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Home My WebLink About2015-04-15 PACKET 04.E. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 4/15/2015 . � PREPARED BY: City Clerk Caron Stransky ORIGINATING DEPARTMENT DEPARTMENT HEAD **************��************�*********�:�**��**:�* COUNCIL ACTION REQUEST Consider renewal of the package policy with a$50,000/$100,000/$1,000 deductible for the April 3, 2015 to April 3, 2016 policy period, with a premium totaling $217,065. STAFF RECOMMENDATION Approve the request. BUDGET IMPLICATIO SUPPORTING DOCUMENTS: BUDGETED AMOUNT ACTUAL AMOUNT � MEMO/LETTER: Memo from Caron Stransky 4/8/2015 ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Insurance Proposal from Wells Fargo Insurance. ADMINISTRATORS COMMENTS r f ; 1 �� . � . �� ity Administrator Date �*****************************************�**:�** � � ! . � .,. . �� i ` �� : fi ! j � � y 1 A[ °' To: From: Date: Subject: Ryan Schroeder, City Administrator Honorable Mayor and City Council Members Caron Stransky, City Clerk April 8, 2015 INSURANCE PACKAGE POLICY The City of Cottage Grove received the attached insurance proposal from our insurance agent, Wells Fargo Insurance Services, for the renewal of our package policy. The coverage types and premiums are broken down as follows: Package Policx The package policy for the period April 4, 2015 to April 4, 2016 includes property, mobile equipment, mobile, crime, open meeting law, automobiles, boiler and machinery, bonds, and general liability with a$50,000 per occurrence deductible, $100,000 policy period aggregate. Once we exceed the annua) aggregate of $100,000, a$1,000 per loss deductible would apply. The deductible for our Boiler and Machinery policy is $2,500 per occurrence. Overall, our premium decreased from $221,767 to $217,065 or by $4,702. The premium decrease is in the automobile and bond coverage types. Key factors that contribute to this decrease are total expenditures, number of households, number of sewer connections, the number of full-time employees, and the number of police officers. All remained flat except expenditures and the number of sewer connections. A copy of the insurance proposal detailing our package policy from the City's Insurance Agent, Bill Velin of Wells Fargo Insurance Services, is attached for your information. 2015 Budget For 2015, the City budgeted $237,700 in the Self-Insurance, 4352-General Liability expenditure account, for package policy coverage. Recommendation Staff recommends renewal of the package policy with a$50,000/$100,000/$1,000 deductible, for the Apri) 3, 2015 to April 3, 2016 policy period, with a premium totaling $217,065. /Attachment Insurance Proposal for � �; . � . � .y: .. Effective Date: Apri13, 2015 to April 3, 2016 Presented By: Bill Velin, CIC VVell�s Fargo Insurance Services U�A, Inc. q.00 Highway 169 South, 8th Floor ^ St. Louis Parlc, MN 554.26 952 •242 .310o Main �.�- ,�.. �� ,°��.�� r � � .�, � ' x � �� P � � a � �� <{ .: � ' — "�1 City of Cottage Grove ��V�� Service l°eam = • ° � - a e - - - - - - Name: Bill Velin, CIC _ � _.._ _ If you have a question about coverage provided Title: Sr. Sales Executive by your current insurance program or you need to Direct Dial # 952.242.3111 discuss present or future changes in protection, Email Address: BiII.Velin@wellsfargo.com please contact: ° m � � ° _. � ° � � ° �, - Name: Mar Gess If you need to make a change during the policy Title: Account Executive term or have questions about invoices or charges Direct Dial # 952.242.3152 on your account, please contact: Email Address: Mary.Gess@wellsfargo.com �.,M a W, � e Name: Wells Far o Insurance Claims Center If you need to report a claim, find out the status of a claim, or need Workers' Compensation First Direct Dial # 855.320.0583 Report of Injury forms, please contact: Email Address: WFInsuranceClaimsCenter@wellsfargo.com �� .. , _� _ � �� Main Number: 952.242.3100 � Toll Free Number: 1.800J35.3008 Office Hours 8:00 — 5:00 P.M. CST Monda - Friday This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other Provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Welis Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. Wells Fargo Insurance Services Confidential. OO 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ��-� � � . ., . - ..- - . Named Insured City of Cottage Grove Principal Address 12800 Ravine Parkway Cottage Grove, MN 55016 Effective Dates Apri) 3, 2015 to April 3, 2016 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Welis Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. � 2 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • I � � ' I 1 ' %�, ' ' �', ' � The Named Insured is amended to read as follows: City of Cottage Grove and City of Cottage Grove EDA And any other divisions, subsidiaries and persons and organizations under the control of the Named Insured, and any business entity incorporated or organized under the laws of the United States of ,4merica (including any state thereof), its territories or possessions while the person or organization named in Item 1 of the Declarations or the forenamed owns, during the policy period, an interest in such entity ofi more than fifty percent (50%). This clause is subject to the acquisition reporting provisions as outlined in the policy. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk i�formation � provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 3 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm � City of Cottage Grove Coveragres Schedule of Locations Location #1 7516 80 Street South Cottage Grove, MN 55016 Note: See Location Schedule On-line at (LMCIT) the League of MN Cities This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided 6y you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only _, your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. ' q, Wells Fargo Insurance Services Confidential. c0 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm •" • ,.- • - • - . - ..- , Carrier League of Minnesota Cities Insurance Trust ., : � $ 69,425,551 Actual Loss Sustained $ 50,000,000 Deductible(s) $ 50,000 100,000 Blanket Real and Personal Property, Property in Open, Scheduled & Unscheduled Equipment Blanket Business Income, Extra Expense, & Expediting Expense Terrorism Activity Annual Aggregate Limit Per Occurrence Annual Aggregate** **If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies *See Statement of Values on-line at the League of MN Cities Website for Specific Location Information. