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FY1991 11/14/1990 1Dannp 1.. Itolbage BRANCH OFFICE 3117 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 TEL. (305) 743-9036 CLERK OF THE CIRCUIT COURT MONROE COUNTY 500 WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL. (305) 294-4641 BRANCH OFFICE P.O. BOX 379 PLANTATION KEY, FLORIDA 33070 TEL. (305) 852-9253 M E M 0 RAN DUM To: George Harper, Director Management Services Division From: Rosalie L. Connolly, Deputy Clerk Date: November 26, 1990 Subject: Gallagher Bassett Services, Inc. On November 14, 1990, the Board of County Commissioners approved renewal of the Service Contract with Gallagher Bassett Services, Inc. to administer the Workers compen- sation Program effective October 1, 1990, at a total cost of $28,589.00. In accordance with the attached letter from Gallager, I am returning three duplicate originals of the Contract for your handling. Attachments cc: County Attorney County Administrator Finance Director File GALLAGHER BASSETT SERVICES, INC. CONTRACT FOR SERVICES PARTIES Monroe County Board of County Commissioners (hereinafter "CLIENT") hereby retains Gallagher Bassett Services, Inc. (hereinafter "GB") to perform the services listed on Schedule V. TERM This contract shall be in effect from 10/1/90 through 9/30/91 and shall remain in full force and effect unless amended or terminated. ATTACHMENTS Attached hereto and made a part hereof are the following schedules: co -,. ~-'~) C:) ,., I. OBLIGA TIONS OF THE PARTIES c.) - '-;~ ..- .c'-_ .,.:r, '-.. 7J ('J C;::J 1"11 c:::: ":-:J II. BANKING r' . i 1""''' ':1 i... . OJ III. TERMS AND CONDITIONS C:i .....'to- ., c: '"'''''' =n ':":0 ...f':- ::3 fll IV. DEFINITIONS -1 c:: -:~ ") -< ..-.~ c.o CJ ..,., C) r"U V. SERVICES AND FEES r pOi ~ 0 )> c...o MONROE COUNTY BOARD OF COUN~M~SS NERS By: c7?7 /1A:.. GALLAGHER BASSETT SERVICES, INC. By: J CK LA AR RESIDENT/FINANCE Title: Mayor /Chainnan DATE: November 14, 1990 ADDRESS: 5825 Junior College Road Public Service Building, Room 217 ADDRESS: 2550 W. Golf Road Rolling Meadows, Illinois 60008 Key West, FL 33040 (SEAL) A~ST~ L KOIMAGE, Cleric: By.~~ Dep ty er -2- SCHEDULE I OBLIGATIONS OF THE PARTIES A. Obliaations of GB GB agrees to perform the following services: 1. With regard to Claims Administration, GB shall: a. Review each claim and loss report submitted by the CLIENT during the term of this contract. b. Conduct an investigation of each qualified claim or loss to the extent deemed necessary by GB. c. Maintain a file for each qualified claim or loss which shall be available for review by the CLIENT. d. Adjust, settle or resist all qualified claims or losses: 1 ) within the stated discretionary settlement authority limit; 2) with specific approval of the CLIENT, if outside the stated authority limit. e. Perform necessary and customary administrative and clerical work in connection with each qualified claim or loss, including the preparation of checks or vouchers, releases, agreements and other documents needed to finalize a claim. f. Establish and update claim reserves as needed. g. Assist the CLIENT in establishing a banking arrangement for loss and expense payments as set forth in Schedule II. h. Notify CLIENT, CLIENT's agent or carriers, as designated by the CLIENT, of all qualified claims or losses which may exceed the CLIENT's retention and. if requested, provide information on the status of those claims or losses. i. Coordinate investigations on litigated claims with attorneys representing the CLIENT and with representatives of the excess carrier, as required. It is expressly understood that all legal costs and loss payments will be charged to the CLIENT. j. Have GB's internal Product Support staff review large and unusual claims at no additional cost to the CLIENT. 1) Investigate and pursue subrogation possibilities in behalf of the CLIENT in all states permitting subrogation. Funds received from all subrogation collections shall be considered revenue of the CLIENT. k. Maintain an automated loss and information system, and provide the CLIENT with reports from RISX-FACS@ as set forth in Schedule V. I. Provide forms, as determined by GB, needed to administer the CLIENT's program. Cont-LE (1 Q, 90) -3- m. Provide additional ad hoc information, analysis, reports and services on a time and expense basis. n. Assist the CLIENT in selecting appropriate experts or specialists as the claims may require. o. Provide personnel needed to perform the services agreed to herein. 2. With respect to Self-Insurance Qualification, GB shall assist the CLIENT in the filing of periodic reports and renewal applications required by state administrative agencies. All fees and assessments in connection with such are the obligation of the CLIENT. 3. With regard to Risk Management Consulting and Appraisals, GB shall provide the services set forth in Schedule V. 4. Provide other services as set forth in Schedule V. B. Obligations of CLIENT 1. CLIENT shall pay GB for services the annual sum set forth on Schedule V. At the end of the first year of this contract, the annual compensation shall be subject to adjustment. 2. CLIENT shall provide funds for the payment of qualified claims or losses and allocated loss expenses. GB shall not be required to advance funds to pay losses, allocated loss expenses or bank charges. 3. Fees are payable upon receipt of invoice. GB reserves the right to charge 1 % per month on balances unpaid after 30 days. SCHEDULE II BANKING - VOUCHER 1. GB agrees to assist the CLIENT in setting up a voucher system for loss and expense payments. 2. CLIENT shall at all times be responsible for the payment of qualified claims or losses and of allocated loss expenses. For this purpose, allocated loss expenses shall mean all costs, charges or expenses of third parties incurred by GB, its agents or its employees, which are properly chargeable to a qualified claim or loss including without limitation court costs, fees and expenses of attorneys, independent investigators, experts and witnesses, fees for obtaining diagrams, reports, documents, photographs, surveillance and appraisals. 3. CLIENT will establish procedures to make timely payments of loss and expense vouchers submitted by GB during the course of its claims management program. 4. It is expressly understood that GB shall not be required to advance its own funds to pay losses, and GB shall have authority to commit the CLIENT's funds up to the discretionary payment limit set forth in Schedule III. Cont for Serv (10/90) -4- SCHEDULE III TERMS AND CONDITIONS A. Settlement Authoritv - The limit on any settlement payment by G8 shall be ZERO Dollars ($0.00). This amount may be changed by the CLIENT upon written notice to G8. It is agreed that GB shall have full authority in all matters pertaining to the payment, processing, investigation and administration of qualified claims on losses within this limit. Failure of GB to settle a qualified claim or loss within such limit shall not subject GB to liability to any party in the event of an adverse judgment entered by any court or the settlement of such claim or loss for an amount in excess of such limit. B. Terms of Cancellation or Nonrenewal - Either party shall have the right to cancel or renegotiate the contract after the initial one-year period by giving the other party written notice of intent to cancel or renegotiate at least sixty (60) days in advance. If timely notice of cancellation is given, this contract shall terminate upon the expiration of the current term. In the event of cancellation or nonrenewal of this contract, GB will continue to manage all pending claims, and claims occurring but not reported prior to the date of termination, at a fee to be determined. A reduced RISX-FACS@ reporting package will be provided as long as GB handles the claims. If the CLIENT tails to pay G8's service fee, GB shall have the right to terminate the contract by giving the CLIENT ten (10) days' notice in writing. GB will then return all files to the CLIENT in an orderly manner. Costs for file transfer shall be the obligation of the CLIENT. C. Practice of Law - G8 will not perform any services which may constitute the unauthorized practice of law. D. Mutual Indemnification - GB agrees to defend, indemnify, protect, save and keep harmless CLIENT tram any and a1l105s, cost, damage or exposure arising from the negligent acts or omissions of GB. CLIENT agrees to defend, indemnify, protect, save and keep harmless GB from any and all loss, cost, damage or exposure arising from the negligent acts or omissions of CLIENT. E. Notices - Any notice required to be given under this contract shall be sent by certified mail to the following in the case of GB: Jack H. Lazzaro Vice President/Finance Gallagher Bassett Services, Inc. 2550 W. Golf Road Rolling Meadows, Illinois 60008 and in the case of the CLIENT: Ms. Stella Otto Employee Benefits Coordinator Monroe County Board of County Commissioners 5825 Junior College Road Public Service Building, Room 217 Key West, FL 33040 (ant for Serv (1090) -6- F. Success'ors - This contract shall be binding upon and shall inure to the benefit of all assigns, transferees and successors in interest of the parties. G. Modification - This contract represents the entire agreement between the parties and may be modified only in writing. GB reserves the right to charge additional fees if service terms are modified. H. Confidentialitv of Data - All data furnished by the CLIENT, or generated as a result of services performed under this agreement, and other information designated by the CLIENT in writing, shall be treated as confidential. GB reserves the right to use statistical information or other data, so long as the CLIENT's name and/or confidential data are adequately protected. I. Status - It is understood that GB is engaged to perform services under this contract as an independent contractor and not as an agent of the CLIENT. This contract shall be governed by the laws of the State of Florida. J. Cost Containment - If GB provides cost containment services for the CLIENT's program, GB shall receive a fee for these additional services. K. Reportina - GB will not assume that other coverage (unknown to GB) exists for a qualified claim or loss. GB shall not be responsible for reporting to carriers on a type of claim or loss not managed by GB. L. Property Catastrophe Charaes - Any property loss involving multiple locations as a result of natural disasters from a covered peril will be billed at time and expense at GB's prevailing hourly rate. SCHEDULE IV DEFINITIONS Discretionary Settlement Authority - GB is authorized to make payment, for loss or expense, up to this amount, as GB deems necessary. Qualified Loss or Claims - GB will investigate and adjust any loss or claim occurring within the service term, provided the loss or claim type is identified in Schedule V. Allocated Expenses - Shall be the responsibility of the CLIENT and shall include, but not be limited to: . . . . . . . . legal fees professional photographs medical records experts' rehabilitation costs accident reconstruction architects, contractors engineers police, fire, coroner, weather, or other such reports property damage appraisals extraordinary costs for witness statements official documents and transcripts . . . Cant far Serv (10,90' . . . . . . . . sub rosa investigations medical examinations extraor.dinary travel made at CLIENT's request court reporters fees for service of process pre- and post-judgment interest paid chemists any other similar cost, fee or expense reasonably chargeable to the investigation, negotiation, settlement or defense of a claim or loss which must have the explicit prror approval of the CLIENT - i - SCHEDULE V SERVICES AND FEES Monroe County Board of County Commissioners Client: GB Client #: 010371 Service Period: From 10/1/90 through 9/30/91 Inet. SERVICES PROVIDED: A. Claims Administration SERVICES PROVIDED: Incl. PS Mail Oth er: Loss Funding SIMMS Auto Uability-Bodily Injury (AS) Auto UabiJity-Property Damage (AD) c. Auto Physical Damage (APD) General Liability-Bodily Injury (GB) General Liability-Property Damage (GO) D. Products Liability Professional Uability Property (PR) Workers Comp (WC) W/C Med Only ~ Indemnity Indemnity-Surcharge ~ Indemnity-California Run-Off Assumption Oth e r: B. Information Services RISX-FACS~ ~ Standard Package Non Standard Reports E. MICRO-FACS~ Terminals & Printers Data Transfer-Fronter Data Transfer-Client Voucher ~ Supplemental Loss Notice Program Reporting Level $10,000 Topical Captioned Reports Reporting Level $50,000 Meetings Settlement Authority $0.00 Index Bureau Coordination Set Up/Program Incident Processing Record Only Processing Update Appraisals Risk Inspections Other: Self Ins. Qualification Risk Management Consulting Loss Control - 4 Days Risx-Control Consulting Other: x ~ ~ ~ ~ ~ ~ TOTAL $28.589 ADDITIONAL SERVICE TERMS AND CONDITIONS: Client will be biled $131 per claim for each Workers' Compensation claim reported in excess of 154. BilliNG AND PAYMENT TERMS: Fee of $28,589 is payable in 1 installment of $28,589 beginning 10/1/90. Cont-lE (1090)