THE CORPORATION OF YHE CITY GF PORT COQUITLAM

: MEMO
SEP 4 4 1987
TO: B. Kirk, DATE: June 25, 1987
} City Administrator. .
| 7 SEP 28 1987

FROM: Administration Committee

SUBJECT: U.B.C.M. Self Insurance Scheme

RECOMMENDATION :

That the City join the Municipal Insurance Association of British Columbia on
April ist, 1985.

ia BACKGROUND _& COMMENTS :

ip
é Set

i UBCM established a task force to study the possible implementation of a self
insurance scheme. The task force has recommended the establishment of the
i Insurance Association and has specifically recommended coverage for all
municipalities. The proposed coverage is very similar to that presently
carried by the City with the wain exceptions being that our present liability
coverage has a ceiling of $2 million, $5 million is proposed. Our deductible
would increase as well (in most instances) from $15,000 to $25,000. The errors
- and owmissions coveage presently carried has a $1 million ceiling and is the same
as that proposed, including a $25,000 deductible. ine

The report states that the committment to sign up must be received by July 15th eae
i : and a proposed start up date of September Ist. Our recommended start up date is Ee
April 1, 1988 as our present Liability policy expires at that time. UBCM has
extended the end of the initial enrollment period to August 1988 (from January) :

as they have had many inquiries from municipalities such as us who have been eu
f . advised by the insurance companies that 0% of the premium is refundable upon

cancellation. _ i

If the task force has accurately estimated the costs of expected claims and other
costs then the City can look forward to savings from our present costs:

‘ Present (1987) costs $

Task force estimated costs

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