HomeMy WebLinkAbout12/16/2014 General & Auto Liability Third-Party Claims Administrationji ±Loon[ Prospcc-t
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
v r
TO: DAVID STRAHL, ACTING VILLAGE MANAGER l
FROM; FINANCE DIRECTOR
DATE: DECEMBER 9, 2014
SUBJECT: GENERAL AND AUTO LIABILITY THIRD -PARTY CLAIMS
ADMINISTRATION
PURPOSE:
To present a recommendation for renewal of the annual service agreement for third -
party liability claims administration for the period January 1, 2015 - December 31, 2015.
BACKGROUND:
To assist in the administration of general and auto liability claims the Village has
contracted out the service to a third -party administrator. The Village's current
agreement for claims administration expires on December 31, 2014. A new agreement
is needed at this time for the current provider to continue to service the Village.
DISCUSSION:
Gallagher Bassett (GB) is the current service provider for general and auto liability
claims administration. The agreement for 2015 contains no changes to the terms and
conditions from the prior year. Below is a summary of fees for the prior year and 2015.
Service..................._2014
Rates._....._
2014RatesClmaims..Administrati.on
.....................................................................1......0.8.2....._
......................................1�......._......1..25..
............_..._.........................._......_..............................................
SIMMS Bankinq Fee
:��..
410
......
434
M i n i m u.m...An..�.....������� .�m........ ........m.................
nual Fee
8..............................,.....
....................�.....
.m..... ......
w........w®..................�.m.�m.000 8m 000
.....................__.....................Tota.L...Fee.................................._�
........ ..........._W.......... $�.9._4.92...........................................................
$9....,55.9....
The claims administration fee increased 4.0% ($43) from the prior year's program. The
SIMMS Banking fee is an annual flat fee assessed for maintaining the escrow and
processing and making payment on claims. This service relieves the Village from
having to process payments internally. The SIMMS fee increased 5.9% ($24) from the
prior year's program.
General and Auto Liability Third -Party Claims Administration
December 9, 2014
Page 2
The Village is subject to an $8,000 minimum annual fee. Time and expense charges
are invoiced against the annual fee until the balance is exhausted. When the entire
annual fee is depleted, the Village will begin making payments for charges incurred in
managing the open claims. Our liability ends when all the claims for a particular period
are closed.
Our experience with GB continues to be very positive. Communication between the
Finance Department, Corporation Counsel and third -party claims administrator
continues to be strong. Based on our satisfaction with the service provided and modest
increase to the minimum annual fee I recommend we continue the relationship with GB.
RECOMMENDATION:
It is recommended we approve the agreement for GB to provide general and auto
liability claims administration services during 2015 according to the proposed funding
and fee schedule.
David O. Erb
Finance Director
DOE/
Attachment
I:\Insurance\GAB-GBS\Renewal - 2015.docx
Village of Mount Prospect - #007474
1 LAG1/1/2015 - 1/1/2016 '�1�� � �i,
PRICING OPTI : TIME & EXPENSE HANDLING
This program is quoted at a total minimum of $9,559 (including administration and banking fees).
WiltiUf�MWWN'WW mm wuww.wuuu .wu... w.W .... um..M 0n m 'm'uromoN uuuuiWwi�I�W4W4llY0N01�hWNVW,b1 NOWVWWWV�NOMONV@U4W4w�'k49tiNNtlom,A�'roWV4WW
New Business Cost & Terms Revision date: 6/27/2013) Page 1