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 5 Wells Fargo Insurance Services Confidential. OO 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grorre Cover°a es ' , t . - • Scope of Coverage includes but is not lirni�esl to ■ Asbestos Clean up, Abatement and Removal -$250,000 Per Location ■ Loss of Revenue, Extra Expense and Expediting Expense - $5,000,000 Per Occurrence ■ Demolition and Debris Removal - Direct Physical Damage to Covered Property - 25% of Replacement Cost - No Direct Physical Damage to Covered Property -$50,000 Per Occurrence ■ Leasehold Interest - $500,000 Per Location � • Pollutant Cleanup & Removal -$250,000 Per Location - ■ Errors - $500,000 Per Occurrence ■ Rental Reimbursement - $25,000 Annual Aggregate ■ Arson Reward -$5,000 Per Fire Loss • Accounts Receivable - $500,000 Per Location ■ Valuable Papers and Records -$500,000 Per Location - ■ Extraordinary Expense - $250,000 Annual Aggregate ■ Utility Services - $100,000 Per Occurrence ■ Water and Supplemental Flood Coverage - $500,000 Per Occurrence/$500,000 Annual Aggregate This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only �_ ouur insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 6 Wells Fargo Insurance Services Confldential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 , mw\Proposal\City of Cottage Grove 2015-2016.docm I I � r � / � � " ; �� , , . /.. ,... ��tB'O �l11'�� C0�l91'1S° �� Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 250,000 Reimbursable Costs and Defense Costs Each Tank Release 250,000 Term Aggregate I� _. . � . Not Applicable This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 7 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove overa e� Boiler & Machinery/Equipment Breaicclown Carrier League of Minnesota Cities Insurance Trust Blanket Limit of Coverage $69,425,551 Per Occurrence Air Conditioners/Compressors -- Includes Production Machinery Deductible $ 2,500 Any One Accident This insurance proposal is a descriptive summary of the fnsurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditlons, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only , ouur insurance carrfer may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 8 Wells Fargo Insurance Services Confidential. O 2015 WeIIs Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • I .� i ^ I ' I: ,, .:' �% � �. � �..�,. ' Caro°ier League of Minnesota Cities Insurance Trust .' ... $ 4,183,548 717,268 �-. . $ 50,000 100,000 Scheduled Equipment Valued over $25,000 Unscheduled Equipment Valued under $25,000 Per Occurrence Annual Rggregate** ��. . �. .� �� . - . � ., -. �t.,= ■ Perils Insured Against - Special Form ■ Valuation - Replacement Cost ■ 100% Coinsurance IVote: **If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies. See Schedule of Equipment on-line at League of MN Cities This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 9 Wells Fargo Insurance Services Confidential. O Z015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ��o��-� �� Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 250,000 Deductible(s) $ 50,000 100,000 Blanket Covering Forgery or Alteration Money & Securities Per Occurrence Annual Aggregate** ** If the annual aggregate is exceeded, a$1,000 deductible per claim, per line oP coverage applies. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risl< informatlon provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only y ouur insurance carrler may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 10 Wells Fargo Insurance Servfces Confidentfal. OO 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm Gity of Cottage Grove Covee°a es ond Carrier League of Minnesota Cities Insurance Trust � $ 1,000,000 Faithful Performance Coverage Deductible(s) $ 50,000 Per Occurrence 1.00,000 Annual Aggregate** ** If the annual aggregate is exceeded, a$1,000 deductible per claim, per line of coverage applies. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only y ouur insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 11 Wells Fargo Insurance Services Confidential. OO Z015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Gottage Grove 0��-� �� General Liability Claims-I�lacle Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 2,000,000 1,500,000 2,000,000 50,000 1,500,000 1,000,000 2,000,000 2,000,000 100,000 Not Covered Retroactive Dates Products & Completed Operations Aggregate Each Occurrence Electro Magnetic Fields Aggregate Fire Legal Liability (Any One Fire) Limited Pollution Liability (Including Lead & Asbestos) Land Use or Development Litigation Failure to Supply - Annual Aggregate Mold Claim Limit - Annual Aggregate Outside Organization Claim Limit Medical and Related Expense Municipal Liability 4/03/87 Municipal Limited Pollution 9/12/88 Deductible(s) $ 50,000 100,000 Per Occurrence Annual Aggregate** ** If the General Annual Aggregate is exceeded, a$1,000 deductible applies per claim, per line of coverage Thls insurance proposal is a descriptive summary of the Insurance policies to be placed on your behalf based on risk Information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrler may modlfy the terms of your insurance policy. You are obliged to read your Insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 12 Wells Fargo Insurance Services Confldential. O 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grov� �v��-� �� .; Rating Basis Classification Premiurrr� Basis Expenditures $ 26,258,367 Land Use-Number of Households 11,946 Sewer Backup - Number of Sewer Connections 10,604 Employment - Number of Full Time Employees 152 Police Dept. - IVumber of Police Officers 40 . � .. . Classification Expiring Renewal % o� Chang� Premium Basis Premium Basis Expenditures $ 26,737,969 $ 26,258,367 -2% Land Use-Number of Households 11,946 11,946 Flat - Sewer Backup - Number of Sewer Connections 10,532 10,604 < 1% Employment - Number of Full Time Employees 152 152 Flat Police Dept. - Number of Police Officers 40 40 Flat This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only y ouur insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Welis Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 13 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ��V��-� �� , . .. Carrier League of Minnesota Cities Insurance Trust Limits of Liability Deductible Automobile Symbols 1 = Any Auto --. 2 = All Owned Autos 3= Owned Private Passenger Autos 4= Owned Autos Other Than Private Passenger 5= All Owned Autos Requiring No-Fault Coverage 6= Owned Autos Subject to Compulsory U.M. Law 7= Autos Specified on Schedule 8 = Hired Autos 9 = Non-Owned Autos *See Schedule of Vehicles on-line at League of N Cities This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, condltions, exclusions or other provisions of the Insurance contract between you and the insurance carrier. Only y ouur insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance pollcy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditlons. 