67
Report No: Meeting Date:
Alameda-Contra Costa Transit District
STAFF REPORT TO: AC Transit Board of Directors
FROM: Denise Standridge, General Counsel
SUBJECT: District Insurance Renewals
ACTION ITEM
RECOMMENDED ACTION(S):
15-153a
June 10, 2015
Consider authorizing the Interim General Manager, or her designee, to bind the Crime; Commercial Property, Boiler & Machinery and Auto Physical Damage; Excess Workers' Compensation; and the Fiduciary Insurance policies for the District.
EXECUTIVE SUMMARY:
The District's insurance coverage is renewed on an annual basis. In April 2015, the Board approved the renewal of the Excess Liability and Travel insurance policies. All of the remaining renewal proposals have been received and staff is requesting approval to bind the following policies:
INSURANCE POLICY TYPE EXPIRATION RENEWAL PREMIUM
Crime Policy 6/30/2015 $21,292
Excess Workers' Compensation 6/30/2015 $370,093
Auto Physical Damage, Boiler & 7/1/2015 $464,970
Machinery, and Commercial Property
Fiduciary Liability 7/31/2015 $26,866
Total: S883,221
BUDGETARY/FISCAL IMPACT:
The FY 2014-15 impact will be $391,385; for FY 2015-16, it will be $491,836.
BACKGROUND/RATIONALE:
The Crime policy covers money, securities, or other tangible property belonging to the District
or for which the District is legally liable. This insurance is generally purchased to help manage
loss exposures resulting from criminal acts such as robbery, burglary and other forms of theft,
including embezzlement. While the District has not had any claims paid out since at least the
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Report No. 15-153a Page 2 of 5
2008-20091 policy period, the most common source of financial recovery after discovering an
employee has embezzled is to file a claim with the insurance company. Crime claims are usually
severe in nature and are found to have occurred over a multiple year period, thus presenting
high value loss exposures. An example of such a situation is provided in Attachment 1, an article
about a small city's CFO who managed to embezzle approximately $30 million over the multiple
decades she worked for the city.
The crime policy proposal includes Faithful Performance Bond coverage and includes Bonded Employees and the Treasurer as "employees", which is crucial for any public entity. This coverage responds to crime losses arising out of the failure of an individual to faithfully execute duties required by company bylaws or those prescribed by law as in the case of a public official or employee. Below is the historical premium for review.
CRIME INSURANCE PREMIUMS PAID: 2008-PRESENT
COVERAGE LIMITS: $S,OOO,OOO
YR 14·15 VR 13-14 YR 12·13 YR 11·12 YR 10·11 YR 09-10 YR 08-09 2008 TO PRESENT
DEDUCTIBLE/SIR PREMIUM PREMIUM PREMIUM PREMIUM PREMIUMS PREMIUMS PREMIUMS PREMIUM TOTAL
$25,000/$5,000 $21,050 $20,397 $20,262 $19,866 $19,866 $19,872 $20,259 $141,572
LOSSES IN EXCESS OF DEDUCTIBLE N/A N/A N/A N/A N/A N/A N/A
The 2014-15 premium was $21,050; the 2015-16 proposed premium is $21,292, an increase of $242 or 1.15%. The coverage specifications are provided as Attachment 2.
Excess Workers' Compensation
The District maintains a $1,000,000 self-insured retention (SIR) for Workers' Compensation and procures a policy for Excess Workers' Compensation. Premiums are based on reported payroll. The 2014-15 premium was $350,361.00; based on a projected payroll of $133,897,634, the 2015-16 proposed premium is $370,093, an increase of $19,732 or 5.63%. At the end of each calendar year, a payroll audit is conducted and the District either pays an additional premium or no additional premium. The coverage specifications are provided as Attachment 3.
The policies are occurrence based. Therefore, assume Employee A is injured on January 1, 201X and makes a claim. The policy in effect on that date is the policy that covers the claim. Assume the SIR at the time is $1,000,000. The excess insurance would not come into play until the District expended $1,000,000 on the claim, which could be many years after the injury date. The District is still recovering on policies dating back as far as 1981 and will continue to recover on those policies provided that the claims remain open, including those that are open solely for future medical. An example of this is the Boykin case that was brought to the Board in August 2012. This was a case that involved an injury in 1994, at which time the District had a $500,000 SIR. The policy was considered an indemnity contract, wherein the District paid the claim and/or settlement and then sought reimbursement from the carrier. By the time the matter concluded, the District had recovered approximately $750,000.
