RES 1992-03 - 0000335727
RESOLUTION NO. 3 - 1992
A RESOLUTION APPROVING AN AGENTIS INSURANCE
SERVICE AGREEMENT WITH HADTRATH & ASSOCIATES,
INC.
WHEREAS, it is the policy of the City of Fridley to protect the
employees and assets of the City by instituting appropriate risk
management procedures and by procuring adequate insurance coverage;
and
WHEREAS, the services of an insurance agent provide appropriate
risk management services and insurance coverage for the lowest
available cost;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Fridley that Hadtrath & Associates, Inc. be designated agent of
record for the City of Fridley.
BE IT FURTHER RESOLVED that the Mayor the City Manager be
authorized to execute the attached Agent's Insurance Service
Agreement.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
6TH DAY OF JANUARY, 1992.
ATTEST:
ad0-(a---
SHIRLEY HAAPA - CITY CLERK
wJ - _
WILLIAM J. N - MAYOR
rAt
CPi'Y of BRMXW
' AGENT'S INSURANCE SERVICE AGREEMEM
This agreement made January 6, 1992, between the City of Fridley Insured,
hereinafter referred to as "CLIENT," and Hadtrath & Associates, Inc., Insurance
Agent, Broker, and Risk Management Advisor, hereinafter referred to as "AGENT."
"CLIENT" agrees to engage the services of "AGENT" as Insurance Servicing Agent
of Record with respect to all Insurance of "CLIENT" within the scope of
Professional Liability, Fire, Workers' Compensation, Casualty and Marine
Insurance, and Fidelity and Surety Bonds, hereinafter referred to collectively
as "Insurance," subject to the following items and conditions:
I. Term of Agreement
This agreement shall take effect on January 1, 1992 and shall continue and remain
in effect for a period of three (3) years, unless it is terminated prior to the
31st day of December, 1994, by either party giving the other sixty (60) days
prior written notice of termination.
II. Agency Representation
It is agreed that, with respect to all services to be performed under this
' agreement, "AGENT" shall at all times and in all circumstances be the Insurance
representative of "CLIENT" and shall use its best efforts to ascertain and
understand the risks and the Insurance needs of "CLIENT" and, in all such
matters, to act as though "CLIENTS" interest were its own.
"AGENT" shall also act in the capacity of Insurance Broker of Insurance Agent
to negotiate, place, service and receive commission (if any) on all or part of
the Insurance purchased by "CLIENT" unless use of another agent or broker is
authorized by "CLIENT." "AGENT" shall be under the duty to fully disclose to
personnel authorized by "CLIENT" any and all commissions, received or payable
and any possible conflict of interest relating to "AGENT'S" representation of
any Insurance underwriter with which Insurance is to be placed.
"CLIENT" understands that "AGENT" shall act in the dual capacity of Risk
Management Advisor and Insurance Agent.
It is further agreed that the total commpensation of "AGENT" as provided in
Article IV hereof, shall not be affected by such dual capacity.
III. Services
"AGENT" agrees to perform during the period of this agreement, in a competent
and professional manner, the following services for the anticipated or maximum
' compensation specified in Article IV of this agreement.
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A. Exposure Survey:
' Establish a procedure for evaluating all exposures to insurable losses which are
involved in the operations of "CLIENT" and provide an exposure list updated
annually. Particular attention shall be paid to those exposures which could
result in a catastrophic loss. Work with "CLIENT'S" staff and advisors to
explore alternative means of dealing with loss exposures, such as the elimination
or reduction of risk, complete or partial reduction of risk through deductibles
or self- insurance schemes, and alternative Insurance underwriters and rating
plans which minimize the present, after -tax value of cash outflow.
B. Specifications:
Work with "CLIENT'S" staff and advisors to draft coverage specifications for
insurance as shall be purchased by "CLIENT." Assist in annually filing the
statement of insurable values.
C. Ouotes and RecomTedations•
obtain proposals and quotes from qualified underwriters on a net of commission
basis if available, for improving Insurance coverage, and work with the
"CLIENT'S" staff and advisors to study and impartially evaluate all Insurance
proposals received, in terms of the coverage provided, financial standing and
services of the Underwriter and ultimate net cost to "CLIENT," and provide an
Insurance policy inventory and summary, updated annually.
D. Negotiate, Review Proposals and Claims:
Conduct on behalf of the "CLIENT" all negotiations with all Insurance
representatives and companies relating to issuance and maintenance of policies,
audits, premium reports and all similar matters customarily handled by Insurance
Agents, Brokers, and Advisors, including the obligation to make diligent efforts
to continue any terminated policies. If "AGENT" is unable to obtain any
insurance coverage, "CLIENT" shall obtain the coverage from another source.
"CLIENT'S" staff and advisors shall be kept fully informed of all significant
changes and shall be notified on any new Insurance programs prior to affecting
any change. Audited and approved policies, endorsements and invoices shall be
delivered to "CLIENT" with respect to all Insured losses. "AGENT" shall semi-
annually review liability and worker's compensation reserves listed by Insurance
carrier and rating bureau, and offer recomTendation to "CLIENT."
E. Loss Control:
"AGENT" shall serve as Advisor along with insurance company personnel with
respect to Loss Control and Safety Engineering Programs. Services include
inspection of plants and properties; pre - construction review of plans and
specifications for new buildings and extensive alterations. This is in addition
to and does not include services provided by employees or persons engaged by the
Insurance Company.
