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HomeMy WebLinkAboutFIN 27-17DICKERING Report to Executive Committee Report Number: FIN 27-17 Date: December 4, 2017 From: Stan Karwowski Director, Finance & Treasurer Subject: Insurance Renewal — January 1, 2018 to December 31, 2018 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, 2018 to December 31, 2018 in the amount of $558,615 (plus applicable taxes) and inclusive of terms and conditions acceptable to the Director, 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 further one year renewal terms, 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 Director, 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 Director, 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 City of Pickering officials be authorized to take the necessary actions as indicated in this report. 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 27-17 December 4, 2017 Subject: Insurance Renewal —January 1, 2018 to December 31, 2018 Page 2 In general, insurance premiums have historically reflected an upward direction in costs. In 2013, the City's insurance premium peaked at $771,448 (plus applicable taxes). Since this time, the City's insurance premiums have steadily fallen due to successful City risk management practices and favorable claims experience. These significantly lower premiums have resulted in a total savings of $770,000 to the City over the 2013 premium peak. Financial Implications: The insurance renewal premium will be provided for in the City's 2018 current budget to be approved by Council. The insurance premium for 2018 is $558,615 (plus applicable taxes) which is 7.3% less than last year's premium of $602,367. 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 $207 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 favor 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 - Councillors' and Board Members' Accident - Conflict of Interest - Garage Automobile FIN 27-17 December 4, 2017 Subject: Insurance Renewal — January 1, 2018 to December 31, 2018 Page 3 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. With respect to auto accidents in which the City is not at fault, there is no deductible. The City's property coverage has a $25,000 deductible. 2018 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 {B fore App=_cabie :axes 2011-2018 $800,000 S$50300 $600,000 $550,0.E0 562:9 v� v 5705 $771,448 S643.632 2011 2012 2013 2014 $642,55S fze39,415 2015 .moi 2.; 36 7 58.615 2016 2017 2018 As the above chart illustrates, the City's proposed 2018 insurance premium is fess than the City's insurance costs in 2011. In other words, City staff have turned the clock back to 2011 (seven years) as it relates to the insurance premium cost. The significantly lower premiums translates into a total savings of $770,000 over the 2013 premium peak. To facilitate an "apples to apples" cost comparison between 2011 and 2018, the $558,615 premium adjusted to 2011 dollars would be $486,000. FIN 27-17 •December 4, 2017 Subject: Insurance Renewal — January 1, 2018 to December 31, 2018 Page 4 In addition, the value of the City's insured capital assets have increased from $182 million in 2011 to $207 million in 2017. Although the value of these assets increased by 13.7% during this period, the City's annual insurance costs have decreased by 20% since 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 2018, which is 7.3% 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, 2018 to December 31, 2018 in the amount of $558,615 (plus applicable taxes). Attachments: 1. Summary of Coverage, Limits and Deductibles Prepared By: 4 James Halsall, CPA, CA Manager, Budgets & Internal Audit Approved/Endorsed By: Stan Karwowski, MBA, CPA, CMA Director, Finance & Treasurer Recommended for the consideration of Pickering City Council Tony Prevede[, P.Eng. Chief Administrative Officer 14 2017 Jardine Lloyd Thompson Canada Inc. ATTACHMENT J TO REPORT #�r►�. JLT Public Sector Division Box 3, Suite 1200, 55 University Avenue, Toronto, ON M5J 2H7 Phone: 416 941 9551 Toll Free: 800 268 9189 Fax: 416 941 9022 MUNICIPAL INSURANCE PROGRAM PROPOSAL Corporation of the City of Pickering Date of issue: September 28, 2017 Prepared by: Andrea Bartels Direct phone line: 416-644-4826 E-mail address: @jltcanada.com Page 1 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT 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. Page 2 of 19 Jardine Lloyd Thompson Canada Inc. JLT 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 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 19 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, 2018 