1 The District's current insurance broker has been the broker since 2008 and has no records of loss data for the District prior to that time. Additionally, it is unknown what the District's former Risk Manager did with historical data when he left the District; these records cannot be located.
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Report No. 15-153a Page 3 of 5
The chart below shows the premiums paid for excess worker's comp insurance from 7-1-08 thru 6-30-15. In the same period of time we had approximately $1,983,087.04 in recoveries; however the earliest date of loss associated with the excess recovery is from 9-28-1981.
EXCESS WORKERS COMPENSATION INSURANCE PREMIUMS PAID: 2008·PRESENT
STATUTORY COVERAGE LIMITS, EMPLOYERS LIABILITY: $1,000,000
YR 14-15 YR 13-14 YR 1Z-13 YR 11-1Z YR 10-11 YR 09-10 YROS-09 ZOOS TO PRESENT
DEDUCTIBLE/SIR PREMIUM PREMIUM PREMIUM PREMIUM PREMIUMS PREMIUMS PREMIUMS PREMIUM TOTAL
$1,000,000 $350,361 $316,865 $306,686 $Z84,667 $334,63Z $3Z1,054 $357,080 $2,271,345
Losses in Excess of SIR N/A N/A N/A N/A N/A N/A N/A
Commercial Property, Auto Physical Damage, and Boiler & Machinery Coverage
This is a comprehensive property insurance policy that insures against damage to buildings and contents due to a covered cause of loss, such as a fire. The policy also covers loss of income/business interruption or increases in expenses that result from the property damage (PO), physical damages to District buses and non-revenue vehicles, property in transit, etc. A history of the premiums paid on this coverage is provided for your review.
PROPERTY, AUTO/BUS PHYSICAL DAMAGE & BOILER & MACHINERY PREMIUMS PAID: 2008-PRESENT
COVERAGE LIMITS:$ Various YR 14-15 YR 13-14 YR 1Z-13 YR 11-12 YR 10-11 YR09-10 YR 08-09 2008 TO PRESENT
DEDUCTIBLE/SIR PREMIUM PREMIUM PREMIUM PREMIUM PREMIUMS PREMIUMS PREMIUMS PREMIUM TOTAL
Various $465,500 $446,000 $406,609 $405,498 $381,755 $376,SZS $341,645 $2,SZ3,S35
LOSSES IN EXCESS
OF DEDUCTIBLE N/A N/A N/A N/A N/A 1 N/A
There are various deductibles as identified in Attachment 4. The 2014-15 premium was $465,500; the 2015-16 proposed premium is $464,970, a decrease of $530 or .11%. The coverage specifications are provided as Attachment 4.
The District is a party to various agreements (Lease to Service, Tranche 1 & 2, and FHR Software) and Certificates of Participation that require the District to maintain property damage insurance as well as excess liability insurance.
Fiduciary Insurance
This coverage protects Board officials, trustees, and professional administrators of a pension plan and the plan itself with respect to errors and omissions (E&O) in the administration of employee benefit programs. A history of the premiums paid on this coverage is provided for your review.
FIDUCIARY LIABILITY INSURANCE PREMIUMS PAID: ZOOS-PRESENT
COVERAGE LIMITS: $5,000,000
YR 14-15 YR 13-14 YR 12-13 YR 11-12 YR 10-11 YR 09-10 YR OS-09 ZOOS TO PRESENT
DEDUCTIBLE/SIR PREMIUM PREMIUM PREMIUM PREMIUM PREMIUMS PREMIUMS PREMIUMS PREMIUM TOTAL
~50,000 Per Claim $Z6,S66 $31,962 $31,96Z $30,534 $30,90S $30,733 $29,S42 $212,S07
LOSSES IN EXCESS
OF DEDUCTIBLE N/A N/A N/A N/A N/A N/A N/A
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Report No. 15-153a Page 4 of 5
The most common types of Fiduciary claims are, Denial or Change of Benefits, Administrative Error, Incorrect Benefit Calculation, Improper Advice or Counsel, Misleading Representation, Wrongful Termination of Plan, Civil Rights Denial or Discrimination, Failure to Adequately Fund a Benefit Program, Conflict of Interest, Imprudent Investment, Cash Balance Plan Conversions and Employer Stock Investments. Also insured is the Retirement Board itself, as the board members themselves can become personally liable. The policy under consideration provides a waiver of recourse provision to protect the members' personal assets. The coverage specifications are provided as Attachment 5.
