725-FL Municipal Insurance TrusPublic Risk Se~ces I - (800) 445-6248
P.O. Box 530065 Suncorn 344-0720
Orlando, FL 32853-0065 ~ ~ ~fl'i~ ~
= - __ _' -- - ~ Fu (40~ 317-7181
November 3, 1998
Ms. Donna Watt, CPA
Fin,~mce Director
City of Sanford
Post Office Box 1788
Sanford, FL 32772-1788
Re: FMIT Two Year Premium Guarantee Agreement
Dear Ms. Watt:
Enci~sedp~ease~nd~ne(~)fu~~y~xecutedagrcementfor~urtw~y~arpremiumguaranteepr~gram. This signed
agreement is for your file and the other one we have kept for our files.
We are pleased that you continue to support the Florida Municipal Insurance Trust and look forward to our valued
relationship.
Please call me call if you have any questions.
Sincerely,
Byron Beard
Underwriting Manager
BBAmnn
Enclosure c~,? ~
Florida Municipal Insurance Trust
FLORIDA MUNICIPAL INSURANCE TRUST
TWO YEAR PREMIUM GUARANTEE AGREEMENT
October 1, 1998 - September 30, 2000
THIS AGREEMENT, made and entered into this lstday of October ,1598
by and between the C~ty of San ford , (hereinafter referred to as the "Member") and the
Florida Municipal Insurance Trust (hereinafter referred to as the "FMIT").
WHEREAS, the FMIT has determined it is in the best interest of the FMIT to offer the
Member a Two Year Premium Guarantee Plan, and
WHEREAS, the Member has determined it is in the best interest of the Member to utilize
the Two Year Premium Guarantee Plan.
NOW, THEREFORE, for and in consideration of the mutual covenants, promises and
obligations herein contained which are given to and accepted by each party hereof to the other,
the parties to this instmrnent covenant, stipulate and agree as follows:
1. As used herein, the following words and phrases shall have the following meanings:
a. "Coverage Period" means the period as shown on the Declarations of the FMIT
Agreement.
b. "Premium Guarantee" means that the annual net premium billed the Member for
the coverage period will not be subject to adjustment from exposure audit, change
in experience modifications, annual rate review and rate change by the FMIT or to
change in approved participation credits.
c. "Gross Premium" means the annual gross premium as shown on the Declarations
of the FMIT Agreement for the coverage period.
d. "Participation Credit" means equity credits, dividends, incentive credils, premium
credits, and any other participation credit approved by the FMIT, and is the
annual credit shown on the Declarations of the FMIT Agreement for the coverage
period.
e. "Net Premium" means the annual net premium as shown on the Declarations of
the FMIT Agreement for the coverage period.
f. "Experience Modifications" mean the factors used by the FMIT in adjusting base
gross premium due to a Member's loss experience for workers' compensation,
general liability (including law enforcement and public officials errors and
omissions), automobile liability and automobile physical damage.
g. "Exposure Audit" means audits conducted by the FMIT to assure exposure
information provided by the Member accurately reflects actual exposures
assumed by the FMIT, which audits can result in premium adjustments to the
Member under the terms of the Indemnity Agreement.
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h. "Rates" mean the annual renewal rates approved by the FMIT for the FMIT's
property and casualty coverages and used for calculation of the Member's gross
premiums.
i. "Exposures" mean the basis on which the FMIT rates are applied to develop gross
premiums including but not limited to payroll, job classifications, population, law
enfomement officers, vehicles, real and personal properties, and other
miscellaneous exposures.
j. "Indemnity Agreement" means the FMIT's Indemnity Agreement, the
Participation Agreement entered into between the FMIT and the member, and any
other agreement, certificate document, or other instrument executed by the
Member and the FMIT.
2. Subject to the terms and conditions contained in this Agreement, the Member and the
FMIT agree Member's Premium Guarantee during the coverage period shall be the net
premium shown on the Declarations of the FMIT Agreement.
3. The Member agrees that it will assist the FMIT by timely providing the FMIT with
updated information projecting the FMIT's exposure for the October 1, 1998 fiscal year
and with any other exposure information the FMIT in good faith believes might have a
material impact on the exposures to be assumed by the FMIT over the coverage period.
3
4. The FMIT agrees that coverage provided herein will not be canceled or non-renewed by
the FMIT during the coverage period except for non-payment of premium by the
Member.
5. The member agrees that coverage accepted herein will not be canceled or non-renewed
by the Member during the coverage period.
6. If, during the coverage period, the member cancels or non-renews the coverage or if
coverage is canceled by the FMIT for non-payment of premium, the member shall be
liable for liquidated damages for breach of this Agreement, calculated at ten percent
(10%) of the net premium unearned by the FMIT for the coverage period, plus any
additional premium that, but for this Agreement, would otherwise have been due and
owing the FMIT as a result of exposure audits under the Indemnity Agreement. This
provision for liquidated damages is agreed upon between the parties due to the inability
of computing the loss of value to the FMIT of the unexpired portion of the Member"s
coverage period under this Agreement.
7. In the event the Member falls to pay monies due and owing hereunder, the FMIT shall be
entitled to recover from the Member all costs and expenses incunced by the FMIT in
collecting any such monies, including reasonable attomey's fees, costs, prejudgment
interest, and any other reasonable and related expenses of collection.
4
8. In the event of conflict, the provisions of this Agreement shall prevail over any
provisions contained in the Indemnity Agreement. Provisions of the Indemnity
Agreement not in conflict with the provisions of this Agreement shall remain in full force
and effect.
City of Sanford 9/14/98 Elected~/j~~Offi~
Member Name Date
City Manaqer
Title
Witness
FLORIDA MUNICIPAL INSURANCE
TRUST
Date Authorized Representative
Witness