Select Committee on Insurance Relations - Property and Casualty — Charleston, WV
Date: 2022-02-15
Time: 17:30

CITY OF CHARLESTON
 West Virginia
 Council Member – 12th WARD
 Joseph Jenkins Finance Committee, Chair
 839 Gordon Drive Parking Committee, Chair
 Charleston, West Virginia 25303 Public Safety Committee
 304-575-9202
 joseph.jenkins@cityofcharleston.org


 AGENDA
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY
 February 15, 2022 5:30 PM
 To be held in person
 AV ROOM #308, CITY HALL
_________________________________________________________________________________________

APPROVAL OF PREVIOUS MINUTES

 12-20-2021

DISCUSSION AND APPROVAL

 Discuss and score the insurance proposals from the 3 selected firms.

 Recommend award of insurance contract to Council.

ADJOURN



JJ/ns


 *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com




 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

CITY OF CHARLESTON
 West Virginia
 Council Member – 12th WARD
 Joseph Jenkins Finance Committee, Chair
 839 Gordon Drive Parking Committee, Chair
 Charleston, West Virginia 25303 Public Safety Committee
 304-575-9202
 joseph.jenkins@cityofcharleston.org


 AGENDA
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY
 February 15, 2022 5:30 PM
 To be held in person
 AV ROOM #308, CITY HALL
_________________________________________________________________________________________

APPROVAL OF PREVIOUS MINUTES

 12-20-2021

DISCUSSION AND APPROVAL

 Discuss and score the insurance proposals from the 3 selected firms.

 Recommend award of insurance contract to Council.

ADJOURN



JJ/ns


 *Meetings may be recorded and broadcast via internet https://charlestonwv.civicclerk.com




 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

 Page | 1 of
 MINUTES
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY

 THE MEETING WAS HELD IN COUNCIL CHAMBERS IN CITY HALL.

 5:45 P. M., DECEMBER 20, 2021

Joseph Jenkins, Chairperson, called the meeting of the Select Committee on Insurance
Agent Relations – Property and Casualty to order at 5:45p.m., December 20, 2021.

Committee Members Present:
Joseph Jenkins, Chair
Bobby Reishman
Becky Ceperley
Mary Beth Hoover
Adam Knauff
Jennifer Pharr
Shannon Snodgrass

Members Absent:
None




A roll call was taken, and it was determined that a quorum was present.




 1. Approval of the Previous minutes for November 11, 2021.

Councilmember Reishman motioned to approve the previous minutes. With the
members being present having voted in the unanimously in the affirmative, the Chair
declared the previous minutes as approved.



 December 20, 2021

 Page | 2 of
 2. Discuss and approve insurance proposal evaluation criteria.

Councilmember Jenkins stated that the Members have received a copy of the
evaluation criteria. Changes suggested by Councilmember Snodgrass were distributed
to the Committee.

Councilmember Knauff had a question about #5 of the criteria. City Manager, Jonathan
Storage, added that the document was drafted for the insurance writers, not the
underwriters.

With discussion, the Committee agreed to alter the scoring to 10 points to Stability of
the Firm, 45 points for Client Relations and Service and 5 points to Broker/Agent Fees


Councilmember Reishman motioned to approve the evaluation criteria to include the
amendments and changes to points.

With those being present having voted unanimously in the affirmative, the Chair
declared the scoring criteria as approved.



 3. Updates:

Storage added that his office has been working to get all of the data and claims
information that the proposers will need. All three of the firms have been a pleasure to
work with.




Councilmember Reishman motioned to adjourn the meeting.
Meeting adjourned.



 December 20, 2021

 Page | 3 of

MINUTES
 SELECT COMMITTEE ON INSURANCE AGENT RELATIONS –
 PROPERTY AND CASUALTY

 THE MEETING WAS HELD IN THE AV ROOM #308 IN CITY HALL

 5:30 P. M., FEBRUARY 15, 2022

Joseph Jenkins, Chairperson, called the meeting of the Select Committee on Insurance
Agent Relations – Property and Casualty to order at 5:30p.m., February 15, 2022.

