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08-28-2013_2 PRIA Proposal revised VILLAGE OF NORTH PALM BEACH PUBLIC RISK INSURANCE AGENCY TABLE OF CONTENTS Overview 1 The Agency of Public Risk Insurance Agency An Introduction to Your Service Team Preferred Governmental Insurance Trust Preferred Board of Trustees and Risk Advisory Members Claims Services&Safety and Risk Management Services Workers' Compensation 2 Broker Recommendation/Premium Recapitulation 3 Notes of Importance Compensation Disclosures Carrier Financial Status Guide to Best's Ratings Items Required Prior to Binding 4 Drug Free and Safety Applications Workers Compensation Application MPRIA� PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH THE AGENCY Risk Management Associates, Inc. dba Public Risk Insurance Agency (PRIA) has established itself as one of the premier insurance services organizations for public entities in the United States. Our in-depth understanding of the unique risk exposures and operating environment of public entities allows us to tailor insurance products and services to effectively meet their needs. As the only independent insurance agency solely dedicated to the public entity market, we are uniquely qualified to meet and exceed the expectations of our clients. Our 20 years of insuring local governments has afforded us significant experience and insight into the unique challenges and constraints that our clients face. PRIA currently represents over 300 public entities in Florida. PRIA is a wholly owned subsidiary of Brown & Brown, Inc. - the 61h largest independent insurance agency in the United States and 7"' largest worldwide as ranked by Business Insurance Magazine. Brown & Brown brings the experience of representing hundreds of public entities nationally in addition to PRIA's focus in Florida. As a Brown & Brown company, PRIA has access to hundreds of insurance markets nationwide and in the international market. With premium volume exceeding $2,500,000,000 Brown & Brown's volume results in a superior negotiating position and leverage with state specific, regional, national, and international insurers. The focus and experience of our team in all of these markets produces superior risk transfer options and risk control expertise for your entity. PRIA develops customized and innovative approaches towards effectively managing your risk. Cost effective insurance products, professional service, and commitment to client's needs are our primary goals. Proof of account satisfaction is reflected by a 97% business retention rate. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH AN INTRODUCTION TO YOUR SERVICE TEAM Alan Florez Executive Vice President Paul Dawson, ARM-P Senior Vice President/Account Executive Michelle Martin, CIC Vice President/Account Executive Brian Cottrell, CIC, CRM Vice President/Account Executive Robin Faircloth, CISR Director of Operations Nancy Burnet, CIC Marketing Manager Amber Tolbert Marketing Assistant Brittany O'Brien, CIC, CRM Account Manager Melody Blake, ACSR Account Representative Linda Burtchett Account Representative Kate Gross,ARM-P Account Representative Patricia "Trish" Jenkins Account Representative Nicole Kokin Account Representative Assistant Will assist with daily servicing of your account,including endorsements,client services,accounting and quality assurance. Our Service Team philosophy focuses on accountability at all levels of account management. Our goal is not simply to meet your service needs, but to exceed them.All of the employees at PRIA are dedicated to achieving this goal and distinguishing ourselves from the competition. MPRIA� PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREFERRED GOVERNMENTAL INSURANCE TRUST (Preferred) OVERVIEW Preferred Governmental Insurance Trust (Preferred) represents the most financially secure alternative for municipalities, counties, special districts and schools for property, liability and workers compensation insurance coverages,with a foundation built upon a personalized service commitment to its members, customized loss control initiatives and aggressive claims management. Specific coverages available through Preferred include: Property and Equipment Breakdown General Liability Contractor's Equipment EMT/Paramedic Professional Liability Electronic Data Processing Law Enforcement Professional Liability Miscellaneous Inland Marine Employee Benefits Administration Liability Crime Automobile Liability and Physical Damage Bonds(Employee Dishonesty) Public Officials Liability Environmental Impairment Liability Workers' Compensation A variety of pricing options are available, from traditional guaranteed cost to deductible programs, to loss sensitive