HomeMy WebLinkAbout2006-424 ADDENDUM NUMBER I
TO SERVICE CONTRACT FOR
AUTOMOBILE LIABILITY, GENERAL LIABILITY, PROPERTY 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 SI 50.00 per medical only exposure and 5995 .00 per indemnity
exposure.
b. Fees fornon-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 contempl ates 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/Prof Liab. $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 Service Agent' s responsibility. It is the responsibility of the
Employer/Broker to provide accurate coverage information regarding any insurance policies insuring claims
covered by this contract. New insurance information on renewal years will be provided as soon as available and
can be provided in the form of an Insurance Binder in the interim of receiving actual policies_ 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 as soon as available. 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
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 ter ination 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.
EMPLOYER 11
ATTEST: J. K. Barton, Clerk INDIAN RIVER COUNTY, FLO A• ,
BOARD OF COUNTY COM1IV�2E7�
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By �lLL
Deputy Clerk By � , !. (//tri�� =
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Gary . Wheeler, Chaiijp4`ft •
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BCC approved : . . • • • •
Approved:
Approved as to form and legal suffici nc7'
Jose aird
Indian River County Administrator
Marian E. Fell, Assistant County Attorney
SERVICE AGENT
WITNESSES: JOHNS EASTERN COMPANY,
COMPANY, INC.
Beverly Adkins, AIC, AIM
Vice President, Special Account Services