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HomeMy WebLinkAboutFIN 28-15 • City e4 Report to Council PI KERING Report Number: FIN 28-15 Date: November 16, 2015 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Insurance Renewal —January 1, 2016 to December 31, 2016 Recommendation: 1. That the City of Pickering renew its property, liability and other insurance policies through Jardine Lloyd Thompson Canada Inc. (JLT) for the period January 1, 2016 to December 31, 2016 in the amount of$639,415 (plus applicable taxes) and inclusive of terms and conditions acceptable to the Division Head, Finance & Treasurer; 2. That the insurance coverage through JLT be for a period of'one (1) year with an option in favour of the City to extend the coverage on the same terms and conditions for two (2) consecutive one year renewal terms, each subject to Council approval; 3. That L.V. Walker &Associates be confirmed as the City's Adjuster of Record for property, liability and other insurance and related matters; 4. That the Division Head, Finance & Treasurer be authorized to settle any claims including employing resources to investigate and defend claims, adjusting and legal fees, where it is in the City's interest to do so; 5. That the Division Head, Finance & Treasurer be authorized to purchase additional insurance, make changes to deductibles and existing coverages, and alter terms and conditions as becomes desirable or necessary to limit potential liability exposure and to protect the assets of the City and its elected officials and staff; and, 6. That the appropriate officials be authorized to take the necessary actions to give effect thereto. Executive Summary: The City's insurance program continues to operate • successfully and the above recommendations provide for a renewal of the policies essentially on the same or improved terms and conditions as in past years, with coverage that includes the Library, its Board and its employees. FIN 28-15 November 16, 2015 Subject: Insurance Renewal —January 1, 2016 to December 31, 2016 Page 2 Financial Implications: The insurance renewal premium will be provided for in the City's 2016 current budget to be approved by Council. The insurance premium for 2016 is$639,415 (plus applicable taxes)which is less than last year's premium. Discussion: The City provides a wide variety of public services and programs to its residents including but not limited to fire, roads and sidewalks maintenance, parks, recreation and cultural services, storm water management, planning services, building services and animal services. The City's capital assets have an insured value of$198 million. The City is exposed to many potential risks and claims through the provision of services to the public and by allowing public access to its facilities and infrastructure. As these claims may be significant, the City maintains financial stability with a combination of risk management practices and insurance coverage. The City's current insurance provider was secured through a competitive Request for Proposal process in 2013. A total of four proposals were received and the successful proponent was Jardine Lloyd Thompson (JLT), which was the highest ranked and lowest priced proponent. Council approved the award of the City's insurance program to JLT for a period of one year (January 1, 2014 to December 31, 2014) with an option in favour of the City to extend coverage on the same terms and conditions for four consecutive one year renewal terms, each subject to Council approval. Current Coverage The City's current insurance coverage is very broad and includes: - General Municipal Liability - Property and Equipment Breakdown - Automobile Fleet - Errors and Omissions - Non-Owned Automobile - Environmental Liability - Comprehensive Crime - Councilors' and Board Members' Accident - Conflict of Interest - Legal Expense - Garage Automobile The City's current insurance coverage has a general liability limit of$50 million and a deductible of$100,000. The City's auto coverage has a liability limit of$5 million and a $10,000 deductible. The City's property coverage has a $25,000 deductible. FIN 28-15 November 16, 2015 Subject: Insurance Renewal —January 1, 2016 to December 31, 2016 Page 3 2016 Insurance Premiums Changes to the total cost of insurance can be split into three categories: 1) Premium changes are typically based on the City's claims experience and municipal insurance market changes. 