HomeMy WebLinkAbout2002 04 22 Consent B Accidental Death Coverage to Police and Firefighters
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COMMISSION AGENDA
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ITEM B
CONSENT X
INFORMA TIONAL
PUBLIC HEARING
REGULAR
4/22/02
Meeting
MGR. V- IDEP@
Authorization
REQUEST: The General Services Department requests that the City Commission
approve an amendment to Policy Number SRG 0008059987, effective July 1, 2002,
written for the City by the American International Group (AIG), which provides
accidental death coverage to Police Officers and Firefighters pursuant to Sections 112.19
and 112.191, F.S.. It is also requested that the Commission authorize an additional
payment of premium in the amount of Six Hundred Twenty Eight Dollars and Seventy-
Five Cents ($628.75) as the pro-rated increase for the remainder ofFY 2001-2002.
PURPOSE: This agenda item allows for an amendment to the insurance policy that
provides required accidental death coverage to Police Officers and Firefighters, and authorizes
the payment of a pro-rated increase in premiums from the effective date of July 1, 2002, to
September 30, 2002.
CONSIDERATIONS:
1. In the most recent session of the State Legislature, HB 1357 received unanimous
support in both the House and Senate for an increase in death benefits for Police
Officers and Firefighters.
2. Death benefits were doubled from $25,000 to $50,00 for accidental death in the
line of duty, and from $75,000 to $150,000 for accidental death in the line of duty
which can be directly attributed to the commission of a felonious act.
3. The statute does not require that we amend our policy, but if an employee dies
under conditions outlined in the aforementioned sections 112.19 and 112.191,
F.S., the carrier will be obligated to pay surviving beneficiaries only to the policy
limit, and the City will be required to fund the difference as required in the
statute.
City Commission Consent Agenda
April 22, 2002
Item "B"
4. Through our insurance brokerage, Risk Management Associates, AIG has
advised that premiums for coverage to the statutory limits will double, effective
July 1, 2002, meaning that we will be required to pay an additional pro-rated
premium of $628.75 for the remaining three months ofFY 2001-2002. (The
full premium for FY 2002-2003 will double from $2,515 to $5,030.)
FUNDING: No additional funding required at this time, but unforeseen policy changes
and/or adverse claims experience during the remainder of this fiscal year
may later require that the Risk Management be bolstered with additional
appropriations.
RECOMMENDATION: It is recommended that the AD&D policy in question be
amended to allow for the increased death benefits as
required by statute, and that the additional premiums
required by AIG be authorized and paid.
ATTACHMENTS: Letter, dated AprilS, 2002, from Linda Burtchett, Account
Representative, R.M.A.
COMMISSION ACTION:
RMA
Risk Management Associates
4/512002
Mr. Gene DeMarie
City of Winter Springs
1126 East SR 434
Winter Springs, FL 32708
-- - -
RE: AD&D policy SRG0008059987
Dear Mr. DeMarie :
The above captioned policy covers the AD&D for your Police Officers and Firefighters. Based
on House Bill 1357, effective July 1, 2002 the statutory limits have been raised as follows:
$50,000 Accidential Death
$50,000 Fresh Pursuit
$150,000 Intentional Act
At your written request, AIG Life Insurance Company will increase the limits on your current
policy to comply with these new limits. The additional premium would be pro-rated from 7-1-02
to the expiration date of your policy. If you do not request this change your policy limits will
remain the same and in the event of a loss the company would pay based on the policy limit and
your entity would be responsible for the balance of the claim.
Please let us know if you have any questions regarding this matter and we look forward to
hearing from you.
Sincerely,
~d",
Linda Burtchett
Account Representative
Commercial Insurance · Bonds. Risk Management Services. Program Design and Administration
P.O. Box 161507. Altamonte Springs, Florida 32716-1507. Phone: (407) 331-4400. Fax: (407) 331-4800