§ 27A-123. Insurance.

(a)

Program insurance may be obtained under the following circumstances:

(1)

As excess coverage over that provided by the fund, as reinsurance for the fund, or as first-dollar coverage in lieu of that provided by the fund (which may result in converting coverage provided by the fund into excess coverage) if, in each case, the insurance is obtainable on a fiscally sound basis, giving consideration to the investment opportunities for the fund and any shock-loss exposure of the city due to the program risks;

(2)

When services that are necessary to effectively administer the program can be obtained only through the obtaining of the insurance;

(3)

When the city is required by contract or law to obtain the insurance; or

(4)

When the limitations on coverage under the fund do not result in long-term economic advantage to the city, and the insurance obtained either does not contain such limitations, or offsets such limitations or reduces such limitations

(b)

The procurement of program insurance shall be coordinated by the financial, insurance and risk manager, subject to superior authority of the deputy city manager and approved by the city council.

(c)

Program insurance shall be obtained from sources determined to be in the best interests of the city. No particular insurance or financial quality rating is required, but the insurance provider must be in excellent financial condition as determined by the financial, insurance and risk manager.

(d)

When practicable, the remuneration of agents or brokers providing insurance services to the city pursuant to this article shall be on a fee basis.

(Ord. No. 5847, § 1(5.03), 8-23-90; Ord. No. 7348, § 8, 10-22-98)