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HomeMy WebLinkAboutFMIT Trust Agreement 2014-15 FLORIDA MUNICIPAL INSURANCE TRUST TRUST AGREEMENT THIS AGREEMENT, made and entered into this 1st day of October, 1992, by and between the Florida Municipal Insurance Trust (Trust) and all parties who are now or may hereafter become members of the Florida Municipal Insurance Trust (member), acting by and through a Board of Trustees of their own selection. These members of the Florida Municipal Insurance Trust, all local government entities, have organized and formed a trust, and have agreed to pool their liabilities pursuant to Florida law. NOW, THEREFORE, for and in consideration of the mutual covenants, promises and obligations herein contained, which are given to and accepted by each member hereof to the other,the parties to this instrument covenant, stipulate and agree as follows: RESPONSIBILITIES OF MEMBER As a pre-requisite for participation in the Trust, each member of the Trust agrees to abide by the following terms, conditions and obligations: I. GENERAL CONDITIONS A. The member agrees the Board of Trustees, the governing body of the Trust, comprised entirely of local elected officials, will set up, operate and enforce its own administrative rules, regulations and by-laws as between the individual members of the Trust and shall otherwise direct the affairs of the Trust; B. The member and the Trust agree that the Board may admit as members of this Trust only acceptable employers in the state of Florida who have common governmental interest. The Board or its designee shall be sole judge of whether or not an applicant shall be admitted to membership; C. The member agrees to maintain a reasonable loss prevention program in order to provide the maximum in safety and lawful practices as such may relate to the potential liability assumed by the Trust under this Agreement or any other agreement, certificate, document, or other instrument executed by the Trust and the member pursuant to this Agreement; D. The member agrees to provide immediate notification of such occurrence to the Trust in the event of an occurrence likely to give rise to a claim within the scope of this Agreement, or any other agreement, certificate, document or other instrument executed by the Trust and the member pursuant to this Agreement; E. The member agrees to promptly make all contributions for coverages arising under this Agreement, or any other agreement, certificate, document, or other instrument executed by the Trust and the member pursuant to this Agreement at the time and in the manner directed by the Board of Trustees. Said contributions may be reduced by any discount, participation credit, or other contribution reduction program established by the Board of Trustees; F. The member agrees in the event of payment of any loss by the Trust on behalf of the member, the Trust shall be subrogated to the extent of such payment to all the rights of the member against any party or other entity legally responsible for damages resulting from said loss, and in such event, the member hereby agrees, FMIT TRAG 1014 Page 1 of 7 • , ' 1 on behalf of itself, its officers, employees, and agents to execute and deliver such instruments and papers as are required, to secure such right to the Trust, and to cooperate with and otherwise assist the Trust as may be necessary to effect any recovery sought by the Trust pursuant to such subrogated rights, to do whatever else is reasonably necessary to secure such right to the Trust, and to do nothing that will impair the rights of the Trust herein described. G. The member agrees the Board of Trustees, its Administrator, and any of their other agents, servants, employees or attorneys, shall be permitted at all reasonable times and upon reasonable notice to inspect the property, work places, plants, works, machinery and appliances covered pursuant to this Agreement or any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement, and shall be permitted at all reasonable times while the member participates in the Trust, to examine the members' books, vouchers, contracts, documents and records of any and every kind which show or tend to show or verify any loss that may be paid or may have been paid by the Trust on behalf of the member pursuant to this Agreement, or any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement, or which show or verify the accuracy of any contribution which is paid or payable by the member pursuant to the terms of this Agreement, or any other agreement, certification, document or any other instrument executed by the Trust and the member pursuant to this Agreement; However, neither the Trust, it's Board of Trustees, its Administrator, nor any of their agents, servants, employees or attorneys of either will have any liability to the member or others because of any inspection or failure to inspect. H. The members hereby delegate to the Board of Trustees the responsibility to contract for handling the administrative and servicing functions of the Trust. The Board may pay a reasonable fee for such, which shall