1Sout~iami CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM THE CITY OF PLEASANT LIVING
To:
FROM:
DATE:
SUBJECT:
BACKGROUND:
The Honorable Mayor & Members of the City Commission
Steven Alexander, City Manager
Agenda Item No.:L September 15, 2015
WORKER'S COMPENSATION, PROPER1Y, GENERAL liABILl1Y, AUTOMOBILE,
PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES INSURANCE
The City solicited and received proposals for the City's Workers'
Compensation, Property, General Liability Automobile, Public Officials
and Employment Practices Insurance coverage for FY 2015-2016 from
carriers currently writing municipal business in South Florida. The
following table summarizes the responses received.
FMIT INSURANCE DESCRIPTION
Property Coverage
Inland Marine
Equipment Breakdown Coverage
Crime and Bond Coverage
General Liability Coverage
Police Professional Liability Coverage
Automobile Coverage
FMIT Property. Auto and General Liability SubTotal
Workers Compensation
FMIT Total Premium
FMIT
$142,150
Included
. Included
Included
$59,575
$156,330
$93.098
$451,153
$186,124
$637,277
THE CITY OF PLEASANT LIVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
PGIT INSURANCE DESCRIPTION
Property Coverage
Inland Marine
Equipment Breakdown Coverage
Crime and Bond Coverage
General Liability Coverage
Police Professional Liability Coverage
Automobile Coverage
PGIT Propertv, Auto and General Liability SubTotal
Workers Compensation
PGIT Total Premium
PGIT
$120,049
$836
Included
$750
$88,993
$66,022
$123,238
$399,888
$188,764
$588,652
PUBLIC OFFICIALS & EMPLOYMENT PRACTICES LIABILITY
In addition to the package quotations summarized above, the City
received an independent quote for its Public Officials & Employment
Practices Liability coverage. Both FMIT and PGIT declined to quote this
line of coverage.
ACE American Insurance Description
Total Premium
Limit of Liability $1,000,000
Deductible/SIR Each Claim:
Public Officials/Public Entity Liability -$100,000
Employment Practices Liability -$150,000
Zoning Claims -$250,000
$50,887
SoutOOiami
THE CITY OF PLEASANT LIVING
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
Recommendation:
Workers' Compensation Policy
After further negotiations within the last week, we were able to reduce
the original FMIT proposal by $13,455. The City Manager recommends
that the City renew its Workers' Compensation policy with FMIT for a
total premium of $186,124. The City continues to receive the company's
preferred rating because of the continuing coverage, including a 5%
credit for its Drug Free Work Place policy and an additional 2% credit for
its newly created Safety Policy. This year's renewal represents a
decrease of approximately 13% over last year's premium.
Property, General Liability and Automobile Insurance
The City Manager recommends that the City renew its policy with PGIT
for its Property, General liability and Automobile Insurance coverage for
a total premium of $399,888. This represents an increase of
approximately 3.8% over last year's premium. This increase is largely
attributable to the addition of several new vehicles to the City's
inventory. As set forth above, the PGIT proposal contains the most
favorable rates for these lines of coverage and offers a two year rate
guarantee.
Public Officials and Employment Practices Liability
The City Manager further recommends that the City renew its policy with
ACE American Insurance Company for the Public Officials and
Employment Practices liability policy for a premium of $50,887.
THE CITY OF PLEASANT LIVING
AMOUNT:
ATTACHMENTS:
CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER-OFFICE MEMORANDUM
The breakdown of the total premium costs for all lines of insurance is set
forth below:
FMITWORKERS' COMPENSATION
PGIT GENERAL LIABILITY, PROPERTY & AUTOMOBILE
ACE PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES
TOTAL PREMIUM
Proposed Resolutions
Proposal Package from FMIT
Proposal Package from Brown & Brown
Actual Proposed
FY 2014-FY 2015-
2015 2016
$214,533 $186,124
$385,086 $399,888
$49.136 $50.887
$648,755 $636,899
1 RESOLUTION NO. ____ _
2 A Resolution authorizing the City Manager to purchase Workers'
3 Compensation Insurance.
4 WHEREAS, the City has received insurance quotes for Workers' Compensation
5 Coverage.
6 WHEREAS The City received a renewal quote from FMIT for the continuation of the
7 existing coverage, but received no other proposals for the necessary coverage;
8 WHEREAS, the City Administration recommends that the City continue coverage with
9 the Florida League of Cities through FMIT for Workers' Compensation Coverage for the
10 2015-2016 Fiscal Year based upon the current proposal;
11 NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
12 COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
13 Section I. The City Commission hereby authorizes the City Manager to execute
14 the renewal insurance policy for Workers' Compensation with FMIT for the 2015-2016
15 Fiscal Year.
16
17 Section 2. This resolution shall take effect immediately upon adoption.
18
19 PASSED AND ADOPTED this __ day of ____ " 2015.
20
21
22 ATTEST: APPROVED:
23
24
25
26 CITY CLERK MAYOR
27
28
29 READ AND APPROVED AS TO FORM, COMMISSION VOTE:
30 LANGUAGE, LEGALITY AND
31 EXECUTION THEREOF: Mayor Stoddard:
32 Vice Mayor Harris:
33 Commissioner Welsh:
34 Commissioner Liebman:
35 CITY ATTORNEY Commissioner Edmond
36
Coverage
Department of Insurance and Financia! SelVices
FLORIDA MUNICIPAL INSURANCE TRUST
RENEWAL QUOTE FOR 2015-2016
Deductible
$0
City of South Miami
FMIT 0563
Premium
Workers' Compensation
Experience Modification 0.94 10/1/15
Total Payroll
$7,670,896 $186,124
*Includes: Drug Free Credit: Yes
Safety Credit: Ves
Note: Coverage summaries provided herein are intended as an outline of coverage only and are
necessarily brief. In the event of loss, all terms, conditions, and exclusions of actual Agreement and/or
Policies will applv.
GOVERNMENTAL
INSURANCETRUST
Quote No.: WQ2FLl 013202115-01
Effective: 10/01/2015
Quote Expiration Date: 10/01/2015 12:00 AM
Reference Number: 46476
Portal Reference Number:210994
QUOTATION FOR
City of South Miami
6130 Sunset Dr.
South Miami, FL 33143
Presented by Public Risk Underwriters for:
Brown & Brown, Inc.
14900 NW 79th Court, Suite 200
Miami Lakes, FL 33016
9/15/2015 9:42 AM
The brief desalptlOl'l of coverage ammlned In this doc:umet1t is being provided as an aocomrnodEltlan only and 15 not Intended I» cover or Clescrlbe all COverage Agreement terms. For more
complete and detalfed rmrmatton relating to the scope and limits of coverage. please refer dlN!l!dv to the Coverage Ag~ment dOQlments. Spedmen forms are IMllleble upon request.
Page 2
Reference Number, 46476 9/15/2015 9:42 AM
1JJmed
:,.:., "J~RNMEtirAl _ INSURANCE TRUST
Named Covered Party:
Term:
Coverage Provided By:
Quote No.:
CIty of South Miami
10/01/2015 to 10/01/2017
Preferred Governmental Insurance Trust
WQ2fLl 013202115-01
To protect members of lIle fund from large losses and to protect lIle flnanclal security of lIle fund, the Preferred Governmental Insurance
Trust (PGIT) board Of trustees has elected'" purchase an extremely conservative excess of loss insurance structure. We stress PGIT excess
of loss structure because an excess structure provides PGIT members several levels of protection that reinsurance does not.
foremost among these Is the fact that PGIT's excess of loss poliCies list every Individual member a named insured, giving every member
direct access'" the Insurance company for payment of claims. Reinsurers are only respon~ble '" lIle trust Itself. Therefore, if a trust
became financially troubled, there is no guarantee from an Insurance company that any indiVidual claim will be paid or even that a
reimbursement will go towards the originating dalm.
PGIT Is a non-assessable Trust authorized under Florida statute and is not rated by AM Best. PGIT Is not protected by the FlOrida Guarantee
Association In the event It becomes unable to meet its daims payment obUcatlons. PGIT members are not constrained by notice
requirements or punitive nun-off claims costs '" exit. PGIT Is a non-admitted pool In the state of AOrlda.
IIfJRNYB/CI! SoJrnIDlUjiN-Nlic lintitl ..
PubJlc Risk Underwriters (PRU), as part of Brown &. Brown, is one of the premier insurance
service organizations for public entities in the United states. Our exclusive focus and In-depth
understanding of the unique risk exposures and operating environment of the public sector
allows us '" tailor cus"'mized products and services to meet our cllenls' needs.
Preferred Governmental Calms Services (PGCS) is dedicated'" exclusively serving Florida
governmental agencies. PGCS administers and closely controls all clalms from start to flnish.
This team offul~tlme, licensed adjusters understands federal laws and state statutes govemlng
actions against public entities. A "'I!-free telephone number is provided '" facilitate reporting of
claims.
Compensation Disclosure
We appreciate the opportunity '" assist with your insurance needs. Information concerning compensation paid", other entities for this
placement and related services appears beiow. Pi .... do not hesitate'" contact us If any addltlon.llnformation is reqUired.
Our office Is owned by Brown II. Brown, Inc. Brown II. Brown entitles operate Independently and are not required '" utilize other companies
owned by Brown &. Brown, Inc., but routfnely do so.
For the Coverage Term referenced above, your Insurance was placed through PGIT. PGIT is an independent entity formed by Aorida public
entities through an Interlocal Agreement for the purpose of providing Its members wllIl an array of insurance coverages and servk:es. PGIT
has contracted with entities owned by Brown &. Brown, Inc, to perform various services. As explained below, those Brown &. Brown entitles
are compensated for their services.
PGIT has contracted with PRU, a company owned by Brown &. Brown,. Joe., to administer PGIT1s operations. The administrative services
provided by PRU '" PGIT include:
Underwriting 1 Coverage review 1 Marketing 1 Policy Review I Accounting 1 Issuance of PGIT Coverage Agreements I PGIT Member Ualson I
Risk Assessment and Control
Pursuant'" Its contract with PGIT, PRU receives an adminiotratlon fee, based on the size and complexity of the account. of up '" 12.0% of
the PGIT premiums billed and collected.
PGIT has also contracted with PGCS, a company owned by Brown II. Brown, Inc., for purposes of administering the claims of PGIT members.
The services provided by PGCS '" PGIT may Indude:
aalms Uaison with Insurance Company I Claims Uaison willl PGIT Members 1 Claims Adjustment
The brief destrlption of coverilge wntalned In till' document Is being provided as an accommodation only and Is not intended to tovl!:r or describe all Coverage Agreement terms. For mote
c.ornpIete and det!l11ed informaUon relating to tile salpe and limits of coverage, please refer directly to the Coverage Agreemeht cIowments. Spedmtn forms ate available upon request.
Page 3
Pursuant to Its contract with PGIT, PGCS receives a dalms administration fee for those accounts which PGCS services of up to 5% of the non-
property portion of the premiums you pay to PGIT.
PGIT also utilizes wholesale insurance brokers, some of which (such as Peachtree Special Risk Brokers and MacDuff Underwriters) are owned
by Brown &. Brown, Inc., for the placement of PGIT's Insurance policies, and for individual risk placements for some PGIT membe ... (excess
and surplus lines, professional liability coverage, etc.) The wholesale Insurance broker may provide the following services:
• Risk Placement
• Coverage review
• Oairns Uaison with Insurance Company
• Policy Review
• OJrrent Market Intelligence
The wholesale Insurance broker's compensation is derived from your premium, and is largely dictated by tihe insurance company. n typically
ranges between 10% and 17% of the premiums you pay to PGIT for your coverage. Some wholesale brokers used by Brown to place your
coverage may also act as Managing General Agents for various Insurance companies, and may be compensated directly by those insurance
companies for their services in placing and maintaining coverage with those pa~cular companies.
