with other insurance available to the City on the insurance market, and the entering into the proposed contract is fair and equitable; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby accepts the proposal to provide comprehensive public liability insurance coverage from the Admiral Insurance Company, First State Insurance Company, S and H Insurance Company and Pine Top Insurance Company for a one year period commencing June 25, 1978, and continuing thrcugh June 25, 1979. BE IT FURTHER RESOLVED that all funds set aside for payment of liability losses shall be set aside and encumbered in a special fund and shall not be used for any other municipal purpose until all incurred liability losses are settled. BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute any agreement that is necessary to carry out the purpose of this Resolution. ADOPTED this 26th day of June , 1978. ATTEST: City Clerk Mayor -2- DDO /cr 6/22/78