MUNICIPAL EXCESS LIABILITY JOINT INSURANCE FUND 9 Campus Drive, Suite 216 Parsippany, NJ Telephone (201) BULLETIN MEL 16-5

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1 MUNICIPAL EXCESS LIABILITY JOINT INSURANCE FUND 9 Campus Drive, Suite 216 Parsippany, NJ Telephone (201) BULLETIN MEL 16-5 Date: February 8, 2016 To: From: Re: Fund Commissioners of Member Joint Insurance Funds Underwriting Manager Conner Strong & Buckelew Excess Liability and Excess Public Officials Liability/Employment Practices Liability The bulletin does not apply to the members of the NJUA JIF and workers compensation only members of NJPHA JIF. Please note that the Excess Public Officials Liability/Employment Practices Liability portion of this bulletin does not apply to members of the First Responders Joint Insurance Fund. The excess liability and excess public officials liability/employment practices liability reinsurance policy covering the member JIFs of the Municipal Excess Liability Joint Insurance Fund was renewed on January 1, 2016 as follows: GENERAL Reinsurance Company: General Reinsurance Corporation (Excess Liability $3,250,000 excess $1,750,000) (Excess POL/EPL up to $8,000,000 excess $2,000,000) General Re Policy #: C486 Munich Re Policy #: Coverage Period: 1/1/16 to 1/1/17 Munich Reinsurance America (Excess Liability up to $15,000,000 excess $5,000,000) EXCESS LIABILITY LIMITS (PER MEMBER ENTITY) Standard: $5,000,000 per occurrence CSL for general liability, automobile liability, law enforcement professional liability and employee benefits liability excess the member entity SIR. Total Occurrence Limit $5,000,000. $5,000,000 annual aggregate CSL for general liability, law enforcement professional liability and employee benefits liability. Total Aggregate Limit $5,000,000.

members of the NJUA JIF and workers compensation only members of NJPHA JIF.

2 Page Two EXCESS LIABILITY LIMITS (PER MEMBER ENTITY) continued Optional: $2,000,000 CSL per occurrence for general liability, automobile liability, law enforcement professional liability and employee benefits liability excess of $5,000,000. Total Occurrence Limit $7,000,000. $2,000,000 annual aggregate for general liability, law enforcement professional liability and employee benefits liability. Total Aggregate Limit $7,000,000. $5,000,000 CSL per occurrence for general liability, automobile liability, law enforcement professional liability and employee benefits liability excess of $5,000,000. Total Occurrence Limit $10,000,000. $5,000,000 annual aggregate general liability, law enforcement professional liability and employee benefits liability. Total Aggregate Limit $10,000,000. $10,000,000 CSL per occurrence for general liability, automobile liability, law enforcement professional liability and employee benefits liability excess of $5,000,000. Total Occurrence Limit $15,000,000. $10,000,000 annual aggregate general liability, law enforcement professional liability and employee benefits liability. Total Aggregate Limit $15,000,000. *Automobile Liability is not aggregated. $15,000,000 CSL per occurrence for general liability, automobile liability, law enforcement professional liability and employee benefits liability excess of $5,000,000. Total Occurrence Limit $20,000,000. $15,000,000 annual aggregate general liability, law enforcement professional liability and employee benefits liability. Total Aggregate Limit $20,000,000. *Automobile Liability is not aggregated. Note: OPTIONAL EXCESS LIABILITY LIMITS ARE IN ADDITION TO THE STANDARD LIMITS.

3 Page Three EXCESS LIABILITY LIMITS (PER MEMBER ENTITY) - continued Reinsurance Pool Limits: The $3,250,000 excess $1,750,000 layer is subject to (a) $35,000,000 per occurrence as respects all member entities involved in one occurrence other than Certified Acts of terrorism or $10,000,000 per occurrence as respects all member entities involved in a Certified Act of Terrorism as defined in the reinsurance agreement. The $10,000,000 excess $10,000,000 layer is subject to a $40,000,000 annual aggregate. There is a reinstatement provision for a limit of $20,000,000 at 50% of the annual premium for the $10,000,000 excess $10,000,000 layer. Munich Reinsurance provides drop down coverage over the General Reinsurance per occurrence limitations. There is no stipulation that the members involved in this occurrence have to be purchasing optional limits. They cap this at a $15,000,000 limit. Sub-limits (Per Member Entity per Occurrence): Failure to Supply: Riot, Civil Commotion: Skateboard Facilities (where approved by local JIF and MEL) Garagekeepers Legal Liability: Quasi Entities (Class III & IV): Dam Liability (Class I & II dams): Dam Liability (Class III & IV dams): (When not involved in the same occurrence as a Class I or II) Dam Liability (Class III & IV dams): (When involved in the same occurrence as a Class I and II) Sewer Back-up (PD liability only): Subsidence (PD Liability only): Annual Aggregate excess JIF/MEL $1,750,000 SIR Annual aggregate excess JIF/MEL $1,750,000 SIR

reinsurance agreement. The $10,000,000 excess $10,000,000 layer is subject to a $40,000,000 annual aggregate.

