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Fr— <br />SEP 60 8 1993 <br />BOOK 90 PAGE 659 <br />By contrast, Schwab has proposed a consortium made up of General Star Indemnity <br />Company, Royal Insurance Company, Lexington Insurance Company, Westchester <br />Insurance Company, Royal Indemnity Company and Fireman's Fund Insurance Company. <br />Again, there is a $5,000.00 deductible for most losses, but windstorm carries a <br />$500,000.00 deductible. In addition, the proposed premium is $457,038.23. Besides the <br />obvious premium costs, staff is also concerned about claims handling with such a large <br />number of insurers. Although their proposal is layered, that is, General would take the <br />first $2 million of loss, followed by Royal and Lexington jointly sharing the next $3 million <br />layer, etc., we see this as a potentially chaotic situation in the event of a large loss. Due <br />to the complexity of this proposed program and the reluctance of any one carrier to <br />commit to a layer of coverage without a similar commitment from other carriers, it was <br />sent by facsimile on September 17 with a hard copy to follow. Copies of both the League <br />and Schwab consortium proposals are available in the Risk Management office. <br />We have been assured both by the League and Schwab that the dramatic increase in <br />premium will be short-term, with premium decreases by next year, unless there is another <br />catastrophic natural disaster in Florida. <br />Recommendation <br />Staff recommends property, inland marine and boiler/machinery coverage be placed with <br />the Florida Municipal Insurance Trust, Florida League of Cities, at , a premium of <br />$200,965.00 for 1993-94. <br />ON MOTION by Commissioner Adams, SECONDED by <br />Commissioner Eggert, the Board unanimously approved <br />insurance coverage with Florida Municipal Insurance <br />Trust, Florida League of Cities, at a premium of <br />$200,965 for 1993-94, as set out in staff's <br />memorandum. <br />AMENDMENT TO FBIP GRANT AGREEMENT - ROUND ISLAND PARR IMPROVEMENTS <br />The Board reviewed memo from Capital Projects Manager Terry <br />Thompson dated September 21, 1993: <br />20 <br />