CHARLESWORTH & ASSOCIATES, L.C. P.O. BOX OVERLAND PARK, KANSAS (913)

Transcription

1 CHARLESWORTH & ASSOCIATES, L.C. P.O. BOX OVERLAND PARK, KANSAS (913) March 15, 2007 Councilman Jim Hix, Chair Members of the Finance Administration and Economic Development Committee City of Overland Park, Kansas Re: Property & Liability Insurance April 1, 2007 Inception Dear Councilman Hix: The following is offered as an overview of the property and liability insurance marketing project. Our firm assisted the City in the preparation of proposal specifications, management of the underwriting process, reviewing the proposals and preparing a comprehensive spreadsheet comparing coverages, conditions and premiums. What We Did Comprehensive proposal specifications including photographs, schedules and requested coverage conditions were developed and submitted to the incumbent insurance agency as well as all agencies that had expressed interest in the City s program via a published public notice. The specifications included coverage and deductible/retention options for the purpose of reviewing possible ways to enhance coverage or reduce premiums, as well as a detailed proposal format that each participant was required to complete, including over 200 specific questions regarding their proposed coverages and conditions. A total of four agencies were provided the opportunity to submit proposals. Markets were assigned to the participating agents based on their written request and in their order of preference. All four agents were assigned markets that specialize in governmental entity insurance, and specifically large retention programs. It has been our firm s experience that the purest approach to guarantee a fair and competitive marketing effort is to have the key insurance markets allocated to different insurance agencies. This assures the City that each insurance underwriter is offered a fair and unbiased opportunity and maintains the spirit of competition. Conflicts of interest (or the appearance thereof) are eliminated. Proposals were due in our office by March 7, All four agents offered proposals for City consideration.

2 Mr. Jim Hix, Chairperson Members of the FAED Committee March 15, 2007 Page 2. Overview It is important to first review the history and current insuring agreements provided by St. Paul Travelers, along with the broker services. The City has purchased insurance through since April 1, Both the insurer and agent have proven to be excellent partners and there have been no significant issues regarding coverage and conditions. continues to be a leader in municipal government insurance and they have shown the type of flexibility that is critical as the City continues to grow and explore new public services. Anytime a change in insurance coverages is considered, an important consideration should be any possible gap in coverage when moving claims made policy forms, such as the employee benefit liability, public management liability and employment practices liability. Although a new insuring agreement will include a retroactive period which simply states that if a claim is made during the new coverage period, arising from a wrongful act that occurred after the retroactive date, the new policy will respond. The challenge is that the policy will also exclude prior incidents that the insured (City) had knowledge and could reasonably be expected to result in a claim for monetary damages. This creates a burden on the City to notify the current insurer of any known incident within a set time frame. The insurer will automatically give 30 days to report these incidents. An extended reporting provision is available for an additional premium which extends this period, but great care should be taken if a change in coverage is made. It is also important to understand the design of the proposed insurance programs. Although some may appear comparable based on the per occurrence and annual aggregate limit, some insurers will provide a single limit for all coverages, whereas others will offer separate first layer policies, with an umbrella. It is true that the full limit is available when the coverage term begins. However, when a single policy limit is applicable to all lines of coverage collectively, a paid loss for one type of claim will erode the available limits for all coverage types. Summary As noted above, all four agents provided proposals for the City s consideration. Although three of the alternatives were given full consideration, each program included coverage limitations, or premiums that did not justify further review. These include: Argonaut The Argonaut package was the most competitively priced option at the $100,000 SIR limit. However, their property program was not offered on a blanket basis and included a coinsurance provision. Their experience in large retention programs appears limited and the risk associated with switching coverages outweighed the modest premium savings over the Travelers renewal.