As to the loss history under this policy- there was a claim filed under the 2012/2013 policy. A
lawsuit was filed by a former employee who was denied retirement benefits because the
employee had not vested under the Plan. The case was decided in favor of AC Transit. Defense
Costs were within the District's SIR for this coverage and the file was closed without any
payments under the policy.
Peer Agencies
Attached as Attachment 6 is a chart showing what 7 other transit agencies have in the way of
insurance coverage. The categories listed may not be everything the agencies carry insurance
for but does show what they do in regards to the coverages the District is considering.
Staff recommends that the Board authorize the binding of the policies.
ADVANTAGES/DISADVANTAGES:
Authorizing the binding of the policies will insure that the District maintains coverage in the areas identified and maintains compliance with its contractual obligations.
There are no disadvantages.
ALTERNATIVES ANALYSIS:
The alternative would be for the District to fully self-insure in these areas. This is not recommended as it leaves the District exposed to unknown financial liabilities and violates various sections of existing agreements/financial transactions. Also, the District would need to re-do the budget to allow for the potential liabilities, especially in the workers' compensation area.
PRIOR RELEVANT BOARD ACTIONS/POLICIES:
SR 13-194 SR 13-199 SR 15-153
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Report No. 15-153a
Page 5 of 5
AITACHMENTS: 1: Article from NBC News re employee embezzlement case
2. Crime Policy Coverage Specifications 3: Excess Workers' Compensation Specifications
4: Commercial Property, Auto Physical Damage, and Boiler & Machinery Coverage
5: Fiduciary Coverage Specifications 6: Peer Agencies' Coverages
Executive Staff Approval:
Reviewed by:
Prepared by:
Denise C. Standridge, General Counsel
James Pachan, Interim Chief Financial Officer
Jean Paul Popoff, Claims & Liability Administrator Jean Paul Popoff, Claims & Liability Administrator
Anne Fudge, Executive Coordinator
Due Le, Human Resource Manager
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City's finance chief accused of looting $30 million; lifestyle included $2.1 million motorhome Wednesday Apr 18, 2012 8:55AM
~~~· ' , fwMI 0
The chief financial officer of a
small Illinois city •• a woman who
had a lavish lifestyle that included a S2.1 million motor home and a
horse farm •• is under arrest. accused of embezzling S30
million from the city.
Rita Crundwell. 58, was arrested Tuesday at City Hall in Dixon, Ill .. the Chicago Tribune reported
(http://www.chicagotribune.com/n ewsllocal/ct-met-dixon
comptroller-embezzle-charges-20120418,0.5457912.story), and
later charged with wire fraud.
Paid a salary of $80,000 a year,
Crundwell spent large sums to operate her 150-horse Meri-J Ranch, as well as $340,000 on jewelry and S2.1 million on a
American Quarter Horse Association
Rita Crundwellls seen with one of her horses at an American Quarter Horse Association event.
luxury motor home. the FBI alleges in its criminal complaint
(http://www.justice.govlusaolilnlpr/rockfordl20121pr0417 _01a.pdf).
"I guess people assumed she was making a ton of money in the horse business," the Tribune quoted Dixon Mayor James Burke as saying about her apparent wealth.
Burke went to the FBI after an employee covering for Crundwell while she was away discovered an unusual bank account with multiple six-figure transactions The account was in the city's name but included "RSCDA" as a co-account holder. and that turned out to be Crundwell, the FBI said. Funds from the account had been withdrawn over time.
