HomeMy WebLinkAbout000338.tiff Gallagher
Insurance Risk Management Consulting
August 24 , 2022
Weld County Retirement Plan
Michelle Raimer
1150 O Street
Greeley, CO 80632
Re : Fiduciary Liability
Travelers Casualty and Surety Company of America - Policy # 106796588
Policy Effective : 09/01 /2022 to 09/01 /2023
Dear Michelle :
Your Fiduciary Liability policy will be renewing shortly. Attached is our quotation for Fiduciary Liability
coverage .
• We have been able to achieve renewal goals by negotiating your renewal with the incumbent
carrier.
We are not aware of any changes in your exposures to loss , nor are we aware of any changes in your
business operations that would necessitate additional coverage options . Please notify us immediately if
you are planning any new business operations .
We would like to outline the following notable points for your consideration :
• Any entity not named in this proposal , may not be an insured entity. This may include affiliates ,
subsidiaries , LLC 's , partnerships and joint ventures .
• The insurance carrier is Travelers Casualty and Surety Company of America .
• The renewal premium is : $ 10 , 070 . 00 ( Includes TRIA Premium ) . You will receive an invoice from our
office at time of binding .
• The premium is not subject to a minimum premium.
• The premium is based upon plan assets and participants, and is not subject to annual audit.
• Defense costs are included within the policy limits.
• Defense Provisions : Carrier has Duty to Defend
• Significant policy exclusions include but are not limited to the following: Bodily
Injury, Physical Damage, Pollution, Contractual Liability, Workers Compensation,
Employers Liability, Intentional or Criminal Acts .
• The policy is claims-made and contains the following restrictions and claims reporting requirements :
1 . Continuity Date : 6/16/2014
2 . Prior & Pending Proceeding Date : 06/ 16/2014
3 . Definition of claim : written demand for monetary damages or non-monetary relief; a civil
proceeding commenced by service of a complaint or similar pleading; a criminal proceeding
commenced by filing of charges ; a formal administrative or regulatory proceeding
commenced by filing of a notice of charges, formal investigative order, service of summons
or similar document, including a fact-finding investigation by the Department of Labor or the
Pension Benefit Guaranty Corporation; an arbitration, mediation or similar alternative dispute
resolution proceeding if the Insured is obligated to participate in such proceeding or if the
Insured agrees to participate in such proceeding, with the Company ' s written consent, such
consent not to be unreasonably withheld; or a written request to toll or waive a statute of
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limitations relating to a potential civil or administrative proceeding, against an Insured for a
Wrongful Act. A Claim will be deemed to have been made on the earliest date written notice
thereof is received by an Insured.
4 . Wrongful Act means : any actual or alleged breach of fiduciary duty by or on behalf of the
Insured with respect to any Benefit Plan, including: any actual or alleged breach of duties,
obligations and responsibilities imposed by the Employee Retirement Income Security Act of
1974, as amended, COBRA , HIPAA , or by any similar or related federal , state, local , or foreign
law or regulation, in the discharge of the Insured ' s duties with respect to a Benefit Plan; or any
other matter claimed against an Insured solely because of the Insured ' s status as a fiduciary of a
Benefit Plan; or any actual or alleged negligent act, error or omission by or on behalf of the
Insured in the Administration of a Benefit Plan. All Related Wrongful Acts are a single
Wrongful Act for purposes of this Policy, and all Related Wrongful Acts will be deemed to
have occurred whether prior to or during the Policy Period .
5 . Incident or Claim Reporting Provision : Refer to policy form
6 . Continuity Date : 06/ 16/2014
• Immediately report all claims to :
Gallagher Reporting :
o Email : GGB . NRCCIaimsCenter(a�ajg . com
o Phone : 855-497-0578
o Fax: 225-663- 3224
• Gallagher is responsible for the placement of the following lines of coverage : Fiduciary Liability.
It is understood that any other type of exposure/coverage is either self- insured or placed by another
brokerage firm other than Gallagher. If you need help in placing other lines of coverage or covering
other types of exposures , please contact your Gallagher representative .
It is recommended that you consider purchasing coverage for the following coverages , which are not
included in your insurance program :
o Pollution Liability
o Employment Practices Liability
o Foreign Liability
o Earthquake
o Flood
o Increased building reconstruction costs due to enforcement of local building laws .