The wholesale insurance brokerage utilized in the placement of your property Insurance was Peachtree Special Risk Brokers, which Is a
company owned by Brown & Brown Inc. Furthermore, any professiOnal liability coverage afforded by the package of Insurance you
purchased was acquired through Apex Insurance ServiCes, which is also a company owned by Brown &. Brown Inc.
IMPORTANT NOTE:
This quote oovers two (2) annual twelve month periods, from 10/01/2015 12:00:00 AM to 10/01/201612:00:00 AM and from 10/01/2016
12:00:00 AM to 10/01/2017 12:00:00 AM. The following condlHons apply In addition to all other conditions of this quote:
A. All Aggregate limits reset for the period 10/01/2016 12:00:00 AM 10 10/01/2017 12:00:00 AM. Losses applying to one annual
coverage period will not erode the aggregate IIml'" of another annual coverage period.
B. The premium for the period 10/01/2016 12:00:00 AM to 10/01/2017 12:00:00 AM will be determined based on updated exposure
values for this pertod.
C. Rates for the period 10/01/201612:00:00 AM to 10/01/2017 12:00:00 AM will be IdenHcal to those for !he period commendng
10/01/2015 12:00:00 AM, with premiums subject to the following:
1. NCO Expertence modification factors will be applied as promulgated.
2. Changes to Schedules: Property, Inland Maline, and Automobile symbol 7 only
3. Payroll
4. Number of Employees
D. In Ihe event of cancellation of any line of bUSiness prior to 10/01/2017 12:00:00 AM, a penalty equal to 60 days premium of such
IIne(s) of business shall became earned, any provision of the agreement to Ihe contrary notwithstanding.
1. This penalty is earned and payable regardless of when notice of such canceUation Is given, Or effective date of such
cancellation.
The brief description of coverage contafned In ttlls document Is being PfOYlded as an accommodation only Bnd Is not IntI!nded In cover or describe all CoVerage Agreement term$. For more
completa and dBtalled Infonnation relating to the stOpe end limlt5 of cow:rage, please refer directly bJ the CO\Iefage AgJeement documents. Specimen fOrms lire aWillabie upon request.
Page4
PwA'erred
:.:" ':I~V!W'.MEl(fAl _ WSURANcmU51
Named Covered Party:
Term:
Coverage Provided BV:
Quote No.:
Reference Number: 46476
City of South Miami
10/01/2015 to 10/01/2017
Preferred Governmental Insurance Trust
WQ2Fl1 013202115-01
ESTIMATED ANNUAL PAYROLL
Class Code Description
5509 STREET OR ROAD MAINTENANCE
7720 POUCE OFFICERS & DRIVERS
8380 AUTOMOBILE SERVICE REPAIR
8810 CLERICAL
9015 BULDINGS -OWNER OR LESSEE
9102 PARK NOC -EMPLOYEES & DRIVERS
9403 GARBAGE -COLLECllON & DRIVERS
9410 MUNICIPAL NOe
9/15/2015 9:42 AM
Payroll
220,315
3,595,829
125,831
1,681,028
367,635
701,267
220,315
217,371
$7,129,591
The bief descrI*n of coverage contained In this document 1$ beng provldrd as an alXOmrnodation enly and 15 not Intended f1l cover or describe all Coverage Agreement terms. for more
complete and detailed infol111ltion relating to tile scope and limits of coverage, please Mer dlrectty to the Coverage Agreement documents. SIledmen forms i!ll'@avallableupon request.
Page 5
1JwJferred
:.:. fIJ~MIIITAL
• INIURANCmUST
Named Covered Party:
Term:
Coverage provided By:
Quote No.:
Reference Number: 46476
City of South Miami
10/01/2015 to 10/01/2017
Preferred Govemmentallnsurance Trust
WQ2Fl1 013202115-01
EMPLOYERS' UABILITY COVERAGE Fir&tYear
Bodily Injury by Accident
Bodily Injury by Disease
Bodily Injury by Disease
ESTIMATED BnUNG
Manual premium
Experience Modifier
Estimated Annual Premium
Minimum Annual Premium
Drug'Free Credit
Safety Cnedft
Experience Modifiers:
0.940 10/01/2015
Pay Term: WC -25% Down & 9 Equal Installments
First payment of $47,341.00 Is due 10/0112015.
Each Accident
Agreement limit
Each Employee
0.940
$2,000, Monoline $4,000
9 Monthly Installments of $15,713.67 are due beginning 11/01/2015.
Make Checks Payable to Preferred Governmental Insurance Trust
$1,000,000
$1,000,000
$1,000,000
$262,307
$188,764
Included
Included
9/15/2015 9:42 AM
Second Year
Estimate
$1,000,000
$1,000,000
$1,000,000
$262,307
$188,764
Included
Included
The brief de$eriptlon of <O\Ierage contelned In this document Is being provided as an accommodation only and Is not Intended to cover or describe ill Coverage Agreement tErms. For more
CDlTlpIetl! and delBlled Information relating to the 5c;ope and Ilmll5 of CCM!1iIge, please refer directly to the Coverage Agn!ernentdoc:uments. Spedml!n forms are available upon request.
Page 6
PARTICIPATION AGREEMENT
Application for Membership in the Preferred Governmental Insurance Trust
The undersigned local governmental entity, certifying Itself to be a public agency of the State of Florida as
defined in Section 163.Q1, Florida Statutes, hereby formally makes application with the Trust for continuing workers'
compensation, liability, property and/or casualty coverage through membership in the Preferred Governmental
Insurance Trust, to become effective 12:01 a.m. (effective date of coverage agreement), and if
accepted by the Fund's duly authorized representative, does hereby agree as follows:
(a) To accept and be bound by the provisions of the Florida Workers' Compensation Act;
(b) That, by this reference, the terms and provisions of the Amended Interlocal Agreement creating the Preferred
Governmental Insurance Trust date Oelober 1, 2004 are hereby adopted, approved and ratified by the undersigned
locel governmental entity. The undersigned local governmental entity certifies that it has received a copy of the
aforementioned Amended Interlocal Agreement and further agrees to be bound by the provisions and obligations of
the Amended Interlocal Agreement as provided therein;
(0) To pay all premiums on or before the date the same shall become due and, In the event Applicant falls to do
so, to pay any reasonable late penalties and charges ariSing therefrom, and all costs of collection thereof, including
reasonable attorneys' fees;
(d) To abide by the rules and regulations adopted by the Board of Trustees of the Fund;
(e) That should either the Applicant or the Fund desire to cancel coverage, it will give not less than thirty (30) days
prior written notice of cancellation;
(f) That all information contained in the underwriting application provided to the Fund as a condition precedent to
participation in the Fund is.true, correct and accurate In all respects.
(Name of Local Governmental Entity)
Witness Signature
By: _---,,..----=::::-__ _
Signature
Printed Name Printed Name
Title: ________ _
Witness Signature
Printed Name
IS HEREBY APPROVED FOR MEMBERSHIP IN THIS FUND, AND COVERAGE IS EFFECTIVE THE DAY
OF ,,20 __ . SIGNED THIS DAY OF ,20 ........ '
By:
Adm~in~l~st~ra~to-~~ff~ru-s~re-e---------------
AMENDED lNTERLOCALAGREEMENT CREATING
THE
PREFERRED GOV:ERNMElIaAL IN.S~A.NCE TRUST
This AmeoC!ecl Iilterlocal Agreemellt, relltatmg and ,.)1l~ '!be ProferJlOd GoverlJlllelltal
Io.~ur~ceTruI\t.~ iSlll#Qe ,aod~ed ,~ e.f.rect;ive bctobe.t-~, 2Otl1I.,by~drunongtbe Local
GIlVeL'b.melltal'En):iiies wl;1.0, pave q,ecUted P~ticlpation Agreemilltt$ (Applli: mon for Membership in
the Preferred,GDVel:nmeal:al Insurance Trust) to become effective October I, 1.004, such Lo,cal
GQwr~J;!I:a) Entities ~preseD.tillg ope l;J.ulldred percept (100%) of ~ Gairerillilental ;Eatiti.e~
p~pat:ing in the Preferred Governmelltal Insurance Trust; together with such other Local
GCI'\18rnrneotal Erltities~po~after become l'rulfnQers:qf~ FIW-d.fI;r the PUrpose,s,an.d subjc4:t to
the .conditions and,restridiollS, asberednaAer setforth.
w;J;TNESSB'fH:
WHEREAS, Article vm,SeCOon 2. Florida .cOostliUttOIl, provides inumeiprilitiesshall have
gOVerillne~, ¢0!'t'or.ate ~'pL'og\'ietl¢y P!lW~~ to enai!le1~ to ~s:uluctIilu¢cip1ligov~ent,
p~orin inuDid]1al f\l£I!itioas. IIlid reader ~~ ~$> iIiid may _~~ .iinY' pow&for
'muDiclpa) PIlt:P!lses elI.cept JlS o~p.oovWedbyiaw,;:·lIbd
WHEREAS. ~ct:illri 12.5:.01, Placida .statUtell;provide$that:coi:Jri!;i(ill shall hilv¢ibe p~ tCl
Cllt,~ Oil cO\l.D,ty.g~ent.and.to ~iIe·.APdWetsa.ndpci~s.llOt sP'ecl~c!':l,ly protdWt¢d'~
li\1l;ii.Qd
'WHERBASlSflclion 166;Q21, Florida Slatules,providell,fu pari that " ... mumcipalilies shall
ha'1O the goveJX.l!Ile.tlt,a!, corporate. ~ prQP~:Y peWirs 19 .,nable the.in to. c:oliclud: lnuo¥:ipal
gc)veL'Ilment, perform lllIlDicipal iuactions, and ·tender municipal services, .and mareurcise allY
pow.er fotmuni~pal purpoaos,!l1¢IIP1 wlren ElxpTilsl\ly pi.ohilritedby law;~ anli
WHEREAS, Section H'3.01, 'FloridaSlatules, commonly known as the ''Florida Interlocal
Cooperation ,A,« pf 1969", provides lila! Local' G01/~talBntjti. Ill':)' &Iller into 'in1e!'10Qlli
agt'eeIIlellts ill oreer to make the most efficient use oftbmr .powers.by ellablillg them to cooperate
w.i:th otherLilcal ~vetJlI!lental Btrtities on: a balli~ Cif:mutual !la~ t,heioby .providing.seMce~
and facili~s io. a mamie!:. and purSllant to forms of gover~l orgaciuJjQQ, that will belltac(:ctd . --..