retrospective rating plans. Following is a brief overview of the Trust structure and service components: 1. Legal Structure • Multi-line intergovernmental pool • Governed by Board of Trustees comprised of elected officials 2. Marketing • Public Risk Underwriters,Lake Mary,Florida • Kurt Heyman,Vice President-Marketing 3. Underwriting • Public Risk Underwriters,Lake Mary,Florida • Margaret Gross,Director of Underwriting 4. Loss Control • Mike Marinan, Senior Safety&Risk Management Consultant • Mike Stephens, Safety&Risk Management Consultant • State of Florida approved program MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH 5. Policy Issuance • Public Risk Underwriters,Lake Mary,Florida • Navrisk Management System • Integrates interlocal agreement to participate with NCCI rules and regulations 6. Auditing • Public Risk Underwriters,Lake Mary,Florida • Quarterly self audits for Workers' Compensation 7. Claims • Contractually provided for Preferred by Preferred Governmental Claims Solutions located in Lake Mary,Florida • Toll free Workers' Compensation first notice of injury reporting line (866)683-7710 • Toll free Workers' Compensation claims servicing line (800)237-6617 • Toll free Property&Casualty claims servicing line (800)237-6617 • Online access to Claims data for clients 8. Accounting • Larry Shores,CPA,External Accountant, Shores&Company • Specializes in intergovernmental pools • Audited financial statements as required by the State of Florida MISCELLANEOUS INSURANCE COVERAGES To fully serve our clientele,Public Risk Insurance Agency can offer coverage for other exposures such as: Bonds Accidental Death&Dismemberment Fiduciary Liability Special Events Primary and Excess Flood Airport Liability Workers' Compensation Aboveground&Underground Petroleum Tank Liability Environmental Liability MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH Preferred Governmental Insurance Trust Board of Trustees Chair Dwight E.Wolf Mayor—City of Wildwood Vice Chairman Charles Walsey Chairman—Cypress Grove CDD Secretary Joanna Wilkinson Mayor—City of Haines City Board Member Robert Walker Mayor—City of Springfield Board Member Tom Rice,Sr. Vice Chairman—South Indian River WCD Board Member Warren Yeager Commissioner—Gulf County BOCC Board Member Welton Cadwell Commissioner—Lake Sumter EMS Preferred Governmental Insurance Trust Risk Advisory Board Renee Stockwell City of Bradenton Risk/Safety Supervisor Lori Parsons City of Naples Risk Manager Christina Maguire City of Ormond Beach Risk Manager Deborah Franklin,MA The Villages Human Resources Director Keri Martin City of Winter Park Risk Manager Michael Quigley City of Cape Coral Risk Manager Richard Swann Hillsborough County Sheriff Director of Risk Management Gerard Visco Brevard County BOCC Risk Manager Renee Daugherty Town of Davie Risk Manager Jennifer Porrier City of Treasure Island Human Resources Director Rickey Kendall Hillsborough Transit Authority Safety,Risk&Environmental Dir. Sanjeev Bissessar City of Coconut Creek Risk Manager MPRIA� PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREFERRED CLAIMS ADMINISTRATION Preferred Governmental Claim Solutions, Inc. ® (PGCS) is the premier governmental third party claims administrator in the state of Florida and also administers the claims for Preferred Governmental Insurance Trust(Preferred). Since its founding in 1956, PGCS has provided claims administration services exclusively to over 450 governmental entities including schools, cities, towns, counties, community development districts, and fire districts. Therefore, PGCS's adjusters are extremely qualified to handle governmental tort liability and public sector workers' compensation claims. They are experts at investigating and handling police and firefighters presumption claims. PGCS is sensitive to the politics involved in the handling of public entity claims. PGCS's claims administration program consists of workers' compensation, general liability,bodily injury, personal injury, property, auto liability, auto physical damage, employment practices liability, school leaders/educators liability and public officials liability. Their claims staff has over 630 years of combined insurance experience and each has been with PGCS an average of 8 years. Claims are handled under strict supervision in accordance with the PGCS workers' compensation and liability claim handling procedure manuals and the PGCS claim best practices manual. A random sampling of each adjuster's claim files are audited on a monthly basis by a Quality Assurance Manager to ensure compliance. PGCS provides their clients with a dedicated Subrogation Unit to pursue reimbursements from at- fault third parties. Their current