cjprma insurance program overviewcjprma.org/docs/library/handouts/cjprma-insurance... · 2016. 3....

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CJPRMA Insurance Program OverviewCalifornia Joint Powers Risk Management Authority

May 15, 2014 - Annual Board Meeting

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California Joint Powers Risk Management Authority Current Placement SummaryJuly 1, 2013 to July 1, 2014

Liability Program Excess Reinsurance Liability:

July 1, 2013 - July, 2014o Munich Reinsurance America, Inc. – Best Rating: A+ XVo SCOR Reinsurance Co. – Best Rating: A- XV

Automobile Physical Damage:July 1, 2013 - July, 2014

o The Hanover Insurance Company – Best Rating: A XIV

Office Package Policy – General Offices:July 1, 2013 - July, 2014

o Federal Insurance Company (Chubb Group) – Best Rating A++ XV

• Crime Shield – General Offices:July 1, 2013 - July, 2014

o Hartford Fire Insurance Company – Best Rating A XV

Primary Property:July 1, 2013 - July, 2014

oMunich Reinsurance America, Inc. – Best Rating: A+ XV

•Excess Property:July 1, 2013 - July, 2014oXL Insurance America, Inc. – Best Rating A XV

•Boiler & Machinery: July 1, 2013 - July, 2014oHartford Steam Boiler – Best Rating: A++ X

Difference in Conditions:

July 1, 2013 - July, 2014oQBE Specialty Insurance Co. – Best Rating: A XII

Property Program

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CJPRMA Property Program

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California Joint Powers Risk Management Authority Property Program StructureJuly 1, 2014 to July 1, 2015

Deductible$25,000

$10,000,000Primary

$290,000,000excess of

$10,000,000

Munich Reinsurance America, IncAM Best A+ XV

$10M

$300M Lexington InsuranceAM Best A XV

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California Joint Powers Risk Management AuthorityProperty Insurance ProgramJuly 1, 2014 to July 1, 2015

2013 Property ProgramPrimary Property

Munich Reinsurance America

Primary Property Limit: $10,000,000

Deductible: $25,000

Annual Premium: $1,746,816 (NET)

Excess Property

XL Insurance America

Excess Limit: $290M Xs $10M

Annual Premium: $316,000 (NET)

*Total TIV - $6,877,227,234

2014 Property Program Primary Property

Munich Reinsurance America

Primary Property Limit: $10,000,000

Deductible: $25,000

Rate: $0.0254 (0% increase)

Annual Premium: $1,770,473 (NET)

Excess Property Lexington Insurance Co.

Excess Limit: $290M Xs $10M

Rate: .00423 (6% increase)

Annual Premium: $350,000 (NET)– 10.8% Increase includes full engineering services– 3% pure premium increase

*Total TIV - $6,970,366,295 (1%)

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California Joint Powers Risk Management AuthorityProperty Insurance ProgramJuly 1, 2014 to July 1, 2015

2014 Renewal RecommendationPrimary Property

Munich Reinsurance America Property Limit: $10,000,000 Deductible: $25,000 Annual Premium: $1,770,473 (NET)

Excess Property Lexington Insurance Company Excess Limit: $290M Xs $10M Annual Premium: $350,000 (NET)

Total Annual Premium$2,120,473

Year over Year Premium Difference$ 57,657

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8 Year Primary Rate AnalysisJuly 1, 2006 to July 1, 2015

Program Rate Analysis

0.02

0.025

0.03

0.035

0.04

RATE 0.038 0.037 0.0307 0.0307 0.0307 0.0246 0.0254 0.0254 0.0254

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 2014-2015

$5M $5M $5M $10M $10MPrimary Limit: $10M

California Joint Powers Risk Management Authority

$10M $10M

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CJPRMABoiler & Machinery Program

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California Joint Powers Risk Management Authority Boiler & Machinery Insurance ProgramJuly 1, 2014 to July 1, 2015

Deductible:$5,000 except: $3.00/KVA, $10K minimum on Transformers; $30/HP, $10K minimum on ICE Generator

Units; $30/KW, $50K minimum on Water Turbine Units; 24 Hours Business Interruption

Loss Limit $21.25M Hartford Steam Boiler (Munich)AM Best A XV

Deductibles

New Enhancements: Mold Coverage Added Off Premises Property Damage is extended to

Worldwide Coverage Increased Loss Amount – will pay up to 150% of

Total Loss to Replace equipment with like kind and quality that is more Efficient, Safer and Environmentally Friendly