14 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • . . • � ,- • ,; , � , , �.s • r ..- # 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. ■ Actual Cash Value Valuation ■ Replacement Cost Coverage Applies to the following Vehicles Year Description 1999 Ford Sewer Jet Vactor 2000 Ford LT7500 2000 Ford Ambulance 2003 Ster LT7501 w/Equip. 2003 Cyclone II Aerial Lad 2003 Ford E450 Ambulance 2012 Ford Medic Ambulance 2006 Freightliner M2 Dump 2006 Freightliner M2 Dump 2007 Ford Emergency 2009 Freightliner Dump Truck 2010 Freightliner Dump Truck 2010 Freightliner Dump Truck 2010 Chevy G4500 Ambulance 2013 Typhonne Rear Mount 2012 Ford Truck 2014 Chev Ambulance ♦� - �. 1133 9725 1727 7085 3126 4125 7804 8676 8677 4232 8349 5546 5545 5859 7297 6492 0605 �imit $203,420 $154,109 $110,000 $215,474 $740,000 $110,000 $150,000 $124,666 $123,613 $185,000 $162,989 $173,179 $168,262 $135,520 $454, 345 $83,492 $170,800 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 15 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ��,�� Group Self-Insured Aceident Plan for ifolunteers Carrier League of Minnesota Cities Insurance Trust Limits of Liability $ 100,000 Coverage A: Accidental Death Benefit 100,000 Coverage B: Permanent Impairment Benefit 400 Coverage C: Weekly Disability Benefit, Waiting Period : 3 Calendar Days, Maximum Period: 26 Weeks 1,000 Coverage D: Medical �enefit Maximum Amount 500,000 Total Limit of Liability Per Accident This insurance proposal Is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal Is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modlfy the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questlons you have on the policy's terms and conditions. 16 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm I / ' i • �I � � ,i3 �� i �� ,_ . �; . � _ ._, � �, _: Carrier League of Minnesota Cities Insurance Trust �� Part One: l�l/orkers' Cornpensation • Statutory Benefits for States Listed Below Par°t Two: Ernployer's Liabaiity ■ Applies in States Listed for Part One $ 100,000 Each Accident 500,000 Disease - Policy Limit 100,000 Disease - Each Employee Par°t Threeo Other States ■ All States Endorsement . -. . $ 10,000 Per Occurrence (Other Deductible Options Available) - _ .' • - . • _ . �. Economic Development Authority This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract betwee� you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 17 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove �o��r� �� Workers' Compensation (cont.) Rating Basis State Code Classification MN 5506 Street Construction MN 7520 Waterworks . - MN 7716 Firefighters (Not Volunteer) MN 7718 Firefighters (Volunteer) MN 7721 Police - Non Smoking MN 7722 Police Reserves MN 8227 City Shop & Yard MN 8810 Clerical Office Employees NOC MN 9060 Country Club-Golf Course MN 9102 Parks MN 9182 City Arena - Operations MN 9410 Municipal Employees MN 9411 Elected or Appointed Officials MN 7380 Ambulance Service 2013-14 Experience Mod. .98 2014-15 Experience Mod. .80 2015-16 Experience Mod. 1.08 $ Payroll Rate Pf 925,000 9.40 $ 375,000 4.79 355,000 6.91 27,089 167.53 3,680,000 3.71 65,000 2.54 250,000 4.75 1,900,000 .77 600,000 2.70 900,000 4.33 275,000 2.57 625,000 .80 36,400 .37 487,000 5.97 �e miurei 86,950 17,963 Z4,531 45,382 136,528 1,651 11,875 14,630 16,200 38,970 7,068 5,000 135 29,074 lWanual Premium 435,957 Experience Modification 1.08 34,877 Standard Premium 470,834 Deductible Greclit 12.5 (58,854) Premiurn D6scount (53,154) Estimated Annual Premiurn $358.�26 *Final estimated annual premium is based on a$10,000 deductible as per expiring. Note: Your Experience Modification increa�ecl 35�/0 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal Is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your Insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. i8 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\Clty of Cottage Grove 2015-2016.docm Cety of Cottage Grove Cover°a e� .. . .- Carrier° League of Minnesota Cities Insurance Trust � - .•i Reimbursement to a City Official for 100% of the Defense Costs Incurred by the City Official in Defending an Open Meeting Lawsuit �- . - - $ 50,000 Defense Costs Per Lawsuit, Per Official - Maximum 50,000 Agreement Term Aggregate Per Official - Maximum 3/9/94 Retroactive Date This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 19 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove e°e icem Surn ar Premium Sumrvaary _ . Notec 2014/2015 2015/2016 Coverage Premium Premium Property _ $ 79,036 $ 76,772 Mobile Property Included Included Automobile 24,125 25,591 Workers' Compensation 230,055 358,826 Boiler & Machinery 9,302 8,963 Crime Included Included Open Meeting Law Included Included Bonds 1,351 1,437 General Liability 107,953 104,302 Group Accident 1,233 1,088 Agency Fee 10,000 10,000 Total $ 463,055 $ 586,979 1. Expiring program does not contemplate increased renewal exposures. 2. Workers' Compensation and General Liability are subject to adjustment at audit. Payment Plan Direct Bill - Quarterly Installments Agency Fee - Agency Bill, Annual Pay This insurance proposal Is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal Is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only __, your insurance carrier may modify the terms of your insurance policy. You are obliged to read your Insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. Z� Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm / �� I .. � � ' • � I I ,> . :` :I' ' ,:! �, i�. I � i� ! - � ' � Certifieates of Insurance: Wells Fargo Insurance Services is committed to adhering to all regulations as set forth by our legislators. Therefore, when we are asked to provide a certificate of insurance, we will evidence coverage, limits, cancellations clause, etc. as provided exactly in your insurance policy. An insurance agent is prohibited from issuing a certificate that amends or alters the coverage provided by an insurance policy. Nor can an agent issue a certificate of insurance that provides for a notification of cancellation to another party that exceeds the notice of cancellation provided to the policyholder. Reporting ancl IVotice of Claim: The Insured shall, as a condition precedent to exercising their riyhts under various policy provisions, give the insurance carrier written notice (see specific _ policy lanquaqe) of any Claim and or circumstances that may result in a