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For most municipalities the proposal will reduce imsurance costs. When

comparing the costs of this program with your current insurance costs be sure

to consider the deductibles, overall limit of insurance and type of coverage

provided. Generally speaking, the proposal offers most municipalities:

@ lower deductibles;

@ higher overall limits of coverage ($5 million); and

e types of coverage that are not widely available (errors and omissions,
coverage for volunteers, etc.).

There are a small number of municipalities that now enjoy relatively low
insurance costs compared to the prevailing rates. They will want to look

carefully at the other considerations.

You will undoubtedly wish to review: this proposal carefully. For a quick
overview of the report we have included an Executive Summary. The Liability
Task Force intends to convene discussion sessions in various areas of the -
province to present and respond to the report. In any event, please feel free
to direct any questions to the USCM office.

Should your municipality decide that it wishes to participate in the
establishment of a reciprocal imsurance exchange, you will be asked to take

the following steps:

1. Before July 15th, 1987 pass a resolution of commitment to join the plan
subject to sufficient participation being achieved (sample resolution
attached). July 15th is the key date. If sufficient binding commitments
are received the program will go ahead and you will be a member.

2. Notify UBCM of your commitment and the date you wish to enroll. September
1 is the proposed start-up date hut the enrollment period extends to
January 31st, 1988 to allow those with expiring insurance policies to
enroll at a later date. However, you cannot delay your decision to
participate until then, only your effective date of enroliment. Your
decision to participate must be made by July 15th.

3, Once sufficient evidence of participation is achieved, you will be asked
to sign the required documents and complete an application form.

Further information on the implementation phase is contained in the Report.
We are confident that unique circumstances regarding enrollment can be settled
with the interested member. What is needed now in an indication of your
commitment to this group self-insurance proposal. .

ATTENTION OF COUNCIL

Yours truly,
/ ; | would draw Council's attention to the
ie ) KO | Executive Summary (located on oage V).

ars

of the U.B.C.M. Liability Task Force

ichard Taylor
Richa yiol, Self Insurance Study.

Executive Director, for the
UBCM LIABILITY TASK FORCE.

Attch.
1541R

BeR. Kirk,
~ City Administratom o

, This was circulated to you on May 12,1987.