2) Asset changes are due to adding or removing assets to/from the policy, such as buildings, automobiles and equipment, and changes in asset value due to inflation. 3) Coverage changes occur when the City adds or removes coverages, changes coverage limits and/or changes deductible limits. City Insurance Costs (Before HST) 2011-2016 $800,000 $771,448 $750,000 $705,64 $700,000 $650,000 $6 .3,632 $642,553 $639,415 $621,.*9 • • � I $600,000 2011 2012 2013 2014 2015 2016 As the above chart illustrates, the City's proposed 2016 insurance premium is comparable to the City's insurance costs in 2011. In other words, City staff have turned the clock back to 2011 (five years) as it relates to the insurance premium cost. The three year premium freeze translates into savings of$388,000 over the 2013 premium peak. This is mainly attributable to the City's favorable claims experience and its risk management practices to reduce the likelihood of claims. City staff believe that the proposed premium for 2016, which is less than last year's premium, is reasonable and therefore recommend that the City renew its property, liability and other insurance policies through JLT for the period January 1, 2016 to December 31, 2016 in the amount of$639,415 (plus applicable taxes). FIN 28-15 November 16, 2015 Subject: Insurance Renewal — January 1, 2016 to December 31, 2016 Page 4 Attachments: 1. Summary of Coverage, Limits and Deductibles Prepared By: Approved/Endorsed By: Alt"7 2‘14, James Halsall St.:n arwowski Manager, Budgets & Internal Audit Di isio Head, Finance & Treasurer Pau •i Dire tor,\, o 'orate Services & City Solicitor Recommended for the consideration of Pickering City Council al)40dea Tony Prevedel, P.Eng. Chief Administrative Officer ATTACHMENT# f TO REPORT#...61/ 07&-15 J LT Jardine Lloyd Thompson Canada Inc. Public Sector Division Box 3, Suite 800, 55 University Avenue, Toronto, ON M5J 2H7 Phone: 416 941 9551 Toll Free: 800 268 9189 Fax: 416 941 9323 MUNICIPAL INSURANCE PROGRAM PROPOSAL CORPORATION OF THE CITY OF PICKERING • Date of Issue: October 29, 2015 Prepared by: Jenifer Pox, CAIB, CRM Direct phone line: 416-628-2138 E-mail address: jfox©jltcanada.com Page 1of18 4JLT Jardine Lloyd Thompson Canada Inc. IMPORTANT—PLEASE NOTE THE FOLLOWING This proposal should be read in conjunction with the JLT Canada"Business Protocols" booklet. DUTY OF DISCLOSURE In addition to providing all basic information necessary to enable us to place the risk, you must ensure that you are complying with your legal duty of disclosure of all material matters relating to the risk. In particular, you must satisfy yourself as to the accuracy and completeness of the information you provide to insurers. In this respect, you must provide all information relating to the risk, whether favorable or not, which would influence the judgement of a prudent insurer in determining whether he will take the risk, and, if so, for what premium and on what terms. If all such information is not disclosed by you, insurers have the right to void the policy from its inception which may lead to claims not being paid. PAYMENT TERMS Premiums are due and payable on receipt of a JLT invoice. Payment should be made immediately to avoid any possible cancellation for non-payment of premium. PERIOD OF VALIDITY OF QUOTE This offer remains