Purchases allegedly made by Crundwell with city funds include a S146.000 Kenworth
truck, a S140.000 Freightliner truck, a S57.000 Chevy Silverado pickup and a 5259,000 horse trailer.
Dixon. a city of 15,000 and boyhood home of President Ronald Reagan. has an annual budget of less than S9 million a year. The city has had budget cuts over the years. Burke said. but Crundwell argued some of the financial shortfalls were due to funds owed by the state.
Follow@msnbc_us ( 117followors
embezzlement.
Burke said Crundwell had worked for the city
since she was a teenager and was appointed comptroller in the early 1980s.
Tho FBI didn't know how the S30 million compares to past cases of public
·we don't keep official records or rankings of such things." FBI spokesman Royden Rice told msnbc.com. "Suffice it to say. according to the complaint. this was a very large fraud considering the size of Dixon."
Burke on Wednesday issued a statement trying to make sense of how so much money could have been embezzled.
Att.l to SR 15-153a Page I of2
httn://usnews.nhcnews.com/ news/20 12/0411 R/ 11 2o:'i7:S:'i-ci1vs-fimmce-chief:.~ccuserl-of-lo... 0/4/201 :S
74
"We realize the main question is how can someone allegedly steal 30 million dollars and get away with it for so long?" he said, and then explained that two accounting firms prepare an annual audit, while the state also reviews city documents. None ever cited "red flags," Burke said.
He added that the city will try to claim some of Crundwell's assets and it "will be interviewing and retaining a new certified public accounting firm to conduct the annual
city audit."
As for Crundwe\1, her Meri-J Ranch says on its website (http:/lwww.merijranch.coml) that horses bred by her have won 52 world championships.
Crundwe1l is well known on the horse circuit, having appeared at counUess shows.
Several YouTube videos by the American Quarter Horse Association relate her success raising and showing horses, and already on Wednesday some viewers were voicing their
anger.
~Rita Crundwe\1 should be banished from all (record) books and be forced to give back all trophies and of course these is no money to give back but she should be banished from all records," wrote one YouTube viewer (http://www.youtube.comlwatch? v=vbr2zfHRh6A). "The reserve winners should get their rightful earnings and trophies."
Page 2 of2
httn://usnews_nhcnews_com/ news/2012/04/18/11265755-c.itvs-finance-chief-accused-of-lo... 6/4/2015
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Att . 2 to SR 15-153a
Crime coverage
Named insured:
Insurance carrier:
Policy number:
Policy term:
Premium:
Coverage:
Coverage and Limits Per Expiring Policy
$
Deductible $
National Union Fire Ins Co ofPA
Carrier name -Admitted A.M. Best rating: A, XV as of Februa1y 2015
TBD
June 30, 2015 to June 30, 2016
$21,292.00
Covers money, securities, or other tangible property belonging to you or for which you are legally liable. In the event of a loss, the burden of proof rests with you.
Government Crime Policy CR0027 (05/06). Loss Discovered Form.
5,000,000
5,000,000
500,000
500,000
500,000
s,ooo,ooo
5,000,000
5,000,000
25,000
25,000
25,000
25,000
25,000
5,000
5,000
5,000
Employee Theft - Per Loss Coverage
Forge1y or Alteration
Theft of Money & Securities - Inside Premises
Robbery, Safe Burglary- Other Property- Inside Premises
Outside the Premises
Computer Fraud
Funds Transfer Fraud
Money Orders and Counterfeit Paper Currency
Employee Theft - Per Loss Coverage
Forgery or Alteration
Computer Fraud
Funds Transfer Fraud
Money Orders and Counterfeit Paper Currency
Theft of Money & Securities - Inside Premises
Robbery, Safe Burglary- Other Property- Inside Premises
Outside the Premises
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used f or reference purposes on ly. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/17/2015 Prepared for AC Transit Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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76
