HomeMy WebLinkAbout2000-04-24 City Council (9)City of Palo Alto
City Manager’s Report
4
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE:
SUBJECT:
APRIL 24, 2000 CMR:220:00
APPROVAL OF CONTRACT WITH COMPSYCH CORPORATION
(COMPSYCH) IN THE AMOUNT OF $99,000 FOR THE CITY OF
PALO ALTO’S EMPLOYEE ASSISTANCE PLAN
RECOMMENDATION
Staff recommends that Council:
Approve and authorize the-Mayor to execute the attached contract with
ComPsych Corporation (ComPsych) in the amount of $99,000 to provide
Employee Assistance Plan services. The initial contract value will be $33,000
for the first year.
o Authorize the City Manager or his designee to renew the contract for the
second and third years, provided ComPsych is responsive to the City’s needs,
and the quality of its services is acceptable during the first and subsequent
years of the contract.
DISCUSSION
Project Description
The work to be performed under this contract is for Employee Assistance Plan (EAP)
services. The City has provided employees and their dependents with EAP benefits since
1982. Existing agreements with City employee bargaining units provide for maintaining
benefits to assist employees in dealing with many types of problems, including personal
counseling, work and family issues, stress, childcare issues, eldercare, substance abuse, etc.
The EAP is designed to promote the well being and welfare of City employees and their
families, and thereby support on the job productivity. The current EAP provider is Managed
Health Network (MHN). MHN’s contract with the City will expire on April 30, 2000.
CMR:220:00 Page 1 of 3
Selection Process
Staff prepared and sent a proposal to 13 providers on February 6, 2000. The proposal period
was 35 days. Five providers submitted proposals: Assist U, ComPsych Corporation
(ComPsych), Concern, Managed Health Network (MHN) and United Behavioral Health.
The proposals ranged from $27,324 to $59,400 annually. The providers not responding
indicated that they did not submit a proposal because they felt they would not be competitive
or were not interested.
A selection advisory committee consisting of Human Resources staff and employee
bargaining group representatives reviewed the proposals. Two firms were selected as
finalists and invited to participate in oral interviews: MHN, the current provider, and
ComPsych. The committee carefully reviewed each provider’s.qualifications relative to the
following criteria:
¯Types of services offered
¯Quality of services offered
¯Customer service capability
¯Statistical reports
¯Communication materials
¯Internet technology
¯Costs
ComPsych was selected unanimously because it demonstrated the ability to provide
enhanced services for the cu,rrent EAP programs as well as several creative and innovative
services. Financial and legal assistance services will be unlimited, Masters Degree level
intake counselors will answer all telephone calls and will be able to offer immediate
assistance for employees and dependents and an internet web site will be available to
employees and families 24 hours a day to support life issues or concerns. ComPysch will
also provide improved communication materials and improved statistical reports to the City.
RESOURCE IMPACT
Plan costs of $33,000 per-year will be guaranteed for three years. Funding for the plan is
available in the current and proposed budget in the General Benefits and Insurance Service
Fund.
POLICY IMPLICATIONS
This request does not represent a change in existing policies.
ENVIRONMENTAL REVIEW
CMR:220:00 Page 2 of 3
This is not a project under the California Environmental Quality Act.
ATTACHMENTS
Attachment A: Contract with ComPsych Corporation
PREPARED BY: Leonard Zucker, Manager of Employee Benefits
DEPARTMENT HEAD:
JAY C S
Director of Human Resources
CITY MANAGER AP
HARRISON
Assistant City Manager
CMR:220:00 Page 3 of 3
AGREEMENT
THIS AGREEMENT is made and entered into this __ day of April, 2000, by and
between COMPSYCH CORPORATION, an Illinois corporation ("ComPsych"), and CITY
OF PALO ALTO, a chartered municipal corporation of the State of California ("Client").