recovery rate is fifty-nine (59) percent of the claim costs expended. PGCS also has a dedicated excess reporting and recovery unit for communication to and securing reimbursement from the excess and/or reinsurance carriers. In addition, PGCS provides a state-approved Special Investigation Unit (SIU) to prevent and pursue fraudulent claims. PGCS offers rewards up to $10,000.00 for the arrest and conviction of persons committing workers' compensation fraud. This service is provided via a twenty-four hour seven day a week hotline. PGCS utilizes the RiskMaster system for claims processing. This system captures a wide variety of data, and allows the adjuster to enter an unlimited number of claim notes, process reserve changes, and issue claim payments. Customized reports can be obtained from PGCS's on-line system containing a multitude of data parameters that a client may choose to analyze. The system can be accessed by clients via their website at www.pgcs-tpa.com. Communication with PGCS's clients is the cornerstone of their claims administration program. Professional adjusters, nurses, management, quarterly in-depth claim review meetings, 24/7 claim reporting, utilization of attorneys specializing in public entity defense, litigation management, and return to work programs are just a sample of how PGCS has set the standard for the industry. PGCS is committed to partnering with their clients to provide professional and aggressive claim management programs. While they are recognized as the leader in the industry, PGCS is always striving to improve the quality of their programs and expand the services that they offer. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREFERRED SAFETY AND RISK MANAGEMENT SERVICES The success of any public sector community is clearly tied to its ability to protect and preserve its human physical assets. This basic premise serves as the cornerstone of an effective Safety Management program and underscores the importance of Risk Control to the community. Preferred's Safety and Risk Management Department is very aware of the valuable contribution a comprehensive risk control program makes to the bottom-line of any organization. At Preferred, Safety consultations originate with one basic thought—Specific measures can be recommended to minimize or eliminate the exposures that cause accidents. This does not mean that the workplace become no-risk utopias, but we expect our consultants to recommend measures to control/minimize all types of accidents, injuries and illnesses to our Preferred clients' operations and premises. Stressing our problem solving skills... Preferred is dedicated to meeting the challenge of the complex problems facing public sector organizations...disarming these problems and converting them into factors,which work to the advantage of our clients. Our emphasis approach to risk control incorporates the following elements: • Exposure Identification – Assist management in determining areas where a chance of loss might exist. • Exposure Measurement and Analysis – Loss analysis and a review of the consequences of the exposures will be considered to develop alternative methods of control. • Determination and Selection of Appropriate Risk Control Methods – Based on measurement and analysis and after considering alternative approaches, specific recommendations and/or a custom design Risk Control plan will be formulated. • Training and Safety Management Consulting – After considering client needs specific training will be formulated and initiated to fit that need. Key personnel will be provided with the basic knowledge and skills they need to meet those identified needs. Program monitoring is accomplished through follow-up surveys with adjustments to the action plan made as needed. Specialty consulting services are available if necessary. Preferred's Safety and Risk Management Department evaluates the unique needs to each client, ultimately designing a program that is capable of being integrated into the overall risk control efforts of each client. Our management system's direction to the problem solving approach is the foundation of our Safety and Risk Management Service. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH WORKERS' COMPENSATION GUARANTEED COST REVISED 8/23/13 Term: October 1,2013 to October 1,2014 Insurer: Preferred Governmental Insurance Trust(Preferred) Description Class Code Payroll 0251 Irrigation Works&Drivers $ 71,718 5509 Street or Road Maintenance $ 495,918 7704 Firefighters&Drivers $ 1,707,944 7720 Police Officers&Drivers $ 1,282,382 8380 Automobile Service Repair $ 142,988 8810 Clerical $ 1,209,850 9015 Buildings—NOC Owner/Lessee $ 541,627 9060 Club-Country/Golf/Fish/Yacht $ 883,257 9082 Restaurant NOC $ 540,441 9101 College-All Employees $ 424,227 9102 Park NOC—Employees&Drivers $ 625,799 9403 Garbage—Collection&Drivers $ 787,125 9410 Municipal NOC $ 270,583 TOTAL $8,983,859 Estimated Manual Premium $425,664 Experience Modification 1.14 Estimated Discounted Premium $306,053 Notes of Importance: 1. The "Estimated Discounted Premium'' includes all applicable credits including safety program and drug-free workplace credits as per Florida Statute 440. 