claim. Please note that Wells Fargo Insurance Services is not an insurance carrier and cannot render coverage opinions. However, Wells Fargo Insurance Services is available to provide guidance for reporting claims and/or circumstances that may result in a claim. In any event, it is important for you (the insured) to provide such notice prior to the expiration and/or termination of your insurance policy. Further, withholding and/or delaying notice of claims and/or potential claims, may adversely affect coverage (example: may result in a deciination of coverage); complicate the processing of your claim; and/or, void coverage terms. Defense and Settlement: In many cases, the Insurance Carrier shall have the right and duty to defend any Claim covered by your insurance policy. Further, many policies require that the Insured shall not settle any Claim, incur any Defense Costs, or otherwise assume any obligation of liability and/ or admit any liability with respect to any Claim without first obtaining the Insurance Carrier's written acknowledgement and consent to such agreement and/or assumption of liability. The terms of the insurance contract specify the Insured agrees to provide the Insurance Carrier with any/all information, assistance and cooperation which the Insurance Carrier reasonably requests and, agrees to do nothing that may prejudice the Insurance Carrier's defense or its potential rights of recovery. If you have any questions regarding the claim and/or settlement process, please contact your insurance representative at Wells Fargo Insurance Services (ph. 952,24Z.3100). Pre�Authorizeci Defense Attorneys (Panel Counsel)e In most cases, the Insurance Carrier shall select a Panel Counsel Firm to defend the Insured. In our experience, it is more effective to negotiate °choice of counsel" prior to binding a policy. Changing Carriers (if applicab9e): Prior to changing carriers, it is strongly recommended the Insured submit any/all un-reported claim(s) (see definition of the respective expiring policy for the definition of claim). In many cases, reporting claims and/or circumstances that may result in claims — after `moving' coverage to a new carrier, may result in a declination of coverage due to `failure to timely report claims and/or circumstances that may lead to a claim'. If you have any questions regarding the claim and/or settlement process, please contact your insurance representative at Wells Fargo Insurance Services (ph. 952.242.3100). This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, ame�d or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 21 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ,qpp�� Important Notice� (conte) Market Security: Wells Fargo Insurance Services' objective is to place customer risks with insurers that are financially sound. Wells Fargo Insurance Services authorizes insurers that it believes, at the time of placement, have the financial ability to fulfill their claim payment _ obligations to our customers. This recommendation is based on financial and other relevant information that is available at the time of placement. Wells Fargo Insurance Services has appointed a group of experienced insurance professionals to ` serve on a Market Security Committee. This Security Committee is responsible for establishing and utilizing guidelines for the selection of insurers and supporting Wells Fargo Insurance Services team members in their efforts to utilize financially sound insurers. In assessing the _ financial strength of insurers, the Security Committee relies upon the opinions and assessments of recognized rating agencies and other carrier review companies. Wells Fargo Insurance Services is not a guarantor of the solvency of insurers with which its agents place business. The goal is to use all reasonable measures to do business with financially healthy insurers. Change of Ownership Affects Insurance Coverage: Please be advised the coverages proposed herein, as with most insurance, are affected by transactions such as mergers; asset sale; stock sale; bankruptcy; material change in ownership; etc. In most cases, the insurance carrier(s) shall not allow polices to be assigned to new ownership; trustees; creditors; buyers; etc. without the carriers prior written approval. In fact, many carriers shall consider the current and/or active polices to cease being upon the effective date of aforementioned transactions. Thus, it is very important for you, our client, to consult with your Welis Fargo Insurance Service representative in regards to, and well in advance of such transactions. Wells Fargo Tnsurance Services has considerable experience in navigation of insurance throughout the transaction process. Further, Wells Fargo Insurance Services has fiduciary duty to maintain all information as confidential and privileged. Also, Wells Fargo Insurance Services is accustomed to execution oF non-disclosure agreements. In any event, by placing this coverage, you have selected Wells Fargo Insurance Services to represent you in these transactions. Be assured we stand ready to timely and effectively assist with written evaluations of insurance, and many other insurance consulting services—all oP these considered important elements of any business transaction. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other prov(sions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representat(ve of any questions you have on the policy's terms and conditions. 22 Welis Fargo Insurance Services Confidential. OO 2015 Welis Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • � • .'I ' I �,/ /',' ,I'�i � . - � � " �. - Insurance is a highly regulated, competitive industry that fuels the US economy and protects individuals and commercial entities from losses. There is nothing more important to our industry and to Wells Fargo Insurance Services than maintaining the trust of our customers and conducting business with the utmost integrity. We believe that our leadership role on disclosure should tie directly to our core values. Among these we state that we: ■ Value and reward open, honest, two-way communication ■ Do what is right for the customer ■ Talk and act with the customer in mind � Exceed our customers' expectations Wells Fargo Insurance Services is proactively providing customers with complete transparency on standard and contingent commission income. Wells Fargo Insurance - Services is taking a leadership role using the new IVational Association of Insurance Commissioners (NAIC) model act. We receive compensation from the insurance companies we represent when placing your insurance. Our compensation is