3 Mr. Jim Hix, Chairperson Members of the FAED Committee March 15, 2007 Page 3. Summary (Continued) Lexington / Essex Lexington (property) and Essex (liability) also presented an excellent program. However, the premium was higher than the renewal with no significant coverage enhancements. Genesis The Genesis public entity insurance program utilizes a slightly different program structure than traditional agreements. However, the retention offered was $150,000 and the premium (when adding a property program offered by another agent), would be higher than the renewal which has a lower $100,000 selfinsured retention. The remaining two programs (incumbent) and AIG were reviewed in detail by our firm and City staff. The St. Paul program has been proposed with a $100,000 self-insured retention ($25,000 property deductible). There are a total of five liability policies including: general liability, public management liability, employment practices liability, law enforcement liability and automobile liability. The general liability, public management liability and law enforcement liability policies each include primary limits of $1,000,000 per occurrence / $2,000,000 annual aggregate. The automobile liability policy has a limit of $1,000,000 combined single limit. A $4,000,000 umbrella liability policy is applicable to all of these programs. In addition, the employment practices liability policy has limits of $5,000,000 per wrongful act with a $5,000,000 annual aggregate. The total annual premium and fees of $531,694 represents a substantial reduction over the expiring premium of $604,000. did offer a $250,000 self-insured retention option for approximately $425,000. An important coverage feature is that the loss adjustment expenses (legal fees, etc.) DO NOT erode the limits of liability. Insurance Company of the State of Pennsylvania (AIG) has approached the risk differently. They have proposed optional limits of $5,000,000 and $10,000,000 per occurrence/ annual aggregate for all liability lines collectively. This program design is structured similar to an excess policy and a loss from one type of claim will erode the per occurrence and aggregate limit for other types of claims. AIG only offers a minimum self-insured retention of $250,000 per occurrence. However, the total premium of $366,513 for the $10,000,000 option is significantly less than the current program. These premium savings, in addition to the City s excellent loss history, suggest the AIG program warrants consideration. It is our opinion that since all losses would erode the limits, the $10,000,000 option should be the program used for comparison purposes. Even at the $10,000,000 limit, the AIG program is approximately $58,500 less than a reasonably comparable program with the same $250,000 self-insured retention. However, for the AIG program, loss adjustment expenses ARE NOT in addition to the limit, and will erode the limits of liability.

4 Mr. Jim Hix, Chairperson Members of the FAED Committee March 15, 2007 Page 4. Recommendation There are two distinct decisions that need to be made. The first is if the City is comfortable increasing the per occurrence self-insured retention from $100,000 to $250,000. If that answer is no, then the decision is easy since is the only viable option. The past loss history shows that the current $100,000 self-insured retention has only been pierced on one occasion over the past 5 years. For this claim, the difference in what the City would have incurred would have been $53,000 more with the higher SIR. Based on this history, the premium savings would justify the increase in retention. However, it should always be noted that past performance cannot be relied upon to predict future loss experience. Regardless of the retention level selected, we believe that the City should consider remaining with. As outlined above, the transition to a new insurer can create unforeseen exposures. In addition, the design of the AIG program allows for the erosion of all available limits for all lines of liability coverage from a single claim. St. Paul Travelers is a proven leader in municipal insurance products and their program presented by the incumbent local agency provides a measure of stability in the always uncertain insurance marketplace. Councilman Hix, we have appreciated and enjoyed the opportunity to assist the City on this important project. Respectfully, James Charlesworth, ARM

