[Adopted 3-1-2004 by Ord. No. HR-324]
A. 
The Board of Supervisors of the Township of Tredyffrin 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.
B. 
The trust agreement attached hereto is on file for inspection and review at the Township of Tredyffrin, 1100 DuPortail Road, Berwyn, PA 19312. 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 Tredyffrin to participate in the Delaware Valley Insurance Trust.
The participation of the Township of Tredyffrin 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 the pooling or sharing of certain liability risks;
B. 
To reduce the amount and frequency of losses incurred by each participating municipality 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 markets.
As set forth in the trust agreement and as otherwise stated herein, the following conditions apply to the participation of the Township of Tredyffrin in the Delaware Valley Insurance Trust:
A. 
That each participating municipality meets the admission and eligibility requirement 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 risks 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 other 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; and
G. 
That each participating municipality provide any information to the Administrator or Board of Trustees as may be required to effect the purpose and objectives of the trust.
The Township of Tredyffrin 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.
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 Tredyffrin shall be provided coverage for the following risks:
A. 
Comprehensive general liability;
B. 
Business automobile liability;
C. 
Police professional/law enforcement liability;
D. 
Public officials liability; and
E. 
Any other risks specified in the trust coverage document.
All contributions, premiums and assessments paid by the Township of Tredyffrin shall be made with funds appropriated by the Township of Tredyffrin for that purpose. If permitted under state and federal law, the Township of Tredyffrin 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.
As a condition of participating in the Delaware Valley Insurance Trust, the Township of Tredyffrin 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 agree not to 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 participation and trust agreements 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 the claims data which may be requested by the Board of Trustees or their designee.