RECITALS
WHEREAS, ComPsych is engaged in the business of providing employee assistance
programs (an "EAP") to employers; and
WHEREAS, pursuant to an EAP, ComPsych provides those services described on
Schedule I attached hereto (the "Services") to employees of client companies and/or their
respective spouses and dependents who, from time to time, participate in an EAP
("Participants"); and
WHEREAS, Client desires to engage ComPsych, and ComPsych desires to be engaged
by Client, to provide an EAP to Client (the "Client EAP") pursuant to which ComPsych shall
provide the Services to Client and Participants in the Client EAP,,on the terms and conditions set
forth herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:
1. Services: Throughout the Term (as defined below), ComPsych will provide to Client an
EAP pursuant to which ComPsych will perform the Services for Client and Participants in the
Client EAP, as indicated in Schedule I.
2. Fees:
(a) Throughout the Term, Client will pay a base fee per employee per month to
ComPsych as indicated in Schedule II. The first (lst) monthly fee shall be due and payable
on or before the Commencement Date (as defined below). Subsequent fees shall be due and
payable on or before each one (1) month anniversary of the Commencement Date throughout
the Term. Fees will be fixed for a period of three (3) years.
(b) In the event that any payment due ComPsych hereunder is not received by ComPsych
from Client when due, a delinquency charge shall be assessed on each installment assessed in
default for not less than thirty days in an amount not to exceed one and one half percent
(1 V2 %) for each month the installment remains unpaid or the maximum amount allowed by
law, in addition to attorney’s fees and other costs and expenses incurred by ComPsych to
collect any amounts due hereunder.NBC Tower ¯ 24th Floor
455 N. Cityfront Plaza Drive ¯ Chicago, 111inois 60611-5322
telephone 312-595-4000 ¯fax" 312÷595-4029
u~bsite www.compsych.com
3. Term: The term of this Agreement shall be for a period of one (1) year
(the "Initial Term") commencing on May 1, 2000 (the "Commencement Date") and ending on
April 30, 2001. Following the expiration of the Initial Term, this Agreement shall automatically
renew for successive two (2) year periods (each a "Renewal Term"), unless either party shall
deliver to the other party written notice of non-renewal not less than sixty (60) days prior to the
expiration of the Initial Term or the applicable Renewal Term. The Initial Term and any and all
Renewal Terms are sometimes collectively referred to herein as the "Term".
This Contract is subject to the fiscal provisions of the Charter of the City of Palo Alto and the
Palo Alto Municipal Code. This Contract will terminate without any penalty at the end of any
fiscal year in the event that funds are not appropriated for the following fiscal year for the
services under this Agreement. This section shall take precedence in the event of a conflict with
any other covenant, term, condition or provision of this Contract.
4. Responsibility and Authority: It is agreed and acknowledged that:
(a) ComPsych shall have no responsibility or liability whatsoever to Client, any
Participant or any other person, firm, corporation or entity for any of the following:
(i) .Verification of any participant’s entitlement to group medical/health plan coverage or
insurance reimbursement;
(ii) Payment of any participant’s bills, debts, obligations or other liabilities of any kind
relating to any treatment or confinement (except as specified in any of the Schedules
attached hereto), or payment of any treatment not expressly provided for in this
Agreement.
(iii) Any employment related decisions made by Client, including, without limitation,
hiring, terminations, and employee accommodations made pursuant to the Americans
with Disabilities Act.
(b) ComPsych shall have no responsibility or liability whatsoever for the accuracy,
completeness, propriety, necessity or advisability of the information which is provided to
ComPsych by or from third parties, including, without limitation, hospitals, alternative
facilities, treatment providers and practitioners.
(c) Client, in conjunction with its claims administrator, shall retain all final authority for
benefit determination under any and all applicable insurance and claim administration
contracts.
5. Statistical Reports: ComPsych will furnish statistical management reports to Client which
reflect the Services being rendered, as described in Schedule I.
