Insurance Presentation Meeting
8/9/11
The meeting was called to order at 3:01 PM.
Board Members present were Councilwoman LaPine, Councilman MacDougal, Councilman LaForest, Councilman Wrisley and Supervisor Boisen. Also
Present was Audrey Hoskins, Town Clerk.
Visitor included Frank Walls, Mark Carpenter, Upstate Agency, Susan O™Rorke,
Director of Marketing, NYMIR and Dick Look, Senior Sales Executive, NYMIR.
Mark Carpenter of Upstate Agency presented his proposal for insurance coverage for the Town of Essex for 2012.
Mr. Carpenter said his agency has provided the Town™s insurance for ten years.
Replacement cost coverage on the equipment and vehicles was discussed. The equipment and vehicles is at full insured amount with no depreciation cost. The charge for this coverage is $3.00 per thousand.
The property coverage insurance from Upstate for buildings and contents is
About 105 higher than the other company™s proposal. This works out to about a $400.00 difference.
Mr. Carpenter wanted to make sure the Board understood that NYMIR is not traditional insurance. It is an assessable program. Selective and Pearless insurances will not surprise with an assessment in a few years. When you are comparing policies with similar coverage the assessment factor should be taken into consideration when make the decision.
Mr. Carpenter discussed the Selective Umbrella /Excessive Policy and its broader coverage policy. It is a very good policy for multiple claims.
Councilman LaForest asked the reason the Library, Town Hall and the Octagonal School are separate from the blanket policy. Mr. Carpenter said this was done by the Selective underwriters. They felt because the buildings were older and based on inspections and that have done updates to electrical, plumbing, roofs and other maintenance have not been done that they would be insured outside the blanket policy. If the Town Hall were to burn down it would be covered by a specific amount of insurance rather than the blanket policy. To be covered by the blanket policy updates as specified by the insurance would have to be done to these buildings.
Billing, payments and cancellation polices were discussed.
Susan O’Rorke, and Dick Look of NYMIR presented their insurance proposal for the Town for 2012.
Ms. O’Rorke presented a list of Towns that NYMIR insures to the Board.
The annual report for NYMIR was presented to the Board. One way we are different is the Board that runs NYMIR is made up of elected officials. People like your selves with professionals run the company. NYMIR is an assessable company, not part of the guaranteed fund. Another difference is if we take in more money than we need years later the money is returned to the subscribers. We are in the process of returning nine million dollars over the last three years to our subscribers who have been insured with us for five years.
Ms. O’Rorke said that NYMIR covered two of the recent fire at Town Highway garages. She suggested the Board contact the Towns where the fire occurred and ask their opinion on how the insurance claim was handled.
NYMIR has a Board of appeals when your claim has been denied that you can come before and appeal the claim.
We have a 98% renewal retention at NYMIR.
Dick Look was the next to speak. General Liability was discussed.
NYMIR is a not for profit company. This covers only NY municipalities.
Capitalization was discussed. The capitalization fee for the Town would be $196 per year for five years and this cost is figured into the policy cost. The blanket insurance coverage was discussed. Flood coverage was discussed. Inland marine coverage was discussed.
Replacement valve and cash value coverage for equipment was discussed. It is up to the Town to decide how they want to insure the equipment at cash value or replacement value.
The crime coverage was discussed. The Board members felt is was low. Public official™s labiality was discussed.
Transfer of risk was discussed.
Mark Carpenter of Upstate said he clearly understood that NYMIR has a limitation on replacement cost for vehicles over ten years old. The proposal presented by them states replacement is applicable to vehicles over ten years old.
Susan replied that NYMIR has agreed to replacement value on vehicle if this is what the requests.
The Board requests NYMIR put the replacement value coverage in writing that they will cover vehicles over ten years old at replacement value as requested by the Town.
An email will be sent from NYMIR stating the replacement value will cover all vehicles no matter the age.
Both companies’ representatives thanked the Board for their time.
Supervisor Boisen said as soon as the requested information is received from NYMIR she will get it to the Board.
The meeting was adjourned at 4:49 PM.
Respectfully submitted Audrey Hoskins, Town Clerk
