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Township of Worcester, PA
Montgomery County
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Table of Contents
Table of Contents
[Adopted 3-15-2017 by Ord. No. 265]
The Township Manager of Worcester Township ("Township") is hereby authorized to execute the Trust Agreement and any other agreements necessary for its participation in the Delaware Valley Insurance Trust. The Delaware Valley Insurance Trust Agreement is attached hereto as Exhibit A and incorporated herein by reference. The Trust Agreement attached hereto is on file for inspection and review at the Township offices, 1721 Valley Forge Road, Worcester.
The participation of the Township in the Delaware Valley Insurance Trust is authorized for the following purposes:
A. 
To provide adequate and affordable insurance coverage to each Trust participant at the lowest possible cost by pooling or sharing of certain liability risks;
B. 
To reduce the amount and frequency of losses incurred by each Trust participant which are covered under the Trust Coverage Document;
C. 
To minimize costs incurred by Trust participants in the handling and litigation of claims; and
D. 
To protect each Trust participant from the volatility and high premiums of the commercial insurance market.
As set forth in the Trust Agreement and as otherwise stated herein, the following conditions apply to the participation of the Township in the Delaware Valley Insurance Trust:
A. 
That each Trust participant must meet the admission and eligibility requirements set forth therein.
B. 
That each Trust participant agrees to pay all annual premiums, contributions and assessments when due as provided in the Trust Agreement and bylaws;
C. 
That each Trust participant uses its best efforts to provide appropriations for the payment of any contributions, premiums and assessments required by the Trust;
D. 
That each Trust participant institute any and all safety regulations, loss prevention measures or risk management procedures as may be required for the purpose of minimizing or eliminating hazards or risk that could contribute to losses;
E. 
That each Trust participant cooperate fully with the Trust's service and fiscal agents, attorneys, claims adjusters and any agents or employees of the Trust with respect to the investigation, defense and settlement of claims;
F. 
That each Trust participant designate a contact person to be responsible for all contacts with the Trust;
G. 
That each Trust participant provides any information to the Administrator or Board of Trustees as may be required to effect the purposes and objectives of the Trust.
The Township agrees to participate in the Delaware Valley Insurance Trust for a minimum period of two years and thereafter may withdraw under the following conditions, among others, under the Trust Agreement:
A. 
An opinion is rendered by the Trust-certified actuary that withdrawal will not result in the number of participants falling below the minimum required to assure the fiscal and actuarial soundness of the Trust itself;
B. 
That the withdrawing participant is not then in default of its obligation to pay premiums, contributions or assessments;
C. 
That the withdrawing participant shall forfeit any and all of its rights to any dividends and rate stabilization fund monies to which it may otherwise be entitled during the last year of the participant's membership in the Trust and at all times thereafter;
D. 
Upon effective date of withdrawal, or at any time thereafter, a participant may be required to pay assessments as required by the Board of Trustees in accordance with the Trust Agreement and the bylaws based on any deficits which were caused by any claims paid while that participant was provided coverage under the Trust Coverage Document; and
E. 
That the Board of Trustees shall have received a certification from the Trust actuary that the withdrawal of the participant will not reduce the actuarial soundness of the Trust and, if any municipal debt has been incurred by the participants to finance any portion of the Trust reserves, an opinion is obtained from bond counsel that such withdrawal will not adversely affect the tax-exempt status of any interest paid and any debt incurred by the participants, or any legal entity created for the purpose of incurring such debt.
The effective date of the participation of the Township in the Delaware Valley Insurance Trust will be February 17, 2017, or thereafter.
Each Trust participant delegates to the Board of Trustees of the Delaware Valley Insurance Trust the powers enumerated in the Trust Agreement, including the right to expel participants under certain conditions.
As set forth in the Trust Coverage Document, the Township shall be provided coverage for the following risks:
A. 
Commercial general liability;
B. 
Business automobile liability;
C. 
Police professional/law enforcement;
D. 
Public officials liability; and
E. 
Any other risks specified in the Trust Coverage Document.
All contributions, premiums and assessments paid by the Township shall be made with funds appropriated by the Township for that purpose. If permitted under state and federal law, the Township may incur debt for the purpose of financing any excess insurance coverage, as set forth in the Trust Agreement.
The organizational structure of the Trust shall consist of a Board of Trustees, an administrator, a claims administrator/loss control consultant and various service agents appointed by the Board of Trustees in accordance with the Trust Agreement.
As set forth in the Trust Agreement, the funds required for the operation of the Trust shall be provided by the Trust participants through annual appropriations.
The Delaware Valley Insurance Trust commenced operations on January 1, 1989, and will continue until terminated by 2/3 vote of all Trust participants.
Coverage under the Trust shall be provided from January 1 through December 31 of each Trust year to all Trust participants in accordance with the Trust Agreement.
As a condition of participating in the Delaware Valley Insurance Trust, the Township agrees to comply with the following conditions:
A. 
That it will make its initial contribution upon admission to the Trust for creation of the restricted surplus fund needed to protect Trust participants against potentially catastrophic losses;
B. 
That it will timely pay all annual premiums and assessments as may be required by the Board of Trustees;
C. 
That it will appoint a representative to sit on the Board of Trustees and designate a contact person for the purpose of communicating with the Trust or its representatives;
D. 
That it will not withdraw from the Trust for a period of two years following its admission to the Trust;
E. 
That it may withdraw from the Trust only upon satisfaction of the conditions set forth in the Trust Agreement;
F. 
That it agrees to perform all covenants contained in the Trust Agreement and delegate to the Board of Trustees the powers and authorities enumerated in the Trust Agreement;
G. 
That it will comply with all the conditions set forth in the Trust Coverage Document governing the handling of claims, including the defense and settlement thereof;
H. 
That it will appropriate the funds needed to pay all contributions, premiums and assessments as may be required by the Board of Trustees in accordance with the Trust Agreement;
I. 
That it will cooperate with the Trust, its agents or employees and provide the Trust with all information it needs for the operation of the Trust, including any underwriting or claims data which may be requested by the Board of Trustees or its designee.
The Delaware Valley Insurance Trust is empowered to enter into contracts for policies of group insurance and employee benefits, including social security, for its employees.
This article is being enacted pursuant to the Pennsylvania Intergovernmental Cooperation Law (53 Pa.C.S.A. § 2301 et seq.) the Pennsylvania Political Subdivisions Tort Claims Act (42 Pa.C.S.A. § 8564) and the Second Class Township Code (53 P.S. §§ 66507 and 66512).