2. Employer's Limit of Liability is$1,000,000/$1,000,000/$1,000,000. 3. Experience modification factor is subject to verification. This final amount of credit is dependent upon compliance with program requirements. 4. Final premium subject to payroll audit. 5. The expense constant charge has been included. 6. Payment terms are 25% down and 9 installments. This proposal is intended to give a brief overview.Higher limits may be available.Please refer to coverage forms for complete details regarding definition of terms,exclusions and limitations. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREMIUM RECAPITULATION REVISED 8/23/13 Annual Premium Check Option Accepted Rejected Workers' Compensation $306,053 ❑ ❑ I authorize PRIA to request the underwriters to bind coverage on the items indicated above and acknowledge receipt of the Compensation and Financial Condition Disclosure(s)provided in this proposal. (Signature) (Name&Title) (Date) PRIA Pt B IC RISK NSLRANU NUNCV VILLAGE OF NORTH PALM BEACH Notes of Importance: 1. Quotes provided in the proposal are valid until 10/1/2013. After this date terms and conditions are subject to change by the underwriters. 2. Preferred is not subject to the Florida Insurance Guaranty Act, in the event it becomes unable to meet its claims payment obligations. However, insured is named on excess of loss policies. 3. Some of the Carriers of the Preferred excess of loss policies are issued pursuant to the FL Surplus Lines laws. Entities insured by surplus lines carriers do not have the protection of the FL Insurance Guaranty Act to the extent of any right of recovery for the obligation of an insolvent,unlicensed insurer. 4. Quote is subject to review and acceptance by Preferred Board of Trustees. 5. Premiums are subject to change if all lines of coverage quoted are not bound. Premiums are subject to 25% minimum premium upon binding. 6. Not all coverages requested may be provided in this quotation. 7. The Trust requires all Members to maintain valid and current certificates of workers' compensation insurance for all work performed by persons other than its employees. 8. With the exception of Workers' Compensation, the total premium is due within 30 days of inception.Premium financing can be arranged if needed. 9. Quote is not bound until written orders to bind are received from the insured and the Trust subsequently accepts the risk. 10. Should signed application reveal differing details/data than original application received, the entire quote/binder is subject to revision and possible retraction. 11.Higher limits of liability may be available. Please consult with your agent. 12. This proposal is based upon exposures to loss made known to the Public Risk Insurance Agency.Any changes in exposures (i.e.new operations,new acquisitions of property or change in liability exposure) need to be promptly reported to us in order that proper coverage may be put into place. 13.This proposal is intended to give a brief overview.Please refer to coverage agreements for complete information regarding definition of terms, deductibles, sub-limits, restrictions and exclusions that may apply. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH Retail Compensation Disclosure In addition to the commissions or fees received by us for assistance with the placement, servicing, claims handling,or renewal of your insurance coverages, other parties, such as excess and surplus lines brokers, wholesale brokers, reinsurance intermediaries, underwriting managers and similar parties, some of which may be owned in whole or in part by Brown & Brown, Inc., may also receive compensation for their role in providing insurance products or services to you pursuant to their separate contracts with insurance or reinsurance carriers. That compensation is derived from your premium payments. Additionally, it is possible that we, or our corporate parents or affiliates, may receive contingent payments or allowances from insurers based on factors which are not client- specific, such as the performance and/or size of an overall book of business produced with an insurer. We generally do not know if such a contingent payment will be made by a particular insurer, or the amount of any