Report to Carson Reclamation Authority
Monday, November 01, 2021
Discussion
SUBJECT:
Title
CONSIDER AMENDMENT TO A PROPERTY INSURANCE POLICY MADE BY STARR TECHNICAL RISKS AGENCY, INC. AND PROCURED THROUGH MARSH/JLT SPECIALTY INSURANCE SERVICES, INC., ADDING CELL 2 TO THE COVERAGE FOR THE FORMER CAL COMPACT LANDFILL AND AUTHORIZE THE EXECUTIVE DIRECTOR TO BIND THE AMENDMENT, IN THE AMOUNT OF $13,980 (CARSON RECLAMATION AUTHORITY)
Body
I. SUMMARY
On October 4, 2021, the CRA Board authorized the Executive Director to bind a Property Insurance Policy with Starr Technical Risks Agency, Inc., a Division of Starr Indemnity and Liability Company ("Starr Tech"). Total Insured Value on the policy is $37,599,519 and the total "all-in" costs including premium, surplus lines taxes and stamping fees, and inspection fees, was $276,227.50. However, this policy did not include coverage for Cell 2, which was subject to a joint Builders Risk policy with CAM-Carson as the first named insured.
One positive fact learned after the approval is that the policy was written on "admitted" paper in California, meaning that it is not subject to surplus lines taxes or stamping fees, reducing the amount above by $8,547.50. The amendment is also not subject to surplus lines taxes, either.
Staff informed the Board that they would return with a recommendation for the renewal of the Cell 2 policy, either as a joint renewal of the Builder's Risk with CAM-Carson, or as an addition to this property policy. The CRA's representatives reached out to CAM's risk manager but they were unable to make a commitment on renewing the policy because of CAM's uncertainty about their project, so the alternative was to extend the new property policy to Cell 2. When the broker reached out to Starr Tech to discuss the terms of a Cell 2 extension, they learned that the VP/underwriter of the policy was leaving the firm on Monday, October 11, so they quickly bound the addition subject to the Board's approval. Th...
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