wltb. &'lo.gJ:apbi<:. &~oQOmic, poPuJatiO.D.. and otl= factors mfluem:ing the needs and deve1opmeat,of
Local CO.riuliuttims; iIIld
'WHBRBAS, Section '624.4622,l1locldaStatUtes, J?l'ovides 'that ariy two or more LOcal
GOVII~tal E.llI:ities may 6I;lt~ futo. I!lJ.. Uter~llcal ~eo~ for ~ pu~po~ of ~C1Jrlog the
paylllll,ct 01 betillfits iJOder Chapter 440, F,loridaStatttes, ~ded SIl~ .lOcal gover~al S!IJf-
1llSllraoce fqodCD6ated j:hereby has"l!IlaoollalllOrmal premitu;llln ~ess of'fiw miI;1icmdoliars
($5,Qoo,OOO,OO) • .maiJ:!lai~a' coptiouing progfartl of ~ee;siI mslltante cOVIItage; submitsamrual
audited )ear-eJldfloandal statements, and bas a fp~ body which is comJ?rlsed eotkely of local
e1ectedoffidals. and
'WHEREAS,·Sectioo. 768c28, Florida ,Statutes, provides ,that 'the state and its age,o.cies .aad
'subdiv:isioJ;lS are alltbori~d to be ~lfCiJ::islltecl; teenter :iott! J,'iSk maoagOlllellt progtarils •. or to
purchase, liability insurance for whateVllf COVllIafi&theymar choose, or to !lave anycombioation
thereof,iJ::i anticip~tipn ()f any claim, ,P.ld~J:t; and claims bill,whiJrh tj:I8y may bl\ liable to cPay
pursuant t-o suchseciion;and'
'WHEREA.S,Sl\cdcn 111.072,FJ.OJ;i.daStatilteS. autbQri~liriy ,cQlloty,.m~iiicipality, or
po:llticlll subc;\iv.i,sl.oo. to. ~ &&ifc~d, to ~. into . risk:man~pmgJ:anls, .. ct to PlltChltse
ijability ;iDsut~e. fot'W~~i:t:Ovetage it may ChQ()SII; pf.ID. ~ aoycillnbillatiiltit~ in
aoticipatiQQo!anyiuilp;nrentorsetl:lemecl ,wbichlt$ oirlCel:~,. employees. or a~atsmay be liable to
PII.ypllts1JlIIltte~ciVll!lrc:j.vi.lrigb.f~'law.~\Utd~bed'iqs • .111.01,Flarlda:~es;~
WHER,E,AS,Secti~ 624.4§2, Florida Sti!tums,provide,s that II. g\ilieririntptid 'i&-,insil'iROco
peOl cl'jjated PlltSuaDl to S&c:iicil;i16S':28(16), PlllcidaStatutes, sba.lJ.J:lOt beeamidereda co:irunel!claI
seJf,-~e futld;·~d
WHEREAS, each of tb.e.·participaiiogLoeal GCverIlinental1bilies which are party to tbis
Ag;:eeJDbnt. ~ all sllb~ue.t4 Lo~rl Gove~omebtal I¥rti~!1, which ,be~ome pa:rty·totbi~~.
arc publicagcmcaes lI$,diIi'lDed io. Section 163.0l, SorldaStimites. atidllfcHi\ltl:lori,zed til eater mtq
tbis IoteclDCaI AgIleeIIleat by execut!ilg a PllrticiPlltion A.gree,meot; and '. -', " ' ...
WHBREA~. each of the. Local (JCiVeI:Din~ Enlitie& which are a party to tliis Agreement
have tho·powers and authorii:iestoestabliab,ope!'m and mai.m:ain their'own iOdividual self-'itisured
programs for the puL'PO(!lO of:!ecurlngpa}'lllent of~enefits under Chapter 440. Flotida Statutes; and
'WHEREAS; each of the Lotal GPve!D1)le1llal Entities whichl!1'Oa party tO'this Agreement
have tho powers and authorities to e&tru;,li~ operatA> aDd rilailltaiD:~~ own individual. S!'<If~in&lred
progllaJDS for· the purpose of securing payment Of benents under cli!k ·management.pr~amsor
lialrll.ity instJran¢ pro~s; a.nc!
WEElUl.A.S.it is in the public ititerest. and in-tbe best interest of the parties hereto .• that ·they
j ojn to.sefher to Olil;abJish a coosolidated!lD,d c.mnpreheClajye .FIlrul fllr the' paymem qf benefits.Under
the Florida Workers' ComJlensiltion Lllw, jI$ymenlof Claim; ju~IBand ellrims bills which·they
may ~eco,me liabkto pay. pliY,.IIlentof.~tain 'civil rights liabilitie.s, payme!:ll:of casllaJo/ anll ptop«o/
losses; and lb.e purchase "f apprbpriatepoli<:ies of'insurance; excessitisurance Illid remsuranceto
provide protection apin:rt SUch ci~s ~. :ii.l!bi.ities; AAd
WHEREAS. the governing anthtm'ty of.eac.b altho Local GoveromentarBJtit~swhirh are
a party to this A~eeIJ).ent have 4uIy il1lthod.z.e~ the ~c\!ltion ,andck:Jivery of II. Pi!.rticipl!l;iC!n
Atee.ment Dbli!ta\iritsUcliGoyer~ri1;al·:E!£itity·tDfiiiU perfC!r~Of. thi$ Ag!."eIIllIIlilI:.lind
WHERPAS, it istbeiotellt C!f' thi.aAgWIi.Oill: to allow,pa!'\l.cipatioll by~ddilio.!Jal. Local
ao~t:a1l4iiliies i1i~'$oJf-iaSQr~~fQnd ct~ted ~Yi pUisiJiu:ittQ tbB;~rms IlLidcoIidj;tiolls
oftbi.sIn):¢r.iocal ~ ..
NOW .THSRBEORa. by\lij;ttle ciftbte e&ecutioomd deJi~tY of alllklii:ipation Agr~.
thepacties·b.eretQaohere:by. cC!veoant allIl.~~ asfQUC!ws
SECTION I
INCWORA TlbN'OF,:REGITALS
Tht foregoiOgWliE.RE'.ASc;Jaosesare ·iticOl'pIlr_d ill, ~d JIlade • part lif.thisAmeaded.·
Interlocal Agreement.
SECTIO:III li
DEFINITIONS
Tho fullowmg defuiitions .shall apply to tile provisioos .of this AI/lellded IJ::iterlocai
Agtee.Inbnt:
2.1 ADMlNls'riiA:roR. Ao j,bdiv.idllal. par1Ilersbip 01; CQrpotatiopengaged by tb.eFuild'to
CIlI!ry' out tbopoUcios oftbo Fuild and prov:idothe day-to-daYeMcutl.vemaoagemoot
and over$ightof the Fun(i'. operaliOJis, 'inc.!lIding, but not limited to, aqrninistr*on,
marketing. uodorwrlt:ia~ quo~, lSS1lanco, maiatooanco and' auditiog of COVOfal!l&
te.rlliil. coordioatjog ok thiJ:d pfirty ~ce provide~ ~aio.ed by the Fulid aQd
easurmg that-tile policies iI):1d GIocisiooll oftbo Board' of TriJstetlS a$ inipJ.e.mecl:ed.
2,2 CltWS J.4,wA9~, ,,(::\aiTl!' Management" shall 11IlIanthe .proe~ss of
ideoiifyiog, tecilivitig. haildllQ,g. adjils!irii reseMig, toi!olv:iog aod plaociQ.g for tOO
fuoai,og QiolilPbk oIaims.1\lade by or ~ aJly Member of'the Thust IIOd anyothor
Ooc;ollsary d.'maD,ag~,b~ODs.
2.3 Com;RlBpTloNl's)."Contribuiion(s)" shall· mean any premium charge or other
cOJ:lSid8J:!ttioniJ:4po®d qr collectesl by, '.(# 00 befja:lf oft1i8 Tru~t. fri).m it$~be£ll
based' 00 criteria ado~d :from time to lime b;r the Board ofTrostoes, CaOtlibUtWllS.
m,ll)' be det4!~.:1 aoll '!!e~ ~b:r~~ t!'~U ~l'~ .l!o/iodM~!Jal:Membe.r or
6therwi$ll. The termS "COntribulion( s)" ~ 4Temi'um(s )"iIoid "Premium
.CQni!:ipl1/il)n(s)!· are~,m~ett;han~~~ly and synon.yJ:1loU$lyihr0ughaut this
AI!,1:~t1t:.
2.4 00W'RAGliI :t'aBM~, !\CQverll$~ T-ertIi$l' Of "Coverage Agreementsl' shllli meantlie
t~ aQd cDl:!diqam., O:feertifu;afes qf~SIl!'l\Iice..pollt~offusiJranc;e;Ol!d~~
to ,policies ofinsoraocD,;' ezeoss :icsu~aoco poiicles md reinsurance poiides which, are
ptDvided to PuAd ~e.rll ::from ~ ~. tiine whi¢.I:i: cllJllpi'ehe.o.,~~y set. 'fcIttb the
insurance covoraFs provided to the. F.uod Me.mbor~, -as may bemodi:l'iod Dr altered
:from time tD W!lo with ~ct_ to alJMc.m~s,~ fudiv:idpal MC!Inbe+.or othe.rw.iSQ.
wii-.bm'the applicablooDtic:e and' procedural rogllirellients of law. or in any other -rules
andt~l~ons I!~~pted bytbo'Board afrrost~,
2.5 ~; "Fund" shalltnean !he i!.roup self-man's fun4 or trusf furid wliiCllis hejeby
c.rea1!8d for the purpllSQS ilet forth herein. kopwou tho l'referred G-over,m;uettta!
4
lilsUraaceTruSt. The lenns"FunQ",''Trusl'' . and "'TrUliI . Food" are us~
mrchao!1,8ably .aridsynonymou!iy througbout this ~_nt
2.6 LO£r&L GOYBRIiMBNTN, ENTlD' OR. ENIl'g,BS. -LoCllI GovenilTjfllllal Entity or
Entities" .h!illmean 8I1Y "publieagertcy" as defined by Saction 163.01(3)(b). FlQaaa
Statetes.
27 Mi!M:8BR. "Member" shall me8.na!..QealGovmnnI!n!id Entity which has duly
eecuted a P.articipatioo.Agree.mect and otherwise hucom;plied wjth all provisions
of this Agr(lel\1.el!lt. and wbi~h ~~ i!l e.t1titIed to all the J;i'gbts. alid ~enefitS
conferred h3r. and subject to all conditions and obligations hnposed h3r; this.
Agj:eaIhent •. lhe Co~r!lge TeI:.Jm. D,t any.ctiles iUid regulations which may ~adop~
by Ihe Board of Trustees.
28 NON"COMP!.IANfB. ''Non.cCompliance''l\hallmem,lhe !idlure to comply ~h'~he
temui oflhif>Agtee,mei:¢. the Cnvetage,T~s. 1# any rules and regulati,onswhlch
mllY be adopted by !he :Boljrd of Trustee~! but only to thee~ tbat such' N on-
Cllm.pli~e·is deemed mill:erial by.~d w.i~ the sDlellist:retloi;i Of, the Bcia¢d of
Trustees.
29 PARTlClPA't1ON.AGRBEMENF. "Participation ~greemflfit" _hid! mean Ihe application
for membersbipin the'Preferred Governmental Insura!ll:e Trust purS1Jact to wbich;aa
. applyfug ,mem~erllg1;I'&S to ~ bll1lpd by ,1:1» 'p.i:OVi~o!l.sof IheFlorUjIil, Wotkers' . . ' -. -'.' ~." . ". "-'. --'. -
G!tl~sati"n Act; 'ihis AlI1ended Inteclocal AgL'II4l.men~ tb.e,. rulO$ aDd mgalations
arlQpted b.f~ ;ao,~ of 'rru5t~ohh~ Pt:Joq, and wh~ I!,(:~t~d br We BOafd of
TruStees. or.~h,eir d1Jlyil,ul:hOrized. ropm~.beco_ it part pf.the Intedo~al
A~betweenthe ~pply:iqg;il).~rand Ihe 'Fu.ml.
''2.10 PRBMl'tiN!(s). "Prenritm,(lI)" $bal,!m.ean "CQn:jribuliQti(li}".
2] 1 IlRBMlllM £ONIRI1ItlT19NfS). "Premium Conlribution(il:tahal1 mean Conlnbulion(s).