open for acceptance by the Insured until the expiry of the current Municipal Insurance program policy(ies). BREACH OF WARRANTY OR SUBJECTIVITY If any of the terms and conditions contained in this proposal are identified as a "warranty" or as a subjectivity to binding or continuing cover, you should be aware that if the terms of the warranty as stated are breached or the subjectivity is not met, insurers may have the right to void the applicable coverage and deny any resulting or subsequent losses as a result. UNDERINSURANCE It is important that all policy limits and amounts insured be reviewed carefully and at least annually to be certain they are adequate to provide full recovery in event of a loss. UNDERWRITING/BINDING AUTHORITY Certain portions of this quotation of cover have been provided by JLT acting in an underwriting capacity on behalf of the Insurer who, under a binding authority agreement, has given us authority to quote and confirm insuring terms, conditions and premiums. JLT Canada is not acting as an insurance broker in this instance and is not providing alternative terms or markets for the cover other than as quoted. For covers where JLT does not act in an underwriting capacity nor has a binding authority agreement with the Insurer, coverage cannot be bound with those Insurers unless a request is made to the Insurer and confirmation of coverage is subsequently received by JLT Canada from the Insurer. MATERIAL CHANGES FROM EXPIRING POLICY You should carefully note any items identified in the"Changes from Expiry" section under each coverage as they represent material changes in cover from your previous policy. RISK AND CLAIMS INFORMATION This proposal has been based on the risk and claims information provided and/or verified by you to JLT. If any of this information is not correct or has changed in the interim, you must advise us Page 2 of 18 1 J LT Jardine Lloyd Thompson Canada Inc. immediately as the terms quoted may therefore be invalid and cover cannot be bound as quoted. TAXES PAYABLE BY INSUREDS: The following taxes as prescribed by federal and/or local laws and regulations will apply to all or certain portions of the premiums quoted and will be charged by JLT in addition to the premiums quoted: Provincial Sales Tax • Page 3 of 18 Jardine Lloyd Thompson Canada Inc. 4JLT SUMMARY OF COVERAGE, LIMITS AND DEDUCTIBLES Name of Insured: Corporation of the City of Pickering Policy Period: January 1, 2016 to January 1, 2017 12:01 a.m. local time at the mailing address of the Named Insured CANADIAN COUNCILS LIABILITY General Liability: (including Sudden And Accidental Pollution): LIMIT OF LIABILITY $ 5,000,000 any one Occurrence and in the Annual Aggregate for Products and Completed Operations during the Policy Period Extension Limit EXTENSIONS Employers' Liability $ 5,000,000 any one Claim. OF COVERAGE Tenant Legal Liability $ 5,000,000 any one Occurrence Employee Benefit Liability $ 5,000,000 any one Claim Incidental Medical Malpractice $ 5,000,000 any one Claim Retro Date: November 15, 1993 Voluntary Medical Payments $ 50,000 any one Claim and in the Annual Aggregate during the Policy Period Forest Fire Fighting Expense $ 1,000,000 any one Occurrence and in the Annual Aggregate during the Policy Period Voluntary Payment for Property $ 50,000 any one Occurrence • Damage and in the Annual Aggregate during the Policy Period Incidental Garage Operations $ 250,000 any one Occurrence and in the Annual Aggregate during the Policy Period Municipal Marina Legal Liability $ 100,000 any one Pleasure Craft $ 1,000,000 in the Annual Aggregate for Legal Liability for Property Damage during the Policy • Period Wrongful Dismissal (Legal $ 250,000 any one Claim Expense) and in the Annual Aggregate during the Policy Period Conflict of Interest and Legal $ 100,000 any one Claim and Expense Reimbursement $ 500,000 in the Annual • Aggregate during the Policy Period Non-Owned Automobile (including $ 5,000,000 any one Occurrence Contractual Liability for Hired Autos) Legal Liability for Damage to $ 250,000 any one Occurrence Hired Autos Page 4 of 18 • 1 LT Jardine Lloyd Thompson Canada Inc. Endorsement Limit ENDORSEMENTS Municipal Errors and Omissions $ 5,000,000 any one Claim and in Liability the Annual Aggregate during the Policy Retroactive Date: Unlimited Period Environmental Impairment Liability $ 2,500,000 any one Claim,and Retroactive Date: $ 5,000,000 in the Annual Unlimited Aggregate during the Policy Period Abuse/Molestation Liability $ 250,000 any one Claim and Retroactive Date: January 1, 2014 $ 500,000 in the Annual Aggregate during the Policy Period Voluntary Compensation As per Endorsement No. 4—Schedule of Benefits Applicable Coverage Deductible DEDUCTIBLE(S) Public Entity General Liability $ 100,000 per Occurrence except per Claimant in respect of Sewer Backup Extensions of Coverage $ 100,000 per Occurrence/per Claimant for all Extensions of Coverage except: $NIL with respect to Non- Owned Automobile Liability, Conflict of Interest and Legal Expense Reimbursement, and Voluntary Compensation; $ 1,000 with respect to Legal Liability for Damage to Hired Autos $ 5,000 with respect to Wrongful Dismissal (Legal Expense) Municipal Errors and Omissions $ 100,000 per Claim Liability Environmental Impairment Liability $ 100,000 per Claim Abuse/Molestation Liability $ 100,000 per Claim Checkroom Liability $ 5,000 per Occurrence Page 5of18 1 LT Jardine Lloyd Thompson Canada Inc. • 1. Corporation of the City of Pickering 3 Year Long Term Agreement Primary CAD 5,000,000/CAD 100,000 Deductible The policy will be renewed annually for a period of three years expiring on 01 January 2019 on the existing terms and conditions with the premiums paid annually in advance, as follows:- 01 January 2016 to 01 January 2017 CAD 325,000 (Gross) 01 January 2017 to 01 January 2018 CAD 325,000 (Gross) 01 January 2018 to 01 January 2019 CAD 325,000 (Gross) However terms and conditions may be reviewed 60 days prior to annual renewal if any of the following apply: • Pertinent changes in reinsurance cover • there is an increase of 15% or more in population numbers • there are legislative changes that may impact upon the value or frequency of claims against the policy • there is a change in the exposure of the insured (as per the business description) or; • the value of Incurred Claims exceeds 40% of net premium (excluding ENDORSEMENTS Taxes)for any one Period of Insurance to which this agreement relates. • there has been significant adverse development on historical loss record in any of the prior 7 policy years whereby Incurred Claims exceed 50% of the Net Premium. The term "Incurred Claims" means the total cost of claims including actual claim payments (including medical, legal and other costs and expenses) and reserves set by the Insurers on outstanding claims (also including such costs and expenses). "Net Premium" means the premium received by the Insurers net of tax and any commissions or other deductions. All other terms and conditions remain unaltered. 2. Checkroom Liability Endorsement—Included 3. Underground Storage Tanks -Covered 1. 1115 Finch Ave 2,295L Diesel • Storage Tanks—Excluded 1. 2570 Tillings Rd 22,700 L Diesel 2. 2570 Tillings Rd 22,700 L Diesel 3. 2570 Tillings Rd 22,700 L Diesel Page 6of18 1 A J LT Jardine Lloyd Thompson Canada Inc. POLICY FORM EK1500547000 (2015) UMR B0901 EK1500547000 INSURER(S) AND PROPORTION OF Certain Lloyd's Underwriters (Syndicate 1886)— 100% PARTICIPATION(S) CHANGES FROM Underground Storage Tanks located at 2570 Tillings Road are excluded due EXPIRING POLICY to the age of tanks. 