TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Approve renewal of Property and Casualty Insurance and Risk Management Services, and Accidental Death and Dismemberment (AD&D) Insurance with Public Risk Insurance Advisors (PRIA) for FY 2019/2020 in the budgeted amount of $765,842.
Recommended Action
Approve renewal of Property and Casualty Insurance and Risk Management Services, and Accidental Death and Dismemberment (AD&D) Insurance with Public Risk Insurance Advisors (PRIA) for FY 2019/2020 in the budgeted amount of $765,842.
Background Information
On September 11, 2018, pursuant to Request for Proposal (RFP) No. 2018-74, the City Commission awarded Property and Casualty Insurance and Risk Management Services with Public Risk Insurance Agency (PRIA) for FY 2018/2019 in the budgeted amount of $638,829 plus $8,585 for Accidental Death & Dismemberment.
The initial Broker Term is for a period of three (3) years from October1, 2018 through and including September 30, 2021, with the option to extend/renew for two (2) additional one (1) year periods. However, the policies must be negotiated and renewed on an annual basis.
The policies that were purchased as part of the FY 2018/2019 program contained a two-year rate guarantee. The City intends on renewing the current program for the FY 2019/2020 with minimal changes in the scope of coverages. Although the FY 2019/2020 overall premium amount is more than the FY 2018/2019 premium amount, individual coverage amounts vary due to the difference in the rating variables, such as increased payroll, number of vehicles, and property values.
The Accidental Death & Dismemberment (AD&D) policy is a health product and originates from CHUBB Accident & Health underwritten by ACE American Insurance Company. The policy increased due to a statutory increase to the limits that took effect on July 1, 2019.
Since the award of RFP 2018-74 PRIA was r...
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