• Should you elect to change carriers ( if a new retro-active date is provided) or non- renew this policy, a
supplemental extended reporting endorsement may be available subject to policy terms and
conditions . You must request the extended reporting period in writing to the carrier within Refer to
policy form days of the expiration dates . The cost of this extended reporting period is Refer to policy
form of the annual premium and is fully earned . The extended reporting period extends only to those
claims that occurred prior to the expiration date and would have been covered by the policy. Claims
must be reported to the carrier within Refer to policy form days of the end of the policy period . The
extended reporting period does not increase the limits of liability and is subject to all policy terms ,
conditions and exclusions .
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To renew this policy , please refer to the " Client Authorization to Bind Coverage" page attached .
1 . Note any changes you desire to be made .
2 . Date and sign .
3 . Return prior to the effective date of coverage .
We appreciate your business and look forward to working with you in the coming year. Please contact
me if you have any questions .
Sincerely,
N ctthcuw Kat-leteb
Nathan Kathol
Client Service Manager
Enclosure
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Compensation Disclosure Schedule
Gallagher U . S .
Wholesaler, owned
MGA, or Estimated Wholesaler,
Intermediary Annual Comm % MGA or
Name Premium or Fee Intermediary
Coverage(s) Carrier Name(s) 1 2 3 cyo
Fiduciary Travelers Casualty and Surety N/A $ 10 , 070 . 00 16 . 50 % N/A
Liability Company of America
1 . We were able to obtain more advantageous terms and conditions for you through an intermediary/wholesaler.
2 . If the premium is shown as an indication : The premium indicated is an estimate provided by the market . The actual
premium and acceptance of the coverage requested will be determined by the market after a thorough review of the
completed application .
* A verbal quotation was received from this carrier. We are awaiting a quotation in writing .
3 . The commission rate is a percentage of annual premium excluding taxes & fees . * Gallagher is receiving 16 . 5 %
commission on this policy. The fee due Gallagher will be reduced by the amount of the commissions received .
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Important Disclosures
IMPORTANT : The proposal and/or any executive summaries outline certain terms and conditions of the insurance
proposed by the insurers , based on the information provided by your company. The insurance policies themselves must
be read to fully understand the terms , coverages , exclusions , limitations and/or conditions of the actual policy contract of
insurance . Policy forms will be made available upon request. We make no warranties with respect to policy limits or
coverage considerations of the carrier.
TRIA/TRIPRA Disclaimer — If this proposal contains options to purchase TRIA/TRIPRA coverage , the proposed
TRIA/TRIPRA program may not cover all terrorism losses . While the amendments to TRIA eliminated the distinction
between foreign and domestic acts of terrorism , a number of lines of coverage excluded under the amendments passed in
2005 remain excluded including commercial automobile , burglary and theft insurance ; surety insurance , farm owners
multiple perils and professional liability (although directors and officers liability is specifically included ) . If such excluded
coverages are required , we recommend that you consider purchasing a separate terrorism policy. Please note that a
separate terrorism policy for these excluded coverages may be necessary to satisfy loan covenants or other contractual
obligations . TRIPRA includes a $ 100 billion cap on insurers' aggregate liability.
TRIPRA is set to expire on December 31 , 2027 . There is no certainty of extension , thus the coverage provided by your
insurers may or may not extend beyond December 31 , 2027 . In the event you have loan covenants or other contractual
obligations requiring that TRIA/TRIPRA be maintained throughout the duration of your policy period , we recommend that a
separate " Stand Alone" terrorism policy be purchased to satisfy those obligations .
Terms and Conditions
It is important that we clearly outline the nature of our mutual relationship . The following terms and conditions (these "Terms")
govern your relationship with Gallagher unless you have separately entered into a written services agreement with Gallagher
relative to the policies and services outlined in this Proposal , in which case that services agreement will govern and control
with respect to any conflicts with these Terms . These Terms will become effective upon your execution of the Client
Authorization to Bind Coverage (the " CAB" ) included in this Proposal and shall survive for the duration of your relationship
with Gallagher relative to the policies placed pursuant to the CAB or otherwise at your request .
Services
Gallagher will represent and assist you in all discussions and transactions with insurance companies relating to the lines of
insurance coverage set forth in the CAB and any other lines of insurance coverage with which you request Gallagher' s
assistance . Gallagher will consult with you regarding any matters involving these or other coverages for which you have
engaged Gallagher. You have the sole discretion for approving any insurance policies placed , as well as all other material
decisions involving your risk management, risk transfer and/or loss prevention needs .
Although you are responsible for notifying applicable insurance companies directly in connection with any claims , demands ,
suits , notices of potential claims or any other matters as required by the terms and conditions of your policies , Gallagher
will assist you in determining applicable claim reporting requirements .