5 PREMIUM SUMMARY - PROPERTY incl. EQ & FLOOD: $ 102,279 $ 83,767 INLAND MARINE $ 27,241 Included GENERAL LIABILITY: $ 91,903 $ 213,210 EMPLOYEE BENEFIT LIABILITY: $ 152 Included LIQUOR LIABILITY: Included Included LAW ENFORCEMENT LIABILITY: $ 78,942 Included PUBLIC OFFICIAL LIABILITY: $ 16,791 Included EMPLOYMENT PRACTICES LIABILITY: $ 45,506 Included AUTOMOBILE: $ 79,732 $ 15,000 CRIME: $ 6,404 $ 6,452 BOILER & MACHINERY: $ 11,810 Included TERRORISM (ALL LINES): $ 6,724 $ 8,509 UMBRELLA $ 38,210 Included BROKER SERVICE FEE: $ 26,000 $ 40,000 ST. PAUL PACKAGE TOTAL: $ 531,694 $ 366,938 $250,000 SIR Otption $ 426,000 Per Above EXTENDED REPORTING (Optional) Not Applicable Not Applicable 1 year (POL); 3 year (EPL) THIS "SPREAD SHEET" IS OFFERED ONLY FOR THE PURPOSE OF OVERVIEWING THE PROPOSALS PRESENTED BY THE AGENTS. REFERENCE TO THE ACTUAL INSURING AGREEMENTS SHOULD BE MADE FOR DETERMINING SPECIFIC COVERAGES, CONDITIONS AND EXCLUSIONS. PROPERTY INSURER: ST. PAUL TRAVELERS A+ : XV AFFILIATED FM A+ : XV LIMIT: $112,476,500 Blanket $114,000,000 Any One Occurrence RISK OF DIRECT PHYSICAL LOSS: AGREED AMOUNT(Blanket properties): COINSURANCE (ACV locations): Not Noted No REPLACEMENT COST: 90 DAY NON-RENEWAL: PERSONAL EFFECTS: $ 50,000 Per Employee Policy Limits $ 0 Per Volunteer $ 50,000 Per Occurrence INCLUDE PROPERTY OF OTHERS:, $25,000 Limit INCLUDE THEFT: INCLUDE ANTENNAS:, within 1000' of insured location, within 1000' of insured premises INCL. PROPERTY IN THE OPEN:, $50,000 Limit within 1000' of insured location, within 1000' of insured premises REBUILD AT OPTIONAL LOCATION IF TOTAL LOSS: POLLUTION CLEAN-UP CAUSED BY INSURED PERIL:, $25,000 Limit, policy limits Summary Information Only Page 1 of 14

6 PROPERTY (Continued) PROPERTY IN TRANSIT: $100,000 Limit $250,000 Limit ORDINANCE OR LAW: $500,000 Demolishing of Undamaged $1,000,000 Demolishing of Undamaged 25% of loss plus $10,000 for Value of Undamaged$1,000,000 Value of Undamaged $500,000 Increased Cost of Construction $1,000,000 Increased Cost of Construction INCL. ARCHITECT & ENGINEERING FEES:, $100,000 Limit INCLUDE COMMANDEERED PROPERTY:, $100,000 Limit INCL. UNINTENTIONAL REPORTING E&O:, $1,000,000 Limit INCL. GLASS BREAKAGE: NEWLY ACQUIRED PROPERTY:, $1,000,000 Building Limit, $2,500,000 Building Limit $500,000 Personal Property Business Personal Property Included (Must Report to Insurer within 180 days) (Must Report to Insurer within 120 days) ON/OFF PREMISES POWER SURGE AND/OR SERVICE INTERRUPTION:, but just for off-premises $2,500 per tree, $50,000 occurrence $1,000 per tree, $100,000 occurrence Shrubs are included in property l limits $1,000 per shrub, $100,000 occurrence INCL. TREES, SHRUBS, PLANTS & LAWNS: Plans are included in property limits $1,000 per plant, $100,000 occurrence INCL. FOUNDATIONS & PARKING LOTS DAMAGED BY INSURED PERILS: No, Policy Limit INCL. SEWER & DRAIN BACKUP:, $50,000 Limit, $10,000,000 Limit INCL. GOLF CLUB ENDORSEMENT:, $10,000 each green, tees and fairways, $50,000 Each green or tee box $100,000 Each Occurrence $100,000 Each Occurrence INCLUDE ACCOUNTS RECEIVABLE:, $50,000 Limit, $1,000,000 Limit INCLUDE FINE ARTS: No--see Inland Marine, $1,000,000 Limit INCLUDE AUTO PHYSICAL DAMAGE: No--see auto coverage DEDUCTIBLE, PER OCCURRENCE: $ 25,000 Per Occurrence $25,000, 48 hour time deductible PROPERTY ANNUAL PREMIUM $91,033 $83,767 INCLUDE TERRORISM $1,620 $6,378 EARTHQUAKE LIMIT: $5,000,000 Limit $10,000,000 Limit INCLUDES EARTH MOVEMENT: DEDUCTIBLE: $50,000 Per Occurrence $100,000 Per Occurrence EARTHQUAKE ANNUAL PREMIUM: $11,246 Included FLOOD LIMIT: $5,000,000 $10,000,000 Limit EXCLUDES ZONES A/V: Exclude A DEDUCTIBLE: $50,000 Per Occurrence $100,000 Per Occurrence FLOOD ANNUAL PREMIUM: Included in Earthquake premium Included TERRORISM FOR EQ AND FLOOD: $1,620 Included Summary Information Only Page 2 of 14