Coverage Extensions
• • •
•
•
• •
•
Subjectivities to Bind:
• Signed and Dated Application
Bonded Employees Exclusion Deleted Endorsement
Include Treasurer or Tax Collectors as Employees
Additional Named Insured Endorsement
Economic Sanctions Endorsement
Include Expenses Incurred to Establish Amount of Covered Loss: $25,000 Add Faithful Performance of Duty Coverage for Government Employees: $5,ooo,ooo Omnibus Named Insured
Add Credit, Debit or Charge Card Forgery: $5,ooo,ooo Change Extended Period to Discover Loss (Loss Sustained Coverage): 120 Days
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It Is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/17/2015 Prepared for AC Transit Confidential.© 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Att. 3 to SR 15-153a
Excess Workers' Compensation Coverage
Safety National Safety National Insurance Company 2014/2015 2015/2016
Am Best Rating
Policy Period
California Status
Polic Premium:
Covered State(s)
Workers' Compensation Coverage
Coverage Limit
Employers Liability
Per Occurrence
Annual Aggregate
Self Insured Retention:
Payroll Basis:
Rate:
Commission:
Subject to Audit:
Coverage Extensions: Named Insured Additional Endorsement
TRIA
Waiver of Subrogation
A+, Excellent, FSCXIII
July 1, 2014 -July 1, 2015
Admitted
$350,361.00
California
Statutory
$1,000,000
$1,000,000
$1,000,000
o%
Yes
Included
Included
Included
A+, Excellent, FSCXIII
July 1, 2015- July 1, 2016
Admitted
$370,093.00
California
Statutory
$1,000,000
$1,000,000
$1,000,000
o%
Yes
Included
Included
Included
This proposa l is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage on ly. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/17/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 3
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79
Att . 4 to SR 15-153a
Commercial property, auto physical damage and boiler & machinery coverage
Travelers Insurance Company Travelers Insurance Cmnpany
Policy Term July 1, 2014 to July 1, 2015 July 1, 2015 to July 1, 2016
AM Best Rating A++, Superior, Financial Size A++, Superior, Financial Size Category Category XV, $2 Billion or Greater XV, $2 Billion or Greater
California Status Admitted Admitted
Coverage All Risk of Direct Physical Loss or All Risk of Direct Physical Loss or Damage Including Equipment Damage Including Equipment Breakdown, Auto Physical Damage, Breakdown, Auto Physical Damage, Contractor's Equipment & Earth Contractor's Equipment & Earthquake Movement Sprinkler Leakage. Sprinkler Leakage. Excluding Excluding Earthquake And Flood As Earthquake And Flood As Respects Respects Property /Time Element Property/Time Element Coverages Coverages
Statement ofValues $590,535,853 $589,860,985
Limits: $10o,ooo,ooo Per Occurrence $1oo,ooo,ooo Per Occurrence
Subject to the following Subject to the following sublimits: sub limits:
Vehicle Physical Damage $50,000,000 $so,ooo,ooo
Including over the road exposures Including over the road exposures
Outdoor Property including 25% of physical loss/ damage for all 25% of physical loss/ damage for all Debris Removal Insured locations sustaining covered Insured locations sustaining covered
physical loss/damage plus physical loss/damage plus $5oo,ooo. $5oo,ooo. Trees, Shrubs and plants Trees, Shrubs and plants- $5,000 per - $5,000 per item item
Accounts Receivable $5,000,000 $5,ooo,ooo
Earthquake Sprinkler $1,000,000 $1,000,000 Leakage
Business $12,399,875 $12,344,050 Interruption/Rental Value Extended Rental Value 6o days 60 days
Civil Authority 30 days 30 days
Ordinance or Law - $250,000 $250,000 Increased Period of Restoration
This proposa l is merely a descriptive summary of coverage provided by the insurance companies being proposed and shou ld be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposa l date: 4/20/2015 Prepared for AC Transit Confidentia l. © 2014 Wel ls Fargo Insurance Services USA, Inc. All Rights Reserved.