usually a percentage of the premium you pay for your insurance policy or bond (a °commission"), which is paid to us by the insurance companies for placing and servicing your insurance or bonds with them. We also may receive fees agreed to in writing from our customers. Intermediaries, such as wholesale brokers, may sometimes be used to access certain insurance companies. Such intermediaries will allocate a portion of the compensation from the insurance companies to us and may, in some cases, be an affiliated company. We receive payments from insurance companies to defray the cost of services provided for them, including advertising, training, certain employee compensation, and other expenses. We may earn interest on premiums received from you and forwarded to the insurance companies through our bank accounts. Some of the insurance companies we represent may pay us additional commissions, sometimes referred to as contingent or bonus commissions, which may be based on the total volume of business we sell for them, and/or the growth rate of that business, retention rate, claims loss ratio, or other factors considering our entire book of business with an insurance company for a designated period of time. The amount of premium you pay for a policy may change over the term of the policy. For example, your endorsement requests will affect the premium. Should the premium for any of your policies change, the amount of compensation paid to us by the company would change accordingly. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 23 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm u City of Cottage Grove ,4ppen ix Coverage Options �►cknowledgernent Client Authoriaation to BincL Coverage Pagelof2 I hereby acknowledge that the following coverages have been offered and recommended to me. I have the authority to accept or reject these recommended coverage options which have been explained to me and are understood by me. However, after careful consideration, I have decided NOT to accept those coverages indicated by marking ��No". Additional coverages for which I would like to receive a premium quotation are l indicated by marking "Quote". Additional coverages which I have decided to accept and purchase are indicated by marking "Yes". Please mark ��Yes", "No", or ��Quote" for each coverage option listed. ❑ Yes ❑ No ❑ Quote - Higher Limits Are Available $TBD ❑ Yes ❑ No ❑ Quote - Flood Coverage is Available $TBD ' ❑ Yes ❑ No ❑ Quote - Optional Deductible of $25,000 Credit on your Workers' Compensation, the Credit would be 20% verses 12.5% on the $10,000 you currently have. This insurance proposal is a descriptive summary of the i�surance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, excluslons or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. z4 Wells Fargo Insurance Services Confidential. �O 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • � • . . -� . � -� � �. r �-. > ,� , ; r ,, •��: ..�- •.;.� �- �� =��.-� - •. • ' �? . ' ' .r. r • .• �c -. � �, TOa Wells Fargo Insurance Services USA, Inc. 400 Highway 169 South, 8 Floor St. Louis Park, MN 55426 . . ,�� . Please Checle One: � � - � : - � .. . .� .� ; �� . . . , � . - . . � . � � ,. .; , �,� .� . � . . . .� . _� ;,; ■ • - - . . �. . . . � . . - . . ::- . - . - .; .: �. -. . . �.�� .��. , . .- . . , . - .� . . . .. - .� .�� . � .� � ., � . . � . . � � `.,. . _ , _, �-. - � Please Provicle Inforrnatiors on: ❑ Persona9 Irosurance ❑ Grougs I�sur�nce ❑ Fananeial Planning ❑ Othe�° This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposai is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Welis Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 25 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ,qpp�� ;� A note about "Claims Made'° polocies Some of the quotes provided in this proposal may be offered on a Claims �lade or a Claims Made and Reported basis. A brief description of Claims Made and Claims Made and Reported forms is included below for your reference. Claims Made l. Under a claims-made form, the policy that is in effect at the time that a claim is made against you is the policy that will respond to that claim, regardless of when the wrongful act occurred (subject to any retroactive date). This differs from an oecurrence form, which responds to claims resulting from accidents, incidents or injuries occurring while the policy was in effect, regardless of when a claim for damages is brought. 2. If your policy has a retroactive date, the wrongful act must have occurred after the retroactive date in order for the policy to respond to a claim. You may have the right to purchase an extended reporting period (ERP) endorsement if the policy is cancelled or not renewed. This endorsement will provide a period of time to continue to report claims that arise resulting from wrongful acts that occurred after any retroactive date and before the end of your policy period. The ERP (often called "tail" coverage) must be requested within a specific time frame and the additional premium, which typically is required prior to the tail period begins, is fully earned. -, Claims Made and Reported A type of claims made policy in which a claim must be both made against the insured and reported to the insurer during the policy period for coverage to apply.* *Source: IRMI Glossary of Insurance and Risk Management Terms. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk Information provided by you. It should be used for reference purposes only. Thls proposal is not intended to represent, supersede, amend or alter the terms, condltions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only y ouur insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 26 Wells Fargo Insurance Servlces Confidential. O 2015 Wells Fargo Insurance Services. AII rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove ppen ix .. . � .. . ■ Assist with risk identification and evaluation ■ Ongoing communications and contact with client regarding risk avoidance, retention and insurance ■ Preparation and communication of marketing results, evaluations, recommendations, and ratings ■ Assistance in developing loss reporting and claims procedures � .. , , ,. . ., ■ Overall, day-to-day activities associated with handling the account induding: ■ Issuing binders ■ Issuing Certificates of Insurance and auto ID cards ■ Working with carrier to maintain policies, including issuance, endorsements, and renewals ■ Accounting and billing transactions ■ Maintaining policy & underwriting files ■ Preparation of coverage summaries and schedules of insurance � Update coverages and prepare for renewal ■ Input and