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R2019-119 2019-05-13 RESOLUTION NO. R2019-119 A Resolution of the City Council of the City of Pearland, Texas, approving Windstorm and Wind Driven Rain Insurance through AmRisc Carriers, in the amount of$558,075.00, for the period of May 26, 2019 to May 25, 2020. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. Pursuant to Chapter 252 of the Local Government Code the City obtained Windstorm Insurance pricing to cover City facilities. Section 2. That, pursuant to Section 252.022 of the Texas Local Government Code,the purchase of Windstorm Insurance is necessary to protect and preserve the public safety of the City's residents. Section 3. That the City Council hereby awards a contract, for Windstorm and Wind Driven Rain Insurance, to AmRisc Carriers in the amount of$558,075.00. Section 4. The City Manager or his designee is hereby authorized to execute a contract for the purchase of Windstorm Insurance and Wind Driven Rain Insurance. PASSED, APPROVED and ADOPTED this the 13th day of May, A.D., 2019. TOM REID MAYOR ATTEST: -- ;o.• •. ..... per, vi. LE.E NGt ,[' C7 =��. /� . - / Y S V'ETARY = 1\ APPROVED AS TO FORM: '������"'����``\` r , ,.... - ___„..._____ DARRIN M. CO ER CITY ATTORNEY EXHIBIT A Expiring Renewal 05-26-18 to 05-26-19 Term: (Year 2 of 2 year term) 05-26-19 to 05-26-20 Total Insured Values at Inception: $202,059,997 $202,059,997 Perils: Wind&Hail Wind&Hail Coverage for"Flood"is provided with the TML Property Insurance Policy and various NFIP policies.Underground exposures are excluded even if reported on SOV. Exposures should be reviewed thoroughly throughout the year for any changes, additions or deletions. Per Occurrence Limit: $202,059,997 $202,059,997 Per Schedule Per Building, NOT Blanket Sub-Limits: Sub-limits are part of and not in addition to the Policy Limit of Liability Additional Traffic Signs, Light Poles, Signs, Fencing&Antennas $500,000 As Scheduled $500,000 As Scheduled Business Income $1,000,0000 As Scheduled $1,000,000 As Scheduled Extra Expense $250,000 As Scheduled $1,000,000 As Scheduled Fine Arts $250,000 $250,000 Plants, Lawns,Trees or Shrubs $500,000($25k Any One Item) $500,000($25k Any One Item) Unscheduled Property-Building (Miscellaneous Unnamed Locations) $500,000 As Scheduled $500,000 As Scheduled Unscheduled Property-Outdoor $500,000 As Scheduled $500,000 As Scheduled Valuable Papers&Records $1,000,000 $1,000,000 Wind Driven Precipitation $500,000 Annual Aggregate $500,000 Annual Aggregate Per Occurrence Deductibles: Wind/Hail $25,000 $25,000 2%of Total Insured Values at time of loss at each location involved in the loss or damage($25,000 Minimum Named Storm $25,000 any one occurrence) 1%of Total Insured values at time of 1%of Total Insured values at time of Wind Driven Precipitation loss at each location involved in the loss at each location involved in the loss or damage($25,000 Minimum loss or damage($25,000 Minimum any one occurrence) any one occurrence) Valuation/Coinsurance: Replacement Cost/NIL Replacement Cost/NIL Total Premiums: $536,340 $558,075 EXHIBIT B JNSURANCE MARKET RESPONSE CARRIER TARGET&RESPONSE Ace/Chubb Declined due to amount of outdoor/non-fixed/water&sewerage occupancies Alteris/Colony Excessive premium rate AmRisc Provided competitive terms Arch Provided terms: $15M x$10M for 33%of Layer Arrowhead Premium targets too low Aspen Lack of Limit Capacity AWAC Will only provide quotations for All Perils Axis Will support low deductible structure(Minimum 2%to Named Storm Deductible) Beazley Declined due to amount of outdoor/non-fixed/water&sewerage occupancies Berkshire TIV too small • Brit Excessive Premium Rate Catalytic Declined due to amount of outdoor/non-fixed/water&sewerage occupancies CV Starr(Star-Tech) Will support low deductible structure Dual Commercial Buffer option only Endurance(Sompo) Quoted 50%of primary$10M at$250k Layer Price with 2%NS deductible Ethos Buffer market only Everest Re Quota share of ground up—premium rate excessive Great American- Excess Will only provide quotations for All Perils Hallmark Short buffer only HDI Global Insurance Suggested Layering/targets would not generate enough premium for her to consider Hiscox Needs 2% NS deductible to consider Ironshore Excessive Premium Rate James River Excess Coverage only Kemah Capital Excessive Premium Rate Kinsale Buffer market only