[Adopted 12-21-1993 as Ord. No. 1790-93]
The President and Secretary of the Township Board of Commissioners are hereby authorized to execute the agreement listed below and any other agreements necessary for the participation of Cheltenham Township in the Delaware Valley Insurance Trust:
Delaware Valley Insurance Trust Agreement (hereinafter referred to as the "trust agreement," a copy of which is attached as Exhibit A).
Editor's Note: Exhibit A is on file for inspection and review at the Cheltenham Township Building, Manager's Office, 8230 Old York Road, Elkins Park, Pennsylvania.
The documents attached hereto as exhibits are on file for inspection and review at the Cheltenham Township Building, 8230 Old York Road, Elkins Park, PA 19117. These documents may be subsequently modified or amended but in no event shall such amendments or modifications materially adversely affect the right of Cheltenham Township to participate in the Delaware Valley Insurance Trust.
Participation of Cheltenham Township in the Delaware Valley Insurance Trust is authorized for the following purposes:
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.
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.
Editor's Note: Exhibit B is on file for inspection and review in the Cheltenham Township Building, 8230 Old York Road, Elkins Park, PA 19117.
To minimize costs incurred by participating municipalities in the handling and litigation of claims.
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 Cheltenham Township in the Delaware Valley Insurance Trust:
Each participating municipality meets the admission and eligibility requirements set forth therein.
Each participating municipality agrees to pay all annual premiums, contributions and assessments when due as provided in the trust agreement.
Each participating municipality uses its best efforts to provide appropriations for the payment of any contributions, premiums and assessments required by the trust.
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.
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.
Each participating municipality designates a contact person to be responsible for all contacts with the trust.
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.
Cheltenham 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:
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.
The withdrawing municipality is not then in default of its obligation to pay premiums, contributions or assessments.
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.
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 Cheltenham Township in the Delaware Valley Insurance Trust will be no later than January 1, 1994.
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, Cheltenham Township shall be provided coverage for the following liability risks:
All contributions, premiums and assessments paid by Cheltenham Township shall be made with funds appropriated by Cheltenham Township for that purpose. If permitted under state and federal law, Cheltenham 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, Cheltenham Township agrees to the following:
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.
It will timely pay all annual premiums and assessments as may be required by the Board of Trustees.
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.
It will agree not to withdraw from the trust for a period of two years following its admission to the trust.
It may withdraw from the trust only upon satisfaction of the conditions set forth in the trust agreement.
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.
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.
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.
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 provisions of Intergovernmental Cooperation Law, Act of July 12, 1972, No. 180, as amended, 53 P.S. § 481, et seq.