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HomeMy WebLinkAbout2007-335 tIT ONNS EASTERN COMPANY, INC. dj k „- cairn Adjusters and Third party Ad[nill iStIaten ADDENDUM NUMBER II TO SERVICE CONTRACT FOR AUTOMOBILE LIABILITY, GENERAL LIABILITY, PROPERTY AND WORKERS' COMPENSATION CLAIMS HANDLING This is the Second 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, 2007 through September 30, 2008. 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 . 3007 and September 30, 2008 will he a minimum and deposit of $62 ,350. 00. We will bill this minimum and deposit in four quarterly installments of S 15 ,587 .50. with the first payment due on October 1 , 2007 . This fee contemplates handling 150 workers ' compensation exposures. If the number of exposures exceeds 150, then the fees will be 5150.00 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 , 2007 and September 30. 2008 will be a minimum and deposit of S13 .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 ofcxposures exceeds 22 . then the fees wilt be : General Liability/Bl $649 . 00/exposure General Liability/PD $449 . 00/cxposure Law EnforcemendProf Liah. $950. 00/exposure Auto Liability/BI $649 . 00/exposure Auto Liability/PD 5449 .00/exposure Physical Damage $295 .00/exposure Errors & Omissions $950.00/exposure Commercial Property 5495 . 00/exposure c . The Arthur J . Gallagher administration fee will he $5 .000.00 covering October 1 . 2(X)7 through September 30- 2008 . d. Information Services — Optional programs available. If selected by Employer, Service Agent will bill accordingly . • Online NOI ( Pre- till) $ 1 ,000.0, per year • Adhoc Report Library $ 1 ,000.00 Setup Fee Pone time charge) $250.00 per login & password ( per year) • Adhoc Report Library $ 1 ,500.(X) Setup Fee ( one time charge ) $400.00 per login & password ( per year) 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 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 he password-protected or via CD ROMS. The claim files may existas paper files and will he 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 he no greater than S3 . 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 2007. EMPLOYER ATTEST: J . K. Barton, Clerk INDIAN RIVER COUNTY, FLORIDA BOARD OF COUNTY CONIM;I SIGNERS By Deputy Clerk By Gar . Wit :ler, Chairman BCC approved : ::10 c�L 0- Approved : r- a C < �k 1 r ved as to form attddegal sufficiency: seph A. aird than River County Administrator IMarian E. Fell , Ass6tant ounty Attorney SERVICE AGENT WITNESS S: JOHNS EASTERN COMPANY, INC. Be ' rly Adl AIC, AIM Vice President. Special Account Services 1 � CATASTROPHE FEE SCHEDULE Fuu Rernut Cosr Sexvtce FEE v $ 0.01 $ 22500.00 $387.00 w r s., 29500.01 51000.00 485.00 " 5 ,000.01 7 ,500.00 512. 00 s f . 71500.01 10,000.00 681 .00 rx 10,000.01 151000.00 864.00 15,000.01 20,000.00 1 ,012.00 20,000.01 25,000.00 4.5% of Loss - $ 1,02.5 minimum tt - - - - - - kit , - 25,000.01 35 ,000.00 4% of Loss - $ 1 , 200 minimum t 4 35,000.01 50,000 .00 3.5% of Loss - $ 1,400 minimum 503000.01 - 100,000.00 3% of Loss - $ 1 ,750 minimum rc ky, Over 100,000.00 2% of Loss - $3,000 minimum f 1. Full Repair Cost - Agreed cost to repair or replace before applying depreciation, deductible, or A ' other clauses limiting coverage. ' t 2. In addition to the schedule, the following charges will be made: t,,I iu��r a. All miles driven at $0.55 per mile. ' tIRM iil ' •� jilz It b. Photos - $2.00 eachI'M I ,5u� f Wit . expense, at cost.f c. Outside fees, reports, telephone, and other direct ex P P P 4 d. Administrative/Set up fee - $50.00 Ramo} e. Drive time charged and mileage (both prorated when possible) when loss is more * $ than 20 miles from our base of operation. .yNQ���f9999�c: it 1 JOHNS EASTERN COMPANY, INC. Mm"