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Item C16 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: Julv 17 & 18.2002 Division: Management Services Bulk Item: Yes ~ No Department: Administrative Services/RiskManagement AGENDA ITEM WORDING: Accept Proposal from Arthur J. Gallagher to provide Airport Liability Insurance at an annual premium of $66,621. ITEM BACKGROUND: County purchases Airport Liability Insruance to cover the liability exposures of the County as owner and operator of both key West International and Marathon Airports This policy was renewed in 2001 with a premium of $49,054. PREVIOUS REVELANT BOCC ACTION: Awarded bid to Arthur J. Gallagher & Co. July 18,2001. CONTRACT/AGREEMENT CHANGES: The new renewal dates are 7/27/02-7/27/03. This shows an increase of35% . STAFF RECOMMENDATIONS: Approval. TOTAL COST: $66.621 BUDGETED: Yes ---X.. No .. COST TO COUNTY: $66.621 REVENUE PRODUCING: Yes No -X AMOUNT PER MONTH_ Year APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management _ ~ ~~"7- JAMES L. ROBERTS I DMSION DIRECTOR APPROV ~ P-. I DOCUMENTATION: Included --X- To Follow Not Required DISPOSITION: AGENDA ITEM # ~// Revised 2/27/01 ~7/e2/2002 17:31 813287Hl41 INTERISK PAGE 02 INTERISK CORPORATION ConIuI1IInts 1111 Nonh WeIIIIMMe Boulevard Suite 208 T.... FL 33607-4711 Pboue (813) 287.1040 FlCtimile (In) 217-1041 Rilk Manqemelll Employee Bc:ncfits July 2, 2002 Ms. Maria Slavik Risk ~ SpeQaIiat MoDroe COUDty 1100 SimoDloD SIn:Ict Suile 268 Key West. Florida 3]040 Subjca: AiJpart LiIbi1ity ReaewaI Dear Maria: GalJa&ber's reocwaJ proposal for the Councy's AUport Lillbility iDIUIIIICC.bas been RCCivcd _ ~ Old Republic IMunnce CompIny and Lloyfok of Landon pIOYide the CaunIy's aarreat pI08IIID with total limits of $100 million The pI08Iam aJllO provides "Oft'Premilla V_Ie Liability" COYCI'IIC with. lib- limit ~ $2.5 million. The COII'IbinaI ....... prcmi1al for boCh _ Old Republic: .. LlGydI policy i. $49,054. followilll the tnIgic: events or SepfeIDber 11", Old Republic and Lloydl c:aacel1ed 1be W....... " TenoriIIs co.erqc tbIt had pRNitMdy been part tithe pl'OP'IID. GalIagbe:r hu aft'ered two rmcwal optioua for the J8Iy 21. 2002 to July 27. 2003 poUcy year. Opdoo 1 WII 10 ICIlCW with Old Republic ad Lloyds witb Icnns and Q)ftCtitiau dIilII ale canai... wiCb the expirina poticy for . __ ,...mlDD of 170,760. 11Iis would ..~ . ....% iIIaaIe CJ9CI' * ~......... A COlt to ~dJiI& W. and Tcrrariats ooveraae bm Old Republic ... Llaycls j& DOt c.naIIly 1MiIIble. o.JlqIa's alto (llI~ COVCIqC hill Ace PropIrty and C.-.Ity ......... ~ ud LIoydI.widl ClOIIlJ*'II* temu; IIId COIIdiIJoftI of the Old RepublkJLIoyds pqnm ror _... pallium ~1'6.621. ThiI JII'O&IIDl WOGId a1Io exclude W.. ... TCIrOI'iaI' clIi-., howwcr CCJWI"I8D ClOUIcI be pIlIIdIatcd (tubject to . SSO IIIiUiaa __limit) for . COIl 01. $19,.412. Neatbel'the Old Republic or Ace pI'DIDm woakI be subject 10 a ................ at the praaiuma ~~. Nte did alII'cr to ftlduCle ill pmDium by ~cc:D $4.000 Ind 54,700 it tbc County would ... to I $5,000 deductible. Old Jtcpub1ic did not JlIOPOIC a cledudi1lle option 8urJd OIl GIIJacIIer'. propoal, it is ~ .. the CoImly deca the pql'IIIl UIIIiaed by Aa Praperty Ind C...aty ID51InnCe eomp.ay aDd LIoJeIs 01. LcmdoD lOr tbe 200212003 policy year. It it ftutbcr l'ClCIDID8oCi1dod thIl die County not accept AoeJLIo.yds cklllaaiblc opIioa Iiace OllIe _ ClGBId oIim..tw> -r lIIIVinp in tho PNmium, 07/82/2002 17:31 8132871 Elel! INTERISK PAGE 03 In ckciding ",habet die County sboald purc:hase AaoIlIOyd'I W. ... Tenorilll' CXM:I'Ip. tbc t)llowiq facton 5houId be ClOIlIidaed:! )> Neither 1be Key WcIt 111ICm1di0Ml1lOl' die MalIIdIOD AirpoIU lie vicwcclu Jlrimary ...._ tcrmrUt activities; )> Airport IeCUI'ity .... been Federalized. thus ~ die poeeptiIJ .... tbe Couoty would be bdcI retpOI'~ for IemlCiSII UIina eitber of tbe airJods II the orisiD of their tmeI. .... piftina ICCeII to IeC1II'Cd II'CU It IIrpr IUpona and )> AceJLloyda can c::anc:eJ the COY'" withoUI n:um by limply providiJI& the County willl . ImlD (7) day no6Qe, 11 is thad'ore bclicwld thIl tbe CounIy'. cxpoIUft' to W. and Tarori.... cUIima do DDtjultify the pmaium beiJII JIIClPOI04 by Me aDd Uoyda. At always, plcue do DOt hesitate to call if yoaltaveaay questions, CaIdiaDy, IN1"ERISK. CORPORA nON - Ad Sidney 0, Webber cpcu. ARM " JUL-02-02 01 :21PM FROM-AJG-DENVER 3037739776 T-368 P,001/023 F-507 _. Arthur J, Gallagher & Co. - Denver 7/212002 Ms. Maria Slvik Monroe County BOCC 1100 Simonton Sueet, #2-274 Key West. FL 33040 Fax #(305) 295-4342 # of Pages: .2..