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ORDINANCE NO. 3 6 4 3
AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON, ESTABLISHING A UNIFORM POLICY
FOR THE REPLACEMENT OF MUNICIPAL PROPERTIES/LIABILITY INSURANCE,
AND ESTABLISHING A MUNICIPAL INSURANCE COMMITTEE.
WHEREAS, the City Council of the City of Auburn desires to establish a
uniform policy regarding the placement of its municipal property/liability
insurance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
DO ORDAIN AS FOLLOWS:
Section 1. There is hereby created an Insurance Advisory Committee
whose function is to advise the City on matters related to Auburn's Property
Casualty Insurance, and to recommend which.coverages shall be written by
which agent or broker. The Committee shall consist of the City Finance Director
and the Agents/Brokers meeting the following criteria:
1. Maintain and operate an insurance office in the
City of Auburn;
2. Write an Annual Property/Casualty Premium volume of
not less than $500,000;
3. Be recommended for appointment to the Insurance
Advisory Committee by the Mayor and approved by
the City Council.
Section 2. Municipal Property/Casualty Insurance shall be written,
unless otherwise shown to be in the City's best interest, with Agents/Brokers
who are members of the Insurance Advisory Committee. In order to be qualified
to write insurance for the City of Auburn, Agents/Brokers shall meet the
following minimum criteria:
1. Write policies with carriers holding an AM best
rating of at least A-XI or better;
2. Maintain brokers errors and omissions coverage
i
of at least $1,000,000 per occurrence, with.a
deductible not to exceed $50,000.
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Ordinance No. 3643
Page One
6-8-81
It is the City's intent to award Property/Casualty Insurance on a bid
basis, with members of the Insurance Committee submitting competitive bids
from the companies they represent.
Section 3. In order to encourage active participation on the Insurance
Committee, commissions shall be distributed among Insurance Committee members
in the following manner:
The agent writing the policy is entitled to retain 75% of the commission,
with the remaining 25% being distributed to members of the Insurance Committee
on an equal share basis. Shares should be limited to one per office or company
representative, with. the exception that the chairman of the Insurance Advisory
Committee shall receive one additional share. Commissions on policies written
shall not exceed 15%.
Section 4. This Ordinance shall take effect and be in force five (5)
days from and after its passage, approval and publication, as provided by law.
INTRODUCED: June 15, 1981
PASSED: June 15, 1981
APPROVED: June 15, 1981
ATTEST:
City erk
APPRO D AS TO FORM:
PUBLISHED: June 26, 1981
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Ordinance No. 3643
Page Two of Two
6-8-81
STATE OF WASHINGTON)
ss.
COUNTY OF KING )
I, Coralee A. McConnehey, the duly appointed, qualified City Clerk
of the City of Auburn, a Municipal Corporation and Code City, situate in
the County of King, State of Washington, do hereby certify that the fore-
going is a full, true and correct copy of Ordinance No. 3643 of the
ordinances of the city of Auburn, entitled "AN ORDINANCE OF THE CITY OF
AUBURN, WhRiINGION, ESL43LISHING A UNIFORM POLICY FOR THE REPLACEMENT OF
MUNICIPAL PROPERTIES/LIABILITY INSURANCE, AND ESTABLISHING A MUNICIPAL
INSURANCE COrIIva=.
I certify that said Ordinance No. 1641 was duly passed by the Council
and approved by the Mayor of the said City of Auburn, on the 15th day of
Jame A.D., 19 $L.
I further certify that said Ordinance No. 3643 was published as provided
by law in the Daily Globe News, a daily newspaper published in the City of
Auburn, and of general circulation therein, on the 26th day of June
A.D., 19L!2--
111
WITNESS my hand and the offical seal of the City of Auburn, this 21st
day of July , A.D., 19 $I
&U& 44 `the 6
CITY CLERK OF THE CITY OF AUBU? V
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