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Item # 27
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 7, 2021
TOPIC: ICRMA Excess Liability Insurance Premiums
AGENDA TITLE:
Approve Payment of Increase in Initial General Liability Excess Insurance Premiums to
Independent Cities Risk Management Authority (“ICRMA”) for Fiscal Year 2021-22
(Non-General Fund)
RECOMMENDED ACTION
Authorize increase of payment of $175,467 for the City’s General Liability excess
insurance premiums.
DISCUSSION
On June 15, 2021, the Human Resources Department’s Risk Management Division
submitted a staff report for approval regarding ICRMA excess insurance and additional
ancillary coverage premiums for FY 2021-22. The staff report reflected the premium
amounts that had been approved by the ICRMA Board of Directors at the June 10, 2021
meeting, including each member city’s portion for payment. Prior to the insurance
coverages being bound, the Broker was notified that one of the carriers, Old Republic,
was reducing its participation in coverage, falling to the responsibility of the pool
members. The Broker team was able to obtain a combination of additional carriers to
quote the coverage reduction, as well as the remainder of the pool exposure. This
change has resulted in an increase in insurance premiums in the amount of $175,467
for FY 2021-22 (see graph below illustrating the changes).
2021/2022 Approved Program 2021/2022 Proposed Adjusted Program
$5M xs $30M – Hallmark $5M xs $30M – Hallmark
$10M xs $20M – Scor $10M xs $20M – Scor
$2M xs $18M – ACE American/Chubb
$3M xs $15M – Everest
$2M xs $13M – Allied World Assurance
Company
$11M xs $9M – Old Republic (41.67%) /
TBD (58.33%)
$4M xs 9M – Old Republic
$5M xs $4M – Safety National $5M xs $4M – Safety National
$2M xs $2M – Pool SIR - QBE $2M xs $2M – Pool SIR – QBE
ICRMA Excess Liability Insurance Premiums
September 7, 2021
Page 2
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9
8
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City of Santa Ana – Member Share of
Premium - $3,936,181
City of Santa Ana – Adjusted Member
Share of Premium - $4,111,648
A special meeting of the ICRMA Board was held July 8, 2021 to bring alternatives to the
Board for a decision on the change of coverages. The proposed adjustments were
approved by the ICRMA Board, resulting in an increase of the premium costs. This
increase exceeded the amount identified in the June 15, 2021 staff report. Therefore,
staff recommends that the City Council approve the increased amount of the premium
costs. The initial amount approved was estimated not to exceed $3,936,181. The
adjusted amount is 4,111,648—a difference of $175,467.
Staff recommends the approval of the aforementioned actions.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Excess General Liability Insurance Premiums are budgeted for FY 2021-22. Funds are
available in Human Resources Department Risk Management Division.
Fiscal
Year
Accounting
Unit
Fund
Description
Accounting Unit,
Account Description Amount
2021-22 08009051-
64010
Liability and
Property Ins Fund Insurance Payment $175,467
Submitted By: Jason R. Motsick, Executive Director of Human Resources
Approved By: Kristine Ridge, City Manager