Title
Insurance and Risk Management Advisory Board Meeting of March 10, 2021.
Body
Board member Mr. Juan C. Diaz-Padron opened the meeting. Meeting was called to order at 12:04PM. Quorum in person was not reached.
OLD BUSINESS:
Update Insurance Renewal Process - Ms. Maria Perez- Arthur J. Gallagher
Ms. Raquel Elejabarrieta
Raquel advised since the last workshop held on March 5th the City was looking at three (3) options:
1. Obtain a one (1) month extension from the current carriers. The City does not have a Commission meeting in April. Because of this and the fact that the City’s insurance renewal period runs from May 1st to May 1st, this item must be presented to the City Commission during the March 23rd Commission meeting. The one (1) month extension would have given the City additional time to review FMIT’s proposal through the end of May and consider in detail the differences in coverages between FMIT and the City’s current program structure. Unfortunately, the carriers did not provide the extension and this option is no longer viable.
2. When FMIT made its initial proposal, it advised the City that it was “all or nothing.” In other words, the City had to transfer its property, package, and excess workers’ compensation coverage to FMIT. The City asked AJG to ask that FMIT reconsider its position on this and provide the opportunity to the City, if it so chooses, to elect to transfer only its property coverage to FMIT. FMIT responded that it would allow the City to transfer only its property coverage (this option was discussed at length during this meeting and that discussion is summarized below).
3. Renew with the current program structure and use the next renewal period to analyze in detail and seek clarification on FMIT’s program for next year.
Discussion on Option 2
FMIT provided 2 quotes for property only coverage. The first quote excluded bridges, docks, wharves, and seawalls and was $1,132,043. FMIT also provided a subsequent quote that i...
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