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80
Travelers Insurance Company Travelers Insurance Cmnpany
Demolition/Increased Cost of Construction Ordinance or Law $25,000,000 $25,000,000
Demolition $2,500,000 $2,500,000
Increased Cost of $2,500,000 $2,500,000 Construction
EDP Data/Media $5,ooo,ooo $5,000,000
Errors and Omissions Covered- No sublimit Covered- No sublimit
Extra Expense $1,000,000 $1,000,000
Civil/Military Authority 30 days 30 days
Fine Arts $1,ooo,ooo subject to a maximum $1,ooo,ooo subject to a maximum of of $5,000 any one item $s,ooo any one item
Pollution Cleanup and $100,000 $100,000 Removal
Miscellaneous Unnamed $1,ooo,ooo subject to maximum $1,ooo,ooo subject to maximum Locations $5,000,000 $5,000,000
Newly Acquired Property 120 Days, not to exceed $5,000,000 120 Days, not to exceed $s,ooo,ooo
Claims Data Expense $100,000 $100,000
Service Interruption $1,000,000 $1,000,000
Property in Transit $1,000,000 $1,000,000
Valuable Papers $5,000,000 $s,ooo,ooo
Expediting Expense $1,000,000 $1,000,000
Course of Construction Not Covered Not Covered
Unscheduled bridges, Not Covered Not Covered tunnels, catwalks, streets, pavements, roads, highways, culverts, street lights, traffic signals
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy cont ract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/20/2015 Prepared for AC Transit Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Travclet·s Insurance Company Travelers Insurance Cmnpany
Personal Property of $2,500 per Employee; $50,000 any $2,500 per Employee; $50,000 any one employees, directors, one occurrence. Coverage excludes occurrence. Coverage excludes outside officers, Trustees of the outside the USA. the USA. Insured located Outside of the US, Canada and Puerto Rico
Contractors Equipment $627,055 $627,055
Subject to the following sublimits: Subject to the following sub limits:
Leased/Rented Equipment Not covered Not covered from Others Newly Acquired $5o,ooo $50,000
Rental Reimbursement Not covered Not covered
Miscellaneous Not covered Not covered Tools/Equipment
Boiler and Machinery $25,000,000 $25,000,000
Business Interruption Included Included
Off P,•emises Prope1·ty Follows property Follows property damage Consequential Damage $250,000 $250,000
Extra Expense Follows property Follows property
Rental Value Follows property Follows property
Contingent BI/EE Not covered Not covered
Expediting Expense Follows property Follows property
Hazardous $250,000 $250,000 Substances/Pollutants Spoilage Part of Consequential Damage Part of Consequential Damage
Computer Equipment/EDP Follows property Follows property
Data Restoration Follows property Follows property
Demolition and ICC/Costs Follows property Follows property of Construction Service Interruption $1,000,000 $1,000,000
Ammonia Contamination $250,000 $250,000
Water Damage $250,000 $250,000
Newly Acquired Property Follows property Follows property
Errors and Omissions Follows property Follows property
Extended Period of 6o days 6o days Restoration
Limited Fungus, Wet Rot $100,000 $100,000 and Dry Rot Coverage
This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage on ly. It Is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/20/2015 Prepared for AC Transit Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Travele•·s Insurance Company Travele1·s Insurance Company
Deductibles:
All Other Perils $100,000 $100,000
Vehicles $25,000 $25,000
Buses $100,000 $100,000
Earthquake Sprinkler 2%/$100,000 2%/$100,000 Leakage Service Interruption $25,000 $25,000
Boiler and Machinery $25,000 $25,000
Boiler & Machinery: Rental 48 hour waiting period on 48 hour waiting period on Interruption Value or Extra Expense Interruption of Service waiting of Service waiting period
period
Exclusions Newly acquired locations outside of Newly acquired locations outside of California California Furs; jewels; jewelry; precious, semi- Furs; jewels; jewelry; precious, semi-precious stones or metals. precious stones or metals. Watercraft Watercraft
Golf course greens, tees, fairways, Golf course greens, tees, fairways, sand-sand-traps traps Money, securities, notes, tickets Money, securities, notes, tickets
Any type of dam Any type of dam
Tax value for tax interruption Tax value for tax interruption
Rolling Stock Rolling Stock
Ocean marine transit or worldwide Ocean marine transit or worldwide transit transit Cyber secure( would need to Cyber secure( would need to complete an complete an application if coverage application if coverage is desired) is desired) Nuclear Hazard, War, Military Nuclear Hazard, War, Military Action, Action, Electronic Vandalism and Electronic Vandalism and Pathogenic or Pathogenic or Poisonous Biological Poisonous Biological or Chemical or Chemical Materials Materials
Coinsurance Not Applicable Not Applicable
Valuation Replacement Cost Replacement Cost
Time Element-Actual Loss Sustained Time Element-Actual Loss Sustained
Contractors Equipment- ACV Contractors Equipment- ACV
Vehicles- ACV Vehicles - ACV
Premium $465,500 $464,970
This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposa l does not amend or alter the insurance contract .
