HomeMy WebLinkAbout21442 1 ORDINANCE NO. 21,442
2
3 AN ORDINANCE TO AMEND LITTLE ROCK,ARK.,REV. CODE §2-243
4 (1988) TO DEFINE THE DUTIES OF AN INSURANCE BROKER
5 SELECTED AS A PROFESSIONAL SERVICE FOR PROPERTY AND
6 CASUALTY INSURANCE CONSULTANT; TO DECLARE AN
7 EMERGENCY; AND FOR OTHER PURPOSES.
8
9 WHEREAS, the City provides its employees with various insurance benefits as a condition of
10 employment,and needs to secure the services of an Insurance Broker in order to determine the best package
11 for the different kinds of insurance; and,
12 WHEREAS,the actual duties of this Insurance Broker need to be more carefully defined so that the
13 selection process for insurance products is transparent but also within the best interests of the City;
14 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
15 OF LITTLE ROCK,ARKANSAS:
- isherebyamended to add the following
Section 1. Little Rock, Ark., Revised Code § 2 243 (1988)
17 subsection:
18 When an Insurance Broker is selected as a professional service pursuant to the category for
19 Employee Benefit Plan Consultant Services, or the category of Property and Casualty
20 Insurance Consultant,the Broker is permitted to do the following to assist the City in the
21 selection of insurance products:
22 (a) Develop with the City a set of questions and issue about the type of insurance
23 coverage requested, including, but not limited to, issues such as premiums,
24 coverage,co-pays,and dependent coverage,the historic character of a property,or
25 the need to cover the entire value of the property or use a reduced deductible for
26 particular properties;
27 (b) Upon obtaining answers to these questions, review them with the individual
28 companies and have authority to negotiate a product price the broker believes will
29 mean the City's interest;
30 (c) Recommend to the City a package of insurance benefits and what factors were
31 considered in the selection of the package including, but not limited to, responses
32 to inquiries by the broker,the rate of commissions,the history of the company,and
33 any issues with the product;
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1 (d) Develop a final package based upon any considerations or modifications that
2 the City wishes to pursue.
3 Section 2. The Insurance Broker shall maintain appropriate records of the negotiations that will
4 become the property of the City and,to the extent permitted by law,will be subject to disclosure as public
5 record pursuant to the Arkansas Freedom of Information Act so long as such disclosure does not create an
6 unfair competitive advantage for the insurance company.
7 Section 3. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph,
8 subparagraph,item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid
9 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance
10 which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitu-
11 tional was not originally a part of this ordinance.
12 Section 4. Repealer. All ordinances, resolutions, or parts of the same that are inconsistent with the
13 provisions of this ordinance are hereby repealed to the extent of such inconsistency including,but not lim-
14 ited to,Little Rock,Ark., Ordinance No. 21,424(June 6,2017).
15 Section 5. Emergency Clause. On June 6, 2017, the Board of Directors approved Little Rock, Ark.,
16 Ordinance No. 21,424 to more fully define the authority of an insurance broker for the City who serves as
17 a Consultant for employee benefit plans; it is important that all Insurance Broker Services should have the
18 same authority if that is the desire of the City, so it is essential to the public health, safety and welfare,that
19 this ordinance take effect on the same date; an emergency is,therefore,declared to exist and this ordinance
20 shall be in full force and effect on July 6,2017.
21 PASSED: July 5,2017
22 APPROVED:
23 All / % T /
24 AlltArll._,, I•
25 Susa ' :o City Clerk Mark Stodola,Mayor
26 APP' S i • S TO LEGAL FORM:
27 \ /
28 jet!
29 Thomas M. Carpenter,City Atto ey
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