HomeMy WebLinkAbout11-147 - WA Cities Insurance Authority (WCIA) - MOU for Large Deductible Program11 -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
C. WCIA will provide Tukwila with monthly reports detailing all expenditures charged
to this Fund. Tukwila will have ten (10) working days from the date of this
notification to reimburse the Fund to its required deposit level, as established in
clause B above, by wiring funds to WCIA's bank account.
D. In the event that the Fund is impacted by an unusually Iarge volume of current or
pending claims or expenses, and upon special notice from WCIA detailing the nature
of this unusual demand and the amounts thereof, Tukwila will wire transfer the
requested amount within ten (10) days to avoid the possibility of a negative balance
in the Fund.
E. It is expressly understood that WCIA shall not be required to advance its own funds
to pay losses, allocated loss expenses or banking charges within the Deductible level,
or to perform any services hereunder if Tukwila fails to provide adequate funds as
herein set forth.
F. Reimbursement of the Fund not received within ten (10) days of written notification
will be charged a finance fee of 1
III. TERM
This Memorandum shall become effective on January 1, 2012 and shall continue to be in
force as long as Tukwila continues as a WCIA member participating in the Large
Deductible program.
N. GENERAL PROVISIONS
A. WCIA shall continue to have full authority to negotiate and settle claims within
Tukwila's deductible level, and up to WCIA coverage limits without prior approval
from Tukwila. WCIA, where possible, shall review all claims with Tukwila prior to
settlement.
B. WCIA shall continue to have full authority to appoint and retain defense attorneys to
defend Tukwila on any claim or lawsuit tendered to WCIA under this Memorandum
and to control the defense of said claims or lawsuits.
C. All claims and related files generated by WCIA as a result of its activity under this
Memorandum shall remain at all times the property of WCIA. All such files will be
available at WCIA offices for review and inspection by agents of Tukwila.
D. It is understood and agreed by the parties that a claim has occurred when the
incident, accident or event giving rise to the claim has occurred. The fact that the
claimant may not report the claim until some subsequent time or that Tukwila might
not report it to WCIA until some Subsequent time does not change the meaning of
when the claim occurred for purposes of this Memorandum. Any claim that occurs
during a coverage year in which Tukwila is a participant in the Large Deductible
program shall be administered and handled by WCIA per the provisions of this
memorandum.
E. Nothing in this Memorandum changes, alters or relieves WCIA or Tukwila of their
duties and obligations as set forth in the WCIA Interlocal signed by all member cities
of WCIA, or the Bylaws, Joint Protection Program and Coverage Document that was
approved by the membership.
F. Any changes in deductible status or levels cannot be implemented until the
conclusion of the calendar fiscal coverage year.
G. Tukwila shall keep the Fund replenished until all claims covered under this
Memorandum have been fully resolved or release WCIA from any further liability to
administer, defend or pay said claims within the deductible layer.
WASHINGTON CITIES INSURANCE AUTHORITY
LEWIS E. LEIGH, Executive Director
CITY OF Tukwila
Aut r' ed Signatu
APPROVED AS TO FORM:
Mark Bucklin, Authority Counsel
APPROVED AS TO FORM:
Date
30 7)nl 1
Date
Shelley Kerslake, Kenyon Disend
Tukwila City Attorney