HomeMy WebLinkAbout2006-370 aCp� -3176
ADDENDUM NUMBER
TO SERVICE CONTRACT FOR
AUTOMOBILE LIABILITY, GENERAL LIABILITY, AND
WORKERS' COMPENSATION CLAIMS HANDLING
This is the FIRST Addendum to the Agreement entered into between Johns Eastern Company, Inc.,
hereinafter called the SERVICE AGENT, and INDIAN RIVER BOARD OF COUNTY COMMISSIONERS,
hereinafter called the EMPLOYER, dated the 24th day of October.
This Addendum affects the remuneration to be paid by the EMPLOYER to the SERVICE AGENT for
the handling of claims with a date of loss of October 1, 2006 through September 30, 2007. All other terms of the
original Contract remain unchanged.
The remuneration to be paid to the SERVICE AGENT under this Agreement by the EMPLOYER for
workers' compensation claims handling and safety services during the term of this Agreement shall be as follows:
5. Compensation for the Service Agent: For performing its services under this .Agreement, the Service Agent
shall be entitled to the following compensation:
a. Fees for workers' compensation exposures whose dates of loss fall between October 1 , 2006 and
September 30, 2007 will be a minimum and deposit of $62,350 .00. We will bill this minimum and
deposit in four quarterly installments of $ 15. 587 .50. with the first payment due on October 1 . 2006 .
This fee contemplates handling 150 workers' compensation exposures. If the number of exposures
exceeds 150, then the fees will be $ 150.00 per medical only exposure and $995 . 00 per indemnity
exposure.
b. Fees for non-workers' compensation exposures whose dates of loss fall between October 1 , 2006 and
September 30, 2007 will be a minimum and deposit of $ 13 ,400.00. We will bill this minimum and
deposit in four quarterly installments of$3,350.00, with the first payment due upon program inception .
This fee contemplates handling 22 non-workers' compensation exposures . If the number of exposures
exceeds 22, then the fees will be:
General Liability/BI $649 .00/exposure
General Liability/PD $449 .00/exposure
Law Enforcement/ProfLiab. $950.00/exposure
Auto Liability/BI $649.00/exposure
Auto Liability/PD $449.00/exposure
Physical Damage $295 .00/exposure
Errors & Omissions $950 .00/exposure
Commercial Property $495 .00/exposure
C. The Arthur J . Gallagher administration fee will be $5.000.00 covering October 1 . 2006 through
September 30, 2007.
All other service fee terms and rates outlined in the original contract remain unchanged.
6. Excess Reporting Obligation - Unless otherwise specified in this addendum, Service Agent agrees that
reporting claims to excess insurance carrier is the ServiceAgent' s responsibility . It is the responsibility ofthe
Employer to provide accurate coverage information regarding any insurance policies insuring claims covered by
this contract. The information for all claim years that the Service Agent is handling will be made available to
the Service Agent within 90 days of contract inception. New insurance information on renewal years will be
made within 90 days of renewal date. Excess information will include name and claims reporting address and
phone number of all carriers, policy number, effective dates, limits of liability, deductibles, specific retentions
and loss funds. Actual policies will be provided. This information is required for each claim year that the
Service Agent is handling for the employer. If this information is not made available as outlined in this
paragraph, Service Agent will not be responsible for any penalties, interest, or reductions in excess recoveries
because of late reporting.
7. Continuing Handling of Claims After Termination of Contract or Legally Imposed Mandates . Upon
termination of this Agreement as set forth in paragraph 8, the Service Agent agrees to continue handling all
claims that have been made and reported to it prior to such date of termination for thirty (30) days unless
the parties have agreed otherwise in writing.
Upon repeal of any service mandated by the workers' compensation law and/or other applicable statutes
and/or regulations, the Service Agent agrees to continue handling all claims under the repealed service that
have been reported to it prior to the date of such repeal for thirty (30) days unless the parties have agreed
otherwise in writing.
Upon exiting, client data will be provided to the new TPA either by a series of attachments to one or more email
messages containing zip files which can be password-protected or via CD ROMS . The claim files may exist as
paper files and will be shipped as such. If the claim files are stored as images in a document retrieval system,
they will be provided via CD ROM or the most current means of providing data. The cost for this will be no
greater than $3, 500.00. The Employer will be billed for any additional programming to help in data transfer.
Handling of property claims during a catastrophe will be billed based upon the attached catastrophe schedule; or
the schedule in effect at the time of the catastrophe.
All other terms of the contract remain unchanged.
IN WITNESS WHEREOF, the SERVICE AGENT and the EMPLOYER have each caused this
Addendum to be executed by its duly authorized representative to be effective the 1st day of October 2006.