2:12 Tmll.D.P ARTY. GLAiMS MANAGflR. ,''TIrird·l'atlj Clajm~ Manager" $bl!.ll mean an
individi:ud or ~zatioa providing claimsmaa~emeD.t services to tbeFund.
213 TRUST. ''1i'usI''shall meanthll <'PU\l4".
2,14 TruiSms. "'Trustew' or "Board ofTrusllles" shall mean the collegia! body charged
wilh Ihe OP!ll;atlona:nd adniicistratiDp..Iif'ibe Fund pursuant to thepro,visj,ollS oflhis
A~.
2.15 TRUST PYND. ,"Trulll Fund" shfl,ll ro.lhe !<Ft\Ild'\
5
SECTlONIIl
ESTAM..JSBMENT OF "PREFERRED
GOVERNMENTAl.. INSuRANCETRUSl'"
AS A$fiT .p-IN$fTBfJ? FUND
3.1 Es:l'A!!LISBMI!NT. The P~ed OqVerilme.otallPsuraaCe Trust is heJ:eby 6Stab~5bed
and c.reatedpursuaot to tb.e"pr,Dvisio.o.s ofArticlo VlII. Bernool oltho :Florida
CCIJlstitlltlqn, Sc<:tio05 125.Q1, 163,01, 624.4622, 76g.28(1~)(a) and 1]1.Q7,;!. Florida
Statutes, fo£ the .purposes, and with the :,Powers. duties and obligations,. as' herem set
forth.
3.2 LOCAtiON. The.Jocation,ofthe-ptindpal pffieeoftheTrust shallbe, detemdned rrom
\ime to timeby~ Bo~d ()fTh)lStbes.
B PORPo SBS. TIns A~d Interlocal Agree;me.ot is made, atla executed. arid the,Fuod
created hereb~is e.I!bJimedJor the purposesof':
(a)PCioling Membl'r's resources to fulfill ¥enibm'le~ li.witieS aild
obligations, includin~ butaoi: liIriited to, provi~ for ,1:b.e p~yment of be.oe;fits under
the Flori4l Woticf!r$' CPinplili!!8Jjon Law;
(b) 1'0 mi'mmiZe ,ihe eaSt of ~viatng work:erA; ea~'pensation oo\1&rage b,y
4i1v&!'ping and ~~, &~;ili~t. ~qes, by d~o~g ~ refining.
iotemal.lyodhrCiUgbtbir.d partt servieepr~s. ama~IJ,ed'i:atesyste.m; 1Dgetl;~
Wlth:thocl!l~ogme.nt ~ ~~g:of ~o~~~onpro~sfor ~~mhers;
(c) Til. pay 'lii:pt!Mile fOrg~ lia~ alidcasualty CD~tage to parudpaq
~mb~. iocl1;iClin"I>ut !lot Wed to,pu!ilie ll:ftiC~aI'S errol's anclomissiollll.
Iiri:tpl!lY.Ill,6IJt.pracfjCes li;lbjli!:7'jIfld'law ~eot lW;!ility clainls~
To pay at: prov.ide forprllperty cOVIIJ:l!geto p'articipai:mg~ber51 , -' -. -,---. .
(0) .To ,pay:fur C!.t' proYide to'im 'l1artii:ipa~ lIt,{embbrs C01lem1!P 10 mticipaticin of
my judgmect or setI:lemeIlt t:esul~ :from' a eMl dghts actioa aclsi.~,unil6r federal
1-.
(:f) To paY for or provide"topacl:ic:ipilting Members coverage in anticipation of
m~ claims bil1p~ssed byt.hcl:I..egisJatureJ
(g) To pay !OJ: or prDVide. to p!l1'ticipatiog ~~, cOV«lige for aoyotber rlsk
autbodt.ed under Pkrlda'law til be~~1osut:ed;
6
1
1
,:
i
(b) To pay fot o. provide to participitillgMenWers all or a p'i¢ qf su~b
covera~s.
This Agteeln6pt is JlOt wended tocreat.e a paLt~sbip or other 1oga,l~ whereby
oDe Memb.er assumes tile obligliliorl$of llPothel: ,M~ber"Qr tOO, ob1iga~ioD.s of tbe
Fulldlap;i\Ceral.
3.4 NON-ASSiissASil:.rrY. Should i\ dmicit develop m tb.tI.Trui!t. after CilWcssr_w.anee
DeCO'lUies, wherebr claims or otherelq)eme5 CiIIlIlot be. paid~, each:indiVidual
~b~ sb)illl!sSIlW ~bility fot fbeco~ qf c~iliIns.b.ougbt agaio~that~be.r as
if such Member w«e iodivicfuallysel:f-lasured. Baeh iodivicfual Member shan
thereafter Qe N\SpQosible for.its ibcliv.idual costs i,ncludiog.. btlt not Ji...mit4ldto, . claims
admioisttatioll. Wii:liotit IIIl obligation to, or a cif!l:lt of cotitrlbutioo fro.m;oilier
~8r'S.
3S PONS. Tj:i." Trust shall haw all tt\e cisJ:\t$.po~,dilties and ptivileges a~sot
forth m. Attitlevm. i\ec:tio.1l2 or.~ Placida 'COllstitutiOD, a.m:i Sectiqos 16:t01; et
SCl'l., 624.46'22. 768~S(l'S)(a)aod Ul.On.Plo!;idaStatqt,es, arid aqy QtherapPlicable
FJorida:Statutesj ,wbithare oecessaryto accomplish the~poses described m'Sectioo
3.3; illclud\ag bllt Dilt limitedtothe Mlciwillg:
(a) Secucio~,theJ'~meot of beoe:tlts.under Ch~pt.er '140, Florida Statutes.
(b) Coll~~ Pre.ll)l'imls from :M:eJiJb!'J;!! :fof ~ PllFPose of p~gf9.r Dr
providing casualty,property. and' JiaOOllty covera~;_. secunng tile .paymect of
cl~ lI!!Sociate<lthetewith. : -, -' "':', ,. "/.. , '.,.'"
(c) PliyiQgfor(jt-pihyidmg co~fOr aciy :otbAt' $l[autbarized 'ulidir Florida
law tllbe:se,lF~iO$qred.
(e) To make, eoteriotol,and artaQgofor insurance, remsuraw:e, o&cessinsuran:ce,
~I¢,aStrIlPhicillsutaoc~ iItOp-~sl!.i:nS1lOll:lU. qtao:\" ~cOVil.rago af/tIle Fund $hall '.
deem necessary aod awrQpriat.e. >Without ~eh 'purchuo being doemecIa waiver of \
~g;J,h!mmoio/. I
(f) Til pay; or a.ppro~ tbo'paylllAlnt of, any expenses and feesassocia.t.ed with ~
oporition~of blltmd-
(g) Til :irideJ:lUiifyaod hold harmless ,any Trilstoe. offic~ of thef\ltld,or any
person acting 00 bebilfof the Pund, to the fu,fim exkmt such mclellllme;¢ioo is
per~d'by law;apiDst (1) reasocable.e&peIlSCjs acl:ualJy and oece:ss8!ilfiocun'ed'm
7
co.ciii.ectioo ·with aily ~earelled. pe!1d:icg Of cO.lI)filete4action, sui!: llI: prot¥dmg.
wheitherchdl, adnrlmstranve I)r civil invatigative, doCludloganys:ction, stiit or
proc~ding,by oroo,b4!half of~ :IVnd. (!eeq.to \lold said puson lia;bk by reason
of thef.ct tbat he! Dr ~. wu ae.unit in suc.h capacity, acid (2) reaSCiriabJe payliljmi:s
made by hill1 o. her insatisfactfu,o of·a.oy ju~, mopetaL'y dectee or~ttl!mlellf:
for which lie o. $e $y haw bec:omeliab16 m~ lIUchactioUi suit Dr p'raceediog by
reason of the fact.thatbe,or she was aclir:l,g1o sllch c;tpacity; This iodenmificaDon is
not i,oterull!d to. ~da04twt, w..aive any immll~tili-:l ptoVid~ to'~~bers of thcI
Fund, Trustees serving 10 their, capacity. as Trustees to the Fund, OJ! to officers or
employus of tho·Rl!ia. by ~e cifthe.laws Of the s~~ of FJocidiJ, but i,~m~ly in
additioll to such rights, ptiviIeges ao£I imrnuri\ties. "(Ref. 624.4$9 and 168,28; FS).
sECTltlN!V
APMiNiS'rRA'rION .OF FUND
4.1 MIIBJlN9S The Board of'. Thustees shoillmeet at such,time and in such lo.cation as
inay ~ ac~¢P11'-ble to a-!l1ajotitf ofth¢ Board of'lh!st,ees. The} Cl!&itIllail of the
Board of T-rustees or his de~ shall settbe dkte. time ana .1ocatlila of each.
IIi.eilt\o,g. 'agel !l*e.~of$ll be fW~toe;iC~ 'trust. bytheChl!4"tI\i.o. or .his
&signeeriDt less tl:i.1I1l Wn (10) dais,prior to tQe·d~lir ooch,meetU:!g. 'SUch.llOti.c:e
~~.sPecif'!)' ~date, timeli!lalo~ati,~of s)li:h~tin$;~ m.a:llspe.dfy~ pmpOll'l
tb!i .. f, ·lind ···~citi··' se"'tbe """"';'·I..~"'·liI: .. Su··h[igt:i e,~"-l1be :...:"-..... .:1 to ... ~., ..any . . pI:PPQ "II """"" ..... "..., '. C . ~ ........ . ..... "",...., .
ea,ch·truStl!e by:ma.il to.tho·adQre~s¢'suth Trl:l$e il$is.eco.1'clildio.th!} ofD.,ceClr
offii;!;s of the Fup.d. In no eVeilt 5I:!IIl1 tho.Bo~d ofTrustet$~liss tbaIl,CJ1lart~y.
The chail'lDaD.of·theBoard Dr any three (3) Trustees may. call a ~pedal m-eetmg and.
djtecttho.:t\dmjoilitrlltDr to ¥Jld the ~i'rlsit~ !lOtice for any sJ?¢al ~tiog lIfthe
Board of. Trustees. ~peciar .mW'ingsof the Board of Trusrees may be held at any
'-. -~
l:ime .nil place wlthClllt notice. or w.ith. ~ss than the p~qtiisitenotice, providecj all
Tru!ltees _cule·8, waiver iii notice and' consellf: to said meeting.
F9r pUI1p0llOSof a. duly c.!ille.d~g ofthll; :Board of 'J'rt:ist~s, a q\lo1'!lm .sPaliexist
ih ~Dlity of ttrememileJ;S of the B oard ofTmstees are P1'Ol!eDt.
8
The Admi.ojsttator ~l k\lep millilZs, of all meetings, proceed!J:!gs and acts of the . --, .
Board of Tru~rees, bUt such nrlmites:rieed llot be verbatim. Copies.of all. IIdnutes of
tbeBol!fdof'J;tost¢es shall be sent byt~ AdJIijlli$trator lb all, Trustees.
4_2 votING_ All actio~by", and de"CisiOill!'Qf, theBoard of TrliStees shall 'be "Y'voteofa
majo.lityofthe Tl'usrees attencling a duly called meetiogof·tbe Boardoftj;\]ste8sat
whlt-4 II. gl)oJ;lJb) is present; however, in the event of a di;Jly c iU,led' special.I,neetliJ." all
actions by. and decisiolls of, the Board of Trustees may be.by vote of a mi\j'lrity of
the:nu$~pre$eJ:lt ~oo atrendigg sQch ilPecialiIleetmg if aprDpei: waiver. fif llPti,u
and COll$el11 was obtained as providedhereill.
