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TO: Mayor & Council <br />FROM: finance Director -Treasurer Brager <br />DATE: April 14, 1983 <br />RE: INSURANCE PROPOSALS <br />Requests for proposals for City insurance coverages for 1983 were <br />submitted to the Home Insurance Company, Aetna Insurance Company, <br />and the League of Minnesota Cities Insurance Trust (LMCIT). Proposals <br />were received from the LMCIT and the Home Insurance Companies. Their <br />proposals are listed in detail on the attached sheets. In summary <br />they are: <br />LMCIT <br />Property, Casualty, Liability Coverages $17,912. <br />Workman's Compensation Insurance 17,338. <br />Total Proposed Price $35,250. <br />Home Insurance <br />Property, Casualty, Liability Coverages $13,672. <br />Workman's Compensation Insurance 17,096. <br />Total Proposed Price $30,768. <br />Insurance prices remain extremely competitive. This is the third <br />year in which we have seen a reduction in the price for insurance. <br />Last year's proposals were: <br />LMCIT $41,589. <br />Home Insurance 38,183. <br />Western Casualty 38,605. <br />While these proposals represent a good indication of what our <br />insurance costs will be they are not our final costs. Liability and <br />workman's compensation coverages are based upon estimated operating <br />expenses and estimated payrolls in various job classifications and <br />are finally determined by an audit of our financial statements by the <br />insurance company. In 1982 we paid additional premiums of $1,497 for <br />liability coverages and $6,565 for workman's compensation coverages <br />for the previous year's policies (1981). The additional premium for <br />workman's compensation was unusally high due to the ammendment of our <br />experience modifier by the Workman's Compensation Rating Bureau. When <br />budgeting,an allowance is made for these additional premiums as well <br />as any additional premiums caused by purchase of new vehicles or equip- <br />ment. <br />