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Approve Joining ICRMA and Insurance Costs for FY 19/20 <br />July 2, 2019 <br />Page 4 <br />The ICRMA excess liability program covers liability claims up to $40,000,000 per occurrence, less <br />the member retained limit (MRL), which functions like a deductible. The annual contributions paid <br />by each member to ICRMA are approved by the Governing Board and are calculated to cover <br />ICRMA's claim expenses, settlements, and operating costs. The Liability Program has the following <br />coverage limit features: <br />• Santa Ana's MRL will be $2,000,000 <br />• ICRMA's Retention: $2,000,000 less the MRL <br />• Reinsurance: Excess of $3,000,000 to $40,000,000 <br />Workers' Compensation Program <br />ICRMA's Workers' Compensation Program operates in a similar fashion to the Liability Program. <br />It has the following coverage limit features: <br />• Santa Ana's MRL will be $1,500,000 <br />• ICRMA's Retention: $2,000,000 less the MRL <br />• Excess Insurance: Statutory excess of $2,000,000 <br />Within ICRMA's retention, a risk sharing pool arrangement has been established whereby each <br />member selects its own MRL from $350,000 to $3,000,000. Each member of ICRMA then assumes <br />its own losses up to its selected MRL. Any losses between its MRL and $2,000,000 are covered by <br />drop down policy. A commercial insurance company provides coverage in excess of ICRMA's <br />retained limit up to full statutory coverage. <br />The member contributions for excess liability insurance and reinsurance premium for the period of <br />July 1, 2019 to June 30, 2020 are not to exceed 2,300,000. The excess workers' compensation <br />insurance premium for the July 1, 2019 to June 30, 2020 period are not to exceed $612,000. Cost <br />for the State of California Department of Industrial Relations (DIR) assessment are estimated not <br />to exceed $300,000. <br />The City of Santa Ana's participation in additional insurance programs include: <br />1. Property & Equipment estimated premium not to exceed $360,000 <br />2. Auto Physical Damage Program estimated premium not to exceed $71,000 <br />3. Cyber Liability Program, which is a required program as a member in ICRMA, estimated <br />premium not to exceed $22,000 <br />4. Earth Movement & Flood and Difference in Coverage programs estimated premium not to <br />exceed $310,000 <br />5. Crime Program estimated premium not to exceed $15,000 <br />6. Terrorism Insurance estimated premium not to exceed $12,000 <br />55E-4 <br />