Laserfiche WebLink
1 <br /> <br /> 3 <br /> <br /> 5 <br /> <br /> 7 <br /> <br /> 9 <br /> <br />11 <br /> <br />13 <br /> <br />15 <br /> <br />17 <br /> <br />19 <br /> <br />21 <br /> <br />23 <br /> <br />25 <br /> <br />27 <br /> <br />29 <br /> <br />31 <br /> <br />33 <br /> <br />35 <br /> <br />37 <br /> <br />39 <br /> <br />41 <br /> <br />43 <br /> <br />45 <br /> <br />47 <br /> <br />49 <br /> <br />51 <br /> <br />the Participants seek not only an immediate solution but also a <br />long-term permanent solution to this problem which will in <br />future years free them from exposure to the vagaries of <br />commercial insurance cycles; <br /> <br /> WHEREAS, the Authority and the Participants, in <br />consultation with independent professional insurance <br />consultants, have formulated a joint risk-sharing insurance <br />program To be administered by the Authority to meet the public <br />entity liability insurance needs of the Participants which will <br />provide the following advantages, among others, to the <br />Participants: <br /> <br /> (a) immediate funding of a claims payment fund (the <br />"Claims Payment Fund") through an initial deposit from the <br />proceeds of the sale of the Bonds for the dual purposes of <br />providing immediate protection from large claims loss and <br />facilitating eventual access to the commercial reinsurance <br />market, <br /> <br /> (b) mutual agreement by the Participants to pay <br />annual premiums determined on both a prospective and a <br />retrospective basis calculated actuarially to spread and <br />moderate the cost of liability losses to each Participant, <br /> <br /> (c) relief from the burden of paying premiums to <br />commercial insurers at levels reflecting the insurers~ high <br />costs of underwriting, administration and brokerage fees <br />since the Authority's costs will be limited to reasonable <br />administrative costs, <br /> <br /> (d) relief from the commercial insurers~ rights under <br />excess liability policies to force claim settlements which <br />are payable primarily in each case from the Participant's <br />self-insurance funds, and <br /> <br /> (e) access to the commercial reinsurance market in <br />future years when commercial reinsurance is available at <br />rates deemed favorable by the Participants. <br /> <br /> WHEREAS, the Participants have further determined that the <br />Participation Premium to be paid in each year by each <br />Participant as provided for and upon the conditions set forth <br />in this Agreement will be payable only upon the condition of <br />the receipt of ~he consideration represented by the insurance <br />protection and services to be provided in such year under this <br />Agreement, but in the event that such protection and services <br />are so provided in any year such Participation Premium will be <br />a binding obligation of each Participant payable from legally <br />available moneys of each Participant; <br /> <br />2658002/2 <br /> <br />3 <br /> <br /> <br />