7 VALUABLE PAPERS LOCATIONS: All Scheduled Locations All Scheduled Locations LIMIT: $1,000,000 $1,000,000 COMPREHENSIVE COVERAGE: RISK OF DIRECT PHYSICAL LOSS: BLANKET LIMIT: INCL. ELECTRICAL DATA & MEDIA: INCL. ON/OFF PREMISES POWER SURGE: INCL. DAMAGE BY HACKERS, ETC. INCL. DAMAGE BY VIRUS:, $1,000,000 Limit DEDUCTIBLE: $25,000 per occurrence $25,000 per occurrence VAL. PAPERS & RECORDS PREMIUM Included in Inland Marine Included BUSINESS INCOME & EXTRA EXPENSE: ALL SCHEDULED LOCATIONS: COMBINED BI / EE FORM: LIMIT: $6,134,000 $6,134,000 ALL RISK OF DIRECT PHYSICAL LOSS: BLANKET LIMIT: ORDINARY PAYROLL: Included Included COINSURANCE: None None PERIOD OF INDEMNITY: 365 Days 12 months EXTENDED PERIOD OF INDEMNITY: None None DEDUCTIBLE: Included in Property Deductible $25,000 per occurrence, 48 hours for time element BI & EE PREMIUM: Included in property premium Included Summary Information Only Page 3 of 14

8 INLAND MARINE RISK OF DIRECT PHYSICAL LOSS: 90 DAY NON-RENEWAL: CONTRACTOR'S EQUIPMENT LIMIT: $3,983,003 Owned $3,983,003 Owned $50,000 Unscheduled $1,000,000 Unscheduled $50,000 Max per item No Max per item $300,000 Leased / Rented Includes Leased / Rented / Nonowned CONT. EQUIP. DEDUCTIBLE: $25,000 Per Occurrence $25,000 Per Occurrence VALUATION: Actual Cash Value Actual cash value COINSURANCE PROVISION: None None CONT. EQUIPMENT PREMIUM: Included in Inland Marine Included in property premium TERRORISM ADDITIONAL PREMIUM: Included Included MISCELLANEOUS EQUIPMENT LIMIT: TRAFFIC SIGNALS, SENSORS, & CONTROL $114,000,000 Loss Limit BOXES: $ 500,000 Loss Limit $25,910,000 Total Insured Values STREET LIGHTS: $114,000,000 Loss Limit $ 500,000 Loss Limit $36,000,000 Total Insured Values MESSAGE SIGN BOARDS/CONTROL BOXES$ 560,000 Limit $114,000,000 Limit MOBILE RADIO EQUIPMENT(POLICE): $250,000 Limit $250,000 Limit PORTABLE EQUIPMENT(FIRE): $740,000 Limit $740,000 Limit BLANKET LIMIT: No COINSURANCE: None N / A DEDUCTIBLE: $25,000 per occurrence $25,000 Per occurrence VALUATION: Actual Cash Value Replacement Cost MISC. EQUIPMENT PREMIUM: Included in Inland Marine Included Summary Information Only Page 4 of 14