Lexington Cannot support the capped deductible structure London-Besso Provided Terms for Deductible buy-down: 1%to$100k at$161,335/1%to$25k$174,600 Markel Provided Terms: $25Mx$25M 40%at$125k Layer Maxum Provided Terms: $15Mx$10M Mitsui Excessive Premium Rate Navigators Short buffer Only One Beacon-Excess Non Catastrophe capacity only TML Declined to coverage wind/hail perils Rivington Partners Provided Terms: $15Mx$10M at 33% RSUI/Landmark American Excess Capacity Only Scottsdale/Nationwide Excess Capacity Only Swiss RE Cannot support the capped deductible structure Travelers-Excess Declined due to"wind"guidelines Velocity Provided Terms XL Excess Capacity Only Zurich Excess Capacity Only Property Application and Statement of Values r mRisc`ti C...,..2,00,-..x Unless notified otherwise,completion of this form replaces the application,statement of values,hard copy loss runs and formally executed loss letters.This form contains the information submitted to date.The form must be completed,signed and returned for underwriter's review and acceptance within 30 days of inception.Any inaccurate information identified on the returned form is automatically deemed noted and agreed by underwriters upon receipt,so please return as soon as possible. , Named Insured: City of Pearland Account ID: 634824 Mailing Address: 3519 Liberty Drive Pearland TX 77581 • Nature of business: Muni qtY cv E r y c ; my N Y N m (O V°. N Ft 'O <^ O.` m',tit O p D N I Loc/Bldg No. Address City State Zip m a a= o' 0 O} z.D' . Ji 1 Per Schedule on file P 2 with AmRisc 3 4 5 X Totals: 527,023 37% 424 _ 4 If you have any questions regarding the type of construction or other information.discuss with your agent prior to signing this application. Valuation: RCV RCV ALS ALS ALS Cx Coins: N/A N/A 1/3 Monthly 1/3 Monthly 1/3 Monthly Loc/Bldg No. Building BPP BI Rents EE Loc TIV 1 Per Schedule on file 2 with AmRisc 3 4 B Totals: $161,150,297 $39,659,700 $1,000,000 SO $201,809,997 These values often form the basis of the policy's ime of liability.Please review carefully. List ALL losses caused by requested perils for the prior 5 years that did or may exceed the specified threshold. Please add any Threshold: $5,000 losses if not listed. Incomplete loss history is considered material and may void coverage. DOL Description/COL Incurred Status(0/C) DOL Description/COL Incurred Status(0/C) 08/25/17 Harvey $38,345 C 0 Has any policy or coverage been declined,canceled m nm-renewed during the prtt 3 Has any applicant been cervi clad of anon in the past 10 yews? years(not appi,able in MO.) NO NO Is the applicant a 5-Chapter Corporator,partnership or any other type of sole propricle Any bankruptcies Of lax credit liens again)applicant In prior 5 years? organization? NO NO ///��t Does the applicant have any reason that they would not be aware of ea losses for the Has net income been negative for 2 of the pest 3 years?em,please attach financials �-' priors years? NO or Las returnslm3 years. NO J/// / For aperlmm ente,are there y HUD managed or Section omens'?8 deveomens'? NO If tube/non.is there any aluminum distribution wiring? NO ?! Explain any Yes answers. If necessary,add additional pages,which are hereby made part of the application. - Warranties: NONE List any Discrepancies.Discrepancies received by undersell tors prior to a loss shall be deemed noted and agreed by underwriters.However,atldiUnnel premium may be charged as of the data the information Is received by underwriter, / .47.zi.2 Xi. Any person who knowingly and with intent to injure,defraud,or deceive any insurer files a statement of claim or an application containing any false,incomplete,or misleading information is guilty of a felony of the third degree. The Insured further acknowledges the fraud statement above and understands the Policy will contain a Fraud Notice by state. Severe cancellation penalties apply to CAT exposed property-Form is available upon request. Carriers'participation may change prior to binding or throughout the coverage period. _+/ To the be n•,,, -dge t plicant and the producer,the above information is true and complete. Initial each Section. Applicant• sled• - e -1,4••‘•- - Title Producer Printed Name . I V / Apa ca• ignature, Date Producer Signature ; DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE INSURED: City of Pearland Account ID: 634824 LIMITS: As per the attached Authorization or