such contingent payments, until the underwriting year is closed. That compensation is partially derived from your premium dollars, after being combined (or "pooled") with the premium dollars of other insured's that have purchased similar types of coverage. We may also receive invitations to programs sponsored and paid for by insurance carriers to inform brokers regarding their products and services, including possible participation in company-sponsored events such as trips, seminars, and advisory council meetings, based upon the total volume of business placed with the carrier you select. We may, on occasion, received loans or credit from insurance companies. Additionally, in the ordinary course of our business, we may receive and retain interest on premiums you pay from the date we receive them until the date of premiums are remitted to the insurance company or intermediary. In the event that we assist with placement and other details of arranging for the financing of your insurance premium, we may also receive a fee from the premium finance company. Questions and Information Requests: Should you have any questions or require additional information, please contact this office at 386-252-6176 or, if you prefer, submit your question or request online at hQ://www.bbinsurance.com/customerinquiLy.shtml. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREFERRED Compensation Disclosure We appreciate the opportunity to assist with your insurance needs. Information concerning additional compensation paid to other entities for this placement and related services appears below. Please do not hesitate to contact us if any additional information is required. Our office is owned by Brown&Brown, Inc. Brown&Brown entities operate independently and are not required to utilize other companies owned by Brown&Brown, Inc.,but routinely do so. For the 2012 — 2013 policy year, your insurance was placed with Preferred Governmental Insurance Trust (Preferred). Preferred is an insurance trust formed by Florida public entities through an Interlocal Agreement for the purpose of providing its members with an array of insurance coverages and services. Preferred has contracted with entities owned by Brown & Brown, Inc. to perform various services. As explained below, those Brown & Brown entities are compensated for their services. Preferred has contracted with Public Risk Underwriters (PRU), a company owned by Brown & Brown, Inc., to administer Preferred's operations. The administrative services provided by PRU to Preferred include: • Underwriting • Coverage review • Marketing • Policy Review • Accounting • Issuance of Preferred Coverage Agreements • Preferred Member Liaison • Risk Assessment and Control Pursuant to its contract with Preferred, PRU receives an administration fee, based on the size and complexity of the account,of up to 12.5%of the premium you pay to Preferred. PRU may also receive commissions from insurance companies with whom it places your coverage, which commissions are derived from the premium you pay to Preferred. Multiple underwriters may be involved in the placement of your coverage. If so, they also may be compensated for their services from the premium you pay to Preferred. Preferred has also contracted with Preferred Governmental Claims Solutions (PGCS), a company owned by Brown&Brown, Inc., for purposes of administering the claims of Preferred members. The services provided by PGCS to Preferred may include: • Claims Liaison with Insurance Company • Claims Liaison with Preferred Members • Claims Adjustment MPRIA� PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH PREFERRED Compensation Disclosure (continued) Pursuant to its contract with Preferred, PGCS receives a claims administration fee for those accounts which PGCS services of up to 5%of the non-property portion of the premiums you pay to Preferred. Preferred also utilizes wholesale insurance brokers, some of which (such as Peachtree Special Risk Brokers and MacDuff Underwriters) are owned by Brown & Brown, Inc., for the placement of Preferred's insurance policies,and for individual risk placements for some Preferred members (excess and surplus lines, professional liability coverage, etc.). The wholesale insurance broker may provide the following services: • Risk Placement • Coverage review • Claims Liaison with Insurance Company • Policy Review • Current Market Intelligence The wholesale insurance broker's compensation is derived from your premium, and is largely dictated by the insurance company. It typically ranges between 10% and 17% of the premiums you pay to Preferred for your coverage. Some wholesale brokers used by Brown&Brown to place your coverage may also act as Managing