ERMU RES 13-02 RESOLUTION 13-2
A RESOLUTION OF ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION APPOINTING INSURANCE AGENT OF RECORD FOR
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
WHEREAS, the League of Minnesota Cities Insurance Trust (LMCIT) requires cities to
use the services of an agent in order to participate in the LMCIT
property/casualty program; and
WHEREAS, the Utilities Commission has reviewed and considered the written materials
from LMCIT discussing the agent's role and compensation in LMCIT; and
WHEREAS, Northern Capital Insurance Group has agreed that they are willing to provide
to the city and utility the services listed below under the terms and conditions
listed below; and
NOW, THEREFORE, BE IT RESOLVED THE FOLLOWING:
Appointment
1. Elk River Municipal Utilities hereby appoints as its agent for purposes of the city's
participation in the LMCIT property/casualty and workers' compensation programs.
Northern Capital Insurance Group
Term: five (5 years)
2. This appointment shall remain effective until June 30, 2018.
Compensation
3. As compensation for the services provided to the utility as described in Paragraph 4
below, the utility will pay to the agent a fee of$3,500 annually. The utility hereby
directs LMCIT not to include any allowance for an agent's fee in quoting and billing
the utility's premiums for property, liability, and automotive coverage and to refund
the two percent workers' compensation coverage agent fee allowance to the city.
Services
4. The agent will perform the following services:
a. Advise and assist the city in assembling and accurately reporting underwriting
data, including updating property values, for rating purposes.
b. Advise and assist the city in evaluating and selecting among coverage alternatives
such as deductibles, limits, optional coverages, and alternative coverage forms,
etc.
c. Review coverage documents and invoices to assure coverage has been correctly
issued and billed.
d. Advise the utility on potential gaps or overlaps in coverages.
C:A UsersA jnclsonV AppDataV Local\MicrosoftA Windows\Temporary Internet Files VContent.OutlookVUOVSYSJP\2013-3-5 8-
Insurance Agent of Record Resolution(2).doc
e. Assist the utility as requested in submitting claims and interpreting coverage as
applied to particular claims.
£ Review loss reports for correct reporting, appropriate reserves, etc.
g. Assist as requested with safety and loss control activities.
h. Assist the utility in identifying risk exposures and developing appropriate
strategies to address those exposures.
Passed and adopted this 19th day of March 2013.
,John J Pie airperson
ATTEST:
Tina Allard, City Clerk
C:A Users\inelsonAAppDataA Local\Microsoft\Windows\Temporary Internet FilesVConrent.OutlOOkV UG VSYSJF\2013-3-5 R-
Insurance Agent of Record Resolution(2).doc