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HomeMy WebLinkAboutResolution 6637 N.C.S. 06/24/1974 ,solution No. .E633- . N. •C. 5 ''' ' a ' " 4 ' = EER:ml RESOLUTION APPROVING LIABILITY INSURANCE COVERAGE QUOTE PRESENTED BY THE J. J. KING INSURANCE AGENCY INC. , , ° ` � , 9 i .. . INTRODUCED BY COUNCILMAN _ Jame s ' L H e son iP I C and / � SECONDED BY COUNCILMAN R. best E E. Daly. at;a • I S_pe.eial Meeting of the City Council'of the City of Petaluma, on the 24th day of June 19 74 , i WHEREAS, the. Insurance Committee for the City of Petaluma did request quotations from eleven major carriers to cover the City's insurance needs, and WHEREAS, the Committee has reviewed the quotes received and has made its recommendation the insurance be secured through the J. J. King Agency for the reasons stated in their letteis dated June 24, 1974, signed by Donald Smith. NOW, THEREFORE, BE IT RESOLVED that the insurance coverage for this City be secured through the offices of the J. J. King In- surance Agency, Inc. under the power and authority conferred upon this 'Council by ithe Charter of said City. • I hereby certify that the foregoing Resolution was duly and rela introduced and adopted by the Council of the City of Petaluma on the 2 ri day of June , 19 74 , by the following votes: COUNCILMEN BRUNNER, CAVANAGH, JR., DALY, HARBERSON, PERRY, JR., AYES: AND MAYOR PUTNAM. NOES: NONE. - -. ABSENT COUNCILMAN %-_ TEI. ' .' . ATTEST. /.-'/-- ° .I.1_ / iii sip f ay or CA, 1 0 -73 � �',�:, , l T :A, ity� er /. .d 7 a or IMPAIR ASP CIAT6 V l � DE r' ° ` C A s h PETALUMA, CALIFORNIA OFFICE OF: June 24, 1974 RED F City of Petaluma I t JUN 2 4 1974 Post & English Streets Petaluma, Calif 94952 JUN 2 1 197` _Cr cLERK Attention: City 'Council LILLIAN NOMMSEN c/o Mayor Putnam CITY CLERK s` Madame Mayor: As you are aware the present carrier of the City's fire and liability coverage has withdrawn from writing liability coverages on all municipal insureds in the State of California effective July 1, 1974. This company has been the main underwriter of this type of insurance in California for over twenty years. This action was a complete surprise to the insurance industry and to the many public entities that were insured by this carrier. The main reason cited by this company was that they felt premium levels were too low in view of the serious erosion of iimuunity from suit that has been enjoyed by public entities in California up to this time. The Insurance Committee for the City of Petaluma met as soon as this information was made available and proceeded to secure quotes to replace these coverages. Through our Association , eleven major carriers were contacted and requested to make quotes on the City insurance needs. When the Committee met to consider the quotes, it was found that only two companies were willing to give a quote on the City's coverages. One quote was from the Carpenter Agency in the amount of $42,305. The other quote from The J. J. King lnsurance Agency, Inc. in the amount of $46,825. As a matter of information, the premium for these coverages last year was $51,018. The Committee met and considered these quotes and found the property, accounts receivable, and valuable papers coverages and premiums to be almost the same. The boiler quote of the Ca rpenter Agency was $238. with a $250. deductible and The J. J. King Insurance Agency quote was $521. without a deductible. We found the major difference to be in the liability coverages. The COP 1 rpentter Agency quote is based on a standard comprehensive liability policy. c W , .. e , N..._,, .‘z.„,/ , ., City of ,Petaluma -2- June 24, 1974 This policy contains sixteen exclusions of coverages and does not offer errors and•ommissions coverage. The errors and ommissions coverage is supplied by a seperate policy and contains a $2,500. deductible per loss. The quote given by the J. J. King Insurance Agency, Inc. is written on a very broad form that is entitled California Public Entity Special Compre- hensive Liability Policy. This policy is the same as the policy the City now has and it is the broadest policy being offered to public entities that our Committee' has found. This policy contains eight exclusions and offers errors. and ommissions coverage in the same contract, without a deductible. • Because this policy is designed solely for public entities and offers coverages beyond the standard liability contract, the Committee recommends that the proposal given by the J. J. King Insurance Agency, Inc. be accepted. The Committee feels it is imperative that the City have the broadest possibie coverage for the very same reasons that your present carrier is withdrawing from the market. Sincerely yours, . / Donald Smith Secretary dla • • • • h r A ffElQ KI U A S COATP N OF fi t E D NT I SU m NC S PETALUMA, CALIFORNIA June 24, 1974 OFFICE OF RECEIVED City of Petaluma JUN 2 4 1 974 Post & English Streets CITY - CL . ':^ Petaluma, Calif 94952 Attention: City Council c/o Mayor Putnam Madame Mayor: The Insurance Committee for the City of Petaluma has reviewed your umbrella liability policy in view of the present market conditions. The present policy is written at a limit of $5,000,000. per occurrance on what the Committee has agreed is a somewhat limited form. The premium is $2,887.50 per year. The Committee recommends the City place this coverage with Argonaut Insurance Company through The J. J. King Insurance Agency. The premium is $4,200. per year. This umbrella coverage is written on a very broad form in that it follows the underlying coverage written through the Insurance Company of the Pacific Coast. The limit is $5,000,000. excess of the underlying coverage. We feel that the City should be as fully protected as possible by insurance because of current changes in the law and the continuous erosion of governmental immunity by the courts. Because the umbrella offered by Argonaut Insurance Company offers much broader coverage, we feel it is worth the difference in premium. Sincerely yours, Donald Smith Secretary Cop TO: , d 1a 1. et-.L: Lwf.t C? JUN 2 4 1974 CCEE FILE �IL PVOMMSE 1 CfT� cL ERK. _ _ _ _ _ _ _ _ _ o