HomeMy WebLinkAbout7971RESOLUTION NO. 7,971 222
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ACCEPT BIDS AND AWARD A CONTRACT TO EMPLOYERS
REINSURANCE CORPORATION FOR EXCESS COVERAGE
FOR THE CITY OF LITTLE ROCK WORKERS'
COMPENSATION PROGRAM FOR A PERIOD OF JULY 11
1988 THROUGH JUNE 30, 1989.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. In compliance with Section 2 -44 of the Code
of Ordinances of the City of Little Rock, the City Manager is
hereby authorized to accepts bids and award a contract to
Employers Reinsurance Corporation for excess coverage for the
City of Little Rock Workers' Compensation Program for a period
of July 1, 1988 through June 30, 1989.
ADOPTED: June 21, 1988
ATTEST:
CITY CLERK JAN'ZECH
APPROVED AS TO ORM:
MARK STODOLA, CITY ATTORNEY
APPROVED:
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City of Little Roc
Office of Personnel 522 W. Markham
Little Rock, Arkansas 72201
371.4577 223
WORKERS' COMPENSATION EXCESS COVERAGE PROPOSAL COMPARISON
Carrier
AIG
General
Reinsurance
Safety
Mutual
Old
Republic
Continental
Employer's
Reinsurance
Corporation
Limits
$5,0001000/
2,000,000
$5,000,0001
2,000,000
$210001000/
2,000,000
- - - - -- DECLINED - - - - --
------ DECLINED - - - - --
Statutory/
$5,000,000
Self Insurance
specific (retention)
$250,000
$200,000
$200,000
$150,000
Premium
$198,375
$174,349
$166,146
$135,798
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March & McLennan,lncorporated
105 VVest Capitol 22
P.O. Box 1310
Little Rock, Arkansas 72203 _
Phone 501 -372 -2222
Telex 5106013535, Telecopv 5013768302
May 12, 1988
Jim Bradshaw
City of Little Rock
2nd & Markham
Little Rock, AR
RE: City of Little Rock
Excess Workers' Compensation
Dear Jim;
We enclose the renewal proposal for the Excess Workers'
Compensation coverage.
We recommend that you accept the Employers' ReInsurance
Corporation proposal as follows:
Estimated Gross Annual Payroll: $48,832,222.
Specific Excess: Term - One Year
W. C. Limit Each Accident ........... Statutory
E. L. Limit Each Accident ........... % 100,000
Retention Each Accident ............. $ 150,000
Aggregate Excess: Liability Period - one Year
Normal Premium Rate as % of Manual .. 100%
Estimated Normal Premium ............ $1,939,966
Retention Factor .................... 857,
Estimated Retention ................. $1,648,971
Minimum Retention ................... $1,500,000
Limit ............................... $530001000
Loss Limitation ..................... $ 150,000
Rate: % of Normal Premium .......... 7%
Estimated Premium ................... $ 135,798
Minimum Premium ..................... $ 115,428
Deposit Premium $ 135,798
This proposal is subject to a qualified service company
providing a full range of claims and safety engineering
services.
s
Marsh & McLennan, Incorporated
105 West Cap'nol
P.O. Boa 1310
Little Rock, Arkansas 7 1703
Phone 501 -377 -2722
Telex 5106013535,Telecopy 5013768402
225
The Employers' ReInsurance Corporation has agreed to renew
the Excess Workers' Compensation coverage and even though
the payroll has increased from an estimated gross annual
premium of $46,480,829 to $48,832,222 the annual premium
has been reduced from $160,347 to $135,798. The adjustable
rate has likewise been reduced from 8.7% to 7.0% which is
approximately a 24.3% less than the current rate.
If you have any questions, please let us know.
Sinc ly
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John Garrett
Vice President
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