100 FREE Oil Sample Tests through TOGA program

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California Joint Powers Risk Management Authority Boiler & Machinery Insurance ProgramJuly 1, 2014 to July 1, 2015

2013 Boiler & Machinery Program Hartford Steam Boiler

Policy Limit: $21,250,000

TIV - $7,102,315,190

Deductibles:– Direct Coverage: $5,000– Transformers: $3 per KVA/$10k Min.– ICE/Generators: $30 per HP/$10k Min.– Water Turbines: $30 per KW/$50k Min.– Business Interruption: 24 Hours

Sublimits:– Demolition: $5,000,000– Expediting Expense: $5,000,000– Hazardous Substances: $5,000,000


2014 Boiler & Machinery Program Hartford Steam Boiler


TIV - $7,179,958,266 (2.6% Higher)


Sublimits:– Demolition: $5,000,000– Expediting Expense: $5,000,000– Hazardous Substances: $5,000,000

Proposal includes 10 Infrared Scans


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California Joint Powers Risk Management AuthorityBoiler & Machinery Insurance ProgramJuly 1, 2014 to July 1, 2015

2014 Renewal Recommendation Hartford Steam Boiler




Flat Rate Renewal, premium difference is 4% higher – 1% is values – 3% attributed to Infrared Scans

Year over Year Premium Difference

$11,221 (NET)

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CJPRMAExcess Liability Program

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California Joint Powers Risk Management AuthorityExcess Liability Insurance ProgramJuly 1, 2014 to July 1, 2015

2013 Excess Liability Program

$20M Xs $5M SIR Munich Reinsurance America


Self Insured Retention: $5,000,000

Annual Premium: $1,633,243(NET)

$15M Xs $20M SCOR Reinsurance Company



*Total Payroll - $1,484,766,522


$20M Xs $5M SIR TBD



Rate: .1122 (0% rate increase)

Annual Premium: $1,665,908(NET) –Not to Exceed

$15M Xs $20M TBD



Annual Premium: $310,000 (NET) –Not to Exceed

*Total Payroll - $1,484,766,522

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$20M Xs $5M SIR Munich Reinsurance America





$15M Xs $20M SCOR Re




*Total Payroll - $1,484,766,522


$20M Xs $5M SIR Starr Indemnity and Liability



Rate: .0954 (17.56% rate decrease)


$15M Xs $20M SCOR Re




*Total Payroll - $1,484,766,522

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2014 Renewal Recommendation$20M Xs $5M SIR

TBD



Annual Premium: $1,665,908 (NET) – Not to Exceed

$15M Xs $20M TBD


Annual Premium: $310,000 – Not to Exceed

Total Premium$1,975,908 (Not to Exceed)


$34,914 (NET)

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Optional Quote to Add ABAG to Membership

Primary Liability Option

$698,019 (rate is $0.128)

Excess Liability Option

$130,000

Brokerage Fee

$60,000

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6 Year Primary Rate AnalysisJuly 1, 2008 to July 1, 2015

California Joint Powers Risk Management Authority

0.1

0.11

0.12

0.13

0.14

RATE 0.1315 0.1197 0.1197 0.1048 0.1085 0.1122 0.1122

2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 2014-2015

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CJPRMAAuto Physical Damage Program

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California Joint Powers Risk Management AuthorityAuto Physical Damage Insurance ProgramJuly 1, 2014 to July 1, 2015

2013 APD Program

The Hanover Insurance Company

Reported Values: $253,765,747

Total Units – 3,168

Per Occurrence Limit: $10,000,000

Deductible: $10,000

Full Replacement Cost

No minimum value requirement for adding vehicles

Automatic coverage for vehicles added during policy period, only vehicles/equipment valued above $250k must be reported

Rate: $.173/$100 Stated Values

Annual Premium: $439,015

2014 APD Program

The Hanover Insurance Company


Total Units – 3,268


Deductible: $10,000

Full Replacement Cost


Automatic coverage for vehicles added during policy period, only vehicles/equipment valued above $1M must be reported

Rate: $.173/$100 Stated Values (0% increase)


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California Joint Powers Risk Management AuthorityAuto Physical Damage Insurance ProgramJuly 1, 2014 to July 1, 2015

2014 Renewal RecommendationThe Hanover Insurance Company



Deductible: $10,000

Full Replacement Cost, regardless of vehicle/equipment age


Automatic coverage for vehicles added during policy period, only vehicles/equipment valued above $1,000,000M must be reported