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6. Proprietary Rights: Client shall not, during the term of this Agreement, or at any time
thereafter, disclose to any person, firm, corporation or other entity any information concerning
the business or affairs of ComPsych, except as may be subject to disclosure as a public document
under the California Public Records Act, or as may be ordered disclosed by court order. All
rights, title and interest to the work product developed or produced under this Agreement are the
sole property of ComPsych. Client covenants and agrees that it shall not knowingly, either
directly or indirectly, in any way during the Term and for a period of three (3) years thereafter,
solicit, attempt to solicit, or hire for employment or engage any person who is or was an
employee or agent of ComPsych during the Term.
7. Confidentiality: ComPsych and Client acknowledge and agree that all information obtained
or prepared by ComPsych in connection with this Agreement concerning individual Participants
is confidential. No such information shall be disclosed except when disclosure is required by
legal mandate or by express written consent of the Participant.
8. Dissemination of Information: Client covenants and agrees that any and all
communications disseminated by Client to Participants regarding the Client EAP or the Services
to be rendered by ComPsych hereunder shall: (a) if written, be subject to ComPsych’s prior
written approval, which approval shall not be unreasonably withheld; and (b) if oral, accurately
reflect the. terms hereof and comply with such guidelines as may be established, from time to
time, by ComPsych.
9. Representations and Warranties: ComPsych and Client each represent, and warrant to the
other that:
(a) such party is a duly organized and validly existing corporation in good standing under
the laws of its state of incorporation;
(b) the execution and delivery of this Agreement by such party and its performance of its
obligations hereunder have been duly authorized by all appropriate and requisite corporate
action;
(c) this Agreement is binding upon such party and enforceable against such party in
accordance with its terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws.
10. Indemnification: ComPsych agrees to indemnify, defend and hold harmless Client and its
Council Members, officers and employees from and against any and all loss, damage, claim or
liability (including without limitation, reasonable attorney’s fees) incurred by Client which arise
out of ComPsych’s negligent acts, errors or omissions, in performing under this Contract.
11. Insurance: CorfiPsych shall maintain insurance as set forth on the Certificate of Insurance
attached hereto as Exhibit 1. Such insurance will contain an endorsement stating that the
insurance is primary coverage (with respect to services provided by ComPsych) and will not be
canceled or altered by the insurer except after filing with Client’s city clerk thirty (30) days’ prior
written notice of such cancellation or alteration. The City of Palo Alto will be named as an
additional insured on such insurance.
12. Workers’ Compensation: ComPsych, by executing this Contract, certifies that it is insured
against liability for workers’ compensation.
13. Assignment: This contract is for the personal services of ComPsych, therefore, ComPsych
will not assign, transfer, convey or otherwise dispose of this Contract, any right, title or interest
in or to the same or any part thereof without the prior written consent of Client, which consent
shall not be unreasonably withheld, provided, that ComPsych shall have the right to sell, transfer,
convey or assign this agreement to any successor, subsidiary, parent or affiliate of ComPsych and
such assignee shall acquire all of the rights, duties and obligations of ComPsych set forth herein.
A consent to one assignment will not be deemed to be a consent to any subsequent assignment.
Any assignment made without the approval of the City Manager will be void and, at the option of
the City Manager, this Contract may be terminated. This Contract will not be assignable by
operation of law.
14. Nondiscrimination: ComPsych, as a supplier of services to the City of Palo Alto, certifies
that it does not discriminate in employment with regards to age, race, color, religion, sex,
national origin, ancestry, disability, or sexual preference and that it is in compliance with all
Federal, State and local directives and executive orders regarding nondiscrimination in
employment.
ComPsych agrees that each contract for services with an independent provider will contain a
provision substantially as follows:
"Provider will provide ComPsych with a certificate stating that Provider is
currently in compliance with all Federal and State of California laws coveting
nondiscrimination in employment; and that P~ovider will not discriminate in the
employment of any person under this contract because of the age, race, color,
national origin, ancestry, religion, disability, sexual preference or gender of such
person."