Committee Members Present:
Joseph Jenkins, Chair
Bobby Reishman (left at approximately 6:46)
Becky Ceperley
Mary Beth Hoover
Adam Knauff (arrived at 5:32, not present for approval of previous minutes)
Jennifer Pharr
Shannon Snodgrass (over Zoom)

Members Absent:
None




A roll call was taken, and it was determined that a quorum was present.




 1. Approval of Previous Minutes 12-20-2021.

Councilmember Reishman motioned to approve the previous minutes from 12-20-2021.
With those being present having voted unanimously in the affirmative, the Chair
declared the previous minutes as approved.



 February 15, 2022
 2. Discussion, score and approval

Councilmember Jenkins stated that the three companies that were previously selected
have submitted insurance proposals. The Committee will be discussing those
proposals. Councilmember Jenkins added that they will go into Executive Session to
discuss the proposals, but would exit into Regular Session if any questions needed to
be asked of the companies.

Councilmember Reishman motioned to enter Executive Session. With no objections, the
Committee entered Executive Session.

Councilmember Reishman motioned to leave Executive Session. With no objections,
the Committee left Executive Session.

Councilmember Jenkins stated that he thought it would be appropriate for the
Committee to disqualify RCM&D due to their lack of response.

Councilmember Knauff motioned to disqualify RCM&D. With the members being
present having voted unanimously in the affirmative, the Chair declared RCM&D as
disqualified.

Councilmember Jenkins asked WV Corp to explain their non-applicability of the sexual
abuse line of coverage. WV Corp replied that sexual abuse and molestation is covered
under their General Liability policy. There are no exclusions or coverage limitations.

Councilmember Jenkins asked if there was a requirement regarding the risk pool (for
example, if the City joined for 3 years and was not allowed to leave it after 1 year). WV
Corp replied that there are no guidelines as to how the City would have to participate in
the group. The only requirement is that the City must participate for three years before
they can receive a dividend. Councilmember Jenkins asked what their history of
dividends was. WV Corp replied that 19 members have returned a $50,000 dividend
and several $300,000.

Councilmember Jenkins pointed out that the property valuation is approximately $45
million less than what the City is currently insured for. He asked if that was based on
revaluing or certain exclusions. WV Corp replied they did not do anything to alter the
building schedule, so there might be an error in the building value in the system. They
added that the price difference to compensate for that would be approximately $18,000.
It is not their intent for any City property to be excluded.

Councilmember Jenkins asked if there is anything excluded in the umbrella policy. WV
Corp replied that they don’t issue a separate policy, they show excess limits for options,
but the actual policy will be for $5 million. There is not a separate excess policy.

Councilmember Jenkins asked USI why the valuation of City property is roughly $9
million less than current. USI replied that they and Traveler’s quote sight unseen. They



 February 15, 2022
wanted to make sure that they were insured to value, and the limits were increased.
Jenkins added that their limit is $507 million, and the current is $516 million.
Councilmember Jenkins asked if they treat the $1 million limit and the umbrella as
separate policies. USI replied that typically there would not be exclusions on the
umbrella policy. Even though it would be a separate policy, the coverage would be
identical. A representative from Travelers added that they do not include vehicle values
in their property number, which can be found in the public sector quote. The difference
of $9 million is that they trended some buildings to be rated on a higher value because
of valuation issues. It would be the same coverage, just an additional $4 million on top.

Councilmember Jenkins asked what ACAV meant in relation to auto physical damage.
Finance Director, Andy Wood, replied that it meant Actual Cash Value and Agreed
Value.

