HomeMy WebLinkAbout20220328.tiffBOND TO SECURE PREMIUM AND DEDUCTIBLE OBLIGATIONS
Bond Number: 107463474
KNOW ALL MEN BY THESE PRESENTS:
That Weld County. CO , as principal ("Principal") and Travelers Casualty and Surety Company of
America as surety ("Surety"), are held and firmly bound unto Pinnacol Assurance and each of
its affiliates and subsidiaries, as obligee (herein collectively and individually referred to as "Obligee") for the payment of
the Obligations (hereafter defined), up to the maximum penal sum of Two hundred fifty thousand dollars
($ 25, 0.000 ) lawful money of the United States to payment of which sum, Principal and Surety hereby bind
themselves, their successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, Obligee has issued certain insurance policies on behalf of the Principal and has entered into certain other
agreements with the Principal which are described on Exhibit A hereto and as may be amended and/or renewed from
time to time (herein collectively referred to as the "Agreement(s)"); and
WHEREAS, the Obligee requires security for all of the Principal's Obligations to Obliges under each of the Agreements.
For purposes of this Bond, "Obligation(s)" is defined herein the same way as it is in the Agreements.
NOW, THEREFORE, if and when the Obligations shall be fully and finally paid and satisfied this Bond shall be null and
void; otherwise this Bond shall remain in full force and effect and Principal and Surety in any event agree as follows:
1) Within ten (10) business days of Surety's receipt of a demand for payment under this Bond ("Demand"), Surety
shall pay to the Obligee the amount of such Demand. The Obligee's Demand to the Surety of the amount due, either
as security or for payment or for reimbursement pursuant to the Agreement(s), shall be absolute proof of the
existence and extent of the liability of the Principal and the Surety to the Obligee hereunder. The Obligee may
present one or more Demands at any time in its sole discretion, provided however, Surety shall not be obligated to
pay an aggregate amount in excess of the penal sum of the bond. .
2) In the event that Obligee shall demand the entire penal sum of the Bond under a Demand (less any previous
amounts paid to Obligee under the Bond), Obligee shall hold all funds ("Bond Collateral") received as security for the
Obligations and shall apply such funds to the Obligations from time to time in its sole discretion. At such time as
Obligee determines in its sole discretion that all of the Obligations are fully and finally paid and such payment is not
subject to avoidance or other turnover, Obligee shall return to the Surety the unapplied portion of the Bond Collateral.
The Surety, whether in Its capacity as surety or subrogee of the Principal, waives, to the fullest extent permitted by
appicable law each and every right which it may have to contest Obligee's computation of the Obligations or the
application of the Bond Collateral by the Obligee to the Obligations, and waives, to the fullest extent permitted by
applicable law, each and every right which it may have to seek reimbursement, restitution or recovery of any Bond
Collateral. Obligee shall not be required to (i) segregate Bond Collateral from its general funds, (ii) hold or invest
Bond Collateral in an interest -bearing or income -producing investment or (i11) account to Surety for interest or income
in the event the same would be otherwise attributable to Bond Collateral. The Principal shall not at any time have any
rights or property interests in this Bond, the Bond Collateral or other proceeds of this Bond.
3) Failure to pay or reimburse the Obligee as herein provided shalt cause the Surety to be additionally liable for any
and all reasonable costs and expenses, including attorney's fees and interest, incurred by the Obligee in enforcing
this bond, such liability to be in addition to the bond penalty.
4) Surety's obligations hereunder shall not be affected by (I) any failure by Obligee to assert any claim or demand or
to enforce any right or remedy against Principal or its property, or any other party liable with respect to the
Obligations, (ii) any'failure to perfect an :interest in, or any release, impairment or other diminution of, any collateral
(including, but not limited to, rights of recaupment or setoff) held by Obligee which secures any of the Obligations, (iii)
any matter or proceeding arising in .connection with any modification, limitation, discharge, assumption, or
reinstatement with respect to any . Agreements or Obligations, (iv) any modification of or amendment to any
Agreements or Obligations.without Su ty's consent or prior notification provided that, the penal sum of the Bond may
not be increased without the consent of Surety; however, failure to give such consent will not prevent Obliges from
drawing up to the full amount of the Bond (less any previous amounts paid to Obligee under the Bond) either as
security or forpayment or for reimbursement under the Agreements, or (v) any other circumstances which might
otherwise constitute a legal or equitable discharge or defense for Surety.
5) This Bond shall become effective December 31. 2021 and shall remain in full force and effect thereafter for a
period of one year and will automatically extend for additional one year periods from the expiry date hereof, or any
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future expiration date, unless the Surety provides to the Obligee not less than ninety (90) days advance written notice
of its intent not to renew this Bond or unless this Bond Is earlier canceled pursuant to the following. This Bond may
be canceled at any time upon ninety (90) days advance written notice from Surety to Obligee. It is understood and
agreed that the Obligee may recover the full amount of the Bond (less any previous amounts paid to Obligee under
the Bond) if the Surety cancels or nonrenews the Bond and, within thirty (30) days prior to the effective date of
cancellation or nonrenewal, the Obligee has not received collateral acceptable to it to replace the Bond.
