Washington State Transit Insurance Pool

Transcription

1 Washington State Transit Insurance Pool LIABILITY INSURANCE PROPOSAL Effective January 1, 2016 January 1, 2017 Presented on November 30, 2015 by: 1301 Dove St, Suite 200 Newport Beach, CA (949) / Fax # (949)

2 TABLE OF CONTENTS 1. Your Service Team Page 3 2. Liability Insurance Proposals: Page 4 a. Reinsurance Layer 1: GEM - $3M X $2M b. Reinsurance Layer 2: $10M X $5M c. Excess Layer 3: $5M X $15M 3. Placement Exhibit Expiring compared to Proposed Renewal Page 9 4. Premium Summary Year over Year Page 10 Page 2 of 10 Date Issued: 11/30/15

3 YOUR SERVICE TEAM Brian A. White First Vice President Phone: (206) Cell: (415) Lilian A. Vanvieldt Senior Vice President Phone: (949) Cell: (310) Kortney Bolton, CIC Assistant Account Manager Phone: (949) Robert Frey First Vice President, Claims Manager Phone: (415) Cell: (415) Claims Consultant Page 3 of 10 Date Issued: 11/30/15

4 LIABILITY RENEWAL PROPOSAL REINSURANCE LAYER 1 JANUARY 1, 2016 JANUARY 1, 2017 WASHINGTON STATE TRANSIT INSURANCE POOL PRESENT COVERAGE PROPOSED COVERAGE INSURANCE COMPANY: Government Entities Mutual Inc. Government Entities Mutual Inc. A.M. BEST RATING: Not Rated Not Rated COVERAGE TERM: January 1, 2015 January 1, 2016 January 1, 2015 January 1, 2016 COVERAGE: MILEAGE: EMPLOYEES: General Liability, Automobile Liability, Public Officials Liability, and Employment Practices Liability Coverage 98,413,169 4,566 General Liability, Automobile Liability, Public Officials Liability, and Employment Practices Liability Coverage 100,727,289 4,785 SELF INSURED RETENTION $2,000,000 $2,000,000 GEM POLICY LIMIT: $3,000,000 $3,000,000 PREMIUM: $ 26,582 $ 594,82 $621,404 GEM Liability Premium Rate: $5.74 per # of Employees GEM Auto Liability Rate: $ per 100,000 Miles Total GEM Premium Option 1 $ 26,796 $ 697,315 $724,111 $3M X $2M SIR GEM Liability Premium Rate: $5.60 per # of Employees GEM Auto Liability Rate: $ per 100,000 Miles Total GEM Premium Option 2 $ 41,438 $897,420 $938,858 $5M X $2M SIR GEM Liability Premium Rate: $8.66 per # of Employees GEM Auto Liability Rate: $ per 100,000 Miles Total GEM Premium Page 4 of 10 Date Issued: 11/30/15

5 LIABILITY RENEWAL PROPOSAL REINSURANCE LAYER 2 JANUARY 1, 2016 JANUARY 1, 2017 WASHINGTON STATE TRANSIT INSURANCE POOL PRESENT COVERAGE PROPOSED COVERAGE INSURANCE COMPANY: Munich Reinsurance America, Inc. Munich Reinsurance America, Inc. A.M. BEST RATING: A+ (Superior) XV ($2 Billion or greater) A+ (Superior) XV ($2 Billion or greater) ADMITTED STATUS: Admitted Admitted COVERAGE TERM: 01/01/15-01/01/16 01/01/16-01/01/17 LIMITS: $10,000,000 $10,000,000 EXCESS OF: $ 5,000,000 $5,000,000 PREMIUM: $369,466 $380,779 BINDING CONDITIONS: N/A Written Request to Bind CLAIMS REPORTING NOTICE Your policy will come with specific claim reporting requirements. Please make sure you understand these obligations. Contact your Alliant Service Team with any questions. Name Insureds are covered for all operations. Additional insureds are only covered with respect to their interest in your operations. See each individual policy for details. Page 5 of 10 Date Issued: 11/30/15

