Insurance Broker Agreement (2009)
INSURANCE BROKER AGREEMENT
This agreement is made and entered into this 1 sl day of April 2009, 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. SIG will be responsible for the following areas of risk:
o Property /Inland Marine
o Commercial General Liability
o Public Official Liability
o Employment Practices Liability
o Law Enforcement Liability
o Automobile Liability / Physical Damage
o Umbrella/Excess Liability (if any)
o Crime & Individual Bonds
o Underground Storage Tank Liability (if any)
o Other insurance that may be necessary; 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 .1. CONTRACTADMINISTRA TION
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 U. 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. Give CITY access to necessary insurance companies via direct contract or by use
of a secondary broker.
4. Produce comprehensive submissions including completion of insurance
applications with the assistance and approval of the CITY. SIG represents the
CITY, not the insurance company.
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5. 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.
6. Provide the CITY with pricing and coverage information as provided by the carriers.
7. Place/bind insurance coverage as instructed by the CITY.
8. Prepare and distribute binders, auto ID cards, certificates and EPI's prior to the
effective date of the commercial package policy.
9. Prepare and distribute detailed premium invoices to the CITY.
10. Process endorsement requests from the CITY.
11. Review the accuracy of all the commercial package policies for the CITY within 30
days of receipt of such policy from the carrier.
12. Distribute three copies of the policies to the CITY within 30 days of receipt of the
policies from the carrier.
13. Prepare for and attend meetings, as requested by the CITY.
14. Analyze factors that are driving CITY'S cost of risk.
15. Provide technical assistance regarding coverage questions, risk financing and loss
control programs or techniques as requested by the CITY.
16. Work with CITY to develop, recommend, negotiate and implement cost-effective
insurance and/or risk financing programs.
17. Provide financial information for each insurer providing coverage to the CITY.
18. Provide an annual policy summary in CITY's format, including basic limits,
deductibles, policy numbers, insurer and premiums by June 1.
19. By February 15, 2010, 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.
20. 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.
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21. Field inquiries from claimants and follow-up with carrier until the claim has closed.
22. 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.
23. 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 $28.325 for all service's performed during the
duration of this agreement. SIG shall bill quarterly and 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 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.
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SECTION VIII. PROHIBITION AGAINST CONTINGENT FEES
SIG warrants that it has Flot 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, cornmission, 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.
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.
S.ECTION X. TITLES. SUBHEADS AND CAPITALIZATION
Title and subheadings as used herein are provided only as a matter of convenience and
shall have no legal bearing on the interpretation of any provision of this Agreement.
Some terms are capitalized throughout this Agreement but the use of or failure to use
capitals shall have no legal bearing on the interpretation of such terms.
SECTION XI. SEVERABILITY CLAUSE
Should any provision of this Agreement be determined to be void, invalid, unenforceable
or illegal for whatever reason, such provision(s) shall be null and void; provided,
however, that the remaining provisions of this Agreement shall be unaffected thereby
and shall continue to be valid and enforceable.
SECTION XII. DURATION.OF CONTRACT & TERMINATION
This contract shall be in force and effect from and after the 1 sl day of April 2009 to
March 31,2010. 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 terrnination 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
* 100% 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
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effect the day and year first written above.
ACCEPTED AND AGREED:
SUNFLOWER INSURANCE GROUP, INC.
By:A~ ~.
'"
Date:
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City Manager
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Date: 11111Y1
Rev. 3/31/09
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