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HomeMy WebLinkAbout81-0325 Gallagher Bassett dV tr 1 re..-)k) AGREEMENT FOR SERVICES i\-03aS THIS AGREEMENT is made this SEVENTH day of OCTOBER A.D. 1980 by and between the CITY OF ELGIN, hereinafter referred to as "EMPLOYER," and GALLAGHER BASSETT INSURANCE SERVICE, a division of ARTHUR J. GALLAGHER & CO. , an Illinois corporation, authorized to do business within the State of ILLINOIS, hereinafter referred to as "SERVICE AGENT. " I. TERM This Agreement shall take effect at the time the EMPLOYER 'S self- insurance program becomes effective, but not later than October 7, 1980, and shall continue in effect to October 1, 1981, after which date this Agreement shall continue in effect until cancelled by either Party. II. COMPENSATION EMPLOYER shall pay SERVICE AGENT for services rendered herein the annual sum of THIRTY EIGHT THOUSAND DOLLARS ($38,000.00) . At the end of the first anniversary of this Agreement, the annual compensation shall be subject to adjustment as mutually determined by EMPLOYER and SERVICE AGENT, based upon changes in workload. SERVICE AGENT agrees to notify EMPLOYER in writing of any increase in service fee based on changes in workload thirty (30) days prior to each anniversary. -2- III. OBLIGATIONS SERVICE AGENT will supervise and administer the self-insurance plan for the EMPLOYER in full compliance with all applicable laws, rules and regulations governing the administration of self-insurance; and SERVICE AGENT will act as the representative of the EMPLOYER in all matters related to such administration and will perform fully all the below-listed functions: A. CLAIMS: 1. Complete handling of all loss adjustments, investiga- tions and settlements falling within the EMPLOYER'S self- insured retention. 2. Maintain a claim file for each reported claim; submit monthly experience reports in the form the EMPLOYER requires; provide complete accounting for the program which at all times is subject to review by the EMPLOYER. 3. Recommend claim reserves and provide a continuous review and updating of these to reflect changes. 4. Make all necessary precautionary reports to excess carriers and present excess claims in behalf of EMPLOYER in a timely and proper manner. -3- 5. Coordinate investigations on litigated claims with attorneys approved by the EMPLOYER and with adjusters and attorneys of the excess insurance carrier as required. 6. Set up and maintain a bank trust account for the purpose of keeping segregated funds which will be furnished by the EMPLOYER to SERVICE AGENT to establish a reserve for the payment of claims and to reconcile this fund monthly with the EMPLOYER. The amount of this fund is to be kept to a minimum so as to maximize the retention of cash. 7. Obtain approval from responsible EMPLOYER personnel before paying any claim in excess of TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500.00) and to furnish precautionary reports on all serious claims. 8. Be available to consult with the EMPLOYER on any insurance matter and to make available to the Risk Manager the expertise and experience of SERVICE AGENT' S staff of professionals to assist him in achieving a successful self- insurance program. 9. In the event of cancellation of this Agreement, SERVICE AGENT will continue to handle all claims to conclusion. 10. All sizable and unusual claims will be reviewed by SERVICE AGENT' S internal legal staff at no additional cost to the EMPLOYER. -4- 11. Provide all necessary personnel to perform the services agreed upon herein. B. LOSS PREVENTION: SERVICE AGENT' S Loss Prevention services will be provided in the following areas, where coverages apply: 1 . Workers ' Compensation Loss Prevention 2. General and Public Liability Loss Prevention 3. Automobile and Fleet Loss Prevention APPIK SERVICE AGENT will prepare computerized loss dataL which will detail loss experience by location as follows: 1. By dollar loss 2. By accident frequency 3. By line of coverage 4. By accident cause Loss analysis of computer data will be used to identify problem areas so control action plans can be developed. • -5- SERVICE AGENT' S Loss Prevention service will assist in the development of control programs, where needed, for coverages covered by this Agreement. Existing safety programs will be evaluated as to their effec- tiveness in controlling the causes of accidents in EMPLOYER 'S operations. Location audits to determine how effective the safety program is functioning will be made, and surveys of major facilities will be made as agreed to with the EMPLOYER. The frequency of our own safety surveys will be based on need from analyzing the accident causes and trends. Periodic meetings with members appointed by the EMPLOYER 'S administration will be held to ensure a mutually satisfactory assignment of priority to your loss prevention needs. A minimum of fourteen (14) days will be allocated to surveys, training, research and reporting. Progress report meetings to review accident problems and needed action should be scheduled with responsible individuals from the EMPLOYER'S administration and SERVICE AGENT periodically. These will be scheduled as agreed to with the EMPLOYER. At the minimum, an annual progress meeting should be held. • -6- IV. CONSIDERATION The promises made and the obligatons assumed by each Party to this Agreement are made and assumed in consideraton of the promises made and the obligations assumed by the other Party to this Agreement. The EMPLOYER is making this Agreement specifically with the SERVICE AGENT and that same is intended to be a personal service Agreement. SERVICE AGENT shall not assign this Agreement or any respon- sibilities pursuant to said Agreement without the express consent of the EMPLOYER. The Parties hereto, may, by mutual written agreement, change the scope of services or the amount of compensation set forth hereinabove in this Agreement. V. EQUAL OPPORTUNITY CLAUSE In consideration with the execution of this Agreement, the EMPLOYER and the SERVICE AGENT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. The EMPLOYER and SERVICE AGENT shall take affirmative actions to ensure that applicants are employed and that • -7- employees are treated fairly during their employment without regard to race, religion, color, sex or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment, or recruitment advertising; layoff, or termination; rates of pay, or other forms of compensation; and selection for training, including apprenticeship. SIGNATURES By these signatures, the Parties agree to all the terms, con- ditions and provisions of this Agreement. Dated this 2S-1" day of MaRct1 , A.D. 1981. 11 AI A Ski& CI OF ELGIN GUENTHER AHLF, VICE PRE ID GALLAGHER BASSETT INSURANCE ERVICE, DIVISION OF ARTHUR J. GALLAGHER & CO.