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Insurance Broker Agreement (2008) INSURANCE BROKER AGREEMENT This agreement is made and entered into this 1 sl day of April 2008, by and between the City of Salina, Kansas, hereinafter referred to as the "CITY" and Sunflower Insurance Group, Inc. hereinafter referred to as "SIG." RECITALS: WHEREAS, insurance broker services are necessary to gain access to property and liability insurers;. and WHEREAS, the Governing Body of the CITY has determined that to help accomplish this, it is necessary to contract for services of SIG; and WHEREAS, SIG has offered their services in such a capacity and the parties hereto agree as follows: SECTION I. CONTRACT ADMINISTRATION On behalf of the CITY, the contract shall be administered by the City Manager. SIG shall report to the City Manager. The CITY reserves the right to request or approve changes in SIG personnel assigned to the account. SECTION II. SIG DUTIES' The duties and services of SIG shall include, but shall not be limited to: 1. Obtain insurance renewal information from the CITY or the CITY's Risk Management Consultant. 2. Work with the CITY and their Risk Management Consultant to formulate a marketing strategy for the renewal of the CITY's commercial insurance package. 3. Produce comprehensive submissions including completion of insurance applications with the assistance and approval of the CITY. 4. Formally present these submissions to each selected market as directed by the CITY or the CITY's Risk Management Consultant. Negotiate with the carriers on the CITY's behalf and keep the CITY informed of significant developments in those negotiations. 5. Provide the CITY with pricing and coverage information as provided by the carriers. 6. Place/bind insurance coverage as instructed by the CITY. 7. Prepare and distribute binders, auto 10 cards, certificates and EPI's prior to the effective date of the commercial package policy. 8. Prepare and distribute premium invoices to the CITY. 9. Process endorsement requests from the CITY. 10. Review the accuracy of all the commercial package policies for the CITY within 30 days of receipt of such policy from the carrier. 11. Distribute three copies of the policies to the CITY within 30 days of receipt of the policies from the carrier. 12. Prepare for and attend meetings, as requested by the CITY. 13. Provide technical assistance regarding coverage questions, risk financing and loss control programs or techniques as requested by the CITY. 14. Provide financial information for each insurer providing coverage to the CITY. 15. Provide an annual policy summary in CITY's format, including basic limits, deductibles, policy numbers; insurer and premiums by July 15. 16. By February 15, 2009, SIG will prepare a stewardship report which will include a complete list of insurance in force, an evaluation of the overall insurance program, including options or recommendations for change (and information regarding new coverages available), a forecast of market conditions, estimated future premiums for budgeting purposes. 17. Provide assistance in the documentation, presentation, negotiation and settlement of claims with insurance carriers on the CITY's behalf. All original pictures and documents provided by the CITY will be remitted to the appropriate insurance carrier. 18. Field inquiries from claimants and follow-up with carrier until the claim has closed. 19. Provide a monthly status report of claims on or near the 15th of each month. This report will be submitted to the Risk Management Specialist for review. Respond to any questions or concerns this report may generate. 20. Inform the CITY of upcoming seminars that SIG becomes aware of that may be beneficial to the CITY for loss control/risk management purposes. SECTION III. COMPENSATION The CITY agrees to pay SIG a fee of $27.500 for all services performed during the duration of this agreement. CITY shall pay within thirty (30) days of receipt of the billing. With respect to all insurance coverage placed by SIG for the CITY during the term of this contract, SIG will disclose commissions received by SIG and will credit such commissions against SIG's compensation. Any excess commissions will be carried forward and applied against future compensation for any subsequent years of this 2 contract. The parties recognize that under traditional insurance carrier/agency . contracts, additional compensation may be paid to the agency if certain growth and profitability targets are met. These payments are based on the performance of all customers placed with the insurance company by the agency and such payments are not related to the individual results of coverage placed on behalf of the CITY. These payments are not required to be disclosed nor credited to the CITY under this section. SECTION IV. INSURANCE SIG agrees to maintain Professional Liability insurance in an amount of no less than $1,000,000 and, upon request, provide the CITY with certification thereof. SECTION V. INDEPENDENT CONTRACTOR SIG is an independent contractor and as such is not an employee of the CITY. SIG is responsible for any and all federal, state and local taxes. SECTION VI. ASSIGNMENT Parties hereto agree that neither shall assign, sublet or transfer their interest in this contract without the written consent of the other and further agree that this contract binds parties, their successors, trustees, assignees and legal representatives. SECTION VII. EQUAL OPPORTUNITY LAWS SIG agrees to abide by all Federal, State and local Equal Employment Opportunity Laws, including filing an affirmative action plan with the City of Salina Human Relations Department. SECTioN VIII. PROHIBITION AGAINST CONTINGENT FEES SIG warrants that it has not employed or retained any company or person, other than a bona fide employee working for SIG, to solicit or secure this contract, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, or percentage, brokerage fee, gifts or any other consideration contingent upon or resulting from the award or making of this contract. Any intermediaries may be compensated by the insurance company out of paid insurance premiums. For breach or violation of this warranty, the CITY may terminate this contract without liability or may, at its discretion, deduct from the contract price or otherwise recover the full amount fee, commission, percentage brokerage fee, gift or contingent fee. 3 SECTION IX. APPLICABLE LAW This contract is entered into under the pursuant to, and is to be construed and enforceable in accordance with, the laws of the State of Kansas. SECTION X. DURATION OF CONTRACT This contract shall be in force and effect from and after the 151 day of April 2008 to March 31,2009. Notwithstanding the terms of this contract, the CITY will have the right to terminate at any time upon 60 days prior written notice. However, in the event such mid-term termination is made by the CITY other than as a result of a breach by SIG, SIG will be deemed to have earned the annual compensation for that year in accordance with the following schedule: * 50% at inception * 1 OO%.after four months SIG's obligation to render services under this Agreement will terminate simultaneously with the effective date of termination of this Agreement. In witness thereof, the parties hereto have caused this contract to be executed and in effect the day and year first written above. ACCEPTED AND AGREED: SUNFLOWER INSURANCE GROUP, INC. By:/?~/~k~ Date 3hsk~ / ., CITY OF SALINA, KANSAS BY:~tA~~~ y anager Date: "5 -.2~-I>$J' 4