maintenance of complete insurance program, including policy coverages, limits, locations, premiums, etc. ■ Input and maintenance of a fleet vehicle database - ■ Review and verification of final audits Data Nlanagernent � ■ Policy information and exposure bases maintained ■ Standard loss runs are available ■ Certificates of Insurance program maintained Claims Mlanagement ■ Review and reporting of claims under proper coverage to proper carrier ■ Functioning as an interface between the carrier and management, and monitoring and reviewing claims activity and reserves ■ Development of a cost containment strategy ■ Acting as a liaison to assist and expedite loss handling as necessary ■ Assistance in developing loss reporting and claims procedures ■ Monitoring and interpreting loss runs This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 27 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove pp�� %� �1�� - f�� 1'VS��S goal is to provide you and your drivers wlth the information necessary to prevent D.O.T. issues and enhance your overa{I vehicle safety program. We provide up to date informatdon on State and Federal D.O.T, regulations in our monthiy newsletter so you are always current with D.O,T. changes. ��'�� !��f��'�9��u��°� � �� L��E��i�(�6�� ;�� 4flOGa� 6��e�s A Drov��° Qa��96ffi�at6�� 6�e� m All drivers of comm�rcial motor vehicles as defined in the Federal Motor Carrier Safe�y Regulations Part 390,5. Commercial motor vehicle means: The vehicle has a gross vehlcle weight rating or gross combinatian weight rafing of 4,536 or more kilograms (10,001 or more pounds); or The vehicle ls designed to transport more than � passengers (including the driver) for compensation; or '�he vehicle is designed to transport more than '±5 passengers, including the driver, and is not used to transpor� passengers for compensation. The vehicle Is used in the transportation of hazardous materiais in a quantity requiring placarding under regulations issued by the Secretary under the Hazardous Materials 7ransporfafion Act. ' �E'9@f�9° �09��@'��t9�6'B F6�� 0��d7g�0'�� P��9Q��: Initial client consults and flle audit. We work with you to insure file compliance within the first �� of service. Customized database and forms. Training / guidance for location file managers, or administrators. Company specific new hire packets. Pacl<ets mailed to locations throughout fihe U.S. & Canada. Monthly Driver Audit Reports and Active Driver Reports mailed Eo all locations. Complete regulatory consultatlon services. Locations may utilize our local or 800 number for customer service. quality review of all documents sent to ��e� �'��¢�a ��sn ��ee� Sa�e�y �ola�ue� �m�a�a��o ��ffi �� .��,�� Initial month fee is $10 per driver to aliow for individual file audit and D.O.T. forms, (Volume discounts are appiicable.) $6.00 per driver/ per month there after ($100 minimum per monfih) For more informatfon on ��et Tearoro S�rwBce� �a�uve� Q�aaBu�i�a�6�aa Ma�oages��rak ��r��e� or any oP the other services we offer, please call Fleet Team Services at 952-242-3028 or ].-800-735-30�8. �'0��'�'eam Se�°ar6c�� Welis Fargo Insurance Services 400 Highway 169 South, 8th Floor St. Louis Park, MN 55426 Frorre stagecoaehes to d�ufiCe 4andem trate/cs we haue iPte Icttowiedge anrd tooLs Fo Fceep your drivers safe �rzd om ihe raad This insurance proposai is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provlded by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. Z$ Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm • �: - , I , �. . . I � • �:, J' / / '.,r , ,� Wells Fargo Insurarace Se�°vices � _ � � � .� � ��3��'�� 1�� i��v�;r�� a�� ,��€�r ��€��; E-S'e�°as�ce� Cea #afie�te 1l�ianage�e�a� Issue your own certificates in the same amount of time it takes to submit a request to your broker. Store copies online and "go green." Claims li�ianageaafleyat Report claims and monitor history. Fleet Maaaagerr�eaat Manage changes to your fleet of autos. Print your own auto ID cards. Poliey Y&eqnaests and Changes Add, change, or delete locations, equipment, and other e�posures. 1NIy Accouaat'�eam A customized directory of all those who support your rislc management and insurance program. 1Viy Docuixanen#s Collaborate with your account team via convenient and secure upload and download of documents. ' � .,; CyberSure is availalale at 110 COSt tO �'OL1. �a�C� advantage of this time-saving tool. Contact Your aceount team today and request a CyberSurep login! Loss Prevention Your Safery Committee's one-stop shop for loss prevention resources. Country Gaflia��s Ensure compliance with International Insurance Regulations. Risis lO�Ianagemerat "'I'oollaox" Articles, checklists, and other resources customized for a wide array of industries. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, co�ditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 29 Wells Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm Cety of Cottage Grove �qpp�� ,� Notice Concerning Policy liolder Rights in an Inso{verocy Under tFae Minnesota Insurance Guaranty /Association Plan -� The financial strength of your insurer is one of the most important things for you to consider when determining from whom to purchase a Property or Liability insurance policy. It is your best assurance you will receive protection for which you purchased the policy. If your insurer becomes insolvent, you may have protection from the Minnesota Insurance Guaranty Association as described below but to the extent your policy is not protected by the Minnesota Insurance Guaranty Association of it exceeds the guaranty association's limits, you will only have the assets, if any, of the insolvent insurer to satisfy your claim. Residents of Minnesota who purchase Property and Casualty or Liability insurance from insurance companies licensed to do business in Minnesota are protected Sll�JECT TO - LIMITS AND EXCLUSIONS, in the event the insurer becomes insolvent. This protection is provided by the Minnesota Insurance Guaranty Association. Minnesota Insurance Guaranty Association 4640 West 77 Street, Suite 342 Edina, Minnesota 55435 (952)831-1908 The maximum amount the Minnesota Insurance Guaranty Association will pay in regard to a claim under all policies issued by the same insurer is limited to �300,000. This limit does not apply to Workers' Compensation insurance. Protection by the Guaranty Association is subject to other substantial limitations and exclusion. To be eligible for protection you must at the time of the claim under the policy arises be either a Minnesota resident, have your principal place of business in Minnesota, or if your principal place