15. Force Majeure: No failure, delay or default in performance of any obligation of a Party to
this Agreement shall constitute an event of default or breach of the Agreement to the extent that
such failure to perform, delay or default arises out of a cause, existing or future, that is beyond
the control and without negligence of such Party, including, but not limited to: action or inaction
of governmental, civil or military authority; fire, strike, lockout or other labor dispute; flood, war;
riot; theft; earthquake and other natural disaster.
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16. Exclusivity: During the term of this Agreement, Client warrants that ComPsych shall be the
exclusive provider of the services under this Agreement to Client’s employees.
17. Relationship of the Parties: ComPsych and Client agree that ComPsych shall be an
independent contractor and neither party nor their respective employees or agents shall be
deemed to be an employee of the other, nor shall this Agreement be deemed to create a
partnership, joint venture or other association between the parties hereto.
18. Notices: Any notice required hereunder will not be effective, unless in writing, signed by an
authorized officer of the party delivering such notice, and sent by certified or registered mail to
the address indicated below. Notices shall be effective only when received.
ComPsych Corporation
NBC Tower
455 N. Cityfront Plaza Drive
24th Floor
Chicago, IL 60611-5506
Attn:Dr. Richard A. Chaifetz
President and CEO
City of Palo Alto
250 Hamilton Ave.
P.O. Box 10250
Palo Alto, CA 94303
Attn: Employee Benefits Manager
19. Governing Law: This Agreement shall be interpreted under and governed by the laws of the
State of Illinois, without regard to its conflict of laws rules. Any court proceedings shall take
place in Santa Clara County, California, unless the parties agree otherwise.
20. Severability: If any provision of this Agreement or the application thereof to any party or
circumstance is held to be invalid, such invalidity shall not affect the other provisions or
applications of the Agreement which can be given effect without the invalid provision or
application, and to this end the provisions of this Agreement are severable.
21. Schedules Attached and Incorporated into Agreement: The Schedules attached to this
Agreement are incorporated herein, in their entirety, by this reference.
22. Entire Agreement: This Agreement, together with the Schedules attached hereto, shall
constitute the entire Agreement by and between the parties with respect to the subject matter
hereof. There are no promises, terms, conditions, or obligations other than those contained
herein and, this Agreement shall supersede all prior and contemporaneous communications,
representations or agreements, either verbal or written, by and between the parties hereto, all of
which are merged herein. This Agreement may not be modified or rescinded except pursuant to
a written instrument signed by the party against whom enforcement is sought.
5
23. Clause Headings: The clause headings appearing in this Agreement have been inserted for
the purpose of convenience and ready reference. They do not purport to, and shall not be deemed
to, define, limit or extend the scope or intent of the clauses to which they appertain.
24. Facsimile: Facsimile transmission of an executed copy of this Agreement or any
amendments hereto shall be accepted as evidence of a party’s execution of the Agreement or
amendment.
25. Changes, Additions or Deletions: Any changes, additions, or deletions to this Agreement
will not be considered binding or agreed to unless the modifications have been initialed or
otherwise approved in writing by the other party.
26. Recovery of Fees: The prevailing party in any action brought to enforce the provisions of
this Contract may recover its reasonable costs and attorneys’ fees expended in connection with
that action.
27. Dispute Resolution: ComPsych and Client shall attempt to resolve c6nflicts or disputes
under this Contract in a fair and reasonable manner and agree that if resolution cannot be made to
attempt to mediate the conflict by a professional mediator (except for payment disputes which
may be submitted directly to arbitration). If mediation does not settle any dispute or action which
arises under this Contract or which relates in any way to this Contract or the subject matter of this
Contract, it shall be subject to arbitration under the rules governing commercial arbitration as
promulgated by the American Arbitration Association and arbitrability shall be subject to the
Federal Arbitration Act. Any arbitration proceeding shall take place in Santa Clara County,
California unless the parties agree otherwise.
IN WITNESS WtIEREOF, the parties have executed this Agreement as of the day and
year first above written.
