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CC Resolution 13002 - Approve Contract with Midwest Employers Casualty CompanyRESOLUTION NO. 13002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING A CONTRACT AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH MIDWEST EMPLOYERS CASUALTY COMPANY TO PROVIDE EXCESS WORKER'S COMPENSATION LIABILITY COVERAGE FOR FISCAL YEAR 2023-2024 WHEREAS, the City of Campbell, has operated a self -funded Worker's Compensation Program and relies upon Stop -Loss Coverage to cap the cost of individual claims; and WHEREAS, the City of Campbell requires that self -insured programs purchase this Stop -Loss Coverage; and WHEREAS, The City's Insurance Broker solicited quotes for the Excess Workers' Compensation Insurance and received a renewal quote to bind coverage from Midwest Employers Casualty Company for the term of July 1, 2023 to June 30, 2024 for a premium amount of $124,860; and WHEREAS, the City's Insurance Broker recommends binding the City's Excess Worker's Compensation Insurance Coverage with Midwest Employers Casualty Company for a one year term from July 1, 2023, to June 30, 2024 for the quoted amount of $124,860. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve the contract and authorizes the City Manager to execute a, contact with Midwest Employers Casualty Company to provide Excess Workers Compensation Insurance to the City for one-year, effective July 1, 2023, through June 30, 2024, for a premium of $124,860. PASSED AND ADOPTED this 20th day of June, 2023, by the following roll call vote: AYES: Councilmembers: Lopez, Scozzola, Furtado, Landry, Bybee NOES: Councilmembers: None ABSENT: Councilmembers: None APPROVED: Anne Bybee, Mayor ATTEST: L'?ilaKaa And Sanders ity Clerk Midwest iFiTVA Employers Casualty Y i a Berkley Company 3/1 /2023 City of Campbell 70 N. First Street Campbell, CA 95008 Re: Excess Workers' Compensation Policy Renewal Insurer: Midwest Employers Casualty Company Policy No.: EWC008682 Expiration Date: 7/1/2023 Midwest Employers Casualty (MEC) looks forward to working on the upcoming excess workers' compensation policy renewal for City of Campbell. Over the past policy term, your business partnership with MEC has given you the peace of mind of superior financial strength, and access to value added services designed to help you reduce your Total Cost of Risk. We hope that you have taken advantage of these services, which can be viewed on our website at www.MECasualty.com. MEC is dedicated to bringing you the best possible excess workers compensation solution. We are also diligent in meeting our state regulatory requirements, so please: • Sign the application and fraud warning statements upon receipt from your broker, and • Be advised that your renewal proposal may reflect increases in terms or pricing which can only be determined upon evaluation of your submission. Our goal is to work with your broker as early as possible so that we may provide a timely and informative proposal that will give you the continued confidence to renew your coverage with us. Sincerely, MIDWEST EMPLOYERS CASUALTY cc: Loveland & Smart Insurance Services, Inc 14755 North Outer Forty Drive • Suite 300 • Chesterfield, MO 63017 • Phone: 636.449.7000 • Fax: 636.449.7199 • www.MECasualtv.com Loveland Smart Insurance Services, Inc. Broker No.: OC20311 INSURED: City of Campbell Attach to and forming a part our quotations dated: June 1, 2023. Annual Employer's Deposit Rate per Limit of Liability Self -Insured and $100 of Liability Sub -Limit Retention Minimum Payroll Security $25,000,000 $1,000,000 $1,000,000 $124,860 0.4713 Midwest Employers Casualty Co. / A.M. Best: A+ XV $112,374 $25,000,000 $1,000,000 $1,000,000 $161,350 Indication Arch Insurance Co. /A.M. Best: A+XV $25,000,000 $1,000,000 $1,000,000 $187,500 Indication Safety National Casualty Co. / A.M. Best: A++ XV $25,000,000 $1,000,000 $1,000,000 All Others $112,514 0.4247 Midwest Employers Casualty Co. / A.M. Best: A+ XV $1,250,000 - 7720 $101,263 Decline - Police and Fire Exposures Star Insurance Company / A.M. Best Rated: A- X Terms and Conditions 1) The premium is based on an estimated annual remuneration of $26,492,635. 2) State of operations: California 3) Midwest Employers Casualty Co. quotes are subject to their policy form and the following endorsements: CMB-11 Amendment to Schedule Item 11, CMB-160 Foreign, CMB-199-CA Policyholder Disclosure Notice of Terrorism Insurance, ISI-254-EXC Aircraft Exclusion, ISI-260 Authorized Volunteers, ISI-261 Voluntary Compensation, ISI-266 Endemic Disease and Repatriation. ISI-CA (02-21) California Mandatory Endorsement CMB-6-CLS Amendment to Schedule Item 6 (applies to split retention quote) Quotes are subject to: 1) Completed Employer Profile Questionnaire (complete sections 5 thru 8) prior to binding. 2) Estimated employee count is down 13% from last year. Does the 303 employee count include Temporary and part time employees like last year. Need answer prior to binding. 4) The Arch insurance indication can be firmed if there is interest. The formal quote could be higher than the indication. 5) The Safety National Casualty Corp. indication can be firmed if there is interest. The formal quote could be higher than the indication. 6) If the City of Campbell is interested in Statutory limits, we can request a quote from the carriers but the cost could be prohibitive. 7) Commission: 10%