Treatment of Information
Gallagher understands the need to protect the confidentiality and security of your confidential and sensitive information and
strives to comply with applicable data privacy and security laws . Your confidential and sensitive information will be protected
by Gallagher and only used to perform services for you ; provided that Gallagher may disclose and transfer your information
to our affiliates , agents or vendors that have a need to know such information in connection with the provision of such
services (including insurance markets , as necessary, for marketing , quoting , placing and/or servicing insurance coverages) .
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We may also disclose such information as required by applicable data protection laws or the order of any court or tribunal ,
subject to our providing you with prior notice as permitted by law.
We will (i ) implement appropriate administrative , physical and technical safeguards to protect personal information ; ( ii) timely
report security incidents involving personal information to affected parties and/or regulatory bodies ; (iii) create and maintain
required policies and procedures ; and ( iv) comply with data subjects' rights , as applicable . To the extent applicable under
associated data protection laws , you are a " business" or " controller" and Gallagher is a " service provider" or " data processor. "
You will ensure that any information provided to Gallagher has been provided with any required notices and that you have
obtained all required consents , if any and where required , or are otherwise authorized to transfer all information to Gallagher
and enable Gallagher to process the information for the purposes described in this Proposal and as set forth in Gallaher' s
Privacy Policy located at https : //www. a1g . com/privacy- policy/. Gallagher may update its Privacy Policy from time to time and
any updates will be posted to such site .
Dispute Resolution
Gallagher does not expect that it will ever have a formal dispute with any of its clients . However, in the event that one
should arise , we should each strive to achieve a fair, expedient and efficient resolution and we 'd like to clearly outline the
resolution process .
A . If the parties have a dispute regarding Gallagher' s services or the relationship governed by this Proposal (" Dispute") ,
each party agrees to resolve that Dispute by mediation . If mediation fails to resolve the Dispute , you and Gallagher
agree to binding arbitration . Each party waives all rights to commence litigation in court to resolve a Dispute , and
specifically waives all rights to pursue relief by class action or mass action in court or through arbitration . However, the
parties do not waive the ability to seek a court order of injunction in aid of the mediation and arbitration required by
these Terms .
B . The party asserting a Dispute must provide a written notice (" Notice") of the claim to the other party and to the American
Arbitration Association ("AAA" ) in accordance with its Commercial Arbitration Rules and Mediation Procedures . All
Dispute resolutions will take place in Chicago , IL , unless you and Gallagher agree to another location . The parties will
equally divide all costs of the mediation and arbitration proceedings and will each pay their own attorneys' fees . All
matters will be before a neutral , impartial and disinterested mediator or arbitrator(s) that have at least 20 years'
experience in commercial and insurance coverage disputes .
C . Mediation will occur within sixty (60) days of filing the Notice with the AAA . Mediation results will be reduced to a
memorandum of understanding signed by you , Gallagher and the mediator. A Dispute that is not resolved in mediation
will commence to binding arbitration . For Disputes in excess of $500 , 000 , either party may elect to have the Dispute
heard by a panel of three ( 3) arbitrators . The award of the arbitrator(s) must be accompanied by a reasoned opinion
prepared and signed by the arbitrator(s) . Except as may be required by law, neither you , Gallagher, nor a mediator or
arbitrator may disclose the existence , content or results of any Dispute or its dispute resolution proceeding without the
prior written consent of both you and Gallagher.
Electronic Delivery
In lieu of receiving documents in paper format , you agree , to the fullest extent permitted by law, to accept electronic delivery
of any documents that Gallagher may be required to deliver to you (including , but not limited to , insurance policies and
endorsements , account statements and all other agreements , forms and communications) in connection with services
provided by Gallagher. Electronic delivery of a document to you may be made via electronic mail or by other electronic
means , including posting documents to a secure website .
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Miscellaneous Terms
Gallagher is engaged to perform services as an independent contractor and not as your employee or agent, and Gallagher
will not be operating in a fiduciary capacity.
Where applicable , insurance coverage placements and other services may require the payment of federal excise taxes ,
surplus lines taxes , stamping or other fees to the Internal Revenue Service , various State(s) departments of revenue , state
regulators , boards or associations . In such cases , you will be responsible for the payment of the taxes and/or fees , which
Gallagher will separately identify on related invoices .
The Proposal and these Terms are governed by the laws of the State of Illinois , without regard to its conflict of law rules .
If an arbitrator/court of competent jurisdiction determines that any provision of these Terms is void or unenforceable , that
provision will be severed , and the arbitrator/court will replace it with a valid and enforceable provision that most closely
approximates the original intent , and the remainder of these Terms will remain in effect .