~ Re: Airpon Primary and Excess Liability - Renewal Proposal Dear Maria: Enclosed is the renewal proposal for the aiIpon primary and excess liability for the period 7/27/02-03. As you can, see we have included options received from Phoenix Aviation (Old Republic Insurance Company) and ACE Property Casualty Insurance Company_ We have included an option to include the war endorsement (with ACE) at an additional premium of $29,412. This is significantly lower than the Quote provided at the end of 2001 and we would reconunend consideration to include in your insurance program. I have also. included the war exclusion contained in the ACE policy form along wirh the write-back endorsement for your review. We are still waiting for the war quote from Phoenix. , I apologize for the delay in presenting the formal proposal, but as you know the , Phoenix/Old Republic quote was just received today. and although the original ACE quote was received last week, it was higher than the indication we provided from Phoenix of approximately $72,000. Call me at (SOO) 333-3231 if you have any questions. Thank you. .. ~ Best regards, ~Gauagher & Co.-Denver ou eyer Account Manager Enclosures , - c_ Sid Webber, ImerRisk Heidi Greene, AlG Boca Raton Chuck Lombardi, AJG Denver (813)-287-1041 (561)-995-6708 (415)~381-9713 7900 East Union Avenue. Suite 200 Oenvet, CO 80237.2737 303.773.9999 Fax 303,773.9776 Toll Free 800,333,3231 www.ajg.com A JUL-DZ-OZ 01 :ZIPM FROM-AJG-DENVER 303TT39TT6 T-36B P.00Z/OZ3 F-50T -, - /:~: , ~ ~~ L?;:':;: ~1~" s: ~:..G i;: ~i~e;~r ~~':$i~R,;~i<:(:~: ~7"~;C,'~"",;':::5;~~:.. :~,; ~~ l:.L~ _\\=~~ C: ,;:C'~ MONROE COUNTY BOCC JULY 27, 2002 TO JULY 27, 2003 ., -y " '" ---- JULY 2,2002 SUBMITTED BY: CHUCK LOMBARDI, VP AVIATION DOUG MeYER, SR. ACCOUNT MANAGER ARTHUR J. GALLAGHER &CO. 7900 E. UNION AVENUE, SUITE 200 DENVER, CO 80237 800-333-3231 SUSAN AINSZTEIN, ACCOUNT ~XECUTIVE HEIDI GREENE, ACCOUNT MANAGER ARTHUR J, GALLAGHER & CO. ONE BoCA PLACE 2255 GLADES ROAD, SUITE 400E BOCA RATON, FL 33431 561-995-6708 , " Me/:!ir;g yow' rwcds . .. .. ., .f.;lceedil1~ !'Ollf c;~pcc.:a:kJ')s N;lI'v'..'on\OM\cI.....Imonr... COIlIIlyUOOl pl'tOo!~i~ ilrpOlt p'OI)osa!,d"" JUL-DZ-DZ 01 :ZZPM FROM-AJG-OENVER 303rmm T-368 P.003/0Z3 F-507 MONROE COUNTY lace --. ,....-.". - .,.. ~ . -...- '. -- ,...-.. - ,,- CONfiDENTIALITY STATEMENT We consider as confidential any informa.tion presented by Arthur J. Gallagher & Co. In our proposal, as well as subsequent verbal and written communications between OUf organizations, to be confidential. We ask that other brokers not have access to our material and that information presented in this proposal be shared only with those who have a need to know within your company. We make our commitment to you that information already received from you, and additional to follow, will be treated with the same high level of respect and confidentiality. A TrENT ION This proposal of coverage ;s intended to facilieate your understanding of the insurance program we have arranged on your behalf. It is not intended to replace or supersede your insurance policies. .. .. N;\"'i.,"",\OMlclionIIInlOtl/O~ counM2Qoa phoc.ill.ifllOIlI"UIIO'Jl.doc Page 1 JUL-D2-D2 01 :Z2PM FROM-AJG-DENVER 303T739TT6 T-368 P 004/023 F-5D1 MONROE COUNTY BOCC "'.-- .-..., ........'"". ... .. ". .... "..' - .. , ...-.... --,- TABLE OF CoNTENTS GENERAL CONDITIONS PREMIUM SUMMARY DESCRIPTION OF AIRPORT LIABILITY COVERAGE TERMS AND CONDITIONS IMPORTANT DISCLOSURES " , ., N~"'wiilliun\OM\cJienu\mOf'WOC" C....nty\:laOl phae"i. .irp",' Ilru~I.1IoC Page 2 JUL-OZ-OZ 01 :ZZPM FROM-AJG-DENVER 3037739776 T-369 P 005/0Z3 F-507 MONROE COUNTY Race ,"-...- "..".----.", ,..,..,.,...,-..".- ~ - "."..', .".. ,,-, THE PRIMARY CARRIER OmON 1 .:. A.H BEST'S RATING .:. OLD REPUBLIC INSURANCE COMPANY (PRIMARY LIMITS) Policy Holder Rating A+ Superior Financial Category x CERTAIN UNDERWRITERS AT LlOYDS OF LONDON - B.A.1.G (EXCESS LIMITS) Policy Holder Rating A- Excellent Financial Category xv Sum Insured , LLOYOS OF LONDON (8.A.I.G.) TO pay the difference between the limits of the underlying policy being: Bodily Injury Property Damage and Personal/Advertising Injury Liability combined $30,000,000 each occurrence/offense and in the aggregate with respect to Products Completed Operations. Within the above limit, payments for Personal Injury," Incidental Malpractice and Host liquor separately shall not exceed $25,000,000 in the aggregate. Within the foregoing each occurrence limits, payments in respect of Excess Automobile Liability are limited as follows: $25,000,000 anyone occurrence excess of $5,000,000 any one accident/occurrence. AND the following TOTAL LIMITS Bodily Injury Property Damage and Personal/Advertising Injury Liability combined $100,000,000 each occurrence/offense and in the aggregate with respect to Products Completed Operations. Within the above limit, payments for Personal/Advertising Injury and Incidental Medical Malpractice and Host Liquor Liability separately shall not exceed $25,000,000 in the aggregate. Within the above limits Excess Auto Liability (off-premises) is limited to $25,000,000 excess of $5,000,000 anyone occurrence / accident. N.