9 GOLF CARTS: LIMIT: $825,000 Limit $825,000 Limit COVERAGE LIMITED TO THREE SCHEDULED LOCATIONS: No No ALL RISK OF DIRECT PHYSICAL LOSS: BLANKET LIMIT: INCL. DAMAGE BY FREEZING: No LESSOR AS LOSS PAYEE: COINSURANCE PROVISION: 100% of ACV None DEDUCTIBLE: $25,000 Per Occurrence $25,000 per occurrence VALUATION: Actual Cash Value ACV--amended to no deduction for depreciation GOLF CART ANNUAL PREMIUM $27,241 Total Inland Marine Premium Included TERRORISM ADDITIONAL PREMIUM: $775 Included GENERAL LIABILITY INSURANCE COMPANY OF THE STATE OF INSURER: ST. PAUL TRAVELERS A+ : XV PENNSYLVANIA(AIG) A+ : XV COMMERCIAL GENERAL FORM: Special Form OCCURRENCE COVERAGE: LIMITS - $1,000,000 Each Occurrence $10,000,000 Each Occurrence / Agg. $1,000, 000 Personal & Advertising Injury $ 2,000,000 General Aggregate $ 2,000,000 Products / Completed Oper. Agg. $ 1,000,000 Fire Damage Legal Liab. $ 0 No-Fault Medical Payments SELF-INSURED RETENTION: $ 100,000 BI /PD Combined $250,000 BI / PD Combined INCL. TORT LIABILITY ENDORSEMENT: MAXIMUM PER OCCURRENCE LIMIT IF OUTSIDE KANSAS TORT CLAIMS ACT: $1,000,000 $5,000,000 SEXUAL ABUSE SUB-LIMIT: $250,000 Each Person, $500,000 Total Limit Policy Limits ACTS OF INDEPENDENT CONTRACTORS: Included Included CONTRACTUAL LIABILITY: Included Included SUPPLEMENTARY DEFENSE COSTS: No INCL. SPECIAL EVENTS: INCLUDE CHEMICAL SPRAYING: INCLUDE X.C. & U.: Summary Information Only Page 5 of 14

10 GENERAL LIABILITY (Cont.) FELLOW EMPLOYEE EXCLUSION: Deleted Included 90 DAY NON-RENEWAL: INCL. PROFESSIONAL SERVICES FOR PROFESSIONAL ENGINEER: INCLUDE EMPLOYED PARAMEDICS / EMTS INCLUDES DAM FAILURE: No INCLUDE MEDICAL DIRECTOR: Not Noted Not Noted INCLUDE LIQUOR LIABILITY: $1,000,000 Per Occurrence, $1,000,000 Aggregat Included INCL. OWNED / NON-OWNED WATERCRAF, owned watercraft less than 25', less than 75 feet PROMOTIONAL ACTIVITIES ENDORS.: No specific endorsement INTENTIONAL ACTS TO PROTECT LIFE & PROPERTY:, use of reasonable force POLLUTION LIABILITY FROM TRAINING AND EMERGENCIES: CITY TO MANAGE CLAIMS (TPA NOTIFICATION AS REQUIRED):, if Thomas McGee approved TPA--additional approval may be needed if other party PREMIUM SUBJECT TO AUDIT: No No G.L. ANNUAL PREMIUM: $91,903 Annual Premium $ 213,071 Terrorism Premium $827 $2,131 ($5,000,000 Option $184,478) EMPLOYEE BENEFIT LIABILITY Occurrence w/ prior acts coverage COVERAGE FORM: Claims Made / No retroactive date beginning 04/01/04 LIMITS: $ 1,000,000 Each Claim Included in $5,000,000 GL $ 3,000,000 Aggregate SELF-INSURED RETENTION: $100,000 Per Claim $250,000 E.B.L. ANNUAL PREMIUM: $152 Included Summary Information Only Page 6 of 14