be negotiated from time to time by the Board of Trustees. These fees shall be in consideration of all services and expenses contracted for with the Trust, which services or expenses may include the collecting, disbursing, and accounting for monies collected, counseling with members as to the safety hazards, claims handling and investigations, and legal services, actuarial services and accounting services and for the purpose of providing for excess insurance coverage. Books and records of all contractors employed by the Trust are to be open to inspection by the Board of Trustees or their agents at all reasonable times and as otherwise required by law; The member and the Trust agree the administrator, to be appointed by the Board, shall deposit to the account of the Trust, at any bank or banks designated by the Board, all contributions or other monies, as and when collected and said monies shall be disbursed only as provided by(1) the Trust's Agreement and Declaration of Trust, (2) the rules, regulations and by-laws of the Board, and (3) the Agreement between the Board and the administrator; J. The member and the Trust agree that the Trust is to defend in the name of and on behalf of the member any claims, suits or other legal proceedings which may at any time be instituted against the member on account of any liability for monetary damages, to the extent such defense and liability has been assumed by the Trust pursuant to an obligation to defend that arises under this Agreement or any other agreement, certificate, documents, or other instrument executed by the Trust and the member pursuant to this Agreement, subject to any and all of the definitions, terms, conditions and exclusions contained in said agreements, certificates, FMIT TRAG 1014 Page 2 of 7 documents or other instruments. Further, the member agrees: 1. For any occurrence resulting in a claim or suit for damages under this Agreement, the Trust, in its sole discretion, may investigate; settle; coordinate the defense of claims or counts within suits which may not be expressly covered by this Agreement but which provide strategic benefits through coordinated litigation; and/or use of any other reasonable means permitted by applicable rules of state law and attorney professional conduct, without the prior consent or approval of the member. 2. The Trust shall have no obligation to retain more than one attorney to defend all members involved in any single occurrence resulting in a claim or suit for damages covered by this Agreement. 3. The Trust shall remain in control of the defense for any occurrence resulting in a claim or suit for damages for which the Trust is obligated to provide a defense or elects to provide a defense to the member, whether covered or not covered by this Agreement, notwithstanding any of the following: a. There is more than one defendant against whom a claim or suit is brought; b. There is any real or perceived conflict between or among the Trust, any member or any defendant(s) involved in any claim or suit; c. The Trust has reserved its right to deny or limit its coverage in any claim or suit; d. The Trust or the member initiates any claim or suit against any other Trust member. 4. In the event any court of competent jurisdiction orders the Trust to provide attorney representation beyond the attorneys the Trust selects and retains, the member shall be entitled to the fees and charges for such attorney representation only to the extent of usual and customary legal fees and charges paid by the Trust for reasonably similar representation. K. The member agrees the liability of the Trust is specifically limited to the discharge of the liability of its members assumed pursuant to this Agreement or any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement; L. The member agrees the coverage of the Trust does not apply to punitive or exemplary damages; M. The Trust shall operate on a fiscal year from October 1st to September 30'h of the succeeding year. Application for continuing membership, when approved in writing by the Board or their designee, shall constitute a continuing contract for each succeeding fiscal period unless cancelled by the Board or unless the member shall have resigned or withdrawn from said Trust by written notice; N. Unless the Trust and the member otherwise expressly agree in writing, the member agrees coverage by the Trust for a member under the terms of this Agreement or FMIT TRAG 1014 Page 3 of 7 any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement, shall expire automatically at 12:00 am on the first day of October of each calendar year; O. Except as otherwise provided herein, the member and the Trust agree such member's coverage may be canceled by the Trust or the member at any time upon no less than forty-five (45) days prior written notice by the Board of Trustees or the Administrator to the member and to the Division of Workers' Compensation, if applicable, or by the member to the Trust, stating the date such cancellation shall be effective; however, cancellation by the member after the initial effective date of coverage (October 1), may be other than pro-rata; or the Trust may cancel for non- payment of contribution by issuing written notice of cancellation to the member 10 days before the effective date of cancellation; The notice will be mailed or delivered to the member's last known address. If notice is mailed, proof of mailing will be sufficient evidence of notice as of the date of the postmark. P. The member agrees excess monies remaining after the payment of claims and claim expenses, and after provision has been made for the payment of open claims and outstanding reserves, may be distributed by the Board of Trustees to the members participating in the Trust in such manner as the Trustees shall deem to be equitable; Q. The member agrees there will be no disbursements out of the reserve fund established by the Trust by way of dividends or distributions of accumulated reserves to members until provision has been made for all obligations against the Trust and except at the discretion of the Board of Trustees; R. The member agrees to permit qualified service providers, including attorneys selected by the Trust, to defend, investigate, settle, and otherwise process and dispose of all claims, suits, allegations or demands that may result in liability assumed by the Trust on behalf of the member pursuant to this Agreement, or any other agreement, certificate, document, or other instrument executed by the Trust or the member pursuant to this Agreement, notwithstanding the following rights which the Trust agrees the member shall retain: 1. The member may, in its discretion and solely at its own expense, retain counsel other than the attorney(s) provided by the Trust to represent the member against any claim, suit, allegations or demands. The Trust shall have no obligation to cover the cost of such retained counsel or any related expenses. However, the member agrees that, even to the extent it may use counsel other than the attorney(s) appointed by the Trust and notwithstanding the provisions of General Condition J.,the Trust shall retain the right to maintain control of the defense of any claim or suit as provided elsewhere in this Agreement. 2. If the member's limit of liability is exhausted and the Trust or its agent has not notified the member of such exhaustion at least thirty (30) days prior, then the Trust shall continue providing the defense previously undertaken by the attorney(s) appointed by the Trust for a reasonable period of time, not to exceed thirty (30) days following exhaustion of the member's limit of liability, during which time the member shall acquire control of the claims, suits, allegations or demands remaining at issue. However, the member FMIT TRAG 1014 Page 4 of 7 shall reimburse the Trust for any related expenses incurred during the transfer of the matter from the Trust-appointed attorney(s)to the attorney(s) chosen by the member following exhaustion of the member's limit of liability. S. The member shall make prompt payment of all contributions as required by the Board of Trustees, said contributions to be determined by said Board. The member shall fully cooperate with auditors of the Trust to promptly determine final audited contributions. Any disputes concerning contributions shall be resolved after payment. Any objections concerning the final audited contribution shall be filed within 60 days of billing of the final audited contributions. After that time, the audit shall be considered to be final; T. The member agrees to pay reasonable penalties as determined by the Board of Trustees for late payment of contributions required under this Agreement, or any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement; U. The member, through the Board of Trustees, does hereby appoint the Administrator of the Trust as its agent and attorney-in-fact, to act in its behalf and to execute all necessary contracts, reports, waivers, agreements, excess insurance contracts, service contracts, and other documents reasonably necessary to accomplish the purposes and to fulfill the responsibilities of the Trust; to make or arrange for the payment of claims, claim expenses, medical expenses, and all other matters required or necessary insofar as they affect the member's liability under federal or Florida law and insofar as such matters are covered pursuant to the terms of this Agreement or any other agreement, certificate, document, or other instrument executed by the member and the Trust pursuant to this Agreement,and by the rules and regulations now or hereafter promulgated by the Board of Trustees; V. The Trust shall determine all questions of the scope of liability coverage, eligibility methods of providing or arranging for benefits, and all other related matters. It shall have full power to construe the provisions of this Agreement and the other program documents in the terms used here and therein. Any such determination and any such construction adopted by the Trust in good faith shall be binding upon all parties hereto and the members, provided such determination or such construction is consistent with the laws of the State. The