1.Abuse & Molestation—background checks in place for employees SUBJECT TO implemented into hiring process 2. Terms will remain as indicated subject to no claims deterioration as of January 1, 2016 • Page 7 of 18 • 1 LT Jardine Lloyd Thompson Canada Inc. CANADIAN COUNCILS UMBRELLA LIABILITY $45,000,000 any one Occurrence $45,000,000 in the Annual Aggregate in respect of Products& Completed Operations LIMITS OF LIABILITY $45,000,000 in the Annual Aggregate in respect of Municipal Errors and Omissions Liability $45,000,000 in the Annual Aggregate in respect of Employee Benefits Liability EXCESS OF Underlying Coverage Underlying Limit UNDERLYING General Liability $ 5,000,000 any one Occurrence COVERAGE(S)AND Incidental Medical $ 5,000,000 any one Claim LIMIT(S) Malpractice Non-Owned Automobile $ 5,000,000 any one Occurrence Liability Municipal Errors & $ 5,000,000 any one Claim Omissions Liability Owned Automobile Liability $ 5,000,000 any one Occurrence Garage Automobile Liability $ 5,000,000 any one Occurrence Employee Benefits Liability $ 5,000,000 any one Claim RETAINED LIMIT $ Nil ENDORSEMENTS Endorsement#1 - Standard Excess Automobile Liability Policy SPF No. 7 Follow Form Named Insured POLICY FORM EK1500547000 (2015) UMR B0901 EK1500547000 INSURER(S)AND PROPORTION OF Certain Lloyd's Underwriters(Syndicate 1886)— 100% PARTICIPATION(S) SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of January 1, 2016. Page 8 of 18 LT Jardine Lloyd Thompson Canada Inc. COMBINED PHYSICAL DAMAGE & MACHINERY BREAKDOWN COVERAGE Property Of Every Description—All Risks of Direct Physical Loss or Damage (Subject to Policy Exclusions) $198,122,414 Limit of Loss on Blanket Property of Every Description including Machinery Breakdown $ 1,659,900 Computer/Electronic Data Processing LIMITS (Included in Blanket Limit) $ 2,584,500 Business Interruption—Profits (Included in Blanket Limit) $ 1,562,400 Mobile Unlicensed Equipment(Included in Blanket Limit) $ 2,180,000 Bridges (Not Included in Blanket Limit) EXTENSIONS The Limits shown below are included in the Blanket Limit shown above: OF CO VERAGE Extension .Limit Valuable Papers $ 500,000 Extra Expense $ 1,000,000 Accounts Receivable $ 500,000 Gross Rentals $ 500,000 Computer Media $ 500,000 Fine Arts(Agreed Value) $ 79,100 Ammonia Contamination $ 500,000 Water Escape $ 500,000 The Limits shown below are in addition to the Blanket Limit shown above: Extension Limit Newly Acquired Property $ 1,000,000 Buildings in the Course of Construction $ 1,000,000 Property in Transit $ 500,000 Unnamed Locations $ 1,000,000 Expediting Expense $ 500,000 Contingent Business Interruption $ 1,000,000 Fire Extinguishing.Materials and Fire $ 100,000 Fighting Expense Professional Fees $ 500,000 Hacking Event or Computer Virus attack —any one Random Attack or Any One Specific Attack, any one event or total $ 100,000 loss in a policy year for the combined total loss or damage Page 9 of 18 1 LT Jardine Lloyd Thompson Canada Inc. EXTENSIONS The Limits shown below are in addition to the Blanket Limit shown above: OF COVERAGE Extension Limit CONTINUED Master Key $ 10,000 Land and Water Pollution Clean Up $ 100,000 Expense Stock Spoilage $ 100,000 Consequential Damage $ 100,000 • Off Premises Service Interruption $ 1,000,000 Exhibition Floater $ 100,000 Hazardous Substance $ 500,000 Property of Councillors', Board $ 5,000 any one loss Members' and Employees' ($25,000 maximum annual policy limit) YEAR TWO(2)OF TWO(2)YEAR TERM RATE GUARANTEE ENDORSEMENT ENDORSEMENTS It is understood and agreed that: 1. Upon the expiry date of the policy to which this Agreement is attached, the Insurer shall submit to the Insured a statement showing loss ratio produced for the account for the 12 month period preceding the anniversary date. The rate increase on the above policy, excluding reinsurance costs, shall be held to 0% subject to the following: a. Providing the loss ratio on the account is less than or equal to 40% b. No material change in risk 2. The term "loss ratio"as used herein shall mean the ratio of losses incurred to premiums earned under all policies expressed as a percentage. 