4_3 9Pf1dE OP'IHlU'tIW_ The: Board of Tru~eessball estilblish, mmotahi and provide
acequale fUlldiagfor ar\ office, Dr offices for the ad!nioiSt!'atiOIl ofthe.Fuoo_ The
I4d~ss of ~ucb offi\!8Qr .. offlcts ,sban ,be :ma.de kIl,Dwn to the u~ts of, lo~al
~oyer'rUrients ~gible to particlpateio. or partiCipatii:\giri, tli,e'Fqnd, T.be books a):id
rec~s ~gto the PWld andits aQ,mmil!trIlliQll shall be kept ac.d lAl!iotalp.ed at
the: Qi&eo¥ ci£jjces of the f'l:Jod_
4.4 mgmQN OF OOCQMEN'1'S . A certificate, doctJJneJ:rt"orotrer ioslr1Jmeotmpd by
the Cbair.iDali. or'tbe.A.dmioistcatllt of lb.e,FI,lDd!ili.all be~de~e of the actioooft,be
Board of Trustees and an;\' such certificate, documeDt, OJ! al:her iostrume.atso signed
s,ha1.1¢D.D<:,Iu#1:v-~e pte$Umed 'Ill ~e aut\leotic, ~SII" ill acts ail4:inattClrS .~d
tbeoo.io shalltoIdulnvely 'be l;'tesu.med to be,true_·
4.5 gNlmMImT OF AOMOOSTRAf9!!!._. T.bc!: tru$t~ s\lal,l <!~e ani! ptqVide
comP!lilSati~1l ;fu.r. iiIi Adiniriil!~*erto adminiSter the Iiff~$pf thePtitid. AJrY'
Aclmiriil!l:ratof SIl ~~:ate~ shall fu~oi:,b the .b.o'8l!d of 'Tl;Ust~ wltha fi~tylwnd
wiili.llieTi'I,lsteesasnamed obli~ TheAJDtlllllt of~ch~oild'sha1l b.edetet.miO.ed by
the 'Irustees and. the evidellce ·~reOf shall be available.to all umtsofgovemment
ellgible to partic:lPlite. otpartWpa!i,ngm, t4e, FIlb.p_
4_ti COMPENSA.T10NANIl pJMi\pt>!!BMElm QII-l1Ius.'n!gs_ The Beard of Trustees ma;\'
frDmtime to ~ establish a ieasonaQJe amopot Of 'cQmpe!l8atioptecc)yer attendabee
ata duly called meeUIlg by the Board of Trustees. or to cover theperi'ormance,Ofilie
IlOrmal ~)Jties Of a T~tece_ Spch COlilJ?ens.atioD. shall inclUde'.c:eimb~sement for
rea50llabJe arid Ilec:essary.~peiJses mcut11Cd tbetewltb.
9
SECTION V
N'UMBBR. QUALIFICATION, TERM OF OFFICE
ANPPowBR: AND Durms OF Ti,US'lg$
S"~l NrWUR jANQ. 9YWPIc::A'PQN Of ;nrnS'IlU;s,~ The ~P_flP.O.n .$ad' ~J;Dini,SI:~OD: of the.
Tl'Qst s,hllli b~ tIie joiJ;il:~oilSibili1Y ora Boarq' Of TJ;Ust~ ~o.Qsi$tingcif ~,,0ll(7)
Trustees. No Trustee may beereeted·wb.o is, or continue to lle1'Ve D a Trustee after
bteaming. an ow~, oj:ac«,o'r ~l~:pf a ~l» Fov.i~er to the Fuo,d .. Each
Trustee sball be Ii.Q dected official Of a lltfembec. No two (2) 'D:usteesmay be 6lected
o:f.f;jcilills ::f~m t,brl same Member. Bach Tr\lste!! .shllliser~:fi;r a p~¥iod Of four (4)
years, or tile. billilnc~ofsuch 1Tustee's term ofQffiCti 118 an elected·.offiCial of'ihe
M"emb-er, whic~~l: ~~ ~st. oCcur. ). Trus~ ,may .$lII'Ve$lc·~~siy.e ~.(4)'Yeat
bjrms . pro\l.ided lll;U:h Trustee cootil1u&s to :re.malhim. el!i~ Qffidal ·Ofa Me,mber.
:&~l!DIl evecy Trustee ilIIlllOd,.·IIPd: each successor Trustee,. shaiIaokoowled~ 'IIld
cO/;lSept to their !!le.ctibn as·i!.·TtUstee by gi,V;ing ~ .. ncltiCeOfacCepJ:.Of su~
appa.iotment ·totnecltaiJ:lllal4, or acting ehmman of·tbe,Board DfTrustees..
5:2 RBSlONA'l:!ONhNri RBMO'VAL OPA.TRpS'IN!. ,?\/rfu$~II;u~yreslgo andbecom~.end
rem.u.dWlyditwhatged from all further dut~ or res,poosibiliti~s hereunder,b y
siv.iqS at l~ .:sil¢y (60). dayspriCill: :wJ;ittCl!l.llCl1i~ ,siI¢ ~y ~~.mI!il,o~J;Digb.t
ClollV«'Y Ot otI:i«. appropciate,meJ;b.c;;Cl of'd61~ to t:be.thaimi8!l or acting c4aklllall
Of.tll.e :ao~ of, ll:P!!1H8.SJlch ooti~ *)ill ,$late ~d.IIt~ siddre~.~on. #;i~ t~
~el;f.ai;id SciCh re~atjgn ~'tmeffect 'ciJid:te dllte~!ligli!li'ed :W:il:ellS.a: Si)cCe~t
Tl'Q$l:ee has been ,elected at lID. eaJ:lier i:\ate..tl8 he~ pl!O'iided, lJ1whXhevent
remiJl;lat;iOi:!l/.iall tiilte ei'.fe(jtim:inediately uPll~·the ~~&."of suc.l:!'-l!Ucc;es,sor l'fustece.
Additionally; oral notice of oosigoarlgn may be given at any duly conveaed meetinJ
Of tbpTtQst:~, whichs~id oral notice of r~tlJiation.sblill be jm; orPl!tiited, and maqe
apart O£, the.miautes ofsuch duly convenedmeetiOg. A Trusteemaybe~emoved by
a mliJority vote Of;,tlteBoatq of'r.rustees or by a majority \!lite of·the, MeIp.6~s. Ao,y
Trustee. upon leav:ing office, shall forthwith tutll over and deliver to the -chairman or
the se~eI3ty Oftb,e Tt1,l~s at the prlrx;jp.a1 offi96 of t~'T.l'Ilst imyll04 all records,
bookS, documents or other P$li'W in jlUch Trustees pilssesmoll, or ,iJD.~ suc):!
Trust¢6s control; which b61oDt;s to the Trust.
10 I
r
5.3 BLB'¢!ON Of _tBSSORTR!JtIlU!S. StlcceSsOr TrullUles $¢l be 61ected by il
majority vote of the Board of 'l'tustees.. NominatiDlls,for the election ofTrustus may
be made .bytheBoard of,!)us1:eesor by any Membet o£.the Rind.
5.4 muSTB!! rin.s. In the eVliill: of death, relligoation, mfusal'or inability't(l act by any'
one or more ¢'t,he Trustees, the ~Q.g-Trustees '!lhaU .have alhhe powers,. cights, .-.' .'
estawsw,ld iat~5t5 of this Trust IIIld lIha!l be cl;iarllPd with its duties aJld'
resp.onsioilities; provided, oowcv«. that in such case(~);.no action may bll taken . ' ", '-, .
un.I4Sit il! concllfted j,n by Ii majotityof tb£re,maioiQgTrustees.
5~5 'Il!t1SIl!E OFPlc:IiRS. The. Trustees shall elect from· a.m.ong themselves a chaic:nan.
vice-cl;iairman.and secret)iry cfthe Board Qf TrUstees. Such· officerilshiill be elected .. '. . . . --. . ',. .... . ..,
annuruly:$l: the e.tid of the fi~c a.I year tithe Thus!;, andm.ay succeed theDiselve,,,
5.~ POWB~ ANI? AItrnORITY. The, Board ~f'l'rusf~ sb~,be ~gei! wjth.lhe chJty of
the genera:! supervisiCl.liilrid opld£a.tiob. pf the Pudd, ilrid shall conduct the business
activities of ·t.he:J;1Q1ld in ·.~cor<lance wit:h this -\gJ:ee.tnellt. its by -laws. r~es IIIld
re,}il~~s3I:\d appllc;able.fu~a1 and'$t~e $fatlltes IIQd rules ~ reguJatiop.s. In
cOJlIleCl:Wn therewith, the :Board of Thusteesmay _else the :fulloMng authority and
powers:
C,a) To collut premiums fromparticjpa~glYkmberllin an amountindividi.Jally
app to 6y~ Fuoc1 and said Mel\lb~fnttpe,Pmpose ofpmb.g for .Of ~ng
the·eoveragesl?rovided iD.this A~t tOl?articipating :MemQers.
(b) To (1I1,Y fOf ~tPl'~ m;II:J:! Olt~~S ~S1iIra!l~'orreill~>a!lCe lib~p as is
ciece~sl!iy tc) Itc~oiripUsbtb.6 pli!:Poseilf the~.
(Ii) T,crp.ofEOW ~s. ~ue bCinds'1I!ldother ~~~5 of lndebted08SS. lIIld
a:r~ for lines .0£ let~s of, credit to ~st:iJ;i: ProVi.dii;lg tl;le co.age~ provided in
this A~_ment.to participatiagMemberz.
(d) , To. PiI'Y for Dr provide approprl~ Uabllit¥ and otb,jjj,o type~of insurance; to
cover the acts of the 'Board of Trustees oftne Rmd.
<e) To COI:l~t with appropriate professi,ollil lIOtvlce pro-Mers to ~ the
purposes of the Fund, and 'toexpead funds ror the reasonable operating and
a:dmmi~trativeOltpe!J,SO~bf·t,he}lUnil. lncludillg buto,ot limi.~e.d to, all.~asDllable and
neces'*Y expen~·which.may b.o incun'e4 ill connectiCl.li With the .estliblishJ;noo,t Df
theFllnd. in COnD«th!n with ,the e.mplo~ of such administrative; le.~.
Jiccotilltillg, and' othereli.per1: Dr c1ecii:a,! a~tani:e t9 the P\Jnd.lIIld in -conneCtillIi. With
11
the.le:ai!ing a.nd purchaSe of SIlch premise, material, supplies mel ~pmeOt as the
Board, ,in itsdisCretioll; may deam. JleCessarymr otapptop.date to the ped'armaoce,of
its dmie/!, Dr the dujies Of the Admicist:r.d:or or the: other agegts,or emplo~s of the
Fund.
(f) To pay dims the fuo.d becomes legally obliged to pay pu~suaot ·to the
ClMIrage AgJ:eeIIleots ~ed 5nto by md betWelmtheFulld aod par:tic~pii.jillg
Mem~.
(g) To establish mel ac~ate ~s part q,fthe Fu!ill ad«luate ~~s til carry aut
the pUJiPoses of the Fuad.
(h) To pay p@miums Illl, aJJ;d-to o~w.i~ se~ure o~ ptcMde, insutalJCe prodtJets
that area.o.clliary to tbe,;::overal1Ps<irotho~ by thisAgp;eam.em.
(i) To investand.reinv.est :!ix!d~~~comemto the P!J~i!1op. of the ~.
(j) Til assllIrie tile allset:ia6.d liaDijiliu ¢the Pwid.
(k:) To' ,r.!k:e such actiOPS aod exl*ld SIlch ~s as are J(Oasooably lleCessaryto
f\lcilitate the. l:essa:!i'il1J. oftl1e biJ~:I Qf the Fuild.