\AV'"ionltlM\clI(onI\ImaNoor "",,"1V\200Z ph"",,", allllOI1 1lI0g""'l.doc: Page J JUL-OZ-OZ 01 :Z2PM FROM-AJG-DENVER 303T739TT6 T-368 P 006/023 F-507 MONROE COUNTY BOCC ",,___ 00"'" _____ ' ..,..,-._.___ .. ..- ,.. ".""00- __ THE PRIMARY CARRIER OPTION 2 .:. A.M BEST'S RATING .:. ACE PROPERTY AND CASUALTY INSURANCE COMPANY (PRIMARY LIMITS) Policy Holder Rating Financial Category A Excellent XII CERTAIN UNDERWRITERS AT LLOYDS OF LONDON - B.A.I.G (EXCESS LIMITS) Policy Holder Rating A- Excellent Financial Category xv Sum Insured , LLOYDS OF LONDON (B.AJ.G.> TO pay the difference between the limits of the underlying policy being: Bodily Injury Property Damage and Personal/Advertising Injury liability combined 550,000,000 each occum~nce/offense and in the aggregate where applicable for Bodily Injury, PersonaVAdvertising Injury and Property Damage combined. " And the following limits: Bodily Injury, PersonalJAdvertising Injury and Property Damage combined 5100,000,000 each occurrence/offense and in the aggregate where applicable for bodily Injury, Personal/Advertising Injury and Property Damage combined. , . Within the foregoing, the limits for Personal/Advertising Injury, Incidental Mapractice and excess auto off-premises liability shall be limited separately to S50,000,000 aggregate within the primary policy limit. N:........nOll'OMIc:_l\_n_ """""'200! gl.....'.. tifllOllIl'OIIO..l.dno; Page 4 JUL-OZ-OZ 01 :ZZPM FROM-AJG-DENVER 30 37739 TT6 T-366 P.001/0Z3 F-501 MONROE COUNTY BOCC , ,-..-...- - . ,,,.,, -.. ""......,..., "._-,-- .. '" .,.....,-... ..-. ,--- --, - GUIDE TO A.M. BEST'S RATINGS Best's Insurance ReportS, published annually by A.M. Best Company, Inc., presents comprehensive reports on the financial position, history, and transactions of insurance companies operating in the United States and Canada. Companies licensed to do business in the United States are assigned a Best's Rating which attempts to measure the comparative position of the company or association against industry averages, Best's ratings are based on analysis, which give consideration to a number of factors of varying importance. While the analysis is believed to be reliable, we cannot guarantee the accuracy of the rating or the financial stability of the insurance company, A copy of the Best's Insurance Report on the insurance companies is available for your review. BEST'S RATlNC ClASSIFICATIONS A~ + toA+ SUDerior B to B- Fair A to A- Excellent C++ toC+ Marginal B + + to B + Very Good C to C- Weak . BEST'S FINANCIAL CLASSIACA TlONS I $0 to S 1 000.000 II S 1.000 000 to S2 000.000 III $2.000 000 to 55.000,000 IV SS 000 000 to $10,000 000 V $10000000 to $25.000 000 VI $25 000 000 to S50,000,ooO VII $SO 000,000 to S100 000000 VIII $100 000 000 to $250000000 IX $250,000 000 to $500 000 000 X $500 000 000 to $750000000 .. XI $750.000000 to S 1.000 000.000 XII $1000 000,000 to $ 1 ,250,000,000 XIII $1 250.000 000 to $1 500000.000 XIV $1,500,000 000 to $2000000.000 XV $2 000.000 000 to or more - Note: At your option, you may wish fo consult with otlter nail able rating services. Arthur J. Gallagher & Co. uses A.M. Best & Co.'s rating services to evaluate the financial condition of insurers whose policies we propose to deliver. The rating of the carrier and the year of publication of that rating are indicated. ArthurJ. Gallagher & Co. makes no representations and warranties concerning the solvency of any carrier, nor does it make any representation or warranty conceming the rating of the carrier that may change. N:lAvi'''lInIOMlcI_lI.vc>> coun<<Y'ZOCJ2 ~ '''pori pIUCIllUI,lUlC Page 5 JUL-OZ-OZ 01 :Z3PM FROM-AJG-DENVER 3037739TT6 T-368 P.008/0Z3 F-507 MONROE COUNTY loce '''.'~. --- ' '.....,.... - .. - .. , "" ...' d, NAMED INSURED MONROE COUNTY BOARD Of COUNTY COMMISSIONERS 5100 COLLEGE ROAD WEST Key WEST, FL 33040 LOCATIONS Key West International Airport Key West, FL Marathon Airport Marathon, FL NOTE: Any enrity not named as an insured is not covered under this policy. This includes Partnerships and Joinr Ventures. "','^v1iUonlOM\c;li......\mo"..'. co""lYI2aolll~o""Ill.I""'" p,_.I,d... Page 6 JUL-02-02 01:23PM FROM-AJG-DENVER 303r739Ti6 T-368 P 009/023 F-507 MONROE COUNTY Baec L .' . -- ,.', ...,..-- ..... ~ , ..'..'... .' -'.-- "'..-..