Indicatlor You are hereby notified that under the Terrorism Risk Insurance Act of 2002,as amended('TRIA"),that you now have a right to purchase insurance coverage for losses arising out of acts of terrorism,as defined in Section 102(1)of the Act,as amended:The term"act of terrorism"means any act that is certified by the Secretary of the Treasury,in concurrence with the Secretary of State,and the Attorney General of the Unitec States-to be an act of terrorism;to be a violent act or an act that is dangerous to human life,property,or infrastructure;to have resulted in damage within the United States,or outside the United States in the case of an air carrier or vessel or the premises of a United States mission;and to have been committed by an individual or individuals,as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Any coverage you purchase for'acts of terrorism'shall expire at 12:00 midnight December 31,2020,the date on which the TRIA Program is scheduled to terminate unless the TRIA Program is reauthorized or the expiry date of the policy whichever occurs first,and shall not cover any losses or events which arise after the earlier of these dates. YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL LAW.HOWEVER,YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE,SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS.UNDER THIS FORMULA,THE UNITED STATES PAYS 85%THROUGH 2015;84% BEGINNING ON JANUARY 1,2016;83%BEGINNING ON JANUARY 1,2017;82%BEGINNING ON JANUARY 1,2018;81%BEGINNING ON JANUARY 1,2019 AND 80%BEGINNING ON JANUARY 1, 2020;OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURER(S)PROVIDING THE COVERAGE.YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT,AS AMENDED,CONTAINS A$100 BILLION CAP THAT LIMITS U.S.GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS'LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS$100 BILLION.IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED$100 BILLION,YOUR COVERAGE MAY BE REDUCED. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THF ACT (j I hereby elect to purchase coverage for acts of terrorism for a prospective premium of REJECTED ( I hereby elect to have coverage for acts of terrorism excluded from my policy. I u detand that I will have no coverage for losses arising from acts of terrorism. This notice applies to the following carriers and their Poli older .pp' a is Signature respective participation quoted herein: Certain Underwriters at Lloyds eik ^'7 Indian Harbor Insurance Company %) J6QBE Specialty Insurance Co. Print Name J Steadfast Insurance Company ;A)4(1\ ` ' General Security Indemnity Company of Arizona . /�( ' United Specialty Insurance Company F "'""" Lexington Insurance Company Date Safety Specialty Insurance Company HDI Global Specialty SE Old Republic Union Insurance Company Flood Notice AR FN 03 18 If the policy issued by AmRisc excludes Flood,the following shall apply: Flood Exclusion Acknowledgement I understand the policy issued by AmRisc does NOT provide coverage for loss or damage caused by or resulting from Flood, including any Flood and/or storm surge associated with windstorm events. I understand that Flood insurance can be purchased elsewhere from a private flood insurer or the National Flood Insurance Program. It is strongly recommended that Insureds in"Special Flood Hazard Areas"or areas subject to Flood, including Flood and/or storm surge from windstorm events, obtain Flood coverage. I also understand that execution of this form does NOT relieve me of any obligation that I may have to my mortgagees or lenders to purchase Flood insurance. If the policy issued by AmRisc includes Flood,the following shall apply: Flood Coverage I understand the policy issued by AmRisc does provide coverage for loss or damage caused by or resulting from Flood, including any Flood and/or storm surge associated with windstorm events. I understand that loss or damage caused by or resulting from Flood, including any Flood and/or storm surge associated with windstorm events,will be subject to the Flood sublimit stated elsewhere in the policy I understand that if I do not sign this form that my application for coverage may be denied or that my policy issued by AmRisc may be cancelled or non-renewed. I have read and I understand the information above. Named Insured: City of Pearland Account N• 634824 1 Policy older/Applic• s is nature Print Name Date