(1) Ta exercise such".powers ·that are authorized to be _rdsed by trustees Imder
and pursuaot tathe laW$, ,of Fl(lcida.
(m~ To taJresuch other actioa anel ex,peod'suah funds as ate reasollably.necessary
to iI!:~Ql!lPlis.b t. ffiiL'J?0.ses ¢ t./lb, ~.o&I:
~,7 A'E>PR,bvAt. OE' lviM8RS. The, B.oard of TL'llsrees;ail:er theioceptioll of the Fulld,
~.rec:eive ... plicl!,ti~! ~rm~#p fto)ll ptoS?ec:tiYe~~ 'p~cipa1;lts in:the
Furii:! ariel shalla . ""liVe a "" lic~sfot:inemb '",-,.;. iii ii:cord~ witll the .!lnis of " ",' Pl:<"'.,' pp .. ,',,', . ~,"""I!' . '. ' . er
tbisAm:eement, aoylJ"ticipatioll Am:eement, applicable ~deralaod staile. ,$tl!b.1tes
.;. .' -_. ." .. ' ,-"
atid, rules lI!ld nejulatio$.' apd·the rules at;id regwatiOllS el1f~li~ by the Ef/)!rd af
'rrustees.f'or,the admissioll of.oew members into theFuod;prov.ided,howewr, £\0
pro~~/:'ti~ IXI6In~ mal' p.:ctil.:ip~ in the Fuod.l.j!1less!IIlch· prospective ~!iet,is a
public 8JWIlCY, of' Ihestate. Aali!led h&rein, lire phrase "Jlublic agency" inoludes, but
is .aot Jinrlted to, the stat~,its ageoQes, COIl¢ies. mUDi~es, special disti:icts,
school districts, aod other g:ovemm.eotal e!itilies< tl»indepaodeilt establishments and
c~o~, ~~ of thestatb, cOIlotiilS, ~cip~ies, s~hool distrIcts, speclal
distcl~, atld oth!!r ~eiital 'Glies; aodcorporaPolls primarily actirig as
iastrumeotalitBls oragendes ofth& sta~, cliulllies, ~cipallties, specii!1 districts,
~.ol disl;l:icts, aod 01ber' gav«mneotal eot:itBlS. The Board of 'I):ustBes sbaIl be the
1'2
s.Dle: judge af ~ or .IlIII: an applicant for memb~$Irlp shall be tligil$ to
pariicipate-in the FUttd; provide(J. hOwever. the Board of Trusmes may delegate the
functiDpS asSilCiated wXh'a!lpta~ af M~btrsto the AIhnlo.istrator.
5.8 Ri!POR'I'lNO. Tb6 Board of Trustees ~ bll. reiiponswle for and shall cause to be
!lEej?;jred·aDIi filed such aDDllal Ilr crtbIlr p<ll?~diCau~its; reports and disclosures as
may be teqmred from time to tirite pti!:S)lani: te! applicable fed<ll?al ~d' state l1tat\ilu
and rules and re~latiaDS, indudiog,lmt nm limited to, periodic p.arroll audits,
p<ll?iodiCSttinmary lass repotts, ~odic sta.l;~s. Qf nQ!iDpial cOi:ldifian, ¢eiti.~d
audits, appr.opria.l;lI apJ;'licatians filed by jilEOspecfiw.new m6ll1bers, reports as to
1i~~stan.;lin.gs, payran ~cords,re:lIQrts fIIlat;iDg to co"era~.experleo.ce,.laSS and
eo.tilJ?eLlSafioii pay'ments, swnmary lass data sta1:e,ments, periodic slatlls !&ports, and
ii.Ily oth~ !lUcb reports II,s,t!lar be &e:ci~~ '~. time to t,ilne:to i1,Gcamplisll. the
purpose. of ~FUad Dr til satisfy t~ .rOguire:Jri~s af apPL'Ppriate gP~o.tal
<eatilie:s.
5.9 TRustmis' i:.lQlUrr. Tfw Trustee,sand their age,nts '&pd' e.mpl~· s.hall not be
liable fal' 8Il}' ad: pf omission or cammissiantmo,puuuantta this Agree.tneDt.uiiless
SIl~ ad (lollSlitlltes a~l ~Cli' ofJ;id.ttcianrdiiti'~ .ciatshi!ll aoy.TrusW\l~e li~le
for IlIlY actofomissilln or cQJlUD.i5sian.byllllY ather· Trustee Ol'. by. my' employee or
~«it ~the;~. ~ Fupd het~,y~st~'lIave; hoJd.~~ $j'~e~ the
Trustees .and their agents 'and employeesJorllllYloss; daIriage OE .expensein.eurred by
.d p<ll?~DS.a~ ~fie~,w.bile actiJ:\g m~ .. Df;li.cld. ~~/lC.itr ·0Il. ~~:f~ Fp~d,
Q.tile:S$ .$U~ ilctiOllco.risti.tutes a willfUl: p~~ ¢' :fi.lI!;!iii~ ih;Jt1~
5010 ~B! IIjNGB ONc0fJNl!!!r;s pmON. Tb6 Bol!Cd Qf,rtusl.el):&~emplt!Y and CQosti)t
wjfu l~gaI. oounsel cOQG~an.Y guesfiQ~ whiep. may aose WitjJ.. r~e,m;e tqthe
duties IIIldpowers af the. Board of Trustees otwith reil'eteIlre to any other matter
p~l1g til Ibis Agreliinent orthe·F\lc,d ~ated t~I:iYi and the opiciQoof sucli.
caUDsei shall be full andcompJ6to authociza~ion and !lEDtection from liability arlsiQg
aut.af or in respect 'to anyactioo·taken or siJff~ed by ~ Board of Trustees or an
individual Trustee acting hereunder in 'p;lIod faith and in. ac.~ordacce with the. opinion
of such cilllnse.l,
:5.11 l!YUWS; Rtn:.BSANDRBGtltATIONS; The. Bllard Of TrtJstees .may adapt and ~orce
such .by-laws, roles and J:egulatfullSa5 betwe:eo. the Members tif tb6 J:1t111dand the
13
!
I
Fund gciV«cicg' t~operati. . Dn' of ~ ~ a~ ace c.D.!1siste.ilt ~tb ~ 1:eI:Ji$ of tbis . ' -'.
Agee.ment ana as arereasDoably iJBl:essuy tD aceomplish.thepurPDsu DftheFun<l,
sECTION VI
toWERS AN!) Dttrms QF THE ADMINIstRATOR
6.1 RBS1!ONSI!iJI.m:f!S. The Adniliiisirator Shall have the power and authDrity tD
j.mp.Iementt~ cljr¢ct1vesof the 13 Clard QfTruat~fand tbO policy lililtl:~ .~ :fqJ:tp by
the Board of'Trusrees as thoy.relate to the Dn-goin!t Qperation and 5Uperv.isioa o£the
Fund, t~ by-lawll,rules and regtila.tiPtls established byt~ B(j~d of TrQsteea, 'the
provis.ions of'thJ$· Agreement. aodappJicable ftderal and state statutes, rules and
regulatipns. ');he powers, dpUes aQ.\i re~oll8ibili.ti~$ of~A!hnicist.!)ltor .rel'!\i~d by
the Bllard of Trustees shall'De setfo~·lti m Adl)liJJistrat:iv¢ Agreementmcuted
between·the Board .of·TNS1;(\eS·Qlld the A~stratol'.
6,2 coNtiu:atlIIONS. Tj:l.e Adri;l.joj:stratot ~all depDsit into theACe~nt oraccD.tlnts
de5.i~ated-b¥the Boaril .of Trustees;. at the financial institution or institutiollS
dCiaigiJared by~ BOjlrcl ofTJ:U~s, all c.olitgibutiollll as $:I.Whel;l collected frllJ!tt,he
:Membem and said monies 'shallbe .:i5.sbursedo~ in the manner ,l?l'ovided by .this,
~~ilt, .tbt, CQ~~ Agt~~ t~ ~.s.r~atio,* aoaby:law.S'of·)\:Ie
Board of tl.'1lstees,and the A~ettMid:iirto by .and· between the-Board of
TL'I,lst",,~~ t~ . .Aq.nj.inistrstol'.
SECT~Ol'i'VIl
.MEMlmB,:S
U M!!f!S!!RSBIP CANCBLLAUON,SUsPI!NsION OR..I!xruLSlQN. The~oard of-Trustees
shail be the 'sOle jutl~ of whether membershi,p' in the 'Fund .may be cancelled. 01'
whetl1ec II mernilN may ~ ~spe!lded CIt ~d frol!l·~Fu.D.q; p!'Dvideil,~,
1M Board of Trustee.s may delegate· t:I:ie :fuaciic;!lS associated: with. cancellation,
~SpeQsiOI;l or ..xpwsi.QJl oi \l M:e.inber tothtiuiministrator. Wtitteb..trot~c:~ of i!Oy
Such cliilc»llaPl)Jl; stlspj:osionpr elq)ul.s.iol;l sball b\i. ptoyided bY 1M Bind til the
me.Jllbel:JlQ iess than tbiity(30) days .prior to the effective date Qf$uch canceJ.]atio,ll,
sU,!pellSiol:l or ~pulsiDJl,and I;lO lilibility 1;1. this AgreM!eOtOl' -anyQtber
14 I
.~, certifu:lt~ doc~. Dr ot):Je£ 105t.l:wneJ:rt eXAjcuted by thelmd and· the
member pIlL'SUaDt to 'tbi~ Ag:r~t, shallaeeruo 1:0 tbe Rlmf follow.ing theo:ffecl:1vo
qa,t~ of rucb ca;nc(illa)ion. sus~os ",r elpul~ilil. 'rhe minim,al .D.Dfjee prDVisiiltls
of this para~aPh ShaUDOt ItPPl'Y jp. ~ o~ II memqe. :r.ll$ to make the requisite
cootribctioDII fot coverllgesqoder this Atp:eemom .llsuch' contributioDS are duo ..
7-'2 Rl'!sPONSIlllLlt:IiiS-'OP,Ml!M1IBRs. B'y~cution Qf aPartitip!\tion A~eQt agi-eeidg
to bebauod bytheter.ms and' conditioos of this Amended IDteclocal ~eement.:each
~b~ agteesto ~blde by the :follClWiog.rcle~ and r~)ations: ,
(a) The Thustees haw the sole 'respoosib~ to goveroaod dkect the af..t'airs of
tbe Food pursuant tothi~,Ain~t.
(b) Aoy Me-.mber who formally appflOS fot Menibersblp, iotbis Fuod, li/ld'who is
a;ccepreq by the :sham of·Tj:'1;J~tees,sI:!.lll1 tbet!>UpOll beco.l1l¢ II party to~s A:I1:lIlQded
Icit«local AgreeIileotiiod ShaJl be bo~odbya1Joftho terms lind conditioos con~iIitied
herelo. 1'hePartlcipl¢i,oll AgteelIleot~ coostitqte a coqoterpart Qf thisAmeocJed
Iote£lll~al A.~tDt, aDd this .A.i):letIded,'Joter.l,oCal Agreement Shiill cOJ;istitute a
co1JDterpart of the Partiqpatioo Aty:eement.
(c) To.llli@.wo II rea~otl~lo lc?Sl!., ~on progtaIil1o Order to proVide the:
maximwn!ll saf~ aod lawfui practicesaa such may ,relate to the ,!:'oteotialRabiJity
asspmed by the ~.o,jl qod~r ltii.s A$~ntQr ,any o,~ ,a~~t,i:4?rtl,fiCate.
doclil:tl.ent; .0£ othe,dOSli't)me.rii: ~I:uted by the ·Rxid ·and tbeo·Membe! pursuant ·to this
A~qt..