COMPSY~RATIONBy: ~
Dr. Richard A. Chaifetz
President and CEO
By:
Chief Financial Officer
Tax I.D.: 36-3739783
CLIENT
By:
Title:
(Civil Code ~ 1189)
Notary Public In~and for said County and State, personally appeared
, perso~ally known to
me or provsd, t~ me o~’ t~e basis of sat~s£actory, e~l~nce ~o be
person[s) whose name(s) ~s/are subscribed to the wi~hi~ instrument
and acknowledged to me that he/she/they executed the same in
his/her/~heir authorized capacity(ies), and that by his/her/their
signature(s) on ~he instrument the person(s), or ~he entity upon
behalf of which the person(s) acted, executed th~ instrument.
WITNESS my hand and official seal.
Pul .ic
(Civil Code ~ 1189)
0F ~/~ , ~,__ before me, the underslgned, a
. Not%ry Publxc !W and for said County and State, personally appeared
~./+~-~~__ , perso~ally known
me or proved to me on t~e b~sis of satisfactory evidence
person(s) whose name(s) is/are subscribed to ~he within ins~rumen~
and acknowledged to me that he/she/they executed the sa~e in
his/her/their authorized capaclty(ies), and tha~ by his/her/thelr
signature(s) on the instrDment the pers0n(s), or the entity upon
behalf of which ~he person(s) acted, ~xecuted the instrument.
WITNESS my hand and official seal.
s± natu e of INo~ary -P~ic
SCHEDULE I
COVERED SERVICES
EMPLOYEE ASSISTANCE PROGRA~I
Account Management: Client will be assigned an account, manager who will serve as the
contact person and provide Client with reports and feedback on the program.
Program Promotion: Provide Client with customary EAP supervisor training, EAP
employee orientations, literature, brochures and posters announcing and explaining the
program to Client employees; as mutually agreed upon. Customized promotional materials
are available at an additional cost.
C)
Service Access: 24 hour 800 line access to guidance counselors and 24 hour access to
ComPsych’s Guidance Resource website at www.compsvch.com.
Assessment, Counseling and Referral: Assess the presenting problem of each participant
requesting services and provide a maximum of three (3) behavioral health counseling
sessions per presenting problem (for safety employees, ComPsych will provide a maximum
often (10) behavioral health counseling sessions per presenting problem) if such problem is
determined by ComPsych to be resolvable within the above number of sessions (in
California, any sessions which constitute "sessions" as defined under California Code of
Regulations, Title 10 § 1300.43..14(b) are limited to three within any six-month period). If the
participant’s presenting problem is determined not to be resolvable in the above number of
sessions, the participant will be referred for alternative services after assessment.
Crisis Intervention/Critical Incident Debriefing: ComPsych will provide crisis
intervention and critical incident debriefing as and when determined necessa~ by ComPsych.
Client will, be charged an additional fee for any clinical on-site intervention.
C~
Supervisor Consultation: ComPsych professionals are available to provide technical
support and policy-based advice to supervisors and managers of Client
Management Report: ComPsych will prepare and provide to Client statistical management
reports, without disclosure of the identity of any Participant utilizing the program services, as
mutually determined.
LegalConnect: Provide Client employees and their respective spouses and dependents with
telephonic legal information and local referral upon request. If a local referral is requested,
the employee or their family member shall be entitled to a free thirty minute consultation and
thereafter a 25% reduction in the attorney’s customary rates.
O FinancialConneet: Provide Client employees and their respective spouses and dependents
with telephonic financial information regarding their personal finances and related issues.
7
FamilySource: Provide Client employees and their respective spouses and dependents with
child and!or elder care resources in the community where the Participant has a caregiving
need. ComPsych will identify a resource which ComPsych believes will be appropriate to the
request of the Participant. ComPsych does not control and is not responsible for the quality
of services rendered by resources or does ComPsych review or monitor their activities. A
referral by ComPsych to a resource isnot a recommendation, approval or representation by
ComPsych regarding the standards, quality, competence or adequacy of such resource or its
agents and employees or its facilities. The decision as to whether or not to utilize a resource
identified by ComPsych shall rest solely with the Participant who has the sole and
independent obligation to decide whether or not to contract with or otherwise retain or
employ such resource. ComPsych does not assume any liability with regard to the services
performed by any resource.
ServiceConnect Plus: Provide Client Co. employees and their family members with
information, referrals and appointment/arrangements (if appropriate) in the following areas:
1. Home
¯Home Repair and Renovation
¯Appliance Repair
¯House/Apartment Sitting
¯Buyer/Seller Brokers
¯Real Estate Lawyers
¯Mortgage
2. Cars
¯Buying, Selling Leasing
¯New, Used Cars
¯Dealers
¯Car Repair
¯Car Insurance
3. Pet Care
¯Pet Sitting
¯Pet Insurance
4. Relocation/Moving
5. Apartment Shopping
6. Computer Shopping
7. Government Services
8. Restaurants
9. Flowers/Gifts
10. Lawncare/Gardening
11. Special/Local Events
SCHEDULE Ii
SCHEDULE OF FEES
Employee Assistance Program $2.70 per employee per month
Client warrants as of the effective date that it has approximately 1004 employees f~r an
approximate yearly program cost of $32,529.60 paid on a monthly basis in equal installments of
$2,710.80. Client agrees to provide ComPsych with quarterly updated employee counts. Travel
, expenses are billed separately and are due fifteen (15) days after receipt of invoice by Client.
ComPsych agrees that travel and related expenses will not exceed $10,000.00 per year unless pre-
approved by Client’s City Council.
Client’s EAP includes, at no additional charge, all initial telephone consultation following a critical
incident. However, any clinical on-site intervention will be billed at a rate of $190.00 per hour of
services plus all travel and related expenses.
9
PO BOX 5710
Bay Shore NY 117060503
(516) 666-1588
.Compsych Behavioral Health
Corp.& Compsych Mgmt. Corp.
455 Cityfront Plaza Dr.
Chicago IL 60611
ONLY AND CONFERS NO RIGHT8 UPON THG CIERTIFK’-ATEHOLDER, !’HIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE (;;:OVERAGE A,F, FORDED BY THE POLICIES BELOW,
.... COMPANIES AFFORDING COVERAGE .....
¢OMPANYA FRONTIER TNSURA.NCE COMPANY
COMPANYB
COMPANY
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INDICATED, No’rWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY’ DONTRAC’r OR O.rHER DOOUMENT WITH RESPECT TO WHIOH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANOE AFFORDED BY THE POLICIES D’=SORlSED HEREIN I$ SUB,.IE~T TO ALL THE .TERMS,
EXDLUSlONS AND C,.ONDITIONS OF SUCH POLICI.ES, UMITE SHOWN MAY HAVE,, ,BEEN REDUOED BY PAID CLAIMS,
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DESCRIPTION OF ~FG~TION~gATION|NEHiC~ES~PSClAL ITEM8
THE CErTIFiCATE HOLDER ZS ADDED AS ADD~TZONAL INSURED BUT ONLY
AS RESPECTS TO THE OPERATIONS PERFORMED BY THE NAMED INSURED.
2,000,000
4,000,000
IHOULD ANY op YHI ABOVE DEBCfllBBD POU~E~ De ~CE~ED BEFO~ ~!
CITY OF PALO ~TO ~PIRATION DATE THEREOF, THE ISSUING COMPANY Wl~ ENDeaR TO MAIL
2 5 0 H~ILTO~ AVE,~ DA~ WRl~ NOTICE TO THE CERTIFICA~ HO~BR N~ED TO THE LEFT,
PO ~OX 10 2 5 0 BUT FAILURE TO MAIL 8UCH NONCE 6HA~ !UPOli NO OBUOATION OR UABILI~
PALE ALTO CA 94302 ’OF A~Y, KIND UPON
No FIC 0001106
Property/Casualty Reinsurance Endorsement
Effective O1/O1/00, for losses occurring as respects occurrence policies and claims made as respects claims
made policies, on or. after this date,, this-endorsement.forms a part of policy.No, o200001146-03 ........
issued by Frontier Insurance Company (hereinafter referred to as the "Company") to the Insured Named
below:
Named Insured: ~s~ZCl~ ~v~ORAL ~L~-] ~Kt:,.
Named Insurcd’sAddress: .455 c p A Dt~ clq-r ,~O, t511
Policy Coverages and Limits: ~
[;or value received, Clarendon National Insurance Company (hereinafter referred to as "Clarendon") as
reinsurer of the Company agre=s that in the event of the insolvency of the Company, Clarendon will
immediately become liable for 100% of any loss payable by the Company under the policy, not to exceed
policy limits, to which this endorsement is attached, and Clarendon will make payment thereof directly to the
Named Insured shown above in the event of first-party coverages, or directly to the claknant or claimants to
whom the Named Insured is legally liable, in the event of third-party coverages, subject always to the other
terms of the policy. As a condition precedent to payment hereunder, Clarendon shall be subrogated to all the
rights of the Named Insured to the extent of such payment.
¯ The Company and Clarendon covenant that the provisions of this endorsement take precedence over any
other reinsuran~ agreement, contract or arrangement between them to the extent Clarendon shall not be
subject to duplicate liability because of any payment or payments made under the terms hereof.
Clarendon reserves the right to cancel this reinsurance endorzement upon 30 days prior notice in writing to
the Company and the Named Insured.
.Clarendon National Insurance Cornpan~,
Charles Bolton CPCU -
"(signature)
Vi..~_~_~ President, Underwritin[,
(Official Tide)
_F.ronti_~r Insurane~_Com0an¥
Theodore J..Rupl~
(signature)
P ~_rg..~ent
(Official Titae)
THIS ENDORSEMENT DOES NOT INSURE LOSSES OCCURRING OR CLAIMS
MADE PRIOR TO THE EFFECTIVE DATE HEREOF.
FIC.R 1 (12/99)
AGENT
No nC 0001111
Property/Casualty Reinsurance Endorsement
EffectiveO]. / 03/O~ for losses occurring as respects occurrence policies and claims made as respects claims
made policies, on or after this date, this endorsement forms a pan of policy No, G2,00028].2,~ Ol
issued by Frontier Insurance Company (hereinafter referred to as the "Company") to the Insured Named
below:
Named Insured:
Named Insured’s Address: 455
Policy Coverages and Limits: .~r. LI~-rr.I¢~ 1/~
For value received, Clarendon National Insurance Company (hereinafter referred to as "Clarendon") as
reinsurer of the Company agrees that in the event of the insolvency of the Company, Clarendon will
immediately become liable for 100% of any loss payable by the Company under the policy, not to exceed
policy limits, to which this endorsement is attached, and Clarendon will make payment thereof directly to the
Named Insured shown above in the event of first-party coverages, or directly to the claimant or claimants to
whom the Named Insured is legally liable, in the event of third-party coverages, subject always to the other
terms of the policy. As a condition precedent to payment hereunder, Clarendon shall be subrogated to ali the
rights of the Named Insured to the extent of such paymenL
The Company and Clarendon covenant that the provisions of this endorsement take precedence over any
other reinsurance agreement, contract or arrangement between them to the extent Clarendon shall not be
subject to duphcate liability because of any payment or payments made under the terms hereof.
Clarendon reserves the right to cancel this reinsurane~ endorsement upon 30 days prior notice in writing to
the Company and the Named Insured.
Claren,don National Insurance,Company
Charles Bol.tpn, CPCU
Frpntier..Insuranc,e Company
. _Theodor.e..$. Rupley
(signature)
Vice Presi .dent. Underwriting
(Offici!l Title)
(signature)
President
(Official Tide)
THIS ENDORSEMENT DOES NOT INSURE LOSSES OCCURRING OR CLAIMS
MADE PRIOR TO TKE EFFECTIVE DATE HEREOF.
FIC-R I (12199)
INSURED