Councilmember Snodgrass asked WV Corp to explain their relationship with the WV
Municipal League. WV Corp replied that they have endorsement agreements with WV
Municipal League, the County Commissioners Association of WV and the WV
Association of Counties. The latter two don’t participate in any sort of endorsements or
agreements related to municipalities. The endorsement agreement with the WV
Municipal League pays them a 2% override on property casualty and .5% override on
workers comp.

Councilmember Snodgrass explained to USI that it is difficult to evaluate them based on
the fact that they did not submit proposals for workers comp or cyber. USI replied that
the City’s current policy with Safety National has an effective date of July 1. If they were
awarded the contract, they would want to explore an option with Safety National, and
they cannot get a quote on March 31 for July 1 (it’s too far out). They would also like to
explore retention. For cyber, AIG has confirmed that they will release a quote to them by
March 1 or March 15.

Councilmember Jenkins asked USI about the gap coverage. USI replied that they are
still exploring options on that. They are going to recommend that the City take a higher
retention to save money. USI added there hasn’t been a workers comp claim that has
exceeded $2,000, excluding a claim from 2014. WV Corp added that there have been
no public safety presumptions included into the system until last year. Going from a
$300,000 retention to a $600,00 to save a small amount of money might not be
something they would recommend.

WV Corp added that they perform on-site property valuations. In-land marine is how
they classify miscellaneous equipment (contractor equipment, radio towers, boats, etc.).

USI asked if the WV Municipal League received $85,000 for the first three years. WV
Corp replied that WV Municipal League had an existing agreement with CIS, and their
revenue from that was $80,000 (possibly not $85,000 as suggested). One part of their
agreement with the Municipal League was that WV Corp keep that amount whole for
three years, and added that municipalities would get Board seats once some



 February 15, 2022
benchmarks were met.

Councilmember Knauff confirmed with USI that they could get quotes for workers comp
in approximately 90 days.

Councilmember Snodgrass asked what was the largest municipality that they
underwrite. For WV Corp: Berkely County and the City of Bridgeport. For USI:
Huntington, Beckley, Morgantown, Wheeling, Kanawha County, etc.

Councilmember Hoover motioned to enter Executive Session. With no objections, the
Committee entered Executive Session.

Councilmember Knauff motioned to leave Executive Session. With no objections, the
Committee left Executive Session.

Councilmember Jenkins stated that before he left, Councilmember Reishman gave
Councilmember Jenkins his scores. Councilmember Jenkins added that he thought it
would be appropriate to include his scores, and Councilmember Snodgrass disagreed.

Councilmember Hoover motioned to include Councilmember Reishman’s scores. With
the majority of those being present having voted in the affirmative, with 1 recognized
Nay from Snodgrass, the Chair declared that Councilmember Reishman’s scores will be
included.

Councilmember Jenkins declared the scores to be: 5 scores for USI and 6 scores for
WC Corp
  USI – 177 (out of 200)
  WV Corp – 180.83 (out of 200)
The Chair declared that the Committee will choose to recommend WV Corp. They will
further discuss to choose which plan.

Councilmember Pharr asked what the results would be if Councilmember Resihman’s
score were not included. Councilmember Jenkins confirmed that it would be 178.

Councilmember Jenkins stated that he was partial to the option WV Corp #3 due to the
cost and self-retention. He asked if Wood could get past claims so they could better
analyze the proposals. Wood replied that they did some of that initial analysis in their
proposal. WV Corp added that the $300,000 retention is the most cost-effective option
based on historical claims.

City Attorney, Kevin Baker, added that the City has had a lot of flexibility to choose
which attorney will defend claims, and asked if that would be the case. WV Corp replied
that they would typically ask who they would prefer, and would be willing to work with
the City Attorney to add their preferred attorneys to their panel.




 February 15, 2022
Councilmember Hoover motioned to approve plan WV Corp #3. With the members
being present having voted unanimously in the affirmative, the Chair declared WV Corp
#3 as the Committee’s recommended plan.




Councilmember Knauff motioned to adjourn the meeting.
Meeting adjourned.




 February 15, 2022