Except to the extent in conflict with a services agreement that you may enter into with Gallagher, these Terms and the
remainder of the Proposal constitute the entire agreement between you and Gallagher with respect to the subject matter of
the Proposal , and supersede all prior negotiations , agreements and understandings as to such matters .
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Compensation Disclosure
1 . Gallagher Companies are primarily compensated from the usual and customary commissions , fees or, where
permitted , a combination of both , for brokerage and servicing of insurance policies , annuity contracts , guarantee
contracts and surety bonds (collectively " insurance coverages" ) handled for a client' s account , which may vary
based on market conditions and the insurance product placed for the client .
2 . In placing , renewing , consulting on or servicing your insurance coverages , Gallagher companies may participate
in contingent and supplemental commission arrangements with intermediaries and insurance companies that
provide for additional compensation if certain underwriting , profitability, volume or retention goals are achieved .
Such goals are typically based on the total amount of certain insurance coverages placed by Gallagher with the
insurance company, not on an individual policy basis . As a result, Gallagher may be considered to have an
incentive to place your insurance coverages with a particular insurance company. If you do not wish to have your
commercial insurance placement included in consideration for additional compensation , contact your producer or
service team for an Opt-out form .
3 . Gallagher Companies may receive investment income on fiduciary funds temporarily held by them , or from
obtaining or generating premium finance quotes , unless prohibited by law.
4 . Gallagher Companies may also access or have an ownership interest in other facilities , including wholesalers ,
reinsurance intermediaries , captive managers , underwriting managers and others that act as intermediaries for
both Gallagher and other brokers in the insurance marketplace some of which may earn and retain customary
brokerage commission and fees for their work .
If you have specific questions about any compensation received by Gallagher and its affiliates in relation to your insurance
placements , please contact your Gallagher representative for more details .
In the event you wish to register a formal complaint regarding compensation Gallagher receives from insurers or third-
parties , please contact Gallagher via e- mail at Compensation_Complaints@ajg . com or by regular mail at :
Chief Compliance Officer
Gallagher Global Brokerage
Arthur J . Gallagher & Co .
2850 Golf Rd .
Rolling Meadows , IL 60008
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CARRIER RATINGS AND ADMITTED STATUS
A. M . Best's Rating &
Proposed Insurance Companies Financial Size Category * Admitted/Non -Admitted **
Travelers Casualty and Surety A++ XV Admitted
Company of America
*Gallagher companies use A. M . Best rated insurers and the rating listed above was verified on the date the
proposal document was created .
Best's Credit RatingsTM reproduced herein appear under license from A . M . Best and do not constitute ,
either expressly or impliedly , an endorsement of Gallagher's service or its recommendations . A. M . Best is
not responsible for transcription errors made in presenting Best's Credit RatingsTM . Best' s Credit
RatingsTM are proprietary and may not be reproduced or distributed without the express written
permission of A. M . Best.
A Best' s Financial Strength Rating is an independent opinion of an insurer' s financial strength and ability
to meet its ongoing insurance policy and contract obligations . It is not a warranty of a company' s financial
strength and ability to meet its obligations to policyholders . Best's Credit RatingsTM are under
continuous review and subject to change and/or affirmation . For the latest Best' s Credit RatingsTM and
Guide to Best's Credit Ratings , visit the A. M . Best website at http://www . ambest . com /ratings .
** If coverage placed with a non-admitted carrier, it is doing business in the state as a surplus lines or non-
admitted carrier, and is neither subject to the same regulations as an admitted carrier nor do they participate
in any state insurance guarantee fund .
Gallagher companies make no representations and warranties concerning the solvency of any carrier, nor
does it make any representation or warranty concerning the rating of the carrier which may change .
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WELD COUNTY RETIREMENT PLAN
Chent Authorization to Bind Coverage
After careful consideration of Gallagher' s Proposal dated August 24 , 2022 . you accept the following
coverage(s) . Please check the desired coverage ( s) and note any coverage amendments below:
COVERAGE/CARRIER
Fiduciary Liability
® Accept ❑ Reject
Premium : $ 10 , 070 . 00
Travelers Casualty and Surety Company of America
LI Accept ❑ Reject TRIA (Included)
Additional Recommended Coverages
Gallagher recommends that you purchase the following additional coverages for which you have
exposure . By checking the box(es) below, you are requesting that Gallagher provide you with a Proposal
for this coverage . By not requesting a Proposal for this coverage , you assume the risk of any uncovered
loss .
