2019-09-24 Ex 04CITY OF OKEECHOBEE
2019‐2020 RENEWAL PROPOSAL
PROPERTY & CASUALTY INSURANCE
PRESENTED: AUGUST 14TH, 2019
PROPOSAL PRICING & BINDING AUTHORITY
AFTER CAREFUL CONSIDERATION OF THE REFERENCED PROPOSAL, WE ACCEPT YOUR INSURANCE PROGRAM AS
INDICATED WITH AN “X” BELOW:
PAYMENT PLAN: PRM ALLOWS THEIR MEMBERS TO PAY THEIR TOTAL COSTS IN FOUR (4) QUARTERLY INSTALLMENTS. THE
FIRST INSTALLMENT IS DUE AT INCEPTION AND IS EQUAL TO 25% OF ALL COSTS. THE REMAINING COSTS WILL BE PAID OVER THE
NEXT THREE (3) QUARTERS.
THIS WARRANTS THAT YOU HAVE NO KNOWLEDGE OF ANY CLAIM, OR INCIDENT THAT MAY RESULT IN A CLAIM, THAT HAS NOT
BEEN REPORTED TO THE INSURANCE CARRIER.
IT IS UNDERSTOOD AND AGREED THAT REFERENCED PROPOSAL PROVIDES ONLY A SUMMARY OF THE INSURANCE PROGRAM
OPTIONS OFFERED. THE ACTUAL POLICIES WILL CONTAIN THE COMPLETE TERMS, CONDITIONS, DEDUCTIBLES, EXCLUSIONS,
ETCETERA. P LEASE REVIEW POLICY LANGUAGE FOR A FULL UNDERSTANDING OF PURCHASED PROGRAM.
________________________________ _______________________________
Member Signature Date
________________________________
Print Member Name
SIGNED BINDING AUTHORITY TO BE RETURNED BY 09/15/2019
THIS DOCUMENT IN IT’S ENTIRELY IS CONFIDENTIAL & PROPRIETARY IN NATURE ‐ NOT FOR PUBLIC RECORD.
PROPERTY & CASUALTY COVERAGES PREMIUM BREAKDOWN B IND
2018‐2019 2019‐2020 % CHANGE YES N O
PRM PROPERTY & CRIME $62,512 $63,018
PRM BOILER & MACHINERY N/A N/A
PRM GL/LEL/AL/E&O/EXCESS LIABILITY $92,210 $102,485
PRM WORKERS’ C OMPENSATION $134,600 $148,059
PREFERRED M EMBER PARTICIPATION CREDIT ‐$5,808 ‐$6,271
GRAND TOTAL $284,574 $307,292 7.98%
OPTIONAL/ANCILLARY COVERAGES
CYBER LIABILITY INCLUDED INCLUDED
POLLUTION LIABILITY N/A N/A
AVIATION LIABILITY N/A N/A
CITY OF OKEECHOBEE
2019‐2020 RENEWAL PROPOSAL
PROPERTY & CASUALTY INSURANCE
PRESENTED: AUGUST 14TH, 2019
TWO YEAR COVERAGE AGREEMENT
IT IS AGREED BY BOTH PRM AND THE CITY OF OKEECHOBEE CITY THAT, BY EXECUTING THIS TWO YEAR COVERAGE AGREEMENT,
THE EXISTING TWO YEAR COVERAGE AGREEMENT DATED 9/25/18 IS CANCELLED AND REPLACED AS FOLLOWS:
PRM IS OFFERING A TWO YEAR COVERAGE AGREEMENT OPTION, WITH RATES, NOT PREMIUMS, GUARANTEED TO REMAIN THE
SAME FOR THE 10/1/2019 TO 10/1/2021 COVERAGE PERIOD [COVERAGE PERIODS (I) 10/1/2019 12:01AM TO
10/1/2020 12:01AM (II) 10/1/2020 12:01AM TO 10/1/2021 12:01AM].
THIS TWO YEAR AGREEMENT DOES NOT INCLUDE PROPERTY INSURANCE COVERAGE AND DOES NOT CONSTITUTE A BAR ON THE
ABILITY OF A PRM MEMBER TO WITHDRAW FROM THE PRM POOL.