of business is in Wisconsin, Iowa, North or South Dakota, maintain substantial business in Minnesota. If your claim exceeds the Guaranty Association's limits, you may still recover a part or all of the amount from the proceeds from the liquidation of the insolvent insurer, if any exist. Funds to pay claims may not be immediately available. The Guaranty Association assesses insurers licensed to sell Property and Casualty or Liability insurance in Minnesota after the insolvency occurs. Claims are paid from the assessment. THE PROTECTION PRO\/IDED BY °Y'HE GUAR�4IVT"f A�SOCIATIOfV I� NOl' A SUBSTITUTE FOR USING CARE IN SELECI'IiVG INSIJRANCE CONIPANIES THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IIV �ELEC'TINC9 AN INSUi2AnICE COMPANY OR POLICY, YOU SHOULD IVOT RELY OIlL PROTECTIOIV �Y °TFfE GUARANTY ASSOCIATION. THIS N�TICE IS REQIIIRED BY NlIlell�lE�OT�► S7'i�l'E LA1l� 1'O A►DVISE � POLICYHOLDERS OF PROPERTY AND CASU�lLTI( OR LIA�ILITY II�lSIJRANCE POLTCIES OF THEIR RIGHTS IN THE EVE1�I7" 7"FIEIIZ IN�l9Re41VCE C�►�ZRIEIZ �ECOME� INSOLVENT. THIS IVOTICE IN NO WAY IMPLIES 7'HE COMPAn1Y ClJRF2EN'TLl( �iAS ANY TYPE OF FINANCIAL PROBLEMS, ALL PROPERTY AIVD CASl1ALl'V IlVSURA CE OR LIABILITY POLICIES ARE REQIJIRED T'O P82.OVIDE 7'F1IS I�OTICE. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, excluslons or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modlfy the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 30 Wells Fargo Insurance Services Confldential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-Z016.docm I I / 1 - �' I I ' I� GUIDE TO BESI"'S FINQ►fVC1�4L STREIVGTH RAl'INGS A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. BesYs Finencial Strength Ratings Rating Descriptor Defini4ion A++, A+ Superior Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance � obiigations. � A, A- Excellent Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance u> obligations. 8++, g+ Good Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. B, B- Fair Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. C++, C+ Marginal Assigned to companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. ,� C, C- Weak Assigned to companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. � Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. s D Poor Assigned to companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. ? Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions. E Under Assigned to companies (and possibly their subsidiaries/affiliates) placed under a significant form of regulatory Regulatory supervision, control or restraint — including cease and desist orders, conservatorship or rehabilitation, but not Supervision liquidation — that prevents conduct of normal, ongoing insurance operations. F In Liquidation Assigned to companies placed in liquidation by a court of law or by a forced liquidation.. S Suspended Assigned to rated companies when sudden and significant events affect their balance sheet strength or operating pertormance and rating implications cannot be evaluated due to a lack of timely or adequate information. Rating Modifiers Modifier Descriptor Definition u Under Review Indicates the rating may change in the near term, typically within six months. Generally is event driven, with positive, negative or developing implications. pd Public Data Indicates rating assigned to insurer that chose not to participate in A.M. BesYs interactive rating process (Discontinued in 2010). s Syndicate Indicates rating assigned to a Lloyd's syndicate. Rating Outlooks Indicates potentiai direction of a Best's Financial Strength Rating over an intermediate term, generally defined as 12 to 36 months. Positive Indicates possible rating upgrade due to favorable financial/market trends relative to the current rating level. Negative Indicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level. Stable Indicates low likelihood of a rating change due to stable financial/market trends. Under Review Implications Indicates the potential direction of a BesYs Financial Strength Rating that is Under Review status based on information currently available.. Positive Indicates there is a reasonable likelihood the company's rating will be raised as a result of A.M. Best's analysis of a recent event. Negative Indicates there is a reasonable likelihood the company's rating will be lowered as a result of A.M. BesYs analysis of a recent event. Developing Indicates there is uncertainty as to the final rating outcome, but there is a reasonable likelihood the company's rating will change as a result of A.M. BesYs analysis of a recent event. Not Rated Designation NR: Assigned to companies that are not rated by A.M. Best. Rating Disclosure A BesYs Financial Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract hoider. A Best's Financiai Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. For additional details, see A.M. BesYs Terms of Use at www.ambest.com. BesYs Financial Strength Ratings are distributed via press release and/or the A.M. Best Web site at www.ambest.com and are published in the Credit Rating Actions section of BesYs JournalT"". BesYs Financial Strength Ratings are proprietary and may not be reproduced without permission. Copyright O 2014 by A.M. Best Company, Inc. Version 062314 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 31 Wells Fargo Insurance Services Confidential. OO 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm City of Cottage Grove �ippen ix GUIDE TO BEST'S DEBT AND 1SSUER CREDIT` RATINGS '' A BesYs DebUlssuer Credit Rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating pertormance and business profile and, where appropriate, the specific nature and details of a rated debt security. BesYs Long-Term Credit Ratings ` A BesYs Long-Term Debt Rating, assigned to specific issues such as debt and preferred stock, is an independent opinion of an issuer/entity's ability to meet its ongoing financial obligations to security holders when due. Rating Descriptor Definition c aaa Exceptional Assigned to issues where, in our opinion, the issuer has an exceptional ability to meet the terms of the obligation. d a aa Very Strong Assigned to issues where, in our opinion, the issuer has a very strong ability to meet the terms of the obligation. � � a Strong � bbb Adequate „ bb Speculatie c d r y b Very � � Speculatie c� cce, cc, c Extremely � Speculati� ° d in Default . Z Assigned to issues where, in our opinion, the issuer has a strong ability to meet the terms of the obligation. Assigned to issues where, in our opinion, the issuer has an adequate ability to meet the terms of the obligation; however, the