Loading...
Agr 2003 Insurance Broker '~lE COPY' This agreement is made and entered into this 1 st day of April 2003, by and between the City of Salina, Kansas, hereinafter referred to as the "CITY" and Insurors & Investors, Inc., hereinafter referred to as "1&1." INSURANCE BROKER AGREEMENT 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 1&1; and WHEREAS, 1&1 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 Deputy City Manager. 1&1 shall report to Deputy City Manager. The City reserves the right to request or approve changes in 1&1 personnel assigned to the account. SECTION II. 1&1 DUTIES The duljes and services of 1&1 shall include, but shall not be limited to: 1. Obtain renewal information from the City or the City's Risk Management Consultant. 2. Formulate a marketing strategy at the direction of the City. 3. Produce comprehensive submissions, specialized by line of coverage, including completion of insurance applications with the assistance and approval of the City. 4. Formally present these submissions to each selected market. Negotiate on the City's behalf with the City's insurance company(s) and keep the City informed of significant developments in those negotiations which are likely to have a bearing on the City's insurance program. 5. Provide the city with pricing and coverage information. 6. Place coverage as instructed by the City. 7. Prepare and distribute binders of insurance to the City prior to policy inception. 8. Prepare and distribute automobile insurance cards prior to policy inception. 9. Issue certificates of insurance, as requested by the City. 10. Prepare and deliver premium invoices to the City. 11. Process endorsement requests from the City. 12. Review the accuracy of all policies to the City within 15 days of receipt of the policies from insurer. 13. Distribute four copies of the policies to the City within 30 days of receipt of the policies from insurer. 14. Prepare for and attend meetings, as requested by the City. 15. Provide technical assistance regarding coverage questions, risk financing and loss control programs or techniques as requested by the City. 16. Provide an annual overview of the financial condition of each insurer 1&1 has placed City business with. 17. Provide an annual policy summary in city's format, including basic limits, deductibles, policy numbers, insurer and premiums by July 15. 18. By February 15, 1&1 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), the forecast of market conditions, estimated premiums for future budgeting purposes. 19. 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. 20. Will field inquiries from claimants and follow-up with carrier until the claim has closed. 21. Provide a monthly status report of claims on or near the 15th of each month. This report will be submitted to the Risk Management Technician for review. Respond to any questions or concerns this report may generate. 22. Measure buildings, take photos and calculate replacement cost values of city buildings. 23. Work with the City to seek out qualified 3rd party administrators for any S.I.R. type risk transfer programs. SECTION III. COMPENSATION The CITY agrees to pay 1&1 a fee of $21.000 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 1&1 for the City during the term of this contract, 1&1 will disclose commissions received by 1&1 and will credit such commissions against 1&l's compensation. Any excess commissions will be carried forward and applied against future compensation for any subsequent years of this contract. SECTION IV. INSURANCE 1&1 agrees to maintain Professional Liability insurance in an amount of no less than $500,000 and, upon request, provide the CITY with certification thereof. SECTION V. INDEPENDENT CONTRACTOR 1&1 is an independent contractor and as such is not an employee of the CITY. 1&1 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 1&1 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 1&1 warrants that it has not employed or retained any company or person, other than a bona fide employee working for 1&1, 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. 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 1 sl day of April 2003 to March 31,2004. Nothwithstanding 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 1&1, 1&1 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 1&1 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: INSURORS & INVESTORS, INC. By: Date: CITY OF SALINA, KANSAS By: Date: Rev. 2/03