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 4/20/2015 Prepared for AC Transit Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Att. 5 to SR 15-153a
Premium overview
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limit ations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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84
Named insureds
Note: Any entity not named as an insured may not be covered under this policy. This includes partnerships, joint ventures, and newly formed entities of any type.
I
Named insured -- -
Retirement Board of AC Transit's Employee Retirement Plan (FKA Alameda Contra Costa Transit District Employee Pension Plan)
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Executive liability Fiduciary liability
Insurance Company Hudson Insurance Company
Policy Term August 1, 2014 to August 1, 2015
AM Best Rating A, XV FSC $2 Billion or Great
California Status Admitted
Policy Form(s) The Euclid Vanguard ESF-31210001 9-2012
Endorsement(s) CA Amendatory Endorsement
Public Entity Fiduciary Liability Endorsement
Extended Reporting Period Endorsement
Other Insurance Endorsement
Defense Costs Allocation Endorsement
Contract Exclusion Endorsement
Amend Defense and Settlement Endorsement
Acceptance of Substitute Carrier Application Endorsement
-Hudson Insurance Company
August 1, 2015 to August 1, 2016
A, XV FSC $2 Billion or Great
Admitted
The Euclid Vanguard ESF-31210001 9-2012
CA Amendatory Endorsement
Public Entity Fiduciary Liability Endorsement
Extended Reporting Period Endorsement
Other Insurance Endorsement
Defense Costs Allocation Endorsement
Contract Exclusion Endorsement
Amend Defense and Settlement Endorsement
Acceptance of Substitute Carrier Application Endorsement
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, cond itions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Limit(s) $s,ooo,ooo $s,ooo,ooo
$1,250,000 Trustee Claims Expenses Sublimit $1,250,000 Trustee Claims Expenses Sublimit
$250,000 Voluntary Compliance Program $250,000 Voluntary Compliance Program
$1,500,000 HIPPA & HITECH Fines & Penalties Sub limit $1,500,000 HIPPA & HITECH Fines & Penalties Sublimit
$250,000 Section 4975 Penalties Sublimit $250,000 Section 4975 Penalties Sublimit
1. Any breach of the responsibilities, obligations or duties imposed upon fiduciaries of a Plan by an Employee Benefit Law;
2. Any negligent act, error or omission by any Insured in the Administration of any Plan; and
3. With respect to Claims Expenses only, any negligent act, error or omission, other than a wrongful employment practice, by an Insured solely in such Insured's capacity as a trustee of a Plan that is not otherwise covered in subparagraphs (1) and (2) above.
$100,000 Essentials
$5o,ooo
1. Any breach of the responsibilities, obligations or duties imposed upon fiduciaries of a Plan by an Employee Benefit Law;
2. Any negligent act, error or omission by any Insured in the Administration of any Plan; and
3. With respect to Claims Expenses only, any negligent act, error or omission, other than a wrongful employment practice, by an Insured solely in such Insured's capacity as a trustee of a Plan that is not otherwise covered in subparagraphs (1) and (2) above.
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Insurance
Plan coverage included
coverage grants
Yes
Voluntary compliance program expenditures [I.B] $250,000
Privacy Breach coverage [I.C] -needs amendment to properly refer to Crisis Notification Expenditures. Will include forensics, credit monitoring, notification, public relations. $250,000
Covered penalties: Section 502@ of ERISA, or PPA 2006, 5% Section 502(i) of ERISA, 20% Section 5020) of ERISA, HIP AA/HITECH fines, PPACA, 15% excise tax Section 4975 IRC, Section 502(a)(3) of ERISA.
