Participation of Montgomery Township 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.
C. To minimize costs incurred by participating municipalities
in the handling and litigation of claims.
D. To protect each participating municipality from the
volatility and high premiums of the commercial insurance markets.
As set forth in the Trust Agreement, the following
conditions apply to the participation of Montgomery Township in the
Delaware Valley Insurance Trust:
A. That each participating municipality meets 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.
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 institutes 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 cooperates 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 designates a
contact person to be responsible for all contacts with the Trust.
G. That each participating municipality provides any
information to the Administrator or Board of Trustees as may be required
to effect the purpose and objectives of the Trust.
Montgomery Township agrees to participate in
the 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.
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 Montgomery
Township in the Delaware Valley Insurance Trust will be no later than
January 1, 2000.
Each participating municipality delegates to
the Board of Trustees of the Delaware Valley Insurance Trust the powers
enumerated in the Trust Agreement.
As set forth in the Trust Coverage Document,
Montgomery Township shall be provided coverage for the following liability
risks:
A. Comprehensive general liability.
C. Uninsured and underinsured motorist coverage.
D. Police professional/law enforcement liability.
E. Public officials liability.
All contributions, premiums and assessments
paid by Montgomery Township shall be made with funds appropriated
by Montgomery Township for that purpose. If permitted under state
and federal law, Montgomery 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 participating
municipalities through annual appropriations.
The Delaware Valley Insurance Trust is empowered
to enter into contracts for policies of group insurance and employee
benefits, including social security for any of its employees.
As a condition of participating in the Delaware
Valley Insurance Trust, Montgomery Township agrees to the following:
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 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 the claims
data which may be requested by the Board of Trustees or its designee.
This article is being enacted pursuant to the
provision of Intergovernmental Cooperation Law, Act of July 12, 1972,
No. 180, as amended, 5 P.S. § 481 et seq.