(d) Til ,¢ariip11l w,ilh :tlii'i eCl1iditiqnsof tbe F1orl~ Wotkars' t::Omp(iniiatioil Law.
(e) l'crpro~!liIm:nedfatb'~lI;tiCio iot~ eVjID!:,iI,nlccideot,oriocident QeCllfS
whi!:hH .liJr.iilY tbgive ~t01l cJjjmwitbiD.~ scop!I.oilhisAgreirinm, O! aoyot!:tet
a!V""""'0t, eortfficate, documeoi:.,l'Ir otW 1ostrumoat oxecuted by thel?cJod and the
~Pet P\lL'Sllaqtto this :~it1eot.
(1) To ):!Eomptly, make all contributioos for coverages ari~ 1ltIder .this
A~e;qt, .. ~ any othe! a,~. q~cal;e, dOCwnD. or other 10atrWnent
executed by the Food and the Mambor purscant to 'this A~eot, at the time and 10
themanoer. di.r<lc:teq by, tbeBoarq ofTrustoes. ~.Bid c!)otcib)JtiohSmay ,be ,reilllted by
any discciUDt.,p~.atioo cr«li!:,or other ccintdblliion reduction pto~amestab.u~
by \he Board of'rj:'I;Jatees.
15
i!i
I ,
(g) In the' ewnt qfthe' paymeDt of any loss by the &!d on blillaif of the Member.
tho Fund shali be, sllbrogatee 'to the oDmI: of wc:h, pa$'meilt to all therlghts of 'the
Memb~ against al:!Yp!Uty '1E C?tbe~. elltity.legally ~esp!,n~Qle fDF qa.lilages tesu1tiag
fremsddloss. ~nd 5Q su~h ~ theMe~ herebY~s. o.ribej:ia.lf I'll ~tsclf. it~
officers.,OllIpioyeesand ~11Pms. tOeJl.!!(:llte and deliver 3t!chlm.trWlll'nts aodp,apers,as
is l.'eIJIlli:lli!;aod· dowbat~elilc!'iS 'roaso~bly oeuS:la,tY. t.O secQJ;I!.mch,qght to the
Fund" and to (iOO~ with and eth8rwiseassiSt tbe.Furul as may be necessary 10
effc;ct aDY J,"(itO\l'eJ.'Y' SOIlgb.t by t~ ~jl,d. p,urstiiiol: to $llchsubro,gal~ cigfits,
(h) the !Board ofTiustees. its AdmixiistratoE. and any of their agents, servants,
elhployees DE altorrieys. $/:jai~. ~e p~mitted at ail ~oJ:!ahle times lind upoo'
reaspi:iaE;le,riotiu to lnspe~t,tbe,~ope.tty, work.places. plarits, wo.clf.is, maclPoert.and
~pIillDco tl!~ptlr3t!alltt.o th4~ ,Agroe,It1OO/:. or any ,other ~e.lit.ceJ,tificate,
diicUJI)ed!, or pthe.~,eoj; e;.recuted by the. ~ber and lheFil,rid pursuilGflo this
-\~.nt. ,a.o,dsb:allbe )!e®.it):odat Jill, roasooabie Ii,mes whlle the Member
p~pa,tes .it! the FUild; ~ up tq a,Dd ~uQjng' twe(2) jell£sfollowing the
temiillatiOO of iii 'memberflhip'in :the 'Fund, to examine ,the Members'books,
vouchenl. ,contracts, docutilClits and r«ords D.;t'!i.ny and "e\teL'y~Iid wbi.c:h ~w or
tend to shaw or veL'ify ao.ylossthat maybe p,aii:! DE may have beeo,paid by. the Fuod
oJ • "'. :', .' -'.
onbeha:lf c;f,~ ~er p!X~iiol: to it/liS . .A~m~tlt. or ally ~ a~nt •
• ,. " '" ," ,., _,,'., " • '.' _'.' ,0 ., '.' .'" ".
~/itOo. dpc\,uneot, ot tither: instrQlileoj;e)recPtedby the M~ber and \:he .:Rind'
pursllaqt ,to ~~. A~ept, lit wl:!ic:\l ~ClW prv.e#'r 1:he'l!cc\JJ1iICY, fit aq:y c(QO:t;t:ibuti oo
wJ:dch'jS ,paid or P.$i\)le byth~~bibei: PP.f~ant to, the lqo!J,ts of this~, pt
any ptber agr~, c.e.rtificat~docllJ;De.!l,t! ar ,cnl:iq'iostrumeot e)recUted by the.
~b~rand the Md:pup~tllm.t.to thl~~~meot,
(1) Tho Fuod is to defend in tho oame and 00 beba.lfm the Member any ciaims,.·
suits !If qt:hi¢ legal. Pi"Qi:~~ wj:lich may at any ~ b~ fnslliuted agaiost t;I:lb
:Member on account of bodil'~dlljuJ:Y, liability, property, damage, ,Property damage
li.bnhy, errors and omi$si,QD:S Jiability OE 'IUiyPlh~r :m~~bi..lity, lIIlllle1:ary or
otbeLwlll6. to the exteoj; mch. defense allil .liability bas been assumed by the .Fund
pur~llan.t to ~ A~omept, or a.o.y o.ther a~. l;e¢:fU:!!t~, qOCIJ~nt, oro,t~t
ili!truineOt exeCUb!d'b.Y'tbe Metnblll' and the Fund pilrsuanttQ tbi:o,.A~. subject
to any and ,l!lloUhode:amtioo~ .. ter.ins, ceodilioos ,and _elusion coaaioedio said
a.~ts, or aoy cither q;reemont. corlific~, docWneOt, Dr other mstrumeots,
16
alfho1O'gb sucb:claims. suits. allegations or deinands are whollyg;r01lmlleSs.:false.
fr~lenti and to Pay' ill eosts taxed al!ilioist tile Member in aay such legal
proceed~ det'eil®d ~y tb¢ Fund or the~bflt. alll..brereSl', ~f.allY. Je8l!lly Q ec#ng
b~~arid ,iIft.~ ~ o;fjudgm1lll.t hi~i:Jcli ~ceedii!gs. ,apd aUex~eeJni:urred m
the iilve4tion. ne~DtiJ¢jonor defense of such c:11iims. suits. alleptioo.sor ael)l~cis,
Sllcb d~ sball be SQbject to. the,control ofthoFtuld~d ~ts.AdmS¢strator, wlii.c.b
may make such invostigations and seit1emeotofaB,. such claim, smt, or' other le~
p~!1«>dklg,;IIl.1)1ietl!ty Qf, o'fIierWi~asthe'lr 4¥ni,~exp,~ient. The, Membi!r, ag;rees ,to
cooperate fullyWifh the Fuod,its administrator andfheir agents, with ,respect to the '
investi~tioJ1, adjtJ~. litigatiQn, ,re~t and def~ 'en m;iy chdin, suit. Of
other :legal,ptoceeding, mop.eta.;y or ·oJ:herWise. which would' be i:O~cl ~y the terms
oit,his.,A,pem¢j: I!DliIor ~ policio~,Cif.jn$uia,a~. excess ;io.s,tl~an~o or !1!i-io,lIl,mmce
wbicbhave beilIi ptu:cbajedtQ prlly,ipe pr'gtect.iD,liagaj.Qst silc,b CIQl~ atidliabill!:ies,
The lvIembf}r ackoow1edges that failure to, cOC1peQl:e ,full.1in ,the ~tioll;
dlrl'~ orli.tiP,tibp ;ilf' such' c:Iaims, suit's, Dr liil/:Ji,liti,es, ',may, cllnstifQre, gtoupds,:\'Qr
denIal of coverage pursuant to this A~eci: and/or the applicab1epoliCies of
i~~;
O~ The liability oftheFundis'S/lOcl:fically Jimited:to the dis~e of tbeliability
of jt~ ,~,~ets, '~sumed ~~, ,ttlt~ .A~Iit,~ any "~ ~'.ni6¢.
e«tlf'icjlte, docpment, or lither lnstru,me.Ilt ~'by tbeM~,and "the Bmd'
~~lIJ;it to thi~';A~~t~povllC~g!im'~Fpl1-il cloesq.ot app1ytl) PJJJ:ijti~~~
eite.ri:t JaE, 'd' """so ,.,P 'Y,$m.$ .. v ..
(k) Uii1e~s 't;he:$ndillld.t1:ie ~ber citberW;ise u.~_siy .~'. 1.n wr;iti.ng,
i:q;tera,~bythe~nd f!it .a: Membet 1lI!der the mtDlS,¢tliijl.A~ee:im>i;Jt', ~aP.yqtl:ier
agreement; certm~. document,. DrQther lmtrumente&eC1Jred by the 'Member and
the P!m.d p\:!l'SQIin!to thisAgr~. ~~. elqlii:ll automiltkallYoli the last ca.f of
Sep~ber o~ each calendar )'liar; and .flO ,liabilityUllCier this'Agreement. or ,anyotheJ:
1 .. .• I .
. ~meJ1t •. ~rt;jfic;atei document. or01her ~~l'Ciqlent el\,ecpred by theMe.mber and
theRmo pursumt to this Agreemem. ,shall accrue to the FUnd beyond Suchexp,iralion
~ateunIAA~ l!1Jchl\kmp~ r~ws~~e~:wltage;
(1) Excflpl as Cilberwise jirO'vided (j~rein.aMernl;Ji"'!'·ll Coverage'maybe canCelled
by the ~dor Ure M:e.mberat any 'lime upoo no less-than thirty (30) days ,prior
wtitt§n Iloti(e by the :Soai'd' of Trustees. or Administrator to the ¥einber. or by the
11
~bertothe :aD~apfTJ;i:lstees. The notice ~ statetbl} date such cac~tioo
shall become·effective.·
(m) '.~~ mo.nies remaining a:fterthe P!lY):ilelJt ofc.lahns lUlll cla'i,:tn;I ~~~;
alid idblr pL'D'i:isioo has :beCJi jIIade, fur theP~m&it of opeo.claili;!s.ljOC3 oofStanlliog
reset:Vll:~ mar ~ di.Str,ibuted by the B.oard cif'Trt;I$1:ees to the Mem~s partkipaJiQglo
tho Rmdio. such ~ as.tho'BolIM ofTru5tees ilha,l1~to buquitilble.
(0) There will be 00 . disburS8lIleots out of the reserve fund established by. 'the
Fup;j by~ay qf. dividelidilol di5tPbt!tioosof'lICc\lmUlli,t~d ~~sto,~beJ:~.1JIlti~
after.prov.isioo has beeomade for allobliptioos agaiest tbtl-Fundaod'except·at tbe
discretioo'of tbe'B clard tif. Tl:usteeS.. . -.. --. , .-',. "". -.. " .
(a) Qulillfied. seroce providers. including ·attlltI:ieYS. seleCted by tho FIJJld; shall
cjefe;o,jl. ji:lv~ti.~te; settle accj Dthctdv~ proce.~ anddispCll!!lpf all claixps. sui~.
aIlegatlotis·ori!emarlds ~t tiiay'r~lt ioliabijity-al!8umed by·tbe Fi))ia oli behalf of
tbe ¥emb'elp1¥'-stJtmt txt 'Urls. A~.oti!OY other ~tl cett.fficate. .-. ~ -, . -. . ".
A~eement.
