11-147 - WA Cities Insurance Authority (WCIA) - MOU for Large Deductible Program

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11 -147 0 P Y Council Approval 11/21/11 Memorandum of Understanding This Memorandum of Understanding (Memorandum) is made and entered this day by and between the City of Tukwila and Washington Cities Insurance Authority, (WCIA) to clarify Tukwila and WCIA responsibilities under the WCIA Large Deductible program. Tukwila as a current member of WCIA, has qualified and has exercised its option to participate in the Large Deductible Program and will maintain a $25,000 deductible level per occurrence. I. II. CLAIMS ADMINISTRATION During the period or periods of Tukwila participation in the Large Deductible Program, WCIA shall continue to represent and act for Tukwila in matters pertaining to the automobile, errors omissions, police and general liabilities of Tukwila, including the following: A. Receive notice of and create files on each claim reported and maintain these files for Tukwila. Each claim file shall be maintained on a current basis to reflect liabilities, value, recommended disposition, and desirability of risk. B. Investigate all claims submitted to WCIA by Tukwila to determine their liability and settlement value. C. Request timely payment to WCIA, in accord with payment procedures established herein. Tukwila will be wholly responsible for providing payment as may be required for any claims assessed against it, up to $25,000 per occurrence, and/or in excess of or upon exhaustion of WCIA liability coverage. D. Maintain and provide Tukwila pertinent data on all claim payments. E. Promptly report to Tukwila the status of claims in a timely manner. PAYMENT OF CLAIMS A. Tukwila shall at all times provide funds to WCIA adequate for the payment of qualified claims or losses and of allocated loss expenses within Tukwila's $25,000 per occurrence deductible to a Deductible Fund (Fund) managed by WCIA.. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties, incurred by WCIA, its agents or its employees, which are properly chargeable to a qualified claim or loss including, without limitation, court costs, fees and expenses of defense attorneys, independent investigators, experts and witnesses, and fees for obtaining diagrams, reports, documents and photographs. B. The initial deposit to the Fund of $25,000 was established in 2003. WCIA will periodically analyze the sufficiency of this amount and may require Tukwila to adjust the deposit amount to more accurately represent cash flow demands placed upon the Fund. l5+ p ors