Cyber Liability
Flood
The above coverage ( s) does not necessarily represent the entirety of available insurance products . If you
are interested in pursuing additional coverages other than those listed in the Additional Recommended
Coverages , please list below:
Other Services to Consider
By checking the box (es ) below, you are requesting that Gallagher provide you with additional information
for the following services :
Gallagher STEP
eRiskHub
Coverage Amendments and Notes :
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Exposures and Values
You confirm the payroll , values , schedules , and any other information pertaining to your operations , and
submitted to the underwriters , were compiled from information provided by you . If no updates were
provided to Gallagher, the values , exposures and operations used were based on the expiring policies .
You acknowledge it is your responsibility to notify Gallagher of any material change in your operations or
exposures .
Additional Terms and Disclosures
Gallagher is not an expert in all aspects of your business . Gallagher' s Proposals for insurance are based
upon the information concerning your business that was provided to Gallagher by you . Gallagher expects
the information you provide is true , correct and complete in all material respects . Gallagher assumes no
responsibility to independently investigate the risks that may be facing your business , but rather have
relied upon the information you provide to Gallagher in making our insurance Proposals .
Gallagher's liability to you arising from any of Gallagher' s acts or omissions will not exceed $20 million in
the aggregate . The parties each will only be liable for actual damages incurred by the other party, and will
not be liable for any indirect , special , exemplary, consequential , reliance or punitive damages . No claim
or cause of action , regardless of form (tort, contract , statutory, or otherwise) , arising out of, relating to or
in any way connected with the Proposal , any of Gallagher' s services or your relationship with Gallagher
may be brought by either party any later than two (2 ) years after the accrual of the claim or cause of
action .
Gallagher has established security controls to protect Client confidential information from unauthorized
use or disclosure . For additional information , please review Gallagher' s Privacy Policy located at
https ://www. ajq . com/privacy-policy/.
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You have read , understand and agree that the information contained in the Proposal and all documents
attached to and incorporated into the Proposal , is correct and has been disclosed to you prior to
authorizing Gallagher to bind coverage and/or provide services to you . By signing below, or authorizing
Gallagher to bind your insurance coverage through email when allowed , you acknowledge you have
reviewed and agree with terms , conditions and disclosures contained in the Proposal .
By: Scott James , Chair, Weld County Board of Commissioners
Print Name ( Specify Title)
Weld County Government
Company
Signat e
Date : 020 frpo,2 �--
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Staci'atteri-Frey
From: Don Warden
Sent: Thursday,August 25,2022 11 04 AM
To: Staci Datten-Frey,Cheryl Pattelli,Ryan Rose
Cc: Jill Scott,Michelle Raimer
Subject: RE FEE INCREASE--TIME SENSITVE FW 22-23 Weld County Retirement Plain_Fiduciary
Renewal_Quote,Quote Letter
I am fine with this quote for fiduciary liability for the Retirement Board We have to get the fiduciary liability for the
Retirement Board because it is not included in CAPP coverage,since they are an independent board If you all agree we
can check the Acceptance Box on page 10 Check the acceptance box for fiduciary coverage only because the other
coverages are provided through CAPP Michelle,can you fill in the signature info on page 12 for Chair Scott James to sign
and then send back to Gallagher This does not need to go on the BOCC agenda
Donald D Warden
Director of Finance and Administration
Finance and Administration
PO Box 758
1150 O Street
Greeley,CO 80632
tel 970-356-4000 Extension 4218
email dwarden@co weld co us
Confidentiality Notice This electronic transmission and any attached documents or other writings are intended only for
the person or entity to which it is addressed and may contain information that is privileged,confidential or otherwise
protected from disclosure If you have received this communication in error,please immediately notify sender by return
e-mail and destroy the communication Any disclosure,copying,distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited
From.Staci Datten-Frey<sfrey@weldgov corn>
Sent.Thursday,August 25,2022 10 50 AM
To.Don Warden<dwarden@weldgov corn>,Cheryl Pattelli<cpattelli@weldgov com>,Ryan Rose
<rrose@weldgov corn>
Cc.Jill Scott<jscott@weldgov corn>,Michelle Raimer<mraimer@weldgov corn>
Subject FEE INCREASE-TIME SENSITVE FW 22-23 Weld County Retirement Plain_Fiduciary Renewal_Quote,Quote
Letter
Good morning All We have received a quote for an increase in fees for the changes in our
fiduciary liability coverage that is up for renewal It appears that they wish to have a signed
response by next Monday,August 29th. Please advise Thank you I
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