(P)Th~ .. ~~ thta~gb.the Bgard q.f 'l'l;uj!l:¢s.doe~. he~y. app~t tq,e
A.dmicistretol as its~ acciathl,t"~~io-fact. tom oo.its behalf and to aecute·all
nec!\Ssruy/:bJ;ll:tacts, :~!?tt; W~lvers.li,~~so ~C'~ ~u~ \lof¢ta~ ~~Ce
contracts. and .other .doliunieots l!eIIsOLiably ~ee~Sfl!YtD:aeclllnJ?1i1!hthe',PUrPoSell and
~o ~lli~ ~!ll:!~bWt'~ r# 'the ~;to ~or I!l:'t~ge f9r ~p~~ of
c.hijm.s,c1&ls~5, Iirid ,alloth!ic#l~~ljqJreilll-C ~!lellsar, il;iSof;ir ~. b'S"
affect the m~s.cevec4\~.~~to tbcI ~s Qf-thi$ A~eJll:.Ol 1!I)1'~
....... "" ..... ertificat .... doctunaM Ci ····IZiar~t .~ .... 'the M!im;berJlod' .,...".,.,. ....... ~. "II; . _l.a. , ". . ~!f '. .. "
the Rmd punuaot totbis A~eoti and ifH, ~.tiles aad refiU18i:iuos oow orbereafter
pramu~j;.;d by the Boatd :Cl{.TL1l~~lI;
(Q~ 'to make~om.pt' p~ment of ail contributions aod.plIDliltiell asre.quiled b}' the
:Soard. o,fTru~~. saiil cop,trlbutioosor ~&s.to he 41\t~by J;\:l!I llCiatd of
1'rust-. Any disp1:ltes concerning cotrtribui:iotls or penalties shall. ooJ.lesolwd after
thepa}'ill~t. ofmlid COnJr~b¢ioDli Ol ~al,ties.
(r) To. pay. teasooable per::lalties ,as det~by' th!IBoarq of T~s fat laf§
payment of cOlltcib\ltioos. leQu;ired QOiler. this Agreemenj:, or aliy Pther agreeJIlenj:,
18
ceEtificllte, ~ocum~, o~' ~ instrument exeeuted by the Member alid the: Fund
purSllantto tbis ~
(s) Cov~~ by theFllDd \loder the· t¢ms of this .Agreement. orallY oth«
agtee~, c¢iJficate. doC1imeLft, il£o.the£ icist~ ell~d byth!JM~lirid
the Funa:P1ll'suaot to this A~,;haIl ~ana be callcelle9. 1,lpoo op iess thac.
t~(lO)dAYS priot wr~ DOtlce it.om the Fuocltil·~ Membet. ft;rOOQpay-!llellt of
contributions.
(t) Tpabideby a;ll the teans and cOllditioos of this ~eilt, thePartidp.tion'
AweemeJil, the Fund's lly"laws. the ~lesaodrep;WatiOllS, thetums of mrcoverase
docu.tb.cilt isS\J~d by theFlwd to' the ~e£" and' anyotbe,tagree,meot, certifil;$.
document; orotber instrument _cured by the-Member arid the Fund' pursuant to ·this
"~l;\t.
(u) &c,b ),lemDer v!lhm.tru;ily~tsto the, TruSt liri'trights and pri'Ylleges such
Member enjDYIl.ullderthe ~s of the Stareoj'Flprida, inciudiqg80ctiollld63.{)1,:NJd
768.:zg;FloridaStattJtes, aDd' lI~Clfi'aJly those IlbItQtIlrj1 pr,DV,isiooS Pllrtaioiogto such
Member's so",ereign 'irmnunii y and ,/he appiicab1eliinii8tlons cif IheMember's
lil'bllitJt to $lQ.MOO:QQ pOi; io,dividual claim;'and ~$209,O,OO.OOfor mll)l:ipleclaims,
ar.isll:!g, out of the same mmsactioo. thepurchaso of illSUraaceormdemolty
het~r$aiI-!lbt ~~~dor,~· c'l~ a~ iI. ~.I(: ~OV,e!te~jmm~ by
the,Iv!$bea.
SEC'TIONyI.I,I
ACOOUNTI!l!G
ttQe m~ CD.iJ)pl$;lccoIlDts ~be'kept: ~ .u' tran5llCliQJa&;ao!i Qfalla*t.s'lIJlli~ QI'
the.Trust. TheaCcottilta of theT~st sba!l be ajldiled atiPu~y by. a nrlIiof.itl!leponllClit
certified 'public accouoi:anta, which sbali be se1ecred by'the Board of'l'ruslus.
Thl.s A~m.eqt shill cflll!lnue ~:f1:Il1 force aDd effect uptil ~t l.srerI¢Datc~ by the lIl!JlIlal
CQosbnt of all the Membe~ proyided, how~.that this Secti.oli IX shall oQt be. cDristrued to
p,reclude the. rermibatiim and winding up of the Trost w5tbin the d~cretion cif the Bo.-d of
Trustees, Dr the amODd~epj: of this Agtee.meD.t pursuant to ~tillii x.
19
SECTION X
AMENDMENT
This ~eemoQtlilay bo 'l!lD.on&d upon 1±w ~epconl;ent ohhe Members of ·tho· Fund.
ExeC1:)tion of a PartiCipation A~t or ~wal ofcov\Wps prov.idod by. th& Fund ~l
constitute such·written consent.
SECTION XI
STATUTES. RUI..HS ANDREQULAIIQt!S
The Tru$t sbaII'at .n times. act .maccoP:lanco with tho provisiollS of statutes, n:ilos and
>egulati D+lS ¢' t,heState of.F1OJ:j:da.
SECTION XII
MISCffil··OOIffl.QUSPRoyISIQN1>
12.1 P·aoa:illITlDN AGAJNSTAsSlQ~;NqMt}n:ibermayassign ao:yriglit, Claim. or
mtcrost it ~ have· QO.dertbls Agroement,or lml co~ tOJ:1I1I and I.lO creditor,
S5si~ 9r tbird-p~ ~oo.efici~ oflO.y.~be! ~~v~I!iJ,,.~. ~or title
to anY'part, ~;io.~st. funds. or 8Sl;etsoftbotrost.exu,p!: as specmtallyma'ybe
a:~p til by·t!l,e.~st.
12.2 AlIPuCABLB·LAW. This Aw~~tsball Pog9Mej:'ci,ed by arid c:pnsll:~ iii
accordancoVfit:h the 1Ib¢U1IISo roles and r~oQS IIfj:.heS •. OfFlw;idll; .and.··~
gu(\:stiops pertalclQg to ~e. ~idity., cOp,miJ.ctioP. a£ida:<;I.tniDisttaDOll Sball. be'
deternrlaeil m accordance with.the law.s of theState.ofFlorlda:.
12.3 ENPOR()B,MJ!!!T. The Tr\)st lind its ~mbers shall tJavet~ pOW6r't\l .6afQrcethis
A,jlIiOOIIIOot by action brouFt ia anr.eomt o:fa.p,propciare jurisdiction witbintbe·Stare
of~a.
12.4 S!!yB&q:!!;,rtx If anr teJ:,!ii or provision ohhis Agtemnent. or the IIpplkalion oX
~ch t~ or.prpYi~n t~ apr-pet!\on.Qr drcumstallcoi 2l;!a1ho ally. u.~ be'iava!idor
~c~blo. thereJha:lnderof tbls A~ and the RpplicMKnl of such term or
proviaionto persOns or drcumstances (It:hec tb<!n. th!il;e to which itb held invalid or
~rceab.k} sball not be effected, anp each ter.rn or ~icln of tl:lis Agroo,m~t
!\baIl be valid ana ~rceable.to the full.exIle.Dt pertnitted by law.
125 coNS'l'lWCt!ON. Whenever lIllY WlIrds ate u~d iEl'tbis Agr~tt ~il the.ma$culine
g~, they sh1dl be. C~~ 0 1:hciUgbj: they··w.te also usedip. the .:fem~ or
neutral geruler 10 all situ~oo..s where ~y. would so. apply. Wheoe-vera,ny wordll are
used' in Ibis A~eemebt in thesj.cgular,tbey sball be co.QstrOed as though they Were
aloo ulled in the. plural from in all sitUaiiOIlll whClle they wOUld so ~~ly, Whenever
any \Yotd ll · afe>;!sed' In.l:bis A~~ in the p,JuralfQrm.they shall beco\l.lltrued as
t.her thought were used ia the singular form in all intIJatiDnswilere they woUld so
apply.
126 MSCAI,YI!AR. The Fund .shall opernteoo a fiscal year from 12:01 a,m., October 1, to
midDi&htthe las!: day of Septemb,er Qf· ~S1J~c~g .~111" AppJic~lo!l for
Iil,Qmb~ship, wh!i.P approVOd iriwdliqgby the Board of TruStees adts de.Sigpee,
sbt!ll cansli~e a canliauii;lg coJ:¢l'~ct :for eaclisucceedio.gfiscl!l year .5 canu:ned
Ily IheBoa\'q of·TrusteeS liE the p;lflicip~~ber in the:.til~rhere.iil proyide.d.
:!3y .. cu,ioo. of ~~a~ Parlicipation A~ment!lr ~\Val ofcoyerag;e$. prov.ided by
the Fund, and uponacceptaaee .bytbeBoard of't'ruDes, or thek dbignated agent, theM.embe£
.-. .' " .
ag;retls tob8fu)ly bbm.:td by-!b,e t:e.I:.rns ~d I:bnditiQ1ls#.t:jlb ~!'d Interll)calA,~~ +tive
.October ·1, 2004. aciI \:hereafter.
21
AMENDED INTERLOCAL AGREEMENT
CREATING
THE PREFERRED GOVERNMENTAL INSURANCE TRUST
WHEREAS, Section X of the Amended Interlocal Agreement Creating The Preferred Governmental
Insurance Trust (alternatively "Preferred", "Fund" or "Trust") provides that the Interlocal Agreement may
be amended by the members of Preferred, and that execution of either a Participation Agreement or an
Agreement for Renewal of Coverage shall constitute written consent to such amendment; and
WHEREAS, in order to protect the integrity of Preferred, its continued success and provide security as to
its operation and administration, it is essential that the provisions of the Interlocal Agreement, relating to
who may serve as a Trustee of Preferred, be fully compliant with applicable Florida Statutes;
NOW, THEREFORE, by execution of a Participation Agreement or Agreement for Renewal of Coverage,
the Members of Preferred do hereby amend subsection 5.1 of the Amended Interlocal Agreement to
read as follows:
5.1 NUMBER AND QUALIFICATION OF TRUSTEES. The operation and administration of the Trust shall
be the joint responsibility of a Board of Trustees conSisting of seven (7) Trustees. No Trustee may be
elected who is, or continue to serve as a Trustee after becoming, an owner, officer, or employee of a
service provider to the Fund. Upon initial election to the Board of Trustees, a Trustee shall be a local
elected official of a memberof the Trust. No two (2) Trustees may be local elected officials from the same
governmental entity. Each Trustee shall serve for a period of four (4) years, or the balance of such
Trustee's term of office as a local elected official. Following a Trustees' initial term of office, such Trustee
may continue to serve as a Trustee of Preferred provided: (1) such Trustee holds an office as an elected
local official (as required by s. 624.4622(1) (d) Florida Statues); and (2) a majority of the Board of
Trustees, in their sole discretion, determine that it is in the best interest of the Trust that such Trustee
continue to serve as a Trustee of Preferred, and so elects such Trustee to continue to serve a successive
term, or terms. Each and every Trustee named, and each successor Trustee, shall acknowledge and
consent to their election as a Trustee by giving written notice of acceptance of such election to the
Chairman, or acting Chairman, ofthe Board ofTrustees.
Effective Date: October 1, 2013
22