TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 1, 2012
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue purchase order to Myers Briggs & Company, Inc. for Furnishing Excess Auto Liability Insurance Coverage for Automobiles, Trucks, Trailers, and Non-owned Automobiles in an amount not to exceed $85,471.00, Account 101-30000-612290, Requisition 1350324
Body
Dear Sir:
At the Board Meeting of June 2, 2011, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement for Contract 11-RFP-06 to Risk Management Resources, Inc. to be the District's broker-of-record for the three-year period. Recently, the assets of Risk Management Resources, Inc. were purchased by Myers Briggs & Company, Inc. As a result of the assignment of the contract, Myers Briggs & Company, Inc. now has responsibility for securing quotes from the insurance market for specified insurance policies, and presenting the quotes from qualified carriers to the Director of Procurement and Materials Management for review and recommendation of a selected carrier.
On October 19, 2012, the District received certain bid quotations/responses which Myers Briggs & Company, Inc. had solicited pursuant to the detailed specifications for excess auto liability insurance to cover liability for bodily insurance and property damage resulting from the MWRD's automobile fleet, trucks, trailers and non-owned vehicles operated on District business/property for a one-year period from November 1, 2012 through October 31, 2013. The liability limit is five million dollars above a self-insured retention of one million dollars.
A total of seven (7) requests for quotations were sent, of which three companies provided quotes: Catlin Specialty Insurance Company $85,471.00; Travelers Insurance Companies $90,000.00; and XL Group PLC $100,000.00.
The proposals were evaluated by Myers Briggs & Company, Inc., the District's Risk Manager and representatives from Procurement and Materials Management. Based on their review, it was determined that Catlin Specialty Insurance Company, a member of Catlin Group Limited, provided the lowest cost proposal and competitive annual premium rate of $85,471.00. The company is licensed to conduct insurance business in Illinois as a Non-Admitted Carrier. As a Non-Admitted Carrier, if Catlin Specialty Insurance Company were to experience financial difficulty, the claim payments are not subject to payment by the Illinois Department of Insurance. However, the Catlin Specialty Insurance Company has an A.M. Best Company rating of A (Excellent), XV ($2B or greater), and its outlook is stable. Coverage for excess auto above a large self-insured retention is most typically available through non-admitted carriers, who have greater flexibility in pricing and coverage terms and conditions than admitted carriers.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to issue a purchase order to Myers Briggs & Company, Inc., in an amount not to exceed $85,471.00.
Funds are available in Account 101-30000-612290.
Requested, Denice E. Korcal, Director of Human Resources
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 1, 2012