issue is more susceptible to changes in economic or other conditions. Assigned to issues where, in our opinion, the issuer has speculative credit characteristics, generally due to a moderate margin of principal and Interest payment protection and vulnerability to economic changes. Assigned to issues where, in our opinion, the issuer has very speculative credit characteristics, generally due to a modest margin of principal and interest payment protection and extreme vulnerability to economic changes. Assigned to issues where, in our opinion, the issuer has extremely specuiative credit characteristics, generally due to a minimal margin of principal and interest payment protection andlor limited ability to withstand adverse changes in economic or other condflions. Assigned to issues in defauft on payment of principal, interest or otherterms and condifions, orwhen a bankruptcy petition or similar action has been A BesYs Long-Term Issuer Credit Rating is an opinion Ratings from "aa" to "ccc" may be enhanced with a"+' Best's Short-Term CredR Ratinqs ; A BesPs Short-Term Debt Rating AMB-1+ � � AMB-1 . '� � AMB-2 � AMB-3 ting is an o� Descript< Strongest Outstandi Satisfacto Adequate v AMB-4 Speculative " Z � � d In Default c of an issuer/entity's ability to meet its ongoing senior financial obligations. '(pius) or "" (minus) to indicate whether credit quality is near the top or bottom oF a category. :ntity's abiliry to meet its financial obligations having original maturities of qeneraliv less than one vear, such as commercial paoer. Definition Assigned to issues where, in our opinion, the issuer has the strongest ability to repay short-term debt obligations. Assigned to issues where, in our opinion, the issuer has an outstanding ability to repay short-terrn debt obligations. Assigned to issues where, in our opinion, the issuer has a satisfactory ability to repay short-term debt obligations. Assigned to issues where, in our opinion, the issuer has an adequate ability to repay short-term debt obligations; however, adverse economic conditions likely will reduce the issuer's capacity to meet its financial commitments. Assigned to issues where, in our opinion, the issuer has speculative credit characteristics and is vulnerable to adverse economic or other extemal changes, which could have a marked impad on the companys abiliry to meet its financial commilments. Assigned to issues in default on payment of principal, interest or other terms and conditions, or when a bankruptcy petition or similar action has been filed. A BesYs Short-Term Issuer Credit Rating is an opinion of an issuer/entity's ability to meet its senior financial obligations having original maturitles of generally less than one year. Ratfng Modif(ers Both BesYs Long- and Short-Term Credit Ratings can be assigned a modifier. Note: The public data modifier did not apply to BesYs Short-Term Credit Ratings, which are only assigned on an interactive basis. Modifier Descriptor Definition u Under Review Indicates the rating may change in the near term, typically within six months. Generally is event driven, with positive, negative or Public Data the Positive Negative Stable Under Review indicates the Positive Negative Developing The Not Rated an issuerthat chose not to participate in A.M. BesYs interactive rating process. (Discontinued in :ntial direction of a BesYs Credit Rating over an intermediate term, generally defined as 12 to 36 months. Indicates possible rating upgrade due to favorable financial/market trends relative to the current rating level. Indicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level. Indicates low likelihood of a rating change due to stable financial/market trends. �plications �tential direction of a BesYs Financial Strength Rating that is Under Review status based on information currently availabie.. Indicates there is a reasonable likelihood the credit rating will be raise as a result of A.M. BesYs analysis of a recent event. Indicates there is a reasonable likelihood the credit rating will be lowered as a resuit of A.M. Best's analysis of a recent event. Indicates there is uncertainty as to the final rating outcome, but there is a reasonable likelihood the credit rating will change as a result of A.M. BesYs analysis of a recent event. nation IR) designation may be assigned to issuers or issues that are not rated. This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Welis Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 32 Welis Fargo Insurance Services Confidential. O 2015 Welis Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm I ... �� I .' I ' 1� : � I 1 ' ^ I : :`..` GUIDE 1°O BEST'S DEBT �►ND ISSUER CREDIT RATINGS Rating Disdosure A BesYs DebUlssuer Credit Rating is an option regarding the relative future credit risk of an entity, a credit commitment or a debt or debt-like security. Cred�t risk is the risk that an entity may not meet its contractual, financial obligations as they come due. These credit ratings do not address any other risk, including but not limited to liquidity risk, market value risk or price volatility of rated securities. The rating is not a recommendation to buy, sell or hold any securities, insurance policies, contracts or any other financial obligations, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser. In arriving at a rating decision, A.M. Best relies on third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. For additional details, see A.M. BesYs Terms of Use at www.ambest.com. Best's DebUlssuer Credit Ratings are distributed via press release and/or the A.M. Best Web site at www.ambest.com and are published in the Credit Rating Actions section c Best's JournalT"'. Best's Credit Ratings are proprietary and may not be reproduced without permission. Copyri9ht �O 2014 by A.M. Best CompanV, Inc. Version 071614 This insurance proposal is a descriptive summary of the insurance policies to be placed on your behalf based on risk information provided by you. It should be used for reference purposes only. This proposal is not intended to represent, supersede, amend or alter the terms, conditions, exclusions or other provisions of the insurance contract between you and the insurance carrier. Only your insurance carrier may modify the terms of your insurance policy. You are obliged to read your insurance policy and advise your Wells Fargo Insurance Services' representative of any questions you have on the policy's terms and conditions. 33 Welis Fargo Insurance Services Confidential. O 2015 Wells Fargo Insurance Services. All rights reserved. 4/3/2015 mw\Proposal\City of Cottage Grove 2015-2016.docm