$1,500,000 HIPPA & HITECH Fines & Penalties Sublimit
$250,000 Section 4975 Penalties Sub limit
$1,250,000 Trustee Claims Expenses Sublimit
Yes
Voluntary compliance program expenditures [I.B] $250,000
Privacy Breach coverage [I.C] - needs amendment to properly refer to Crisis Notification Expenditures. Will include forensics, credit monitoring, notification, public relations. $250,000
Covered penalties: Section 502© of ERISA, or PPA 2006, 5% Section 502(i) of ERISA, 20% Section 5020) of ERISA, HIP AA/HITECH fines, PP ACA, 15% excise tax Section 4975 IRC, Section 502(a)(3) of ERISA.
$1,500,000 HIPPA & HITECH Fines & Penalties Sub limit
$250,000 Section 4975 Penalties Sublimit
$1,250,000 Trustee Claims Expenses Sublimit
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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88
r- • ·• ·-·-···· ·.-.-
.•.... · - ., :>:-·-·· .···••· ; .- ... ; ...... · ;;- ; ! l·')>',t' ; ; . : .• ,~~.-;:· ·. . -.. •.; ·; ... ; ; ; 1-·····:·r·•·.··"i••····• r:·T···· : ··•········· .. ·-·:.··• - .. ; ...
Carrier selects Has final approval of insured's recommendation. Has final approval of insured's recommendation.
Insured selects Yes, with the insurer's final approval must notify insurer Yes, with the insurer's final approval must notify insurer with 20 days of claim. with 20 days of claim .
. ·.·· ~l~~ ) i&~ '"'':;Rt;·!:~~~\fWt'iS.' T~ :··············.·.· · · · .. :· .... .:. •··~··· ., •...... ... . •. ,,. . . • , · · '" .c:n·;:qr ~ ~$r.i;)X:··-•.•·•• J.C'; ''l''"' '• ': 'i'ij'''''t?'i ·. ;:_(·' .,, •• ; ; ;. . . .. .. ·.;·; /.···· ,;)!:i'+ :
Employees Yes, in his or her administration of a plan or in his or her Yes, in his or her administration of a plan or in his or her capacity as a fiduciary or trustee of a Plan capacity as a fiduciary or trustee of a Plan
_, or temporary No No
Directors and officers No, unless a committee member or employee of a plan, or No, unless a committee member or employee of a plan, or trustee. trustee.
No jNo
No No
I Le•secl No No
Independent~v••••u~·v~ No No
Spousal extension Yes, including domestic partners Yes, including domestic partners
Trustees or committee members of a plan in the capacity
Trustees or committee members of a plan in the capacity as a fiduciary or trustee Other individuals as a fiduciary or trustee
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
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Insurance Company
Most favored jurisdiction wording
under
Insurance Company
Yes: Enforceability of this paragraph shall be governed by the applicable law that most favors coverage for such penalties and punitive, exemplary and multiplied damages.
No
Yes
Yes
Yes, where permitted by law
Yes: Enforceability of this paragraph shall be governed by the applicable law that most favors coverage for such penalties and punitive, exemplary and multiplied damages.
No
Yes
Yes
This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract.
Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 6/3/2015 Prepared for Alameda Contra Costa Transit District Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 11
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91
Att. 6 to SR 15-153a
Peer Agencies Insurance Coverages TRANSPORTATION EXCESS WORKERS PROPERTY, B&M, TRAVEL FIDUCIARY CRIME/ AGENCY NAME EXCESS UABIUTV COMPENSATION AND AUTO ACODENT LIABILTV FPB
Golden Gate Transit Yes Yes Yes n/a Yes Yes
Los Angeles County No- (Self Insured: Dedicated
Metro Transit Yes Reserve Fund) Yes No No No
Sacramento Regional
Transit District Yes Yes Yes n/a No Yes
No- (Self Insured: Dedicated
SAMTRANS Yes Reserve Fund) Yes n/a Yes Yes
San Diego Metro
Transit Yes Yes Yes n/a n/a n/a
No- (Self Insures: Excess Property and Yes
Dedicated Reserve No- (Self Insured: Dedicated Auto PO as required BOD/Pension
SFMTA-MUNI Fund) Reserve Fund) by contract n/a Board No
Valley Transportation No- (Self Insured: Dedicated Yes- VTA/ATU
Authority Yes Reserve Fund) Yes No Pension Plan Yes
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