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Home My WebLink AboutTR-39-82 CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET 4t BOWMANVILLE, ONTARIO L1C3A6 TELEPHONE 623-3379 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING HELD ON JULY 26, 1982. TR-39-82 SUBJECT: LEGAL INSURANCE COVERAGE RECOMMENDATION: It is respectfully recommended that: 1. This report be received and consideration be given to legal expense insurance; and 2. That Committee give direction to staff regarding this matter. BACKGROUND AND COMMENTS: At the June 28, 1982 GPA meeting insurance coverage for the Town was con- sidered and some policy amendments made by resolution of Committee. These decisions were then ratified ' in Council on July 5, 1982 and subsequently forwarded to the Town' s insurers the Frank Cowan Company Limited. The matter of legal expense insurance was considered by committee but no resolutions regarding the matter were put forward. On June 28, 1982 the Treasurer' s report indicated that the annual premium cost per member of council would be $25.00. Frank Cowan Company Limited has now indicated (letter attached) that the cost will be $40.00 per person with each risk at the local government level being subject to a minimum of $400.00. The local boards and committee members can be insured for an annual pre- mium of $5.00 per person. In the event committee recommended the inclu- sion of council , all local boards and committees, the minimum annual pre- mium of $400.00 would not apply�as it relates to council alone. In the Town's case to inSUre all of the council , committee and local board members would result in a premium in excess of approximately $800. i 0 ��..�4) _ 2 _ TR-39-82 The difference in the premium rates for council versus premium rates for other committees and boards, of course results from the much greater ex- posure of council in this area of liability. Respectfully submitted, Kathryn A. Campbell , C.A. , B.Com. , r� Treasurer. s KA /cb 14 07 82 FRANK COWAN COMPANY LIMITED inkoal and cicwd wamnce TELEPHONE (519) 458-4331 PLEASE ADDRESS REPLY TO: PRINCETON, ONTARIO NOJ 1VO Mr. John Clark July 6th, 1982 Mrs. Kathryn A. Campbell , C.A. , B. Com. , Treasurer, Corporation of the Town of Newcastle, 40 Temperance Street, BOWMANVILLE, Ontario. L1C 3A6. Dear Mrs. Campbell : Re: Legal Expense Insurance (Conflict of Interest Act) Further to our telephone conversation I would confirm having advised you than when the Risk Management Report was prepared in May we were in the midst of developing the wording for this new coverage and in the midst of negotiations with the insurers over the coverage and the costing thereof. We had been talking about global rates of $ 25.00 per individual but it was finally determined that the exposure to risk was much greater for first tier levels of local government to the extent that the rate developed for each person insured is $ 40.00 but with each risk in this level subject to a minimum of $ 400.00. We also developed a form of application which would attempt to have municipalities indicate the numbers of individuals on those boards under the jurisdiction of council for whom council might wish to purchase this insurance. Persons other than council members on these boards are rated at only $ 5.00 per individual and in view of the minimum you may wish to add such persons. One of these forms is attached which may assist you in considering your requirements. Yours sincerely, I.i FRANK COWAN COMPANY LIMITED ohn Clark, JC/lm Vice-President. A P P L I C A T I O N FOR LEGAL EXPENSE INSURANCE FOR CONFLICT OF INTEREST 1) NAME OF APPLICANT: CORPORATION OF THE TOWN OF NEWCASTIE 2) List below the NUMBER of individuals to be insured. Record each person ONCE only. Municipal Council School Board Board of Directors - Children's Aid Society Committee of Adjustment Committee of Management - Community Recreation Centre Conservation Authority Court of Revision Land Division Committee Public Utilities Commission Public Library Board Board of Management Inter-Urban Administration Area Improvement Area Board of Park Management Board of Health Board of Commissioners of Police Planning Board District Welfare Administration Board Trustees of a Police Village Board of Trustees of a Police Village Board or Committee of Management Home for the Aged Suburban Roads Commission SIGNED BY: TITLE: EFFECTIVE DATE: