PROPERTY
POOL
GENERAL ASSESSMENT FORMULA
FOR THE
PURMS JOINT
SELF-INSURANCE AGREEMENT
Amended and Restated as of November 21, 2002
Overview of Assessment Formulas for PURMS Risk Pools
The �Assessment Formulas� Sections of the
PURMS Joint Self-Insurance Agreement (�SIA�) set forth the formulas for
assessing the Members of each Risk Pool for the Operational Costs the Fund
incurs in operating their respective Risk Pools, including without limitation,
Coverage Payments (all Risk Pools), Defense Costs (Liability Pool), Property
Claim Costs (Property Pool), Direct H&W Claims Costs and Shared H&W
Costs (H&W Pool), and the Direct and Shared Administrative Expenses of all
Risk Pools.
The Liability Pool is governed by two
Assessment Formulas, one for General Assessments and one for Premium
Assessments.� The two current formulas
for the Liability Pool are:�
(a)
The Liability General Assessment Formula (with Annual
Assessment Limit) (SIA � VIII); and
(b) The
Liability Premium Assessment Formula (with Added-Risk Pass
Through, and without Annual Assessment Limit) (SIA � IX).�
The Liability General Assessment Formula
was first adopted by the Members of the Fund on December 20. 1976, has been
amended from time to time, and was unanimously re-adopted on March 30, 1995.
The Liability Premium Assessment Formula (with Added-Risk Pass Through and
without Annual Assessment Limit) was unanimously re-adopted by the Board at its
General Meeting on December
9, 1994, effective January 1, 1995.�
The Property Pool is also governed by two
Assessment Formulas, one for General Assessments and one for Premium
Assessments.� The two current formulas
for the Property Pool are:�
(a)
The Property General Assessment Formula (with Annual
Assessment Limit) (SIA � XII); and
(b) The
Property Premium Assessment Formula (without Annual Assessment Limit) (SIA
� XIII).�
The Property General Assessment and the
Property Premium Assessment Formulas were unanimously adopted by the Members of
the Fund, effective February 27, 1997, and were both amended and restated
and unanimously adopted by the Board, effective as of November 21, 2002.�
The Assessment of Members of the H&W
Pool is governed by a single Assessment Formula called the H&W General
Assessment Formula (SIA, � XV). This Formula covers both the self-insured
portion of the H&W Pool�s Operational Costs as well as the cost of Stop
Loss Insurance. The H&W General Assessment Formula was unanimously adopted
by the Members of the Fund on March 16, 2000, effective April 1,
2000, and was amended and restated and unanimously re-adopted by the Members as
of December 7,
2001.
These Formulas, as amended
from time to time pursuant to � I, � 5.2, are specifically
incorporated into the Interlocal Agreement and shall be deemed a part of that
Agreement as if fully set forth therein.
PROPERTY POOL GENERAL ASSESSMENT
FORMULA
1.
Definitions for Property Pool General Assessment
Formula.� The Definitions set forth in the
"Definitions" Section of the SIA (� II) apply to the interpretation
of the Fund's Assessment Formulas, except as may be modified specifically or by
necessary implication by the Definitions set forth below, some of which are
specific to this Property General Assessment Formula Section.
1.1.
Annual Assessment Limit�� shall mean the limit on the total amount of
Property General Assessments the Fund may levy on an individual Member of the
Property Pool in any calendar year, as provided in � I, � 13.8, and subject the
Additional Discretionary General Assessments provided for therein.
1.2.
Assessment Limit Overage�� shall mean the amount by which a Member's Assessment
Share of a Property General Assessment exceeds the amount of such Assessment
the Member is required to pay after application of the Annual Assessment Limit,
in accordance with � XII, � 4.
1.3.
Assessment Share�� shall mean the amount of money a Member
becomes obligated to pay to the Fund as a result of an Assessment.
1.4.
Assigned Deductible�� shall mean the Deductible a Member of the
Property Pool chooses to assign to an Item of Insured Property that is not
otherwise subject to a Mandatory Deductible, as reflected in the Schedule of
Values maintained by the Administrator (see � X, � 7.1.1), or the
Deductible otherwise established as an Assigned Deductible for a Member's
Insured Property pursuant to � X, � 7.2.2).
1.5.
Assigned Insured Value�� shall mean the Insured Value listed for an
Item of Insured Property on the Schedule of Values, as established by Annual
Appraisal pursuant to � X, � 14.
1.6.
�Basic Per Capita� Component�� shall mean the Formula Component consisting
of the 10% portion of a Property General Assessment amount that is allocated
equally among all Members of the Property Pool for purposes of calculating a
Member's Assessment Share of a Property General Assessment, as provided in �
XII, � 2.1.
1.7.
Blended Risk Based Rate�� shall mean the number resulting from the
weighted average of applying each applicable Specific Risk Based Rate to the Total Insured Value of a Member�s Insured Property in each
Category of Risk associated with an applicable Specific Risk Based Rate.
1.8.
Category of Insured Property�� depending upon the context, shall mean the
grouping of Insured Property that is subject to a particular Specific Risk
Based Rate, or the grouping of Insured Property that is subject to a particular
Excess Property Insurance Retention that exceeds the Property Coverage Limit.
1.9.
Category of Risk