General Agents for various insurance companies, and may be compensated directly by those insurance companies for their services in placing and maintaining coverage with those particular companies. The wholesale insurance brokerage utilized in the placement of property insurance was Peachtree Special Risk Brokers, which is a company owned by Brown & Brown Inc. Furthermore, any professional liability coverage afforded by the package of insurance you purchased was acquired through Apex Insurance Services,which is also a company affiliated with Brown&Brown Inc. MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH NOTICE OF CARRIER FINANCIAL STATUS Risk Management Associates,Inc. dba Public Risk Insurance Agency, and its parent company,Brown & Brown, Inc. (collectively "Brown & Brown") do not certify, warrant or guarantee the financial soundness or stability of any insurance carrier or alternative risk transfer or pooling entity. We endeavored to place your coverage with an insurance carrier with an A.M. Best Company financial rating of"A-" or better.* While Brown & Brown cannot certify, warrant or guarantee the financial soundness or stability of any insurance carrier or alternative risk transfer or pooling entity or otherwise predict whether the financial condition of any such entity might improve or deteriorate, we are hereby providing you with notice and disclosure of financial condition so that you can make an informed decision regarding the placement of coverage. Accordingly, with receipt of this notice you acknowledge the following with regard to the placement and any subsequent renewal of the coverage indicated below: • Brown & Brown attempted to present other options for your insurance placement, including quotations with insurance carriers holding an "A-" or better rating from A.M. Best Company, but we were unable to secure such a quote/you have elected to decline these options. • Coverage is being placed through Preferred Governmental Insurance Trust ("Preferred"), which is as a Florida local government self-insurance fund established pursuant to Section 624.4622,Florida Statutes,as such Preferred is not rated by the A.M. Best Company. • Preferred is not subject to the protections afforded by any state guaranty fund or association. • The financial condition of insurance companies and other coverage providers including local government self-insurance funds like Preferred may change rapidly and those such changes are beyond the control of Brown&Brown. • You should review the financial and membership information from Preferred and agree to abide by the conditions of membership established by Preferred. • You should consider the information provided, including the Preferred coverage quote and coverage placement and review it with your accountants,legal counsel and advisors. Named Insured: Village of North Palm Beach Policy Number: WC FL10502503 13-04 Policy Period: 10/1/2013—10/1/2014 Date of Notice: 7/19/2013 * A.M. Best Rating Guide: Rating for Stability: A++to D=Highest to lowest rating Rating for Assets/Surplus: 15 to 1 -Largest to smallest rating MPRIA PUBLIC RISK NSURANCE AGENCY VILLAGE OF NORTH PALM BEACH Guide to Bests Ratings Best Category Rating De=n Secure A++ Superior Secure A+ Superior Secure A Excellent Secure A- Excellent Secure B++ Very Good Secure B+ Very Good Vulnerable B Fair Vulnerable B- Fair Vulnerable C++ Marginal Vulnerable C+ Marginal Vulnerable C Weak Vulnerable C- Weak Vulnerable D Poor Vulnerable E Under Regulatory Supervision Vulnerable F In Liquidation Vulnerable S Rating Suspended Not Rated NR-1 Insufficient Data Not Rated NR-2 Insufficient Size and/or operating experience Not Rated NR-3 Rating Procedure Inapplicable Not Rated NR-4 Company Request Not Rated NR-5 Not Formally Followed Rating Modifier a Under Review Rating Modifier q Qualified Affiliation Code g Group Affiliation Code p Pooled Affiliation Code r Reinsured Guide to Best's Financial Size Categories Reflects size of I Less than$1,000,000 insurance company II $1,000,000-$2,000,000 based on their III $2,000,000-$5,000,000 capital,surplus IV $5,000,000-$10,000,000 and conditional V $10,000,000-$25,000,000 reserve funds in VI $25,000,000-$50,000,000 U.S.dollars. VII $50,000,000-$100,000,000 VIII $100,000,000-$250,000,000 IX $250,000,000-$500,000,000 X $500,000,000-$750,000,000 XI $750,000,000-$1,000,000,000 XII $1,000,000,000-$1,250,000,000 XIII $1,250,000,000-$1,500,000,000 XIV $1,500,000,000-$2,000,000,000 XV Greater than$2,000,000,000 Public Risk Insurance Agency always strives to place your coverage with highly secure insurance companies.We cannot, however,guarantee the financial stability of any carrier. MPRIA� PUBLIC RISK NSURANCE AGENCY