11 LAW ENFORCEMENT LIABILITY INSURER ST. PAUL TRAVELERS A+ : XV INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA (AIG) A+:XV FORM: Occurrence Occurrence NAMED INSUREDS PER SPECIFICATIONS: --see specimen policy LIMITS OF LIABILITY: $ 1,000,000 Each Occurrence Included in $5,000,000 GL $ 2,000,000 Policy Limit / Aggregate PART OF G.L. &/OR P.O.L. LIMITS No SELF-INSURED RETENTION: $100,000 Per Claim $250,000 Per Claim LOSS EXPENSES APPLY TO POLICY SIR: WRONGFUL ACT COVERAGE: INCLUDES BODILY INJURY, PROPERTY DAMAGE & PERSONAL INJURY: AUTHORIZED MOONLIGHTING ACTIVITIES: DISCRIMINATION ALLEGED DUE TO LAW ENFORCEMENT ACTIVITIES: VIOLATION OF CIVIL RIGHTS DUE TO LAW ENFORCEMENT ACTIVITIES: 90 DAY NON-RENEWAL: SUPPLEMENTARY DEFENSE COST: No POLICY IS TO "INDEMNIFY" THE INSURED: No INSURERS DUTY TO DEFEND:, within SIR Not Noted INCL. NECESSARY INTENTIONAL ACTS: CITY TO ASSIGN LEGAL DEFENSE:, within SIR ANNUAL PREMIUM: $78,942 Included INCLUDE TERRORISM: 2,368 Included Summary Information Only Page 7 of 14

12 PUBLIC OFFICIAL LIABILITY ST. PAUL TRAVELERS A+ : XV INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA(AIG) A+ : XV FORM: Claims Made Occurrence RETRO DATE: 3/15/1997 4/1/2004 (Nose Coverage) LIMITS OF LIABILITY: $ 1,000,000 Each Wrongful Act Included in $5,000,000 GL $ 2,000,000 Aggregate SELF-INSURED RETENTION: $100,000 Each Claim $250,000 Per Claim LOSS EXPENSES APPLY TO POLICY SIR: WRONGFUL ACT COVERAGE: DEFENSE COST ARE SUPPLEMENTAL: No 90 DAY NON-RENEWAL: POLICY IS TO "INDEMNIFY" THE INSURED: INSURER'S DUTY TO DEFEND PROVISION: No, pay on behalf of INSURED MUST OBTAIN CONSENT FROM CITY TO SETTLE No No - right to settle when they assume defense INCLUDES DISCRIMINATION: INCLUDES VIOLATION OF CIVIL RIGHTS: INCL "ALL EMPLOYEES" & "VOLUNTEERS": INCLUDES CITY ATTORNEYS, JUDGE & PROSECUTORS (P.O.L. policy):, if employees of the City INCLUDE ALLEGED SEXUAL HARASSMENT, separate EPL form EMPLOYMENT PRACTICES INCL. WRONGFUL TERMINATION & FAILURE TO PROMOTE: No, separate EPL form INCL. DEFENSE FOR NON-MONETARY DEMANDS: BACK WAGES: Included Included CITY TO ASSIGN LEGAL DEFENSE: Not Noted POL ANNUAL PREMIUM: $16,791 Included (1 yr Extended Reporting up to 75% of exp. Premium) TERRORISM PREMIUM: $504 Included Summary Information Only Page 8 of 14

13 EMPLOYMENT PRACTICES LIABILITY INSURANCE COMPANY OF THE STATE OF INSURER: ST. PAUL TRAVELERS A+ : XV PENNSYLVANIA(AIG) A+ : XV FORM: Claims Made Occurrence RETRO DATE: 3/15/1997 4/1/2004 (Nose Coverage) LIMITS OF LIABILITY: $ 5,000,000 Each Claim Included in $5,000,000 GL $ 5,000,000 Aggregate SELF-INSURED RETENTION: $100,000 Each Claim $250,000 Per Claim (50% reimbursement of SIR if there is a dismissal or allegations not proven after trial) DEFENSE COSTS ARE SUPPLEMENTAL: No No 90 DAY NON-RENEWAL POLICY IS TO "INDEMNIFY" INSURED Pay on Behalf Of - After SIR INURER'S DUTY TO DEFEND: INSURER MUST OBTAIN CONSENT FROM CITY TO SETTLE: No No - right to settle when they assume defense INCLUDES DISCRIMINATION: INCLUDES VIOLATION OF CIVIL RIGHTS: INCL "ALL EMPLOYEES" : INCL. AUTHORIZED VOLUNTEERS: INCL. EMPLOYEES VS. INSURED: AWARDED PLAINTIFF FEES INCLUDED AS "DAMAGES": INCLUDE DEFENSE FOR CRIMINAL ACTS: INCLUDE ALLEGED SEXUAL HARASSMENT INCLUDE EMPLOYMENT PRACTICES ALLEGATIONS: INCLUDE DEFENSE FOR NON-MONETARY DEMANDS: No No CITY TO ASSIGN LEGAL DEFENSE:, within SIR ANNUAL PREMIUM: $45,506 Included (3 yr Extended Reporting up to 200% of exp. Premium) TERRORISM PREMIUM: $455 Included Summary Information Only Page 9 of 14