THIS TWO YEAR AGREEMENT IS SUBJECT TO THE FOLLOWING, FOR BOTH LIABILITY & WORKERS’ COMPENSATION:
LIABILITY WORKERS’ COMPENSATION
1. A terrorist event or some other disaster that would cause
PRM to become un‐insurable/re‐insurable or if said event
Severely crippled the world capacity making
insurance/reinsurance unaffordable, substantial increase
in cost or unavailable.
2. 30% incurred loss ratio for the renewal period of October 1,
2017 to October 1, 2020. Loss Ratio will be evaluated using
losses valued as of June 30, 2020.
3. PRM incurred loss ratio = paid losses and claim reserved
divided by annual liability premium.
4. If members loss ratio is breached, PRM reserves the right to
re‐underwrite.
5. All aggregate limits are for one 12‐month Coverage Period
And losses applying to one Coverage Period do not erode
Other 12‐month Coverage Period aggregate limits.
6. This does not negate the need to provide updated exposure
information via the PRM Renewal Application. Rates remain
the same, but premiums will vary based on exposure
information.
7. All lines of Coverage (Property, Liability (AL, GL & E&O) &
WC) must be purchased to bind the 2‐year Coverage
Agreement.
8. Premiums are subject to changed based on
increases/decreases in payroll.
1. A terrorist event or some other disaster that would cause
PRM to become un‐insurable/re‐insurable or if said event
severely crippled the world capacity making
insurance/reinsurance unaffordable, substantial increase in
cost or unavailable.
2. 30% incurred loss ratio for the renewal period of October 1,
2017to October 1, 2020. Loss Ratio will be evaluated using
losses valued as of June 30, 2020.
3. PRM incurred loss ratio = paid losses and claim reserved
divided by annual Work Comp premium.
4. If members loss ratio is breached, PRM reserves the right to
re‐underwrite.
5. All aggregate limits are for one 12‐month Coverage Period
and losses applying to one Coverage Period do not erode
other 12‐month Coverage Period aggregate limits.
6. This does not negate the need to provide updated exposure
information via the PRM Renewal Application. Rates
remain the same, but premiums will vary based on
exposure information.
7. All lines of Coverage (Property, Liability (AL, GL & E&O) &
WC) must be purchased to bind the 2‐year Coverage
Agreement.
8. Premiums are subject to changed based on
increases/decreases in payroll.
IN THE EVENT THE MEMBER CANCELS ONE, OR ALL LINES OF COVERAGE PRIOR TO 10/1/2021 12:01AM, A PENALTY EQUAL TO 60
DAYS PREMIUM OF THE LINE(S) OF COVERAGE SHALL APPLY. THIS PENALTY SHALL APPLY REGARDLESS OF WHEN NOTICE OF
CANCELLATION IS GIVEN, OR THE EFFECTIVE DATE OF SUCH CANCELLATION; HOWEVER, THIS PENALTY SHALL NOT SERVE AS A
PROHIBITION OR BAR TO THE PRM MEMBER WITHDRAWING FROM THE PRM POOL.
BY SIGNING THIS TWO YEAR COVERAGE AGREEMENT, YOU ARE AGREEING TO THE TERMS AND CONDITIONS LISTED ABOVE.
________________________________ _______________________________
Signature Date
City of Okeechobee
tewardship Report 2019/2020
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HISTORY OF PRM cm
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• Established 1987
• Began with eight (8) members, today has over 60 members
• Major Objectives:
• Lower Costs
• Selective/Strategic Membership Portfolio
• Enhanced Coverage
• Outstanding Claim and Loss Control Services
• Stability
• Self Governed by Members — voting rights
• Professional and Timely Service
WORLD WRM Proprietary & Confidential Document
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PRM — PRINCIPALS ��
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• PRM was formed and is managed differently from the other Trusts in
Florida.
• Steady growth goal, with stability being key to the members.
• PRM places great value in its long term relationships, with both the
members and insurance carriers.
• PRM carrier partners look favorably on the stability of the membership
and they like to know there will not be a significant change in the
membership and exposures from year to year.
• PRM and its membership is recognized by carriers as being a Premier
Public Entity, member managed pool that works hard to minimize losses,
by utilizing the loss control and risk management programs made
available.
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PRM - PRINCIPALS m Cr%
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• PRM has benefited from additional resources provided by their long term
insurance carrier partners to assist in loss control, loss prevention and other
valuable services that have improved PRM's management of the Association.
• In keeping with the philosophy of PRM, members that commit to a long term
relationship are able to enjoy the best pricing available for the broadest
coverage in the marketplace.
