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SIVER INSURANCE CONSULT ANTS Ms. Priscilla Walker September 7, 2011 Page 3 Proposal Differences Proposed "Prior Acts" Coverage Because the expiring coverage for Public Officials & Employment Practices Liability with PGIT is provided on a "claims made" basis and the FMIT proposal is provided on an "occurrence" form, it is necessary to add prior acts coverage to the occurrence proposal, so future claims that arise from circumstances which occurred prior to the change, but were not known and therefore not reported on the old policy, will be covered. Although not included in their original proposal, at our request, FMIT provided a quote to add three years prior acts coverage. We are not entirely comfortable with only three years prior acts and, in general, have reservations about moving "claims made" coverage unless there is an overwhelming reason to do so. Property Coverage Both FMIT and PGIT have proposed their property coverage on a "blanket" and agreed amount basis. FMIT's proposal requires an appraisal of the City's property to keep that coverage on a "blanket basis." Jim McGinn of the Florida League of Cities states: "The FMIT policy with be written with blanket/agreed value effective 10/1/2011. . . . The FMIT will pay for a full property appraisal. The City would select and pay the Appraiser they want to use. I have a list of 3 appraisers that do a good job jf needed. Then the City makes any changes to the schedule necessary as a result of the appraisal, submit the entire bill to me and I will set up for reimbursement." I do not know when the City last performed an appraisal of their property, but if it has been some time, an appraisal could result in a significant change in the City's property values, which could result in a return premium, or what is more likely an additional premium charge, when the property schedule is revised and values adjusted. While it is certainly beneficial to bring the property schedule up to date, and we recommend the City have a property appraisal, if they have not done so recently, we mention this only because the revised schedule can result in a significant additional premium that the City may not be expecting, based on the FMIT property proposal. Currently, the Blanket property limit proposed by the FMIT is $36,246,450 compared to a PGIT blanket limit of $35,713,210. That difference is due to the fact that FMIT includes Computer Equipment and other property as building or contents which PGIT insures in their inland marine coverage section. The property deductible is $5,000 per occurrence except for named windstorms which is 5% of the property at a damaged location. FMIT's minimum named windstorm deductible is $25,000 compared to PGIT's minimum deductible of $20,000.