14 CRIME COVERAGE NATIONAL UNION FIRE INSURANCE COMPANY PUBLIC EMPLOYEES BLANKET ST. PAUL TRAVELERS A+ ; XV OF PITTSBURGH, PA A+ : XV TYPE "O" FORM: INCL. FAITHFUL PERFORMANCE BLANKET BOND: 90 DAY NON-RENEWAL: EXCESS COVERAGE FOR TREASURER: No INCL. ALL EMPLOYEES, VOLUNTEERS AND CITY COUNCIL: LIMIT: $500,000 Per Loss $500,000 Per Loss DEDUCTIBLE: $25,000 Per Loss $25,000 EE theft per loss, $5,000 all other ANNUAL PREMIUM: $6,404 $6,452 FORGERY & ALTERATION FORM: Form B Form B LIMIT: $500,000 Per Loss $500,000 Per Loss FORGERY & ALTERATION DEDUCT: $5,000 Per Loss $5,000 Per Loss FORGERY ANNUAL PREMIUM Included Included THEFT, DISAPPEARANCE & DESTRUCTIONForm C Form C MONEY & SECUR. INSIDE LIMIT: $ 500,000 Per Loss $ 500,000 Per Loss MONEY & SECUR. OUTSIDE LIMIT: $ 500,000 Per Loss $ 500,000 Per Loss MESSENGERS LIMITED TO EMPLOYEES AND ARMED MOTOR VEHICLE COMPANIES No EXCLUDES COVERAGE IF BEING CARRIED BY CUSTOMER, ACQUAINTANCE OR TEMPORARY WORKERS: No No MONEY & SECUR. DEDUCTIBLE: $5,000 Per Loss Not applicable MONEY & SECUR. ANNUAL PREMIUM Included Included COMPUTER FRAUD Form F Form F LIMIT: $500,000 Per Loss $500,000 Per Loss FORGERY & ALTERATION DEDUCT: $5,000 Per Loss $5,000 Per Loss COMPUTER FRAUD PREMIUM Included Included Summary Information Only Page 10 of 14

15 AUTOMOBILE LIABILITY LIMITS: $1,000,000 Combined Single Limit Included in $5,000,000 GL Limit INCLUDES TORT LIABILITY ENDORS:, $1,000,000 if outside of Kansas UNINSURED/UNDER. MOTORIST: $100,000 Each Occurrence Excluded MEDICAL PAYMENTS: Excluded Excluded SYMBOL "ONE" LIABILITY: HIRED & NONOWNED & SUBSTITUTE VEHICLES: Included EMPLOYEES AS INSUREDS:, while driving City owned vehicles FELLOW EMPLOYEE EXCLUSION: Included Deleted 90 DAY NON-RENEWAL: INCL. NECESSARY INTENTIONAL ACTS: VOLUNTEERS AS INSUREDS:, while driving City owned vehicles INCLUDE POLLUTION LIABILITY: --see wording in coverage form FLAT PREMIUM REGARDLESS OF CHANGES DURING THE POLICY PERIOD: CITY TO ASSIGN LEGAL DEFENSE:, within SIR AUTO LIABILITY ANNUAL PREMIUM: $35,195 Included PHYSICAL DAMAGE PER SCHEDULE AUTO PHYSICAL DAMAGE DEDUCT - (On Premises Only) COMPREHENSIVE: $25,000 Per Occurrence $ 50,000 Per Occurrence COLLISION: $25,000 Per Occurrence $ 50,000 Per Occurrence INCLUDES EMERGENCY EQUIPMENT ATTACHED TO VEHICLES: FLAT PREMIUM REGARDLESS OF CHANGES DURING POLICY PERIOD: PHYSICAL DAMAGE ANNUAL PREMIUM $44,537 Included in IM (Road Coverage Quote Pending - Est. $15,000 Premium) Summary Information Only Page 11 of 14