member agrees to abide by all the terms and conditions of this Agreement, the Participation Agreement, the Trust's By-laws, the rules and regulations, and any other agreement, certificate, document, or other instrument executed by the Trust and the member pursuant to the Agreement; W. The member and the Trust agree the Trust will maintain an excess coverage program and reserve evaluation to protect the financial stability of the Trust in an amount and manner determined by a qualified and independent actuary; X. The member and the Trust agree the Trust will submit to the appropriate governmental agency annually an audited fiscal year-end financial statement prepared by an independent certified public accountant; Y. The member and the Trust agree that any member who formally applies for membership in this Trust and is accepted by the Board of Trustees shall thereupon become a party to the Trust's Agreement and Declaration of Trust and be bound by FMIT TRAG 1014 Page 5 of 7 all of the terms and conditions contained therein, and said application shall constitute a counterpart of said Agreement and Declaration of Trust;and Z. Members'duties after loss: 1. give the Trust prompt written notice of any accident, occurrence or potential claim along with all relevant information concerning the claim. The member shall have a continuing duty to provide to the Trust all relevant information promptly as the member becomes aware of such information; and 2. cooperate fully with the Trust in defense or settlement of claims or opposition to claims bills, and in the enforcement of any right of contribution or indemnity;and 3. forward to the Trust every notice, demand, summons or other process served upon the member relating to any occurrence, and take no further action concerning the occurrence without the approval of the Trust or the servicing agent;and 4. take reasonable steps to prevent additional or cumulative bodily injury, personal injury or property damage from or arising out of the same or similar conditions or circumstances;and 5. not engage in settlement negotiations as to any claim or suit, and the Trust shall have no obligation to pay the amount of any settlement negotiated or agreed upon by a member without prior written approval by the Trust or the servicing agent;and 6. agree to take all reasonable actions, where appropriate, which shall facilitate settlement of claims;and 7. agree to responsible counsel selected by the Trust to defend the claim and agree not to use the designated member's counsel in defense of said action unless otherwise provided in this Trust Agreement;and 8. keep all bills, receipts and related documents that establish the amount of loss;and 9. furnish a complete inventory of the lost, damaged and destroyed property, showing in detail the quantity and amount of loss claimed under the valuation provision of the Coverage Agreement;and 10. promptly separate the damaged property from the undamaged property, and keep it in the best possible order for examination;and 11. take all reasonable steps to protect the covered property from further damage;and 12. give notice of such loss to the proper authorities if the loss may be due to a violation of the law;and 13. refrain from any intentional efforts (whether by statements, actions or agreements) that: (1) harm, undermine, injure or conflict with the known legal strategy put forth by the Trust; (2) that are against the member's self- interest or the interest of the Trust; (3) that are contrary to the member's pecuniary or proprietary interest, or that of the Trust; or (4) that tend to subject the member or the Trust to liability or expand existing liability; AA. Transfer of member's rights and duties under this Agreement. Your rights and duties under this Agreement may not be transferred without our written consent. This applies to all coverages under this Agreement or any that may be added after the effective date of this Agreement. Should your rights and duties be transferred to a legal representative, they may act only within their scope of duties with regard to this Agreement. Until your legal FMIT TRAG 1014 Page 6 of 7 representative is appointed, anyone having proper temporary custody of your • property will have your rights and duties but only with respect to that property. AA. Required member contributions shall be in addition to the deductible amount,if any, as set forth in the declarations to the Coverage Agreement. Where such deductible amount is required, coverages arising under this Agreement shall be in excess of such deductible. The Trust may pay on behalf of the member all or any portion of the deductible amount and upon notification by the Trust of such payment, the member shall promptly reimburse the Trust for any portion of the deductible the Trust has paid. BB. In the event any claim or suit results in liability against the member for which there is coverage under this Agreement and which is reasonably likely to be submitted to,or is submitted to, the legislative claims bill process in the Florida Legislature, the member agrees, on behalf of itself, its