-- AIRPORT GENERAL LIABILITY LIMITS BODILY INJURy/PROPERTY DAMAGE $ 1 00,000,000 Each Occurrence, Combined Single Limit I INDEPENDENT CONTRACTORS Included CONTRACTUAL LIABILITY Included PRODUCTs/COMPLETED OPERATIONS $ 1 00,000,000 Each Occurrence and in the Aggregate HANGARKEEPERS LEGAL LIABILITY $ 100,000,000 Any One Aircraft $ , 00,000,000 Any One Occurrence NON-OWNED AIRCRAFT LIABILITY $ 100,000,000 Each Occurrence ON-PREMISES AUTO LIABILITY Included Each Occurrence PeRSONAL &ADVERTISING INJURY (2) $ 25,000,000 Each Occurrence and in the Aggregate. I NCIDENTAL MEDICAL MAlPRACTICE(2) $ 25,000,000 Each Occurrence and in the Aggregate EXCESS OFF-PREMISES AUTO $ 25,000,000 Each Occurrence excess of lIA81 LITVa} $5,000,000 primary limit HOST LIQUOR LIABILl1Y(2) $ 25,000,000 Each Occurrence excess of $5,000,000 primary limit FIRE LEGAL liABILITY $ 100,000 Any One Occurrence .. MEDICAL EXPENSE $ 25,000 Any One Person $ 100,000 Any One Occurrence DeoucT1BlES Each and every loss, claim and/or expense $ Nil Bodily Injury, Property Damage &Hangar-Keepers legal liability 1 $100,000,000 ;s the most the policy will pay in anyone occurrence regardless of the numbet of claims or coverage involved and is subjeCt to lower sub-lim;ts and aggregates as indicated (2) ACE policy includes host liquor in the covetage form up to the full policy limit, and the limit for Personal Iniury, Malpraaice and ON Premises Auto is the $50,000,000 Primary Policy Limit. N:IA.illMIo\\OMIClltn1!'\mD.."" .....nly\200lll..Clenl. .i,oon ",np.~,,,,,c Page 7 JUl-02-02 01 :23PM FROM-AJG-DENVER MONROE COUNTY loce , - 3037739776 T-368 P 010/023 F-507 CD - __, h,. DESCRlmON OF AIRPORT COVERACiE NAMED INSURED - (BROAD FORM) Includes elective or appointive officers of any board, commission or agency and employees and volunteers of yours but only with respect to liability arising out of activities of the Airport PREMISES LIABILITY (EXCLUDING WAR RisK) OfFERED AS AN OPTION Bodily Injury, including Mental Anguish and Property Damage. The ownership, maintenance or use of the Airports and all operations necessary thereto, but excluding the direcr operation of a Control tower, including the ways and means immediately adjoining thereto, and including other incidental premises used by the Named Insured in connection with the business of the Named Insured_ EXTENDED BODilY INJURVCOVERAGE Includes coverage for fright or mental anguish. Also protects insureds thar injure others, through the use of reasonable force, for [he purpose of protecting persons or property. BROAD FORM PROPERTY DAMAGE Damage to property in your care custody and control exclusion does nor apply [0: ,~.- Baggage or cargo handled by you, provided you are not handling the baggage or cargo as bailee for hire. -;" To an Hauto" while on the airport. '," To an "auto" or "'mobile equipment" when your control is solely traffic control. NON-OWNED AIRCRAFT LIABILITY Coverage for Bodily Injury and Propeny Damage, (including Passengers) arising from the operation of non-owned aircraft in connection with Airport Operations. Coverage is limited to fixed wing or rotor wing with no more than 20 total seats and a gross weight not in excess of 12,500 Ibs. N:.....i).....1\OM\C';."'~'... <...rvy.JOCJ2 ploooni. oi_ propa..',doc: Page 8 JUL-DZ-OZ 01 :Z3PM FROM-AJG-DENVER 3037739776 T-368 P 011/0Z3 F-507 MONROE COUNTY BOCC .. ..,-- ,-,-, ,- '. -.. - ~ ~ .,...,...- ,---'... ",,- ,,----,- DESCRIPTION OF AIRPORT COVERAGE INDEPENDENT CONTRACTORS lIABILITY Expands definition of YOUT work ro include work or operations performed by you or on your behalf and materials, pans or equipment furnished in connection with such operations. CONTRACTUAL LIABILITY Expands definition of insured contract to include that parr of any orner contract or agreement pertaining to your business under which you assume the tort liability of another party to pay for bodily injury or property damage to a rhird person or organization. 7, Excludes consrruction wirhin 50 feet of any railroad property 2. Any contract thar indemnifies or relates to rendering or (ailure to render professional services by an architect, engineer or surveyor 3. Any contract that indemnifies any person or organizarion for damage by fire ro premises rented or loaned to you. PRODUCTS AND COMPLETED OPERATIONS LIABILITY Wri([en on an occurrence basis and subject to annual aggregate. GROUN 0 HANGARKEEPEIS LEGAL LIABILITY Provides coverage for Aircraft while not in f1ighr and in the care, custody or control of the Insured whether the liability arises our of a direct or indirect bailment. N:\AviI1l0..10MIcIionbIIllOntOl! co..nly\2002 ilboe"'~ 11111"" prupo",l.lIOC Page 9 JUL-OZ-Ql 01 :Z4PM FROM-AJG-OENVER MONROE COUNTY Bace ,- ..- '" '. ".,'-.. 3037739TT6 T-368 P 01Z/Ol3 F-50T . ,,-.., ,,'.--, ",,- ". '. .. DESCRIPTION Of AIRPORT COVERAGE PeRSONAL INJURY LIABILITY AND ADVERTISING LIABILITY' Coverage for the following offenses committed during the policy period and arising out of the operations of the Named Insured: Mistaken arrest, detention or imprisonment; malicious prosecution; wrongful eviction from, wrongful entry to or invasion of the right of private occupancy; oral or written publication that slanders or libels; unintentional discrimination; misdirection of a passenger to the wrong aircraft, automobile or other connecting transportation. INCIDENTAL M~LPRACTICE (I) Malpraaice, error or mistake by any physician, surgeon, nurse, medical technician or other person performing medical services on behalf of an insured in the provision of emergency medical