1. GENERAL INFORMATION
The (agency name) desires to obtain Directors and Officers LIABILITY INSURANCE to cover its commissioners and top management per the enclosed specifications.2. POSITIONS TO BE COVERED
The positions to be covered will be: (Each agency to list positions to be covered.)3. LIABILITY LIMIT
Limit of insurance coverage will be: (Each agency will determine its annual aggregate limit.)
______ $3 million annual aggregate limit
______ $5 million annual aggregate limit
______ $10 million annual aggregate limit
Policy term shall be for a period of one year from award with the option to renew in four successive one year increments. Any renewal will be by mutual agreement of the parties.5. PREMIUM
The premium will be payable on inception. Renewal premium will be determined based on the qualifications submitted in the renewal application.6. APPLICATION INFORMATION
The application for renewal should be completed and mailed 90 days prior to the expiration date. (Agency name) is under no obligation to renew/extend the policy period.
The following exhibits are included to assist Bidders in preparing a bid:7. AWARD
EXHIBIT A: This is a generic application. This application provides answers to questions that would appear on most insurers' individual application form.
EXHIBIT B: Organizational information about (agency name), including the mission statement of the agency.
ANNUAL FINANCIAL REPORTS for: (Agency to provide current year and successive past year reports.)
LEGISLATIVE AUTHORITY: (Agency to provide copy of Legislative Authority for type of insurance bid.)
(Agency name) reserves the right to award the bid to one bidder or multiple bidders as determined to be the best value for (agency name). However, (agency name) reserves the right to reject all bids or to waive minor technicalities in bids received.8. SAMPLE POLICY/CONTRACT
Each Bidder MUST submit with bid a sample copy of the proposed policy/contract which identifies the terms and conditions of the policy as well as all exclusions with bid. Failure to provide the sample with the bid is cause to disqualify bid.9. POLICY COVERAGE
a. The policy shall provide for payments on behalf of the directors and officers covered by the policy for all losses which the directors and officers shall become legally obligated to pay as a result of any claim or claims made during the policy period for a "wrongful act." "Loss" shall mean any amount which the directors and officers are legally obligated to pay for claims, including costs of defense, provided that such losses shall not include fines or penalties imposed by law or matters which may be deemed uninsurable under the laws of the State of Texas. "Wrongful Acts" is defined to mean any actual or alleged error, misstatement, misleading statement, act or omission, or neglect or breach of duty by the covered directors and officers of (agency name). Wrongful acts also include employment discrimination, wrongful termination's, and alleged retaliatory acts.10. INSURER QUALIFICATIONS
b. The policy shall not extend to any prior and pending claims.
c. Policy coverage shall be for any persons who currently are or may be duly appointed or selected to serve in the stated positions regardless of the individual holding the positions at the current time or during the policy period and shall extend to the estates, heirs, or legal representatives of deceased directors and officers who were covered at the time the act(s) upon which the claim(s) are based were committed.
d. Defense Costs: For claims which are potentially in excess of the deductible amount, insurer shall select attorney and pay full costs of defense litigation up to policy limits as provided by Texas law. The combined total, award and defense costs, paid by the insurer shall not exceed the policy limit.
e. ("e" will not apply to all agencies. Delete "e" if it does not apply to your agency.) One (agency to list number and title of positions) of the positions to be covered by the insurance, the Director of Law Enforcement, is occupied by a licensed Texas Peace Officer. The policy shall provide coverage for this position, but only in management and supervisory capacities. Exercise of the powers of arrest and detention may be excluded.
An award will only be made to an insurer who is licensed to do business in the state of Texas.11. PRICES:
Bidders shall submit below their bid for the following groups of positions (not individuals): (Agency to mark appropriate category.)
_____ Commissioners only.
_____ Commissioners, an Executive Director & a Chief of Staff.
_____ Commissioners, an Executive Director, a Chief of Staff & _____ Division Directors
|Retention||1st Period Premium
Month Premium *
In order to calculate premium for the renewal periods, vendor to provide the premium for a 12 month period if the first contract period is not for 12 months.