[Adopted 8-6-2003 by Ord. No. 3685]
The Board of Commissioners of the Township of
Lower Merion 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 of Lower Merion, 75 East Lancaster Avenue,
Ardmore, Pennsylvania 19003. This Trust Agreement may be subsequently
modified or amended but in no event shall such amendments or modifications
materially adversely affect the right of the Township of Lower Merion
to participate in the Delaware Valley Insurance Trust.
The participation of the Township of Lower Merion
in the Delaware Valley Insurance Trust is authorized for the following
purposes:
A.
To provide adequate and affordable insurance coverage
to each participating municipality 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 participating municipality which are covered under the Trust
Coverage Document, which is attached hereto as Exhibit B and on file
for inspection and review at the Township office;
C.
To minimize costs incurred by participating municipalities
in the handling and litigation of claims; and
D.
To protect each participating municipality 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 of Lower Merion in the Delaware Valley Insurance Trust:
A.
That each participating municipality must meet the
admission and eligibility requirements set forth therein;
B.
That each participating municipality agrees to pay
all annual premiums, contributions and assessments when due as provided
in the Trust Agreement and bylaws;
C.
That each participating municipality uses its best
efforts to provide appropriations for the payment of any contributions,
premiums and assessments required by the Trust;
D.
That each participating municipality 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 participating municipality 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 participating municipality designate a contact
person to be responsible for all contacts with the Trust;
G.
That each participating municipality provide any information
to the Administrator or Board of Trustees as may be required to effect
the purposes and objectives of the Trust.
The Township of Lower Merion agrees to participate
in the Delaware Valley Insurance Trust for a minimum period of two
years and thereafter may withdraw under the following conditions,
subject to the right of arbitration, 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 municipality is not then in default
of its obligation to pay premiums, contributions or assessments;
C.
That the withdrawing municipality shall pay the full
amount of a termination premium, as determined by the Board of Trustees
in accordance with the Trust Agreement and bylaws; and
D.
That the Board of Trustees shall have received a certification
from the Trust actuary that the withdrawal of the municipality 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 participating municipalities
or any legal entity created for the purpose of incurring such debt.
The effective date of the participation of the
Township of Lower Merion in the Delaware Valley Insurance Trust will
be July 1, 2003 or thereafter.
Each participating municipality 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 of Lower Merion shall be provided coverage for the following
risks:
All contributions, premiums and assessments
paid by the Township of Lower Merion shall be made with funds appropriated
by the Township of Lower Merion for that purpose. If permitted under
state and federal law, the Township of Lower Merion 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 Directors 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 participating
municipalities through annual appropriations.
The Delaware Valley Insurance Trust commenced
operations on January 1, 1989 and will continue until terminated by
two-thirds (2/3) vote of all participating municipalities.
Coverage under the Trust shall be provided from
January 1 through December 31 of each Trust year to all participating
municipalities in accordance with the Trust Agreement.
As a condition of participating in the Delaware
Valley Insurance Trust, the Township of Lower Merion 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 participating municipalities 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/of 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; and
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 their 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 Title
53 Pennsylvania Consolidated Statutes Annotated, § 46006.