relief. HOST LIQUOR LIABILITY Provides coverage for Bodily Injury and Property Damage arising out of the giving or serving of aJcollOlic beverages at functions incidental to the Named Insured's business, provided the Named Insured is not engaged in the business, manufacturing, distributing, selling, serving or furnishing of alcoholic beverages. ON PREMISES OWNED AUTOMOBILE LIABILITY Provides excess liability coverage fOT vehicles while on the Airport premises. Expands coverage by changing automobile exclusion to include "an auto or watercraft while on the airport and an auto or watercraft while not on the airport if responding to an aviation emergency..... If other insurance is availa.ble, this coverage shall be excess over valid and collectable insurance. The definition of "automobile" is any land mocor vehicle, trailer, or semi-trailer designed for cravel on public roads including attached machinery or equipment but does not include mobile equipmenc. I The Limit for coverages is part of and not in addition to the Limit provided for other coverages. N'IA.'Io(;onIOM\ocI""'........n'.... CQunty\2002 /lI1Off1.. li,,,Oll II'(lflOPldnc Page 10 JUL-OZ-OZ 01 :Z4PM FROM-AJG-DENVER 3037739m T-368 P 013/0Z3 F-50T ,.,.""" ~ ~ .." - MONROE COUNTY lace r .-.'.. ..-., ....... -- ..-.,- DESCRIPTION OF AIRPORT COVERAGE Off PREMISES AUTOMOBILE EXCESS liABILITY , Provides excess liability for vehicles assigned to the Airporr while being operated off the Insured premises. Policy provides the difference between primary automobile liability of $5,000,000 each occurrence and $25,000,000 each occurrence ($50,000,000 in the ACE program.) In the event the insured covers vehicles under Self Insured Retention, we can structure coverage with a deductible each occurrence, CONTINGENT CONTROL TOWER llABll11Y Excludes the direct operation of a control tower by the Insured however this coverage protects against this contingent exposure should a lawsuit arise implicating the Airport. FIRE lECAlllABllITY Property damage caused by fire to structures and fixtures that are rented or leased by the Named fnsured. .' N:,^'Wi~tion\OM\ctI('M~t(I~ count')lUOO2 tUlOenlX o1irpoJt pIGO~.,t.doc Page 7 1 JUL-02-0Z 01 :Z4PM FROM-AJG-DENVER 303T739Ti6 T-368 P.014/023 F-50T MONROE COUNTY BOCC .., ..,.-.- .. .. .....'.'- ' . .-.,. ,....- .. MAIOR EXCLUSIONS DESCRIPTION OF AIRPORT COVERAGE + 90 day Notice of Cancellation (10 days for non-payment of premium) + Inadvertent Error or Omission to report claim does not void coverage. + Fellow Employee Exclusion is deleted + Airport Liability Program Profit Commission - If [here is a profit, "'Gross Earned Premium* less "Losses" including loss adjustment and legal expenses, 10% thereof will be returned to the insured. The calculation will be made three years. and 90 days after the effective date of each policy period. 1 + War, Terrorism and Associated Perils + Employment Related Practices + Pol/ution and Asbestos + Contamination and Noise + Electronic Date Recognition + Electrical Interference + Interference with Use of Property + Air-meers contests and exhibitions (except static display of aircraft) + Grandstands, bleachers and observation platforms (unless part of a permanent structure on the airport) + Automobiles & Watercraft (unless provided) + Owned Aircraft SPECIAL PROVISIONS NOTE: Not all exclusions are shown. It will be necessary to refer to the aaual policy for coverage, conditions, provisions and limitations. 1 Nor available with the ACE program unless the airporc is a member of Airport Councillncernariona/, Inc- North America (ACI-NA) N:\I\.lllllQn\DIIIIIcl"'''::''''DIWDe .......Il\ZOOZ Ilhoenl- ..f1)OIll''''......I- Page 7 2 JUL-OZ-OZ 01 :Z4PM FROM-AJG-DENVER 3037139TT6 T-m P 015/023 F-507 MONROE COUNTY Boce -- -. ..._-- ' .. ,- ...-, ' ,.......,....,..- .. -_.- PREMIUM SUMMARY PHOENIX AviATION (OLD REPUBLIC) COVERAGE PROPOSED 2002..03 Airport Primary Liability ($30,000,000l $ 42,060 Airport Excess liability ($70,000,000) $ 28,700 TOTAL $ 70,760 ... Option to add war risk endorsement Pending PREMIUM SUMMARY ACE PROPERTY at CAsUALTY INSURANCE COMPANY COVERAGE PROPOSED 2002-03 Airport Primary Liability ($SO,OOO,OOO) $ 47,955.. Airport Excess Liability (SSO,OOO,OOO) $ 18,666 TOTAL $ 66,621 + Option add War endorsement ($SOM) $29A 12 Additional Annual Premium , - 1. Quote is valid until 7/27/02 N:II\.~ICln\OIIIfJ(I;.,""'",_ .....nlY\ZOOZ Ill_I. ..,_ _,o..I,da< Page 1.3 JUL-DZ-DZ 01 :ZSPM FROM-AJG-DENVER 3D3T739TT6 MONROE COUNTY Boce R """"..- , ....-. ." .....-- ,.-- ...,,- IMPORTANT DISCLOSURES , . T-368 P D16/aZ3 F-5D7 - . .' N;\,Avt...Ia",OM\cllcnt&"ncJ,..,. I:uunty\2002 pttOtfthc "1'Poft p.ap.uLdoc pa.ge 14 JUL-OZ-OZ 01 :Z5PM FROM-AJG-DENYER 3037mm T-368 P 017/0Z3 F-507 MONROE COUNTY lace _., .__._ .. " _0"---_"'-- CD , .,.--. ".. ,.,.., --..