16 BOILER & MACHINERY INSURER: ST. PAUL TRAVELERS A+ : XV AFFILIATED FM A+ : XV COMPREHENSIVE FORM: St. Paul Form INCLUDES PRODUCTION MACHINES: OBJECT DEFINITION: see St. Paul form F0230, Page 1 NA ALL SCHEDULED LOCATIONS: LIMIT PER ACCIDENT: Same as property Property Policy Limit DEDUCTIBLE: Not Noted $25,000 Per Accident EXPEDITING EXPENSE LIMIT: $250,000 Policy Limit AMMONIA CONTAMINATION LIMIT: $250,000 Policy Limit WATER DAMAGE LIMIT: Included with flood Policy Limit HAZARDOUS SUBSTANCE LIMIT: Not Noted Not Noted INCLUDE ORDINANCE & LAW COVERAGE: Included in primary property coverage $1,000,000 Limit / $25,000 Deductible REPAIR/REPLACEMENT COVERAGE: AGREED AMOUNT: NON-RENEWAL: 90 Days 90 Days "CONNECTED READY FOR USE": Negotiable Deleted COVERAGE DURING TESTING: Not covered Per Specifications INCLUDE DAMAGE BY LIGHTNING: No INCLUDE JOINT LOSS AGREEMENT: No, not needed N/A BUS. INCOME / EXTRA EXPENSE LIMIT: Included in Property Included in Property BUS. INCOME DEDUCTIBLE: $ 25,000 Per Occurrence 48 Hours ANNUAL PREMIUM: $11,810 Included Summary Information Only Page 12 of 14

17 UMBRELLA LIABILITY INSURER: ST. PAUL TRAVELERS A+ : XV AIG A+:XV FORM: Umbrella for occurrence, Excess for Claims Made Primary LIMITS OF LIABILITY: $4,000,000 Occurrence, $4,000,000 Aggregate Not Quoted PROGRAM IN EXCESS OF: GENERAL LIABILITY: AUTOMOBILE LIABILITY: EMPLOYERS LIABILITY: EMPLOYEE BENEFIT LIABILITY: LIQUOR LIABILITY: PUBLIC OFFICIAL LIABILITY: LAW ENFORCEMENT LIABILITY: INCLUDES FOLLOWING FORMS: NON-RENEWAL PROVISION: SUPPLEMENTAL DEFENSE COSTS: PAY ON BEHALF OF: TORT LIABILITY ENDORSEMENT: DROP DOWN COVERAGE: POLICY TO BE "NON-AUDITABLE" No No 90 Days ANNUAL PREMIUM: $38,210 Not Quoted TERRORISM: $950 AGGREGATE STOP LOSS INSURER: ST. PAUL TRAVELERS A+ : XV Not Quoted COVERAGE LINES: GL; EBL; Auto; POL; LEL; Liquor $100,000 GL / EBL / Auto SPECIFIC RETENTION: $100,000 POL / LEL AGGREGATE STOP LOSS: $500,000 Limit AGGREGATE STOP LOSS PREMIUM: $18,527 Summary Information Only Page 13 of 14

18 MISCELLANEOUS - A) NOTE IF ALL COVERAGES MUST BE PURCHASED COLLECTIVELY: Property can be purchased elsewhere but GL and Auto premiums will increase. AIG special excess form is a combined coverage policy. Property only option is available. B) SUBSEQUENT RENEWALS RECEIVED 60 DAYS PRIOR TO EXPIRATION: C) LOSS INFORMATION TO BE PROVIDED QUARTERLY:, or as requested As needed D) DISCLOSURE OF COMMISSION RECEIVED BY BROKER: $26,000 broker fee $40,000 broker fee Summary Information Only Page 14 of 14