4 Page Four POL/EPL - PRIMARY AND OPTIONAL EXCESS Limits per Member Entity including member MUA s Standard (JIF insures with QBE North America Insurance Company): $2,000,000 annual aggregate per member entity Limits per Member Entity (not including members of NJUA JIF, PAIC & First Responders Insurance Fund) Optional: $1,000,000 annual aggregate per member entity excess $2,000,000 $2,000,000 annual aggregate per member entity excess $2,000,000 $3,000,000 annual aggregate per member entity excess $2,000,000 $4,000,000 annual aggregate per member entity excess $2,000,000 $4,000,000 annual aggregate per member entity excess $6,000,000 Reinsurance Pool Limits: The pool per occurrence limit for the JIF optional POL/EPL layers (excess of the standard $2,000,000) is $16,000,000. EXCESS LIABILITY JIF/MEL REINSURANCE UNDERLYING SIR $1,750,000 Indemnity only per occurrence (General Re will share all expenses including defense costs on a proportional basis where indemnity exceeds the SIR of $1,750,000. Munich Re will share all expenses including defense costs on a proportional basis where indemnity exceeds the SIR of $5,000,000). EXCESS POL/EPL UNDERLYING -Member JIF Insured Limit with QBE North America Insurance Company) COVERAGE $2,000,000 each wrongful act and annual aggregate inclusive of all costs and expenses. General Reinsurance Corporation and Munich Reinsurance America are excess and reinsures the MEL subject to terms and conditions of the MEL excess liability coverage document in accordance with the respective Casualty Binding Agreements. The MEL is excess and follows form over the various JIF liability coverage documents. General Re Insurance Corporation is also excess and reinsures the MEL on a following form basis subject to terms and conditions of the underlying Indian Harbor Insurance Company public officials and employment practices liability policy form for each member JIF.

aggregate per member entity excess $2,000,000 $3,000,000 annual aggregate per member entity excess $2,000,000 $4,000,000 annual aggregate per member entity excess $2,000,000 $4,000,000 annual

5 Page Five UNDERLYING COVERAGES General liability, automobile liability, law enforcement professional liability and employee benefits liability, as well as public officials and employment practices liability under the Genesis Program. (The automobile and POL/EPL are separate policies). If primary is occurrence, then excess is occurrence. If primary is claims made, then excess is claims made. REINSURER/MEL EXCESS OF $1,750,000 LAYER EXCESS LIABILITY EXCLUSIONS As per the JIF policy form exclusions and MEL excess liability policy form excess exclusions. EXCESS LIABILITY CLASH COVERAGE Clash coverage for a $5,000,000 each occurrence and annual aggregate limit for two or more coverages, specifically GL, AL, Law Enforcement Professional and Workers Compensation; two or more entities. The reinsurer will reimburse net loss excess of the underlying limit of $1,750,000 when workers compensation is not included and $2,000,000 when workers compensation is included. OTHER EXCESS LIABILITY TERMS All coverage subject to terms and conditions of the JIF and MEL policy forms and Reinsurance Agreements. Premium Discount Rating Structure as follows: 1) Towns with no police departments 20% base rate credit on general liability, law enforcement, automobile and excess liability assessments. 2) Towns with a population of more than 15,000; credit to apply only to the population in excess of 15,000 10% base rate credit on general liability, law enforcement, automobile and excess liability assessments. 3) Towns with police departments/dispatch that have Approved Accreditation 5% base rate credit on general liability, law enforcement, automobile and excess liability assessments. Business/Special Improvement Districts and Employed Attorneys are covered where approved for coverage by MEL and also approved by Indian Harbor Insurance Company the member JIF s insurer If you have any questions, please contact your Risk Management Consultant, JIF Executive Director or Tim Friel at Conner Strong and Buckelew at or tfriel@connerstrong.com This bulletin is for information purposes only. It is not intended to be all-inclusive, but merely an overview. It does not alter, amend or change your coverage. Please refer to specific policies for limits, terms, conditions and exclusions. cc: Risk Management Consultants Fund Professionals Fund Executive Directors

REINSURER/MEL EXCESS OF $1,750,000 LAYER EXCESS LIABILITY EXCLUSIONS As per the JIF policy form exclusions and MEL excess liability policy form excess exclusions.

MUNICIPAL EXCESS LIABILITY JOINT INSURANCE FUND 9 Campus Drive Parsippany, NJ 07054 Telephone (973) 659-6577 BULLETIN MEL 15-01

MUNICIPAL EXCESS LIABILITY JOINT INSURANCE FUND 9 Campus Drive Parsippany, NJ 07054 Telephone (973) 659-6577 Date: February 2, 2015 BULLETIN MEL 15-01 To: From: Fund Commissioners of Member Joint Insurance