- IMPORTANT DISCLOSURES The proposal is an outline of the coverages proposed by the insurers, based on the information provided by your company. It does not include all the terms, coverages, exclusions, limitations, or conditions of the actual contract language. The policies themselves must be read for those details. PoliCy forms for your reference will be made available upon request. In addition to the fees and/or commissions retained by Anhur }. Gallagher & Co., it is understood and agreed that other parries, such as excess and surplus lines brokers, wholesalers, reinsurance intermediaries, underwriting managers, and similar parties, some of which mayiJe owned in whole or in parr by Arthur ). Gallagher & CO.'s corporate parent, may earn and retain usual and customary commissions and/or fees in the course of providing insurance products. Any such fees and/or commissions will be the responsibility of client and not Arthur }. Gallagher & Co. The information contained in this proposal is based on the historical loss experience and exposures provided to Arthur). Gallagher & Co. This proposal ;s not an actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be pleased to provide you with a listing of actuaries for your use. Gallagher from time to time enters into arrangements with certain insurance carriers or those carriers' reinsurers providing for compensation, in addition to commissions, to be paid by such carriers or reinsurers to Gallagher or its affiliates based on, among other things, the volume of premium and/or underwriting profitability of the insurance .coverages written through Gallagher by such carriers or reinsurers. In addition, Gallagher and its affiliates provide management and other services to, and receive compensation for those services from; certain reinsurers that reinsure insurance coverages written through Gallagher by other insurance carriers. The insurance coverages your purchase through Gallagher might be issued by an insurance carrier or reinsured by a reinsurer that has such a relationship with Gallagher or its affiliates. N;,^y~ian\QM'\dilr"':NI\O",. C'CNn~\:l0Q2 phomill. .....pon ~O!''''.cfoc; Page 1 5 JUL-OZ-OZ 01 :Z5PM FROIA-AJG-DENVER 303T739TT6 1-368 P 018/0Z3 F-507 MONROE COUNTY loce .- ,..-..., ..,......,...--- ..,.,-.. ., .._,... e.,_ CHANGES AND DEVELOPMENTS It is important that we be advised of any changes in your operations that may have a bearing on the validity and/or adequacy of your insurance. The types of changes that concern US include, but are not limited to, those listed be/ow: 1. Changes in any operations. 2. Merger" and/or acquisition of new operations. 3. Any newly assumed conrractua//iabiliry, granting of indemnities, or hold harmless agreements. 4. Circumstances which may require an increased liability insurance limits. 5. Any changes in fire or theft protection, such as the installation of or disconnection of sprinkler systems, burglar alarms, etc. This includes any alterations to same. 6. Conducting of special events on airport premises such as air meets, races or the use of temporary bleachers. (All are excluded by the standard airport liability form.) 7. Any changes in existing premises including vacancy, whether temporary or permanent, alterations, demolition, new construction etc. Also, any new premises either purchased, constructed, or occupied. .. Your insurance program will only be as good as the communications maintained between you and your insurance broker. , . Page 16 NMv...ianlOo.1IcIifftl"-"MfaI! CIlU..y\ZOOZ &IhOtn11 .j""", prapawl.doc JUL-OZ-OZ 01 : Z5PM FROt.l-AJG-DENVER 303rmm T-368 P 019/0Z3 F-5or MONROE COUNTY lace -- , "p.-.- "....'.... ,"'-.- ' ,- ' .' .. CLIENT AUTHORIZATION TO BIND COVERAGE After careful consideration of your proposal dared July 2, 2002, we accept your insurance program subject to the following exceptions/changes: EXCEI'TIONS It is understood this proposal provides only a summary of the details; the policies will contain the actual coverages. We confirm the values, schedules, and other data contained in the proposal are from our records and acknowledge it is our responsibility to see that they are maintained accurately. I. Please provide us with a blnder(s) and invoice(s) for the coverages agreed upon a.t your earliest convenience. Client Signature Agent Signature Dated Dated N:"'.......l\Ol\/l\Cll~""'mo..... _",0\2002 ~l. oi.pOII propvl.I\IOC Page 17 JUl-DZ-OZ 01 :Z5PM FROM-AJG-OENVER 3037739TT6 T-368 P DZO/OZ3 F-50T This Endorsement effective forms part of Policy Number Issued to ACE Property and Casualty Insurance Company EXTENDED COVERAGE - WAR, HI-JACKING AND OTHER PERILS ENDORSEMENT - ---- This endorsement modifies insurance provided under AIRPORT OWNERS AND OPERATORS GENERAL LIABILllY POUcy, 1. In return for the additional premium stated in the Declarations, paragraphs (a), (C), (d). (e), (f) and (g) of Exclusion B. of Common Coverage Exclusions (Section II) are deleted. subject to all terms and conditions of this endorsement 2. Exclusion The following exclusion shall only apply to coverage extended under the policy by the deletion of paragraph (a) of exclusion B. of Common Coverage Exclusions (Section II). This policy does not cover liability for damage to any fonn of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of airctaft. 3. Automatic Termination (a) All coverage extended by this endorsement shall TERMINATE AUTOMATICALLY upon the outbreak of war (whether there be a declaration of ~ or not) between any two or more of the foRewing States, namely, Ftance. the People's Republic of China. the RuSSIan Federation, the United Kingdom, the United Slates of America. (b) Coverage extended by this endorsemeot by the deletiOn of paragraph (a) of Exdusion B. of Common Co\Ierage excluSions (Section II) shall TERMINATE AUTOMATICALLY upon the hostile detonation of any weapon of war ef1llIoYing atomic or nuclear fission and/or fusion or other like reaction or radioadive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved, (c) All coverage extended by this endorsement in respect of any aircraft requisitioned for either title or use shall TERMINATE AUTOMATICALLY upon such requisition, PROVIDED THAT if an Insured Aircraft is in the air when (a), (b) or (c) occurs, ~ the coverage provided by this endorsement (unless otherwise canc:eUed, ternmated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thElf'eafter and any passengers have disembarked. 4, Review and Cancellation (a) RevieW of Premium and/or Geographical Limits a days) We may give notice to review premium and/or geographical Linits. Such notice to become effective on the expiry of seven days from 23.59 hours (GMl) on the day on WhiCh notice is given. Endorsement No, AAP 203 (11/99) Page1of2 JUL-OZ-02 01 :26PM FROM-AJG-DENVER 3037739Ti6 T-368 P 021/023 F-507 This Endorsement effective forms part of Policy Number Issued to ACE Property and Casualty Insurence Company EXTENDEO COVERAGE - WAR, HI-JACKING AND OTHER PERILS ENDORSEMENT (CONrO) (b) Umited Cancellation (48 hours) Following a hostile detonation as specified in 3(b) above, we ~ give notice of cancellation of one or more parts of the coverage provided by parcIQTCIph 1. of 1his endorsement by reference to paragraphs (e), (d), (e), (f) and/or (g) of Exclusion B. of Common Coverage Exclustons (Section II). Such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on 1he day on whiCh notice is given. (e) Cancellation (7 days) The cover provided by this endorsement may be cancelled by either us or you giving notice to becOme effectiVe on the expiry of seven days ftom 23,59 hours GMT on the day on which such notice is given. (d) Notices All notices refened to therein shall be in writing.y .. Authorized Representative Endorsement No. AAP 203 (11/99) Page 2 of 2 JUl-02-02 01 :26PM FROM-AJG-DENVER 3037'739TT6 T-368 P.022/023 F-50T <', .... SECTION II - COMMON COVERAGE EXCLUSION~ r~ All Coverages included in this policy are subject to the following exclusions. A. Noise and pollution and other perils. 1 . This policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of: (a) noise (whether audible to the human ear or not). vibration. sonic boom and any phenomena associated therewith, <. (b) pollution and contamination of any kind whatsoever, (c) electrical and electromagnetic interference, (d) interference with the use of property; unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnonnal aircraft operation. 2, With respect to any provision in the policy concerning our duty to investigate or defend claims, such provision shall not apply and we shan not be required to defend: (a) claim.s excluded by Paragraph 1; or (b) a claim or claims covered by the policy when combined with any claims excluded by Paragraph 1 (referred to below as "Combined Claims"). 3. In respect of any Combined Claims, we shall (subject to proof of loss and the LIMITS OF INSURANCE) reimburse you for that portion of the following items which may be allocated to the claims covered by the policy: (i) damages awarded against any insured: and (ii) defense fees and expenses incurred by any insured, , 4. . Nothing herein shall override any radioactive contamination or other exclusion clause attached to or fonning part of this policy. War. hj.jacking and other perils. . I ~@ This policy does not cover claims caused by: (a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or"not), civil war. rebellion, revolution. insurrection, martial law, military or usurped power or attempts at usurpation of power. (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. (c) Strikes, riots, civil commotions or labor disturbances, (d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. (e) Any malicious act or act of sabotage. (f) Confiscation, nationalization, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority. AAP 202 (11-99) Page 11 of 23 JUl-OZ-OZ Ot :Z6PM FROM-AJG-OENVER 