• WRM extensively markets PRM's insurance coverages on a yearly basis to
ensure the coverages and rates are the most aggressive and competitive in the
marketplace.
• This extensive marketing effort allows the members to maintain the most
competitive insurance program available.
WORLD WRM Proprietary & Confidential Document
Risk Management
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CITY OF OKEECHOBEE
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➢ PRM — Association of individual self-insured
public entities in State of Florida .
• Okeechobee- Member since 1999
�➢ Contract with World Risk Management for
underwriting, insurance placement and risk
management.
➢ Contract with Johns Eastern for third party
administrator
➢ Participation Credits of over $ 155,271
over the last 9 years
WORLD WRM Proprietary & Confidential Document
Risk Management
WRM Proprietary and Confidential Document
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PRM COVERAGES PROPERTY
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Total Building Values $4,249,917
Total Content Values $611 ,724
Declared/Property In Open $761 ,334
EDP Equipment (Hardware) $192,000
BUSINESS INTERRUPTION/EXTRA EXPENSE $2,000,000
EQUIPMENT VALUES $1 ,345,398
AUTOMOBILE VALUES — ACV $1 ,173,341
RENTAL VALUES $0
MISCELLANEOUSE PROPERTY $0
TOTAL INSURABLE VALUES $10,333,714
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Risk Management
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PRM COVERAGES
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PRM Coverage's Provided to City
Property: $10,333,714 Insurable Values
Auto Liability $ 5,000,000 per occurrence
General Liability $ 5,000,000 per occurrence
Public Officials
Errors & Omissions $ 5,000,000 per claim /
$ 9,000,000 annual aggregate
Workers Compensation STATUTORY
Employer's Liability $2,000,000
WORLD WRM Proprietary & Confidential Document
Risk Management
PRM COVERAGES - ANCILLARY
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Boiler & Machinery
Crime
NCCI Flood Insurance
Aviation Liability
Pollution Liability
Cyber Liability
Statutory AD&D
Accident Insurance
Facilities Use Insurance
Fiduciary Liability
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MANCE`
BENEFITSOFAPRM MEMBER
PR � I
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• Broadest Insurance Coverage Available
• Superior Claims Handling
• Superior Customized Loss Control Services
• State of the Art Online Training Program
• Voting Rights — One member, one vote
• Use of Surplus to lower costs
• Employment Practices Hotline
• Law Enforcement Hotline
• Immediate Service Response from Broker & Staff
• Long Tenured PRM Staff & WRM Broker Team
WORLD WRM Proprietary & Confidential Document
Risk Management
MANS
PRM vs Competitors
PR -4i
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Major Coverage Differences Seen Recently: geFLO0°
• Ordinance/Increased Cost of Construction - $25,000,000 vs 25%
of loss
• Flood Coverage - $50,000,000 vs $4,000,000 to $5,000,000
• Flood Deductible - $ 1,000 vs $ 100,000
• Defense Costs — Inside limit vs Outside limit (can be misleading)
• Prior Acts Coverage — Full Prior Acts vs 3 Years Prior Acts ( Huge
Coverage Gap)
WORLD WRM Proprietary & Confidential Document
Risk Management
Cosy. MANCS
TenYearHistoricalSummary m
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Year 2008-2009 2018-2019 Increase/ Decrease
Premium $252,067 $307,292 +21.9%
PROPERTY TIV $8,187,228 $10,333,714 +26.6%
# OF AUTOMOBILES 45 52 +15.5%
# OF EMPLOYEE 62 62 +0.0%
TOTAL PAYROLL $2,413,851 $3,445,080 +42.7%
2018-2019 — The City took advantage of a 2 Year Policy which includes a Rate
Guarantee for all Casualty lines (excluding property)
WORLD WRM Proprietary & Confidential Document
Risk Management
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Financial Strengthcl%
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-Standing behind those who stand behind them"
Membership Retention over 97%
100% Retention in 2018
Total Claims Paid & Processed by PRM to Date
$354,326,748
Total Dividends & Participation Credits (Since 2009)
$15,000,000+
City of Okeechobee's Credits (since 2009)
$155,000+
WORLD WRM Proprietary & Confidential Document
Risk Mananemen.
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Open Discussion : OpLo /
Questions & Answers
2019/2020 marks 20years for PRM, and
its partnership with the City of
Okeechobee
Thank You forour Partnership !
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Risk Management
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