6 Liability Renewal Proposal Excess Layer 3 January 1, 2016 to January 1, 2017 WASHINGTON STATE TRANSIT INSURANCE POOL PRESENT COVERAGE PROPOSED COVERAGE INSURANCE COMPANY: Arch Insurance Company Arch Insurance Company A.M. BEST RATING: A+ XV ($2 Billion or More) A+ XV ($2 Billion or More) ADMITTED STATUS: Admitted Admitted COVERAGE TERM: January 1, 2015 to January 1, 2016 January 1, 2016 to January 1, 2017 COVERAGE Third Party Excess Liability Third Party Excess Liability LIMITS: $5,000,000 $5,000,000 EXCESS OF: $15,000,000 $15,000,000 Endorsement &Exclusions: (including but not limited to) Excess Third Party Liability Declarations Claims Handling Procedures U.S. Treasury Department s Office of Foreign Assets Control ( OFAC ) Signature Page Exclusion Access or Disclosure of Confidential Information and Data-Related Liability Lead Hazard Exclusion Silica Exclusion Fungi and Bacteria Hazard Exclusion Contingent Offer of Terrorism Coverage and Disclosure Policy Holder Notice Excess/Umbrella Policy Underlying Insurance Notice Washington Conditional Total Terrorism Exclusion Excess Third Party Liability Declarations Excess Third Party Liability Policy Schedule of Underlying Insurance Claims Handling Procedures U.S. Treasury Department s Office of Foreign Assets Control ( OFAC ) Signature Page Exclusion Access or Disclosure of Confidential Information and Data-Related Liability Lead Hazard Exclusion Silica Exclusion Fungi and Bacteria Hazard Exclusion Excess/Umbrella Policy Underlying Insurance Notice Amendment of Limits of Insurance Page 6 of 10 Date Issued: 11/30/15

7 Endorsement &Exclusions: (including but not limited to) Endorsement Notice to Policyholders Potential Restrictions of Terrorism Coverage Conditional Total Terrorism Exclusion Washington Amendatory Cancellation Amendment of Notice (90 days) Pollution Follow Form Endorsement Washington Amendatory Terrorism Coverage Disclosure Notice Premium: $136,000 $136,000 Optional TRIA Premium $4,050 Optional, not included in premium above Binding Conditions: N/A Concurrent policy term with the CGL policy (if applicable) In the event the Insured rejects coverage under US TRIA, they must sign and return the TRIA coverage Disclosure Notice All underlying binders are required for Arch to release their Binder Page 7 of 10 Date Issued: 11/30/15

8 CLAIMS REPORTING NOTICE Your policy will come with specific claim reporting requirements. Please make sure you understand these obligations. Contact your Alliant Service Team with any questions TRANSPARENCY DISCLAIMER: Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at:, Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA *Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings. A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at For additional information regarding insurer financial strength ratings visit Standard and Poor's website at NY REGULATION 194 DISCLOSURE is an insurance producer licensed by the State of New York. Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities. Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by another third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensation. The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer Page 8 of 10 Date Issued: 11/30/15

9 $20M Present Liability Placement Effective January 1, 2015 (Not to Scale) Arch Insurance Company ($5M x $15M) $136,000 $20M Proposed Liability Renewal Placement Effective January 1, 2016 (Not to Scale) Arch Insurance Company ($5M x $15M) $136,000 $15M $15M Munich or AmTrust ($10M x $5M) $369,466 Munich ($10M x $5M) $380,779 $5M GEM $3M x $2M $621,404 $5M GEM $3M x $2M $724,111 $2M WSTIP Self-Insured Retention $2M WSTIP Self-Insured Retention Total: $1,126,870 Total: $1,240,890 Page 9 of 10 Date Issued: 11/30/15

10 WASHINGTON STATE TRANSIT INSURANCE POOL YEAR OVER - YEAR COMPARISON Coverage Expiring Renewal Excess Liability Layer 1 ($3M X $2M) $621,404 $724,111 Excess Liability Layer 2 ($10M X $5) $369,466 $380,779 Excess Liability Layer 3 ($5 X $10) $136,000 $136,000 Total Annual Premium $1,126,870 $1,240,890 Page 10 of 10 Date Issued: 11/30/15