3. The term "loss occurred" as used herein shall mean actual paid losses, allocated loss adjustment expenses, legal expenses, as well as loss reserves as estimated by the Insurer for unpaid losses, including losses reported and reserved after each expiry date. The Insurer's loss runs shall be considered accurate for this purpose. Except as otherwise provided in this endorsement all limits,terms, conditions, provisions, definitions and exclusions shall have full force and effect. • Page 10 of 18 Jardine Lloyd Thompson Canada Inc. 4JLT DEDUCTIBLE(S) $ 25,000 each Occurrence for All Losses except: $ 25,000 each Flood Loss 5% of total loss or$100,000 minimum, whichever is greater, each Earthquake occurrence. $ 1,000 each Fine Arts POLICY FORM Municipal Insurance Program- Master Policy (August 15, 2014) Physical Damage: Aviva Insurance Company of Canada—70% The Sovereign General Insurance Company— 12.2% INSURER(S) AND Certain Lloyd's Underwriters- 17.8% UMR B0901EG1500025000 PROPORTION OF PARTICIPATION(S) (Participation of Lloyd's Underwriter is based on Blanket Limit and Limits in Addition to the Blanket Limit) Machinery Breakdown: Aviva Insurance Company of Canada— 100% 1.Details of any repairs/renovations to roofs over 25 years old. 2.AII cooking facilities are ULC wet chemical compliant with semi-annual maintenance contract and Class K portable extinguisher. 3. Unless specifically agreed, all heritage properties are covered for SUBJECT TO Replacement Cost only. For Heritage Replacement Cost, a professional appraisal must be provided for approval by the insurer. 4. All locations may be subject to Engineering Inspection. 5. Terms will remain as indicated subject to no claims deterioration as of January 1, 2016 • CHANGES FROM UMR No. B0901EG1500025000 EXPIRING POLICY Page 11 of 18 1 ,.� LT. - Jardine Lloyd Thompson Canada Inc. COMPREHENSIVE CRIME $ 1,000,000 Employee Dishonesty—Form A $ 200,000 Broad Form Loss of Money(Inside Premises) $ 200,000 Broad Form Loss of Money(Outside Premises) LIMITS $ 200,000 Money Orders& Counterfeit Paper Currency $ 1,000,000 Depositors Forgery $ 200,000 Professional Fees/Audit Expenses $ 200,000 Computer Fraud or Funds Transfer Fraud DEDUCTIBLE $Nil per Loss POLICY FORM Master Crime Wording (Apr. 2012) INSURER(S) AND PROPORTION OF Aviva Insurance Company of Canada— 100% PARTICIPATION(S) Important: 1. Bank Accounts NOT being reconciled by the same person(s) authorized to deposit and withdraw funds. SUBJECT TO 2. All cheque requisitions and issued cheques containing dual signatures. If the above is not part of your internal Financial controls, please provide explanation(s). 3. Terms will remain as indicated subject to no claims deterioration as of January 1, 2016 • Page 12 of 18 1 LT Jardine Lloyd Thompson Canada Inc. AUTOMOBILE INSURANCE (ONTARIO) Liability—Bodily Injury/Property Damage Limit: $5,000,000 Deductible: $10,000 Accident Benefits—Basic Benefits Limit as stated in Policy COVERAGE APPLICABLE Uninsured Automobile Limit as stated in Policy Limit as stated in Policy Direct Compensation—Property Damage Deductible: $10,000 Loss or Damage—All Perils Deductible: $10,000 Notice of Cancellation Ninety (90) Days OPCF 43R Removing Depreciation Deduction-24 Months New OPCF 20 Loss Of Use—Applicable to Forty Five (45) Light Units OPCF 21 B Blanket Fleet Endorsement—No Annual Adjustment OPCF 31 Non-Owned Equipment OPCF 24 Freezing of Fire-Fighting Apparatus OPCF 44 Family Protection Endorsement: (Applicable only to Private Passenger Vehicles, Light Commercial Vehicles, ENDORSEMENTS Skidoos and All Terrain Vehicles, and Police Vehicles) • Additional Endorsements: OPCF 3 Drive Government Automobiles OPCF 4A Permission to Carry Explosives • OPCF 4B Permission to Carry Radioactive Material OPCF 5 Permission to Rent