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on or before the first day of November, "AGE[F11' shall submit an annual report
of the work performed during the year, the results achieved, premiums paid and
losses incurred on insured risks, a summary of the current insurance program and
any outstanding unfulfilled recommendations for risk coverage or cost
improvement.
F. Communications:
No change phone accessibility, written confirmation and follow -up of
coimmmicating with "CLIENT" and Underwriters. Assist "CLIENT'S" staff and
advisors in the application and use of Risk Management procedures and information
systems.
G. Other Services:
Provide all of the services on attached list of "SERVICES TO BE PROVIDED By
AGENCY" incorporated by reference into this agreement.
IV. Total Compensation
A. Amount
The total compensation of "AGENT" for services performed under this agreement
for the first year shall be a maximum of $3,200.00, for the second year shall
be a maximum of $3,200.00, and for the third year shall be a maximum of
$3,200.00. Insurance invoices to "CLIENT" shall include a breakdown of policy
premium by classification of budget allocation purposes, and a statement of fees
payable. Premiums shall be remitted as invoiced.
B. Definition
"Total Compensation" for the purpose of this agreement shall be deemed to be the
SLIM of:
All compensation received by "AGENT" from any Insurance Underwriter for Insurance
required by "CLIENT" including both direct and contingent commissions; and all
compensation or reimbursement received by "AGENT" from "CLIENT." With respect
to any Insurance written for a period of more than one year, only a yearly
prorated credit shall be included in the calculation of "AGENT'S" compensation
during each annual period said Insurance is in effect.
If permitted by Insurance companies, only net premium charges shall be made in
every Insurance placement irrespective of the level of compensation incurred.
C. Excess
If payments received by " AGENT" exceed the total compensation, "CLIENT" shall
request "AGENT" to perform additional Risk Management services, other than the
placement of Insurance, equal in value to such excess. If, however, "CLIENT"
does not request such additional services, then "AGENT" shall remit such excess
to "CLIENT," and this total compensation provision is hereby incorporated in any
' Insurance placed by "AGENT" on behalf of "CLIENT."
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D. Invoice
' For the service specified "AGENT" shall be entitled to total compensation as
specified above and as billed. The invoice provided by "AGENT" shall contain
an itemized statement of services provided, time expended, and persons providing
said service.
" CLIENT" agrees to make available to "AGENT" all necessary financial and
operating data essential to the performance of services described in Article III.
"CLIENT" shall provide access to its premises and properties and such written
authorization as shall be required by rating bureaus, Insurance companies or
similar organizations.
"CLIENT" agrees to appoint "AGENT" Agent of Record or Broker of Record for all
Insurance Companies marketing products through the Agency System.
VI. Agreement
This agreement shall be binding upon the successors and assigns of the parties
hereto.
Executed in Minnesota this 6th day of January, 1992.
IWITNESS:
WITNESS:
C
FADIRATH & ASSOCIATES, INC.
by /s/ Facsimile
i4 I •}YY • y;�l•. �M
by /s/ Facsimile
William J. Nee, Mayor
by /s/ Facsimile
William W. Burns, City Manager
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HADIRATH & ASSOCIATES INC.
will provide the following services for the compensation specified in Section
IV, A. of the Agent's Insurance Service Agreement
1. Prepare insurance coverage specifications 120 days prior to the renewal
date.
2.
Review policies when issued for compliance with specifications within
thirty (30) days of policy issue.
3.
Negotiate and place all property - casualty insurance lines required with
uniform anniversary dates.
4.
Provide information in writing on relevant changes in the insurance market
with recommendations for upgrading the existing insurance program, if
applicable.
5.
Assist in developing comprehensive insurance coverages.
6.
Provide an insurance policy inventory and a cumulative five -year premium
and loss summary within thirty (30) days of renewal date.
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7.
Provide premium allocation distributed by insured departments or locations
within thirty (30) days of renewal.
S.
Provide a complete accounting of all compensation earned (direct and
contingent) on this account by December 31 of each year.
9.
Provide a loss exposure list with appropriate classifications, updated
annually within thirty (30) days of renewal date.
10.
Assist in claims control and loss adjustment.
11. Assist in minimizing premiums by reviewing and auditing rate schedules and
formulas, and review claims reserves semi - annually before unit loss reports
are filed.
12. Review insurer audits and premium calculations within thirty (30) days of
receipt of notice.
13. Assist in loss prevention engineering and loss control programs.
14. Provide a schedule of property values for insurance purposes 120 days prior
to the renewal date.
15. Provide property appraisals when needed.
16. File updated property values annually with the insurer or the Insurance
' Services Office to waive application of coinsurance.
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17.
Attend insured's prevention and loss control meetings when neoessary.
'
is.
Provide written confirmation and follow -up on all communications with the
insured and insurers.
19.
submit premium invoices monthly for worker's campensation and professional
liability insurance and quarterly for other coverages.
20.
Adjust coverages and premiums with ten (10) days of report of changes by
the insured.
21.
Provide estimates of future premiums for budget proposals sixty (60) days
prior to renewal.
22.
Obtain Motor Vehicle Driving Records within seven (7) days of request.
23.
Review lease agreements and contracts within fifteen (15) days of being
received or notified of.
24.
Provide coverage and procedure seminars for "CLIENT'S" staff within thirty
(30) days of renewal date.
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