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Home My WebLink AboutHR1993-0164 - Other - WCIA - MOU regarding Large Deductible Program Clarification of Responsibilities - 02/19/1993 Memorandum of Understanding This Memorandum of Understanding (Memorandum) is made and entered this day by and between the City of Kent, (KENT), and Washington Cities Insurance Authority, (WCIA) to clarify KENT and WCIA responsibilities under the WCIA Large Deductible program. KENT, as a current member of WCIA, has qualified and has exercised its option to participate in the Large Deductible Program and will maintain a $100,000 deductible level per occurrence. I CLAIMS ADMINISTRATION During the period or periods of KENT's participation in the Large Deductible Program, WCIA shall continue to represent and act for KENT in matters pertaining to the automobile, errors & omissions, police and general liabilities of KENT, including the following: A. Receive notice of and create files on each claim reported and maintain these files for KENT. Each claim file shall be maintained on a current basis to reflect liabilities, value, recommended disposition, and desirability of risk. B. Investigate all claims submitted to WCIA by KENT to determine their liability and settlement value. C. Request timely payment to WCIA, in accord with payment procedures established herein. KENT will be wholly responsible for providing payment as may be required for any claims assessed against it, up to $100,000 per occurrence, and/or in excess of or upon exhaustion of WCIA liability coverage. D. Maintain and provides KENT pertinent data on all claim payments. E. Promptly report to KENT the status of claims in a timely manner. II PAYMENT OF CLAIMS A. KENT shall at all times provide funds to WCIA adequate for the payment of qualified claims or losses and of allocated loss expenses within KENT's $100,000 per occurrence deductible to a Deductible Fund (Fund) managed by WCIA. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties, incurred by WCIA, its agents or its employees, which are properly chargeable to a qualified claim or loss including, without limitation, court costs, fees and expenses of defense attorneys, independent investigators, experts and witnesses, and fees for obtaining diagrams, reports, documents and photographs. B. The initial deposit to the Fund shall be $25,000, payable on or before January 31, 1993. WCIA will periodically analyze the sufficiency of this amount and may require KENT to adjust the deposit amount to more accurately represent cash flow demands placed upon the Fund. Memorandum of Understanding 01/07/93 C. WCIA will provide KENT with monthly reports detailing all expenditures charged to this Fund. KENT will have ten (10) working days from the date of this notification to reimburse the Fund to its required deposit level, as established in clause B above, by wiring funds to WCIA's bank account. D. In the event that the Fund is impacted by an unusually large volume of current or pending claims or expenses, and upon special notice from WCIA detailing the nature of this unusual demand and the amounts thereof, KENT will wire transfer the requested amount within ten (10) days to avoid the possibility of a negative balance in the Fund. E. It is expressly understood that WCIA shall not be required to advance its own funds to pay losses, allocated loss expenses or banking charges within the Deductible level, or to perform any services hereunder if KENT fails to provide adequate funds as herein set forth. F. Reimbursement of the Fund not received within ten (10) days of written notification will be charged a finance fee of 1%. III TERM This Memorandum shall become effective on January 1, 1993 and shall continue to be in force as long as KENT continues as a WCIA member participating in the Large Deductible program. IV GENERAL PROVISIONS A. WCIA shall continue to have full authority to negotiate and settle claims within KENT's deductible level, and up to WCIA coverage limits without prior approval from KENT. WCIA, where possible, shall review all claims with KENT prior to settlement. B. WCIA shall continue to have full authority to appoint and retain defense attorneys to defend KENT on any claim or lawsuit tendered to WCIA under this Memorandum and to control the defense of said claims or lawsuits. C. All claims and related files generated by WCIA as a result of its activity under this Memorandum shall remain at all times the property of WCIA. All such files will be available at WCIA offices for review and inspection by agents of KENT. D. It is understood and agreed by the parties that a claim has occurred when the incident, accident or event giving rise to the claim has occurred. The fact that the claimant may not report the claim until some subsequent time or that KENT might not report it to WCIA until some subsequent time does not change the meaning of when the claim occurred for purposes of this Memorandum. Any claim that occurs during a coverage year in which KENT is a participant in the Large Deductible program shall be administered and handled by WCIA per the provisions of this Memorandum. 2 Memorandum of Understanding 01/07/93 E. Nothing in this Memorandum changes, alters or relieves WCIA or KENT of their duties and obligations as set forth in the WCIA Interlocal signed by all member cities of WCIA, or the Bylaws, Joint Protection Program and Coverage Document that was approved by the membership. F. Any changes in deductible status or levels cannot be implemented until the conclusion of the calendar/ fiscal/coverage year. G. KENT shall keep the Fund replenished until all claims covered under this Memorandum have been fully resolved or release WCIA from any further liability to administer, defend or pay said claims within the deductible layer. WASHINGTON CITIES INSURANCE AUTHORITY LE S . LEIGH, KedutiU Director ate CITY OF KE T � t Authorized Signat e Date APPROVED AS TO FORM: 62 . Q4-,� Mark Bucklin, Authority Counsel kentcont1 3 AN��41, KEATING, BUCKLIN & MCCORMACK, P.S. d' ATTORNEYS AT LAW ROBERT C.KEATING 4141 SEAFIRST FIFTH AVENUE PLAZA JOSEPH R.KOPTA JOHN L.McCORMACK 800 FIFTH AVENUE ANDREW G.COOLEY MARK R.BUCKLIN GHLOETHIEL W.DEWEESE RANDAL W.EBBERSON SEATTLE,WASHINGTON 98104-3175 RICHARD P.ROBERTS WILLIAM P.SCHOEL FAX:(206)223-9423 STEWART A.ESTES STEVEN L.THORSRUD DEBORAH D.BROOKINGS MICHAEL C.WALTER (206)623-8861 March 5 , 1993 Mr. Dave Hayasaka Programs Manager Washington Cities Insurance Authority 15215 - 52nd Avenue South, Suite 10 Tukwila, Washington 98188 Mr. Ken Chatwin Risk Analyst City of Kent 220 Fourth Avenue South Kent, WA 98032-5895 RE: Memorandum of understanding between the City of Kent and W. C . I .A. Regarding Large Deductible Program Gentlemen: I have received and reviewed the final signed edition of the Memorandum of Understanding between the City of Kent and Washington Cities Insurance Authority for operation of the W. C . I .A. Large Deductible Program which Kent has opted to participate in at this time . I have sigr_ed the Agreement approving it as to form and I am mailing to each of you one of the two duplicate originals of this Agreement. Cordially, s/ 111-1/�8 Mark R. Bucklin MRB: rg Enclosure : original