or Lease OPCF 32 Use of Recreational Vehicles by Unlicensed Drivers Tarmac Exclusion POLICY FORM Provincial Statutory Owner's Policy INSURER(S) AND PROPORTION OF Aviva Insurance Company of Canada— 100% PARTICIPATION(S) SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of January 1, 2016. Page 13 of 18 1 LT Jardine Lloyd Thompson Canada Inc. GARAGE AUTOMOBILE (ONTARIO) Section 1 $5,000,000 Third Party Liability Inclusive Limit Section 2 Accident Benefits—Included Section 3 Uninsured Automobile— Included Section 4 Direct Compensation Property Damage— Included LIMITS OF Section 5 Liability Damage to Customer's Automobile COVERAGE Collision— Limit any One Automobile $200,000 Deductible: $500 Specified Perils —Limit of Liability-Any One Occurrence $300,000 Deductible: $500 OEF 71 Excluding Owned Automobiles Endorsement ENDORSEMENTS OEF 77 Comprehensive Damage to Customer's Automobiles including Open Lot Theft OEF 81 Garage Family Protection Endorsement POLICY FORM Provincial Statutory Garage Automobile Policy OAP 4 INSURER(S) AND PROPORTION OF Aviva Insurance Company of Canada— 100% PARTICIPATION(S) SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of January 1, 2016 Page 14 of 18 1 LT Jardine Lloyd Thompson Canada Inc. COUNCILLORS' ACCIDENT COVERAGE LIMITS OF $ 250,000 Principal Sum COVERAGE INCLUDED Number of Councillors: Seventeen (17) Persons COVERAGE 24 Hour Coverage POLICY FORM Insurer's Standard Form INSURER(S)AND PROPORTION OF AIG Insurance Company of Canada— 100% PARTICIPATION(S) $2,500,000 Aggregate Limit of Indemnity Per Accident SUBJECT TO Terms will remain as indicated subject to no claims deterioration as of January 1, 2016 Page 15 of 18 LT Jardine Lloyd Thompson Canada Inc. RISK MANAGEMENT ELECTED OFFICIAL, DIRECTORS AND Included DEPARTMENTAL SEMINARS AUTOMOBILE Risk and Driver Assessment included FLEET SERVICES PREMIUM SUMMARY TOTAL ANNUAL PREMIUM $644,074 plus any applicable provincial sales tax (OPTIONS NOT INCLUDED) Page 16 of 18 4JLT Jardine Lloyd Thompson Canada Inc. MUNICIPAL OPTIONS Comprehensive Increase Deductible from $25,000 to $50,000— Return Premium $9,507 Property, Boiler and Increase Deductible from $25,000 to$100,000—Return Premium $18,184 Machinery Automobile Increase Deductible from $10,000 to $25,000— Return Premium: $3,684 Based on Seventeen (17) Persons—under the age of 80 Out of Province —Annual Additional $1,020 Emergency Medical To increase the Trip Duration from 15 days to 30 days —Annual Additional $1,190 Public Entity Based on Seventeen (17) Persons—age 69 or less Recovery Assistance $5,000 limit—Annual Additional $1,856 Plan (Critical Illness) $10,000 limit—Annual Additional $2,902 RISC SYSTEMS Installation of JLT Canada software solutions Annual Additional $2,500 DisasterPhone Enrolment in telecommunication disaster recovery service— Annual Additional $3,000 Page 17 of 18 1 J LT Jardine Lloyd Thompson Canada Inc. ACCEPTANCE OF MUNICIPAL INSURANCE PROGRAM PROPOSAL To: Jardine Lloyd Thompson Canada Public Sector Division Suite 800, 55 University Avenue Toronto, Ontario M5J 2H7 Telephone: 416-941-9551 or Toll Free 1-800-268-9189 Fax: 416-941-9323 Policy Term (mm/dd/yy): January 1, 2016 to January 1, 2017 We agree with the underwriting and claims information submitted and to the terms quoted in the Municipal Insurance Program proposal. This is your authority to proceed with binding cover(s) as outlined in the Municipal Insurance Proposal effective the date(s) noted above. We have also noted below our choice of any optional items in the Insurance Proposal as well as any specific instructions. Indicated below are our instructions regarding any optional coverages shown in the insurance proposal. Optional Coverages/Specific Instructions: Signed on Behalf of the Corporation of the Town of Pickering Authorized Signature Date Please print the name of the person signing above Page 18 of 18