officers, employees, and agents, that the Trust shall have the right to control its representation in such matter before the legislative branch of the state government. Further,the member agrees to execute and deliver such instruments and papers as required by the Trust,to cooperate with any attorney or other representative retained by the Trust, to provide relevant testimony if required by the Trust, to do whatever else is reasonably necessary in the interest of defending such claim or suit in the legislative claims bill process and to do nothing that will impair or conflict with the rights of the Trust herein described. Additionally, the member shall Refrain from any intentional efforts (whether by statements,actions or agreements)that harm, undermine, injure or conflict with the known legal or legislative defense strategy being put forth by the Trust, that are against the member's self-interest, that are contrary to the member's pecuniary or proprietary interest, or that of the Trust, or that tend to subject the member or the Trust to liability or expand existing liability. CC. The member agrees that in the event of any legal issue between the Trust and any member requiring disposition by a court of law, including any determinations of whether and/or the extent to which coverage exists, this Agreement, or any other agreement,certificate,document,or other instrument executed by the Trust and the member pursuant to this Agreement, shall be deemed to have been made in Orange County, Florida and venue shall lie in the appropriate state or federal courts of Orange County, Florida. Agreement#:0073 Designated Member: City of Cape Canaveral AGREED AND ENTERED this 1st day of October 2014 For the Trust For the Member David L. Greene Don Lund Printed Name Printed Name City Manager Associate Director of Insurance Services Title Title East FMIT TRAG 1014 Page 7 of 7 FLORIDA MUNICIPAL INSURANCE TRUST UNINSURED MOTORISTS/UNDERINSURED MOTORISTS SELECTION FORM NON STACKED YOU ARE ELECTING NOT TO PURCHASE CERTAIN VALUABLE COVERAGE WHICH PROTECTS YOU AND YOUR FAMILY OR YOU ARE PURCHASING INSURED MOTORIST LIMITS LESS THAN YOUR BODILY INJURY LIMITS WHEN YOU SIGN THIS FORM. PLEASE READ CAREFULLY AGREEMENT NO. FMIT# 0073 DESIGNATED MEMBER City of Cape Canaveral COVERAGE PERIOD October 1, 2014—October 1, 2015 SELECTION FORM CHECK, SIGN& DATE FOR ONLY ONE OPTION X UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE - REJECTION: I/We REJECT Uninsured / Underinsured Motorists coverage and request that such coverage be eliminated from the Agreement, all renewals, and any other provisions which extends, changes, supersedes or replaces this agreement. UNINSURED MOTORISTS / UNDERINSURED MOTORISTS COVERAGE - INCREASED LIMITS: I/We accept the offer of INCREASED limits for Uninsured / Underinsured Motorists in the Combined Single Limit amount of bodily injury each accident. Limit(s) LOWER than the limit(s) of the agreement for bodily injury liability, but not less than the Financial Responsibility minimum limit(s) required by law. Limit. Limit(s) EQUAL to the limit(s) of the agreement limit(s) for bodily injury liability. Limit: . Authorized Signature Date David L. Greene City Manager FMIT UM 1010 E AGREEMENT NO. FMIT# 0073 FLORIDA MUNICIPAL INSURANCE TRUST DESIGNATED MEMBER City of Cape Canaveral COVERAGE PERIOD October 1, 2014—October 1, 2015 OPTION FORM 1. PERSONAL INJURY PROTECTION ® The member acknowledges and understands that the agreement identified above will provide the full no-fault Personal Injury Protection coverage required by the Florida Reparations Reform Act, as amended. 2. Deductible Amount Applicable to Personal Injury Protection - Optional (select only one) ❑ $250 ❑ $2,000 ❑ $500 ❑ $1,000 3. ❑ Coverage reduced by"Medicare" Program (42 USC 1395) and by Military benefits -Optional 4. ❑ Work loss does not apply-Optional 5. No Deductible Applicable to Personal Injury Protection -Optional ® No Deductible THE MEMBER HAS READ THE ABOVE APPLICATION & DECLARES THAT MEMBER HEREBY ELECTS THE OPTIONS MARKED ABOVE AND REQUESTS THEY BE MADE A PART OF THE AGREEMENT ABOVE. t90--A-41 J-1 7-//f//e/ Authorized Signature Date DDavid L. Greene FMIT PIP Wer E Member City c FMIT # 0073 Headquarters Address FLORIDA MUNICIPAL INSURANCE TRUST MEMBER'S STATEMENT OF VALUES Cape Canaveral P.O. Box 326 Cape Canaveral, FL 32920 Format [-�] Blanket F-1 Specific Form of Coverage M Agreed Amount applies to Items F I Replacement Cost applies to Items Coinsurance F-1 90% F] 100% The total insured value of the buildings listed on the Property schedule reflects 90% of the fully appraised value as previously selected by the member. Causes of loss for which rates are requested: Basic F-1 Other (Specify) Special F-1 Other (Specify) Basic Coverage may apply to specified locations. Refer to the Schedule of Property Locations. This Statement of Values form must be filed annually. Coverage Period: October 1, 2014 - October 1, 2015 MEMBER: All values submitted are accurate to the best of my knowledge and belief. Authorized Signature Date David L. Greene, City Manager PROP-STMTVAL (10/10) E