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HomeMy WebLinkAboutFlorida Municipal Insurance Trust Two Year Program Guarantee Agreement May -1998 05 01 . ~ I. ; .~ ; ," .. - . . . FLORIDA MUNICIPAL INSURANCE TRUST - TWO YEAR PREMIUM GUARANTEE AGREEMENT TInS AGREEMENT, made and entered into this L day of M 11/, . 198"byand ~ between the e '7 &F vJ,tJ~ gPR,P)6<:;. (hereinafter referred to as the "Member) and the . Florida Municipal Insurance Trust (hereinafter referred to as the "FMIT'). WHEREAS, the FMIT bas deteImined it is in the best interest of the FMIT to offer the Member a Two Year Premium Guarantee Plan, and- - WHEREAS, the Member has determined it is in the best interest of the Member to utilize the Two Year Premium Guarantee Plan. NOW, THEREFORE, for and in consideration of the mutual covenants, promises and obligations herein contained which are given to and accepted by each party hereof to the other, the parties to this instrument covenant, stipulate and agree as follows: l 1. . As used herein, the following words and phrases shall have the following meaningS: a "Coverage Period" means .the period as shown on the Declarations of the FM1T Agreement. I b. "Premium Guarantee" means that the annual net premium billed the Member for rp.e coverage period will not be subject to adjustment from exposure audit, change l . , , 'f , . . in experience modifications. 3nnllal rate review and rate change by the FMIT or to . - change in approved panicipation credits. c. "Gross' Premium" means the annual gross premium as sho~ on the Declarations of the FMIT Agreement for the coverage period. d. "Participation Credit" means equity cremts, dividends, incentive credits,: premium credits, and any other participation credit approved by the FMIT,and is the annUal credit shown on the Declarations of the F1v1IT. Agreement for the cov~rage period. . e. "Net Premium" means the annual net premium as shown on the Declarations of the Bv1IT Agreement for the coverage period. f. "Experience Modifications" mean the factors used by the FMIT in adjusting base gross premium due to a Member's los.s experienCe for workers' compensation, general liability (including 'law enforcement and public officials errors and omissions).: automobile liability and automobile physical damage. g. "Exposure Audit'" mearis audits conducted by the FMIT to assure exposure information provided by the Member accurately reflects actual exposures assumed by the FMIT, which audits can result in premium adjustments to the Member under I . the terms of the Indemnity Agreement. . 2 . . . .. . h. "'Rues" mean the annual renewal rates approved by the FMIT for the FMrrs - property and casualiy coverages and used for calculation of the Member's gross premIUms. 1. "'Exposures'" mean the basis on which the FMIT rates are applied to develop gross premiums including but not limited to payroll, job classifications, popuIatio~ law enforcement officers, vehicles, real and personal properties, and. other miscellaneous exposures. - J. "Indemnity Agreement" means the FNIIT's Indemnity Agreement, the Participation Agreement entered into between the FMIT and the Member, and any other agreement, certificate, document, or other instrumetit executed by the Member and the FMIT. . 2. S':!bject to the terms and conditions contained in this Agreement, the Member ~d the . FMIT agree Member's Premium Guarantee during the coverage period shall be the net premium shown' OB the Declarations of the FMlT Agreement 3. The Member agrees that it will assist the FMIT by timely providing the FMIT with updated information projecting the FMIT's exposure for the October 1, 19~~ year and with any other exposure information the FMIT in good faith believes might have a I material impact on the exposures to be assumed by the FMIT over the coverage period. . 3 r. ~... . .. . . 4. The FMIT agrees that coverage provided herein will not be canceled or non-renewed by the FMIT during the coverage period except for non-payment of prennum by the Member. S. The Member agrees that coverage accepted herein will not be canceled or non-renewed by the Member during the coverage period. 6. It: during the'coverage period, the Member cancels or non-renews the coverage. or.if coverage is canceled by the FMIT for non-payment of premium, the Member' sbaII be liable for liquidated damages for breach of this. Agreement, calculated at ten percent (100/0) of the net premium unearned by the FM1T for the. coverage period, plus any additional premium t:h.at, but for this. Agreement, would othenvise have been due and owing the FMIT as a result of exposure audits under the Indemnity Agreement. This provision for liquidated damages is agreed upon between the parties due to the inability of computing . the loss of value to the FMIT of the unexpired portion of the Member's coverage period under this Agreement. 7. In the event the M~er ~ to pay monies due and owing hereunder, theFMIT shall be entitled to recover from the Member all costs and expenses incurred by the FMIT in collecting any such monies, including reasonable attorney's fees, costs, prejudgment interest. and any other reasonable and related expenses of collection. 8. In the event of conflict, the provisions of this Agreement shall prevail over any provisions contained in the Indemnity Agreement. Provisions of the Indemnity Agreement not in . conflict with the provisions of this Agreement shall remain in full force and effect. 4 , , . ,. '0" .. 4. ;f . Witness to Signature: . . City of Winter Springs &~ \>cJ.O~ Name of Applicant me 3O.""c.B.- ~c..\~~""'~ ~~tllJ~~ 1126 E. S.R. 434,Wint~r.Springs, FL 32708 Authorized Officer ~~ Address Approved: Florida League of Cities - By: ~&;r~~ Title: 'j)ir~c:.1-nr ~f7u bf IC.'t?;Sk. Se;",'u~ Date: ~ /11/98 RECEIVED JUN 1 (S 1998 CITY OF WINTER SPRINGS RISK MANAGEMENT 5 Florida League of Cities, Inc. Public Risk Services Claims Center P.O. Box 538135 Orlando, FL 32853-8135 June 11, 1998 ~ FIARID-4 IFAGIIE OF CITIES Mr. J. P. Petrencsik Risk Manager City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708-2799 Re: Two Year Premium Guarantee Agreement 1998 FMIT Renewal Dear J.P.: (800) 756-3042 (407) 245-0725 Suncom 344-0725 Fax (407) 245-0918 ~~~ % ~ - ~~ ~~N ~ ~'4 c, ~ 1998 SK Mq~GR Sp i FMF ~~GS N Enclosed please find the signed Two Year Premium Guarantee Agreement for your October 1, 1998 renewal through the Florida Municipal Insurance Trust. Please note on Page 3, Item 3, that I changed the exposure date to reflect October 1, 1998 in lieu of 1997. This was last year's agreement and as we are both aware, the coverage period for the City of Winter Springs is from October 1, 1998 to October 1, 2000. We very much appreciate your continued participation in the Florida Municipal Insurance Trust and look forward to being of service to you. Sincerely, -~- ~~.~~ Bradley S. Clark Director Enclosure John Ligon Marketing Representative Florida Municipal Insurance must