Resolution #14-39: 2015 Statewide Insurance Fund Risk Management Agreement
Date of Adoption: November 6, 2014
Note: See Resolution #14-44 for subsequent correction to consultant’s name.
Risk Management Consultant’s Agreement
THIS AGREEMENT entered into this 6th day of November 2014 among the Statewide Insurance Fund (“FUND”), a joint insurance fund of the State of New Jersey, Vernon Municipal Utilities Authority(“MEMBER”) and D & H Alternative Risk Management Solutions (“CONSULTANT”) through a fair and open process, pursuant to N.J.S.A.19:44A-20.4.
WHEREAS, the CONSULTANT has offered to the MEMBER professional risk management consulting services as required by the Bylaws of the FUND; and
WHEREAS, the CONSULTANT has advised the FUND that he/she is familiar with the terms, conditions and operations of the FUND; and
WHEREAS, the MEMBER desires these professional services from the CONSULTANT; and
WHEREAS, the MEMBER has complied with relevant law in regard to the appointment of a Risk Management Consultant; and
WHEREAS, the Bylaws of the FUND require that members engage a CONSULTANT and that the CONSULTANT comply with certain requirements set forth therein.
NOW, THEREFORE, the parties in consideration of the mutual promises and covenants set forth herein, agree as follows:
- For and in consideration of the amount stated hereinafter, the CONSULTANT shall:
- assist in evaluating the MEMBER’S exposures and advise on matters relating to the Member’s operation and coverage.
- explain to the MEMBER, or its representatives, the various coverages available from the FUND.
- explain to the MEMBER, or its representatives, the terms of the member’s commitment and obligations to the FUND.
- explain to the MEMBER, or its representatives the operation of the FUND.
- prepare applications, statements of values, etc., on behalf of the MEMBER, if required by the FUND.
- review the MEMBER’S assessment and assist in the preparation of the MEMBER’S insurance budget.
- review losses and engineering reports and provide assistance to the MEMBER’S safety committee, if required.
- assist in the claims settlement process, if required, by MEMBER or FUND.
- attend the majority of meetings of the Fund Commissioners or Executive Committee, if requested, and perform such other services as required by the MEMBER or the FUND.
- comply with the obligations imposed upon Risk Managers in the FUND’s Bylaws.
- act in good faith and fair dealing to the FUND.
- perform other duties for the FUND as may be required from time to time by the FUND.
- In exchange for the above services, the CONSULTANT shall be compensated in the following manner:
- The CONSULTANT shall be paid by the FUND, on behalf of the MEMBER, a fee as compensation for services rendered. Said fee, an apportionment of the MEMBER’s assessment: 6% of workers’ compensation (excluding any fees, PLIGA, and loss ratio apportionment); 7.5% of all lines assessment (excluding any fees, PLIGA, and loss ratio apportionment); and 10% of Selective umbrella assessment (excluding fees, PLIGA and administrative expenses).
- The CONSULTANT shall be entitled to compensation for services provided during any calendar year only if the CONSULTANT has been appointed and holds the position of Risk Management Consultant, as of January 31 of the said calendar year for counties and municipalities holding general elections and July 30 for municipalities holding regular elections.
- For any insurance coverages authorized by the MEMBER to be placed outside the FUND, the CONSULTANT shall receive as compensation the normal brokerage commissions paid by the insurance company. The premiums for said policies shall not be added to the FUND’s assessment in computing the fee set forth in 2(a).
- If the MEMBER shall require of the CONSULTANT extra services other than those outlined above, the CONSULTANT shall be paid by the MEMBER a fee at a rate to be negotiated by the parties.
- The term of this Agreement shall be from January 1, 2015 to January 1, 2016. However, this Agreement may be terminated by either party at any time by mailing to the other thirty (30) days written notice, certified mail return receipt.
- The CONSULTANT shall comply with all laws applicable to producers who provide insurance products to public entities and shall comply with all applicable statutes and regulations relating to joint insurance funds.
- The CONSULTANT agrees to comply with all affirmative action laws applicable in accordance with Exhibit A and to submit all necessary documentation establishing compliance within seven (7) days of this Agreement.