303T739TT6 T-368 P OZ3/0Z3 F-5D7 , " ,i (9) Hi-jacking or any unlawful seizure or wrongful exercise of control of the aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the aircraft acting without the consent of the Insured. Furthermore this policy does not cover claims arising while the aircraft is outside the control of the insured by reason of any of the above perils. The aircraft shall be deemed to have been restored to the control of the insured on the safe return of the aircraft to the insured at an airfield not excluded by the "coverage telTitory" of this policy, and entirely suitable for the operation of the aircraft (such safe retum shall require that the aircraft be parned with engines shut down and under no duress). C. Radioactive Contamination. 1, This policy does not cover: (a) loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom (b) any legal liability of whatsoever nature directly or indirectly caused or contributed to by or arising from ionizing radiations or contaminatign by radioactivity from any source whatsoever. ,2. loss, destruction. 'damage, expense or legal liability which, but for the provisions of paragraph 1. of this exctusion, would be covered by this policy, and is directly or Indirectly caused or contributed to by or arises from ionizing radiations or contamination by radioactivity from any radioactive materials in course of carriage as cargo under Intemational Air Transport Association Regulations. shall (subject to all other provisions of this policy) be covered, provided that: a. it shall be a condition precedent to our liability that the caniage of any radioactive material shall in all respects comply with the current regulations issued by the Intemational Air Transport Association relating to the carriage of restricted articles by air, b. this policy shall only apply to any claim made against the insured arising out of any accident or incident OCCUlTing during the period of this insurance and any such claim made by the insured against us or by any claimant against the insured shall have been made within three years after the date of the occurrence giving rise to the ct~im; C. the cover afforded by this paragraph 2. may be cancelled at any time by us giving seven days notice of cancellation. SECTION 11\ - WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to your "airport operatlons" , b. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds. but only with respect to your "airport operations", AAP 202 (11-99) Page 12 of 23 JUL-OZ-ZODZ 16:39 FROM- JUL-D2-0Z Gl :03~ FRO~AJC-DENVER mm9Hti T-83Z P OOI/OOZ F-Q40 I ....w ..... o. Arthur J. Gallagher &. Co. - Denver 1/2/2002 ,~o~~ Ms. Maria SlV'ik Monroe CountY BOCC 1100 Simonton Street. #'1..-274 Key West, FL 33040 Fax #(305) 295A342 /I of Pages: zlf - Re: Airport Primary and ExCilSS Liability - Renewal Proposal Dear Maria.: Enclo~ is the renewal proposal for the airport primary and eXcess liability for the period 7/21/02..03. As you can, sl!e we have included options received from Phoenix A vianon (Old Republic Insurance Company) and ACE PropertY C3Sua\ty Insurance Company. We have included an option to include the war endorsement (with ACE) at an additional prexnium of $29.412. This is sianificamly lower than the quote provided at the end of 2001 and we would recommend consideration to include in YOW' insurance program. 1 ha.ve also included the war exclusion concaintd in the ACE policy form along with the write-back endorsement for your review. We arc: still waiting for the war quote from Phoenix.. , 1 apologize for the delay in presenting the formal proposal. but as you know the Phoenix/Old Republic quOte was just received today. and. although the origiaal ACE quote was Iecelvcd last week. it was higher than the indication we provided from Phoenix of approximatelY $7'2,000. Can me at (800) 333-3231 if you have any questions. Thank you. .. Best regards, ~,gher & Co.-DenveI ou eyer Account Ma~ger ;) pa'jeS, Enclosur~s c. Sid Webba. lntcrRisk. Heidi Greene, NO Boca Raton Chuck Lombardi, AJG Denver (813)-287-1041 (561)-995-6708 (415).381-9713 4:-- 7900 ea.-c Union Avcsnuo. Suit. 200 080'0118', CO 80:!37-2737 303.773.9999 Fax 303, m.9776 Toll F,.. 900,333.:1231 _,ajg.com --- JUL-OZ-ZOOZ 16:39 FROM- T-B3Z P.OOZ/DOZ F-9~D Heidi Greene ,*,'-07/02/0204008 PM To: ISlnterisk@aol.com cc: mcrsk@mail.state.tl.us cc: mcrsk@mail.state,fl.us Subiect: Deductible Option Maria & Sid. Doug asked me to send you an email regarding the deductible option available with ACE. that was left off the proposal just sent to you by fax. A savings of $4.000.$4.700 is available should you elect a deductible of $5.000, with an aggregate of $25,000, Call me if you ha'le questions, Thank you. Heidi L. Greene, CIC --------------------------- Arthur J. Gallagher & Co. . Boca Raton 2255 Glades Road, Suite #400E Boca Raton. FL 33431 561.995.6706, X-617 (v) 561,995.6708 (f) . .