Rate: $.173/$100 Stated Values



$3,981

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California Joint Powers Risk Management AuthorityAuto Physical Damage ProgramJuly 1, 2005 to July 1, 2015

$0.1730$0.2200$0.2475$0.2777

$0.3086$0.3086$0.2000 $0.1730

$0.1730$0.1730

2,6202,773

3,1683,291

7241,399 1,466 1,586 1,478 1,484

$0.0010

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-2014 2014-2015

Rat

es

0

700

1,400

2,100

2,800

3,500

Units

Rates Units

- Values & Units Reported by CJPRMA

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CJPRMAGeneral Office Programs

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California Joint Powers Risk Management AuthorityGeneral Office Insurance ProgramJuly 1, 2014 to July 1, 2015

2013 General Office ProgramGeneral Office Package

Federal Insurance Company

Policy Limit: – Per Occurrence: $1,000,000 – Aggregate: $2,000,000

Deductible: – $1,000 Per Occurrence/Office Contents– $3,500 Mobile Communication Property

Non-owned Auto Federal Insurance Company


Combined Annual Premium: $6,485 (NET)

2014 General Office ProgramGeneral Office Package

Federal Insurance Company


Deductible: – $1,000 Per Occurrence/Office Contents– $3,500 Mobile Communication Property



Combined Annual Premium: $6,485 (NET)

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California Joint Powers Risk Management AuthorityGeneral Office Insurance ProgramJuly 1, 2014 to July 1, 2015

2014 Renewal RecommendationFederal Insurance Company


Deductible: – $1,000 Per Occurrence/Office Contents

– $3,500 Mobile Communication Property



Combined Annual Premium: $6,485


$0

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California Joint Powers Risk Management AuthorityDifference In Conditions (EQ/Flood)July 1, 2014 to July 1, 2015

2013 DIC Program

15 Month Policy QBE Specialty Insurance Company


Deductible: – 5% of Total Insurable Replacement Cost– $25,000 Minimum


2014 DIC Program

Annual Policy QBE Specialty Insurance Company


Deductible: – 5% of Total Insurable Replacement Cost– $25,000 Minimum


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California Joint Powers Risk Management AuthorityCrime Shield ProgramJuly 1, 2014 to July 1, 2015 Current Crime Program

Hartford Fire Insurance Company

Policy Limit:– Employee Dishonesty: $4M– Theft, Disappearance & Destruction:

$4M– Depositors Forgery: $4M– Computer Fraud: $4M

Deductible: $40,000 Per Loss

Three Year Prepaid Premium: $5,976

Renewal Crime Program

Hartford Fire Insurance Company

Policy Limit:– Employee Dishonesty: $4M– Theft, Disappearance & Destruction:

$4M– Depositors Forgery: $4M– Computer Fraud: $4M

Deductible: $40,000 Per Loss

Three Year Prepaid Premium: $6,757

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CJPRMAEnvironmental Program

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California Joint Powers Risk Management AuthorityEnvironmental ProgramJuly 1, 2013 to July 1, 2015 $5,000,000 per

pollution condition

$25,000,000 aggregate all pollution conditions

$100,000 SIR per pollution condition

Rate is 0.1481 per $1,000 of SOV

Two Year Policy Term

What it covers:– 3rd party bodily injury– Property damage– Clean up claims – Legal defense costs –

resulting from pollution conditions.

– Premises owned or leased– Operations and Activities– Non Owned Disposal Sites– Transportation– Scheduled underground

storage tanks

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CJPRMABuilders’ Risk – New Program

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California Joint Powers Risk Management AuthorityBuilders’ Risk

Limit of Liability – Equal to Project Value (includes hard & soft costs)

Policy written on “All Risk Form”

Sub-limits can include coverage for:Transit

Off-site StorageEarthquake

FloodContractor’s Equipment

Program can include multiple projects at once, limits will adjust based on projects that are occurring

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CJPRMACyber Liability – New Program

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California Joint Powers Risk Management AuthorityCyber Liability

What is Covered?

Breach Event Expenses– PR, Credit Monitoring,

Communication, Notices

Security Liability– Virus transmission,

failure to protect information

Privacy Liability– Failure to protect

corporate information

Privacy Regulatory– HIPPA etc.

Media Liability– Copyright infringement,

libel, slander, etc.

Cyber Extortion or Attack

Business Interruption

Digital Asset Protection– Corrupted information

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