6) Any notice, Demand, certification or request for payment, given or made under this Bond shall be made in writing
and shall be given by a personal delivery or expedited delivery service, postage pre -paid, addressed to the parties at
the addresses specified below or to such other address as shall have been specified by such parties to each of the
parties to the transactions contemplated hereby.
If to the Surety:
Travelers Casualty and Surety Company of America
One Tower Square, 2S2A
Hartford, CT 06183
Attention: Bond Claim
If to Obligee:
Pinnacol Assurance
7501 E. Lowry Blvd.,
Denver, CO 80230-7006
Attention: Claims Department
If to the Principal:
Weld County, CO
1150 O St.
Greeley, CO 80632
Attention: Risk Management
Notice given under this Bond shall be effective only when received.
In WITNESS THEREOF, the said Principal and Surety have signed and sealed this instrument on this 15th day of
December , 20 21 .
By -1l ` 0000 �mi
Principal
t HARTFORD, t By Attorney -in a t Tracy Paiadino�
Exhibit A
PINNA%COL
ASSURANCE
December 8, 2021
Weld County
Attn: Risk Management
Subject: $750,000 Large Deductible Collateral Requirements
Policy number: 9449898
7501 E. Lowry Blvd.
Denver, CO 80230-7006
www.pinnaeol.com
The financial collateral required to issue the policy for the deductible you have selected for policy number
9449898 is currently Two Hundred and Fifty Thousand Dollars ($250,000).
The above -mentioned collateral has been agreed upon in the form of a Bond Issued by an "A" rated carrier, a copy of
which is attached. The Bond Is subject to review at twelve months, and at least annually thereafter, and according to
statutory requirements may be adjusted if Indicated. If at any time the carrier that Issued the Bond provides notice of
cancellation to Pinnacol Assurance, Weld County will be required to secure a replacement bond in the then required
amount, in a form acceptable to Pinnacol Assurance, within 30 days, or the workers' compensation insurance policy
will be cancelled on 10 days' notice for failure to meet the financial requirements of the policy. These collateral
requirements extend to the renewal of any policy. in addition to the above requirements, failure to provide any
required collateral by a renewal date shall also result In Issuance of a 30 -day notice of cancellation of the policy for
failure to meet the financial requirements of the deductible policy.
"Obligations," as referred to in the Bond shall be defined as Weld County obligations under the applicable workers'
compensation application, policy, relevant statutes and regulations, or any other obligation of any kind or nature that
is owed by Weld County to Pinnacol Assurance. Weld County agrees that Pinnacol Assurance may draw on the
bond at any time(s) to satisfy any and all Obligations (In addition to its other remedies and without prejudice to its
other rights against Weld County) and If so, substitute collateral in the prescribed form must be immediately
provided to, at all times, maintain the collateral amounts required by this agreement.
This agreement must be signed by an officer of Weld County capable of making such financial agreement.
signed electronically
m X Michael Smith 12/16/2021
Steve Moreno, Chair Michael Smith
Board of Weld County Commissioners Sr. Underwriter, Pinnacol Assurance
CC: James Sumner, Pinnacol Assurance
Matt Liebgott, Business Director, Pinnacol Assurance
Travelers Casualty and Surety Company of America
► Travelers Casualty and Surety Company
TRAVELERSI" St. Paul Fire and Marine Insurance Company
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and
St. Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein
collectively called the "Companies"), end that the Companies do hereby make, constitute and appoint Tracy M. Paladin of
CLINTON , Iowa , their true and lawful Attorneys) -In -Fact to sign, execute, seal and
acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of
the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or
guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.
IN WITNESS WHEREOF, the Companies have caused this instrument to be signed, and their corporate seals to be hereto affixed, this 21st day of April,
2021.
d!
State of Connecticut
City of Hartford as.
By:
Robert t. Rana , enlor Vice President
On this the 21st day of April, 2021, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior
Vice President of each of the Companies, and that he, as such, being authorized so to do, executed the foregoing instrument for the
purposes therein contained by signing on behalf of said Companies by himself as a duly authorized officer.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
rrore+n
My Commission expires the 30th day of June, 2026 •
pro ��--- Anna P. Nowak, Notary Public
This Power of Attorney Is granted under and by the authority of the following resolutions adopted by the Boards of Directors of each of
the Companies, which resolutions are now In full force and effect, reading as follows:
RESOLVED, that the Chairman, the President, any Vice Chairman, arty Executive Vice President, any Senior Vice President, any Vice
President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint
Attorneys -in -Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority
may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizancea, contracts of indemnity, and other writings
obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may
remove any such appointee and revoke the power given him or her, and it is
FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or
any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided
that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is
FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance,
or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive
Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the
Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary;
or (b) duly executed (under seal, if required) by one or more Attorneys -In -Fact and Agents pursuant to the power prescribed in his or her
certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is
FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, --
any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to
any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys -In -
Fad for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of
Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed
and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or
understanding to which it is attached.