. tI ' , gyp
Attest : J. K . Barton, Clerk INDIAN RIVER BOARD.; ' . • • ,
OF COUNTY COOKERS
i
Deputy Clerk Arthur R. Neube
BCC Approved : October ."15
WIT}NESS,S,ES: �p JOHNS EASTERN COMPA'N34 pI14IG:
Beverly Adkins, AIC, AIM
Vice President, Special Account Services
PPROVED :
(CluntyAdministrator
v APPROVED AS TO FORK
AN EG ICIE Y
[1
BY
MARIAN Et
ASSISTANT COUNTY ATTORNEY
JOHNS EASTERN COMPANY, INC .
2oo6 CATASTROPHE FEE SCHEDULE
Full Repair Cost Service Fee
S 0 . 01 - $ 2,500 . 00 387
2,500 . 01 - 5,000 . 00 485
5, 000 .01 — 7,500 . 00 572
00. 01 — 10,000. 00 681
10 ,000 . 01 - 15,000- 00 86
15, 000 . 01 - 20,000. 00 11012
203000 .01 - 253000 . 00 4. 5% of Loss - $ 1,025 minimum
25, 000. 01 - 35, 000 .00 4% of Loss - $ 1,200 minimum
35�000 - 01 0 ,000 . 00 3 . 5% of Loss - $ 1,400 minimum
50,000 . 01 — 1005000 3% of Loss - $ 1 ,750 minimum
Over 1oo, 000 . 00 2% of Loss - $ 3, 000 minimum
1 . Full Repair Cost — Agreed cost to repair or replace before applying depreciation,
deductible, or other clauses limiting coverage.
2 . In addition to the schedule, the following charges will be made :
a. All miles driven at the rate set by F.S. Section 112. o61.
b. Photos - $ 2 . 00 each
c. Outside fees, reports, telephone, and other direct expense, at cost.
d. Administrative/Set up fee - $ 50 . 00 (one time only fee per catastrophe) .
e. Drive time charged and mileage (both prorated when possible) when loss is more
than 20 miles from our base of operation.
JOHNS EASTERN COMPANY, INC.
PO Box 4175 , Sarasota, FL 34230. 800-767-9480 (telephone). 941 -907-7227 (fax)
PROPERTY RATE SCHEDULE
Full Repair Cost Appraisal Full Adjustment
Only
$ 0 - 01 - $ 500 . 00 $ 180 . 00 $ 225 . 00
500 . 01 - 1,000 . 00 205 . 00 2 6. 00
1, 000 . 01 - 27500. 00 334. 00 379 . 00
25500 . 01 - 5, 000 . 00 397. 00 465 . 00
5, 000 . 01 - 7,500 . 00 517. 00 559. 00
7,500 . 01 - 10 ,000. 00 617. 00 669 . 00
10, 000 . 01 - 15,000 - 00 715 . 00 825 . 00
15,000 . 01 - 20,000 . 00 850 . 00 980 . 00
20, 000 . 01 - 0,000 . 00 n a 4.5% of Loss - $ 995 minimum
0 ,000 . 01 - 40,000 . 00 n a 3 . 5% of Loss - $ 1, 350 minimum
407000 . 01 - , 000 . 00 n a 3 . 0 % of Loss - $ 1,400 minimum
55 , 000 . 01 - 70 , 000 . 00 n a 2.5 % of Loss - $ 1,650 minimum
70,000 . 01 - 907000 . 00 n a 2 . 0% of Loss - $ 1, 750 minimum
905000 . 01 - 1105000 . 00 ria 2. o % of Loss - $ 1, 800 minimum
110, 000 . 01 - 150 ,000 . 00 n a 2. o % of Loss - $ 2, 200 minimum
150 , 000 . 01 - ABOVE n a 2 . 0% of Loss - $ 3 , 000 minimum
1. Above fees include local telephone, file creation, copying, and
secretarial support.
2. Full Repair Cost - Agreed cost to repair or replace before applying
depreciation, deductible, or other clauses limiting coverage.
3 . In addition to the schedule, the following charges will be made :
a. All miles driven at the rate set by F. S . Section 112 . o61 .
b. Photos - $ 2 . 00 each
c. Outside fees, reports, telephone, and other direct expense , at cost.
d. Drive time charged (prorated when possible) when loss is more
than 20 miles from our office .
4. These schedules do not apply to catastrophes .
5 . All assignments handled by General Adjuster will be billed at the full
adjustment rate.
6 . Subrogation efforts charged on an hourly basis of $ 69/hour.