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File #: 2021-018    Version: 1 Name:
Type: Consent Status: Agenda Ready
File created: 1/7/2021 In control: Carson Reclamation Authority
On agenda: 1/12/2021 Final action:
Title: AFFIRM THE ADDITIONAL COST OF SURPLUS LINES TAXES AND STAMPING FEES AT A AN ADDITIONAL AMOUNT OF $2,643.53 FOR THE RENEWAL OF A BUILDER'S RISK POLICY THROUGH AMERICAN INTERNATIONAL GROUP UK LIMITED, PROCURED THROUGH MARSH/JLT SPECIALTY INSURANCE SERVICES, INC., WITH THE ORIGINAL PREMIUM IN AN AMOUNT NOT TO EXCEED $82,611.30, FOR A TOTAL EXPENDITURE OF $85,254.85
Attachments: 1. 2020 Builders Risk Renewal Invoice
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Carson Reclamation Authority
Tuesday, January 12, 2021
Consent


SUBJECT:
Title
AFFIRM THE ADDITIONAL COST OF SURPLUS LINES TAXES AND STAMPING FEES AT A AN ADDITIONAL AMOUNT OF $2,643.53 FOR THE RENEWAL OF A BUILDER'S RISK POLICY THROUGH AMERICAN INTERNATIONAL GROUP UK LIMITED, PROCURED THROUGH MARSH/JLT SPECIALTY INSURANCE SERVICES, INC., WITH THE ORIGINAL PREMIUM IN AN AMOUNT NOT TO EXCEED $82,611.30, FOR A TOTAL EXPENDITURE OF $85,254.85

Body
I. SUMMARY

On October 6, 2020, staff presented an item for the Board to consider the renewal of the Builders Risk ("BR") policy for the year. Attached was the quote from the insurance broker with the premium amount of $82,611.30 and the recommendation was to approve the renewal with that as the not-to-exceed amount. Typically, on non-admitted policies (including the pollution insurance policies) staff has been careful to include the Surplus Lines Taxes and Stamping Fees, which are required in California for such policies, and receive approval for the gross amount. In this case staff erred in not including these charges because they were not included in the quote, and we mistook the BR program for admitted paper like the D&O policy, which is the most recent policy approval brought to the board and which does not charge the Surplus Lines Taxes and Stamping Fees.

The premium was due in December and the CRA paid the full amount in order to not risk cancellation, and the City's Purchasing Manager recommended bringing this action to the Board to affirm the gross amount with Surplus Lines Taxes and Stamping Fees of $85,254.85.


II. RECOMMENDATION
Recommendation

1. AFFIRM THE ADDITIONAL COST OF SURPLUS LINES TAXES AND STAMPING FEES AT A AN ADDITIONAL AMOUNT OF $2,643.53 FOR THE RENEWAL OF A BUILDER'S RISK POLICY THROUGH AMERICAN INTERNATIONAL GROUP UK LIMITED, PROCURED THROUGH MARSH/JLT SPECIALTY INSURANCE SERVICES, INC., WITH THE ORIGINAL PREMIUM IN AN AMOUNT NOT TO EXCEED $82,611.30, FOR A TOTAL EXPENDIT...

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