I, Kevin E. Hughes, the undersigned, Assistant Secretary of each of the Companies, do hereby certify that the above and foregoing is a
true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect.
Dated this day of
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Kevin E. Hughes, Ass1tant Secretary
To verify the authenticity of this Power of Attorney, please call us at 1800-4213880,
Please refer to the above -named Attorneys) -in -Fact and the details of the bond to which this Power of Attorney is attached
DEMAND BOND RIDER TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA
Hartford, Connecticut 06183
This Rider is hereby incorporated into, and forms a part of, the General Contract of Indemnity executed by Weld County, Colorado in
favor of Travelers Casualty and Surety Company of America and its affiliates, and dated November 2O, 2OO8 ("Agreement').
1. Whereas, the obligee or beneficiary under certain Bond(s) may make a demand for payment ("Demand") against the Bond(s).
When such Demand is made, Company must pay the amount of the Demand, not to exceed the penal sum of the Bond(s), as well
as all necessary fees, within the time period required by the Demand. Under such Bond(s), Company, with the knowledge and
consent of the Indemnitors, has expressly waived all defenses to making such payment. If the Indemnitors receive notice from
Company that a Demand has been made against the Bond(s) by the obligee or beneficiary, Indemnitors will, at least three (3)
business days before payment of such Demand is due the obligee, pay Company the full amount of the Demand, which amount
shall not exceed the penal sum of the Bond, as well as all necessary fees. Such payment will be made by wire transfer or
otherwise in immediately available funds to the bank account specified in the notice provided to the Indemnitors by Company. The
Indemnitors waive, to the fullest extent permitted by applicable law, each and every right which they may have to contest such
payment. Failure to make payment to Company as herein provided shall cause the Indemnitors to be additionally liable for any and
all costs and expenses, including attorney's fees, incurred by Company in enforcing this Agreement, together with interest on
unpaid amounts due Company. Interest shall accrue, commencing the date Company pays the amount of the Demand, at 130% of
the prime rate of interest in effect on December 31 of the previous calendar year as published in the Wall Street Journal.
Indemnitors stipulate and agree that the Company will suffer immediate irreparable harm and will have no adequate remedy at law
should Indemnitors fail to perform this obligation, and therefore Company shall be entitled to specific performance of this obligation.
2. This Rider is in addition to and not in lieu of any other agreements and obligations undertaken in favor of Company, whether now
existing or entered into hereafter.
3. Capitalized terms used herein but not defined in this Rider shall have the same meaning given them in the Agreement.
4. The date of this Rider shall be the earliest date any Indemnitor executes this Rider.
If Indemnitor a Corporation, Limited Liability Company or Partnership, sign below:
Instructions: If the entity is: 1) a corporation the secretary and an authorized officer should sign on behalf of the corporation, 2) a
limited liability corporation the manager or member(s) should sign on behalf of the LLC, or 3) a partnership the partner(s) should sign on
behalf of the partnership. Two signatures are required for all entities and all signatures must be notarized and dated. Please provide
the entity's federal tax identification number on the line provided.
Each of the undersigned hereby affirms to Company as follows: I am a duly authorized official of the business entity Indemnitor on
whose behalf I am executing this Rider. In such capacity I am familiar with all of the documents which set forth and establish the rights
which govern the affairs, power and authority of such business entity including, to the extent applicable, the certificate or articles of
incorporation, bylaws, corporate resolutions and/or partnership, operating or limited liability agreements of such business entity. Having
reviewed all such applicable documents and instruments and such other facts as deemed appropriate, I hereby affirm that such entity
has the power and authority to enter into this Rider and that the individuals executing this Rider on behalf of such entity are duly
authorized to do so.
Weld County, Colorado / r
(Indemnitor Name) (First Signature)
84-6000-813
(Federal Tax ID)
ACKNOWLEDGEMENT
STATE OF COLORADO
COUNTY OF WELD
Steve Moreno, Chair, Board of County Commissioners
12-17-2O21
(Print or Type Name and Title) (Date)
(Second Signature)
Esther E. Gesick, Clerk to the Board 12-17-2O21
(Print or Type Name and Title) (Date)
On this 17th day of December, 2O21, before me personally appeared Steve Moreno, known or proven to me to be the Chair of the Weld County Board of
County Commissioners of the entity executing the foregoing instrument ("Entity") and Esther E. Gesick, known or proven to me to be the Clerk to the
Board of the Entity, and they acknowledged said instrument to be the free and voluntary act and deed of said Entity, for the uses and purposes therein
mentioned and on oath stated that the seal affixed is the seal of said Entity and that it was affixed and that they executed said instrument by authority of
the Entity. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my OFFICIAL SEAL the day and year first above written.
Notary Public residing at Weld County. Colorado
7Mwv/J &
Demand Bond Rider 9frt
Commission expires S1 2o2
MARIAH N HIGGINS
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20194029616
MY COMMISSION EXPIRESAUGUST 5, 2023
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Pinnocol GCI Rider Weld County,doc
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