to January 1, 2019 12:01 a.m. local time at the mailing address of the Named Insured CANADIAN COUNCILS LI ABI LI TY LIMIT OF LIABILITY EXTENSIONS OF COVERAGE General Liability (including Sudden And Accidental Pollution): Extension Employers' Liability Tenant Legal Liability Employee Benefit Liability Incidental Medical Malpractice Retro Date: November 15, 1993 Voluntary Medical Payments Forest Fire Fighting Expense Voluntary Payment for Property Damage Incidental Garage Operations Municipal Marina Legal Liability $ 5,000,000 any one Occurrence and in the Annual Aggregate for Products and Completed Operations during the Policy Period Limit $ 5,000,000 any one Claim $ 5,000,000 any one Occurrence $ 5,000,000 any one Claim $ 5,000,000 any one Claim $ 50,000 any one Claim and in the Annual Aggregate during the Policy Period $ 2,000,000 any one Occurrence and in the Annual Aggregate during the Policy Period $ 50,000 any one Occurrence and in the Annual Aggregate during the Policy Period $ 250,000 any one Occurrence and in the Annual Aggregate during the Policy Period $ 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 Expense) $ 500,000 any one Claim and in the Annual Aggregate during the Policy Period Conflict of Interest Reimbursement Expenses $ 100,000 any one Claim Legal Expense Reimbursement Expenses $ 100,000 any one Claim $ 500,000 in the Annual Aggregate Page 4 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT CANADIAN COUNCILS LIABILITY ENDORSEMENTS Non -Owned Automobile (including Contractual Liability for Hired Autos) Legal Liability for Damage to Hired Autos Wrap-up Liability — Difference in Conditions and Difference in Limits Endorsement Municipal Errors and Omissions Liability Retroactive Date: Unlimited Environmental Impairment Liability Retroactive Date: Unlimited Abuse / Molestation Liability Retroactive Date: January 1, 2014 Voluntary Compensation Police Officer Assault Applicable Coverage Public Entity General Liability Extensions of Coverage $ 5,000,000 any one Occurrence $ 250,000 any one Occurrence $ 5,000,000 any one Occurrence Limit Municipal Errors and Omissions Liability Environmental Impairment Liability Abuse / Molestation Liability Police Officer Assault Checkroom Liability $ 5,000,000 any one Claim and in the Annual Aggregate during the Policy Period $ 2,500,000 any one Claim and $ 5,000,000 in the Annual Aggregate during the Policy Period $ 250,000 any one Claim and $ 500,000 in the Annual Aggregate during the Policy Period As per Endorsement No. 4 — Schedule of Benefits $ 5,000,000 any one Occurrence Deductible $ 100,000 per Occurrence except per Claimant in respect of Sewer Backup $ 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) $ 100,000 per Claim $ 100,000 per Claim $ 100,000 per Claim $ 100,000 per Occurrence $ 5,000 per Claim Page 5 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT CANADIAN COUNCILS LIABILITY POLICY FORM 3 Year Long Term Agreement Primary CAD 5,000,0001 CAD 100,000 Deductible The policy will be renewed annually for a period of three years expiring on 01 January 2020 on the existing terms and conditions with the premiums paid annually in advance, as follows: - 01 January 2017 to 01 January 2018 01 January 2018 to 01 January 2019 01 January 2019 to 01 January 2020 CAD 292,000 (Gross) CAD 263,250 (Gross) CAD 263,250 (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 Taxes) for any one Period of Insurance to which this agreement relates. • there has been significant adverse development on historical Toss 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. EK1601219000 (2016) UMR B0901EK1701869000 INSURER(S) AND PROPORTION OF PARTICIPATION(S); Certain Lloyd's Underwriters (Syndicate 1886) — 100% Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 Page 6 of 19 Jardine Lloyd Thompson Canada Inc. JLT CANADIAN COUNCILS UMBRELLA LIABILITY LIMITS OF LIABILITY. $ 45,000,000 $ 45, 000, 000 $ 45,000,000 any one Occurrence in the Annual Aggregate in Operations in the Annual Aggregate in Omissions Liability $ 45,000,000 in the Annual Aggregate in Liability respect of Products & Completed respect of Municipal Errors and respect of Employee Benefits EXCESS :OF UNDERLYING COVERAGE(S) AND LIMIT(S) Underlying Coverage Underlying Limit General Liability $ 5,000,000 any one Occurrence Incidental Medical Malpractice $ 5,000,000 any one Claim Non -Owned Automobile Liability $ 5,000,000 any one Occurrence Municipal Errors & Omissions Liability $ 5,000,000 any one Claim Owned Automobile Liability Garage Automobile Liability $ 5,000,000 any one Occurrence $ 5,000,000 any one Occurrence Employee Benefits Liability $ 5,000,000 any one Claim RETAINED LIMIT $ Nil POLICY FORM Endorsement #1 - Standard Excess Automobile Liability Policy SPF No. 7 Follow Form Named Insured EK1601216000 (2016) UMR B0901EK1701885000 INSURER(S) AND PROPORTION OF PARTICIPATION(S) Certain Lloyd's Underwriters (Syndicate 1886) —100% Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 Page 7 of 19 Jardine Lloyd Thompson Canada Inc. JLT COMBINED PHYSICAL DA• IAGE & MACHINERY BREAKDOWN COVERAGE Property Of Every Description — All Risks of Direct Physical Loss or Damage (Subject to Policy Exclusions) $207,153,882 Limit of Loss on Blanket Property of Every Description including Machinery Breakdown $ 1,659,900 Computer / Electronic Data Processing (Included in Blanket Limit) $ 2,584,500 Business Interruption — Profits (Included in Blanket Limit) $ 2,633,327 Bridges (Not Included in Blanket Limit) EXTENSIONS OF COVERAGE The Limits shown below are included in the Blanket Limit shown above:'. Extension Valuable Papers Extra Expense Accounts Receivable Gross Rentals Computer Media Limit $ 500,000. $ 1,000,000 $ 500,000 $ 500,000 $ 500,000 Fine Arts (Agreed Value) $ 25,000 he Limits shown below are in additionto the Blanket Limit shown above: Extension Newly Acquired Property Buildings in the Course of Construction Property in Transit Unnamed Locations Expediting Expense .-Limit ! $ 1,000,000 $ 1,000,000 $ 500,000 $ 1,000,000 $ 500,000 Business Interruption — Profits Contingent Business Interruption Fire Extinguishing Materials and Fire Fighting Expense Professional Fees Hacking Event or Computer Virus attack — any one Random Attack or Any One Specific Attack, any one event or total loss in a policy year for the combined total loss or damage $ 300,000 subject to Maximum of $25,000 per Month $ 1,000,000 $ 100,000 $ 500,000 $ 100,000 EXTENSIONS OF COVERAGE The Limits shown below are in addition to the Blanket Limit shown above: Extension Limit Master Key $ 10,000 Page 8 of 19 Jardine Lloyd Thompson Canada Inc. JLT COMBINED PHYSICAL DAMAGE & MACHINERY BREAKDOWN. ENDORSEMENTS INSURER(S) AND PROPORTION OF PARTICIPATION(S) Land and Water Pollution Clean Up Expense Stock Spoilage $ 100,000 $ 100,000 Consequential Damage $ 100,000 Off Premises Service Interruption $ 1,000,000 Exhibition Floater Ammonia Contamination Water Escape Hazardous Substance Property of Councillors', Board Members' and Employees' $ 100,000 $ 500,000 $ 500,000 $ 500,000 $ 5,000 any one loss ($25,000 maximum annual policy limit) Automobile Replacement Cost Deficiency Endorsement $ 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 Loss Municipal Insurance Program - Master Policy (February 1, 2017) Physical Damage: Aviva Insurance Company of Canada — 70% The Sovereign General Insurance Company — 30% Machinery Breakdown: Aviva Insurance Company of Canada — 100% Page 9 of 19 Jardine Lloyd Thompson Canada Inc. JLT SUBJECT TO CHANGESFROM' EXPIRING POLICY 1, All cooking facilities are ULC wet chemical compliant with semi-annual maintenance contract and Class K portable extinguisher. 2. Unless specifically agreed, all heritage properties are covered for Replacement Cost only. For Heritage Replacement Cost, a professional appraisal must be provided for approval by the insurer. 3. All locations may be subject to Engineering Inspection. 4. Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 1. Certain Lloyd's Underwriters — 17.8% is removed as an insurer. 2. Insurer participation of the Sovereign General Insurance Company is increased from 12.2% to 30.0%. Page 10 of 19 Jardine Lloyd Thompson Canada Inc. JLT COMPREHENSIVE CRIME POLICY FORM $ 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) $ 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 $Ni1 per Loss Master Crime Wording (Apr. 2012) 1NS,URER(S) AND PROPORTION OF PARTICIPATIONS) Aviva Insurance Company of Canada — 100% Important: 1. Bank Accounts NOT being reconciled by the same person(s) authorized to deposit and withdraw funds. 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, 2018 Page 11 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT COVERAGE.` APPLICABLE Liability Bodily Injury / Property Damage Limit: $5,000,000 Deductible: $ Nil Accident Benefits - Basic Benefits Uninsured Automobile Limit as stated in Policy Limit as stated in Policy Direct Compensation;; Property Damage Limit as stated in Policy Deductible: $ Nil Loss or Damage — All Perils Notice of Cancellation Ninety (90) Days Deductible: $ 10,000 OPCF 43R Removing Depreciation Deduction- 24 Months New OPCF 20 Loss Of Use — Applicable to Light Units OPCF 21B 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, 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 PARTICIPATION(S) Aviva Insurance Company of Canada — 100% Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 Page 12 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT GARAGE AUTOMOBILE (ONTARIO) LIMITS OF COVERAGE ENDORSEMENTS POLICY FORM 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 Section 5 Liability Damage to Customer's Automobile 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 OEF 77 Comprehensive Damage to Customer's Automobiles including Open Lot Theft OEF 81 Garage Family Protection Endorsement Provincial Statutory Garage Automobile Policy OAP 4 INSURER(S) AND. PROPORTION OF PARTICIPATION(S) Aviva Insurance Company of Canada -- 100% SUBJECT Terms will remain as indicated subject to no claims deterioration as of effective date January 1, 2018 Page 13 of 19 Jardine Lloyd Thompson Canada Inc. JLT COUNCILLORS' ACCIDENT COVERAGE LIMITS OF COVERAGE INCLUDED COVERAGE POLICY FORM INSURERS) AND PROPORTION OF: PARTICIPATION(S) ;:` $ 250,000 Principal Sum Number of Councillors: Seventeen (17) 24 Hour Coverage Insurer's Standard Form AIG Insurance Company of Canada — 100% 1. $2,500,000 Aggregate Limit of Indemnity Per Accident 2. Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 Page 14 of 19 Jardine Lloyd Thompson Canada Inc. JLT MUNICIPA VOLUNTEERS ACCIDENT COVERAGE. LIMITS OF. COVERAGE POLICY FORM $ 50,000 Principal Sum — Volunteers of the Policyholder While on Duty Only under the age of 80 Insurers Standard Form INSURER(S) AND PROPORTION OF ,. PARTICIPATION(S) AIG Insurance Company of Canada - 100% 1. $1,000,000 Aggregate Limit of Indemnity Per Accident 2. Terms will remain as indicated subject to no claims deterioration as of January 1, 2018 Page 15 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT RISK MANAGEMENT ELECTED OFFICIAL, DIRECTORS AND DEPARTMENTAL SEMINARS Included AUTOMOBILE FLEET SERVICES Risk and Driver Assessment included PREMIUM SUMMARY TOTAL ANNUAL PREMIUM (OPTIONS NOT INCLUDED) $558,615 plus any applicable provincial sales tax Page 16 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT MUNICIPAL OPTIONS Automobile Insurance Out of Province Emergency Medical To Add Limit $2,500 / Daily Maximum $1,500 Loss of Use to Forty -One (41) heavy commercial vehicles over 4,500 kgs, excluding Public Emergency Vehicles ie: Fire, Ambulance and Police, and Transit Vehicles —Annual Additional $12,300 Additional Limits available in $500 increments up to a maximum of $10,500 — Quotation available upon request. Accident Benefits: OPTION A. Medical & Rehabilitation (Non -Catastrophic) increase Limit $130,000 - Annual Additional $830 OPTION B. Catastrophic Injury -- Med Rehab and Attendant Care increase Limit from $1,000,000 to $2,000,000 - Annual Additional $578 OPTION C. Medical Rehab and Attendant Care increase Limit from $1,000,000 to $2,000,000 - Annual Additional $1,660 Caregiver Benefit Limit up to $250 per week plus $50 each additional dependant - Housekeeping and Home Maintenance — Limit up to $100 per week up to 2 Years - Non -Catastrophic impairment -Annual Additional $1,858 Income Replacement Limit (choose amount) $6001$8001$1,000 Annual Additional $8,9601$17,9201$26,880 Death and Funeral Benefits $50,000 Lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 for funeral benefits - Annual Additional $1,920 Dependant Care up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum $150 per week Annual Additional $3,200 Indexation Benefit — Annual Adjustment according to the Consumer Price Index for Canada - Annual Additional $7,680 Added Coverage to Offset Tort Deductible — OPCF 48 Total Annual Additional Premium — $1,536 Based on Seventeen (17) Members — under the age of 80 — Annual Additional $1,020 To increase the Trip Duration from 15 days to 30 days — Annual Additional $1,190 Page 17 of 19 Jardine Lloyd Thompson Canada Inc. 4 JLT MUNICIPAL OPTIONS Public Entity Recovery Assistance; Plan (Critical Illness) Based on Seventeen (17) of Members — age 69 or Tess $5,000 limit —Annual Additional $1,856 $10,000 limit — Annual Additional $2,903 Page 18 of 19 Jardine Lloyd Thompson Canada Inc. To: 4JLT ACCEPTANCE OF MUNICIPAL INSURANCE PROGRAM PROPOSAL Jardine Lloyd Thompson Canada Public Sector Division Suite 1200, 55 University Avenue Toronto, Ontario M5J 2H7 Telephone: 416-941-9551 or Toll Free 1-800-268-9189 Fax: 416-941-9022 Policy Term (mmlddlyy): January 1, 2018 to January 1, 2019 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 Corporation of the Corporation of the City of Pickering Authorized Signature Date Please print the name of the person signing above Page 19 of 19