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Western States Renewal ProposalrV 240 W.Idaho Western States P.O. Box 8090 If1l�G�afZ� � � Kalispell, MT 5f January 23, 2008 Kalispell, City Of Amy Robertson Drawer 1997 Kalispell, MT 59903 RE: Renewal Proposal Dear Amy: I have attached a renewal proposal for your review. The renewal premium with ACE will be $4,175.00. This is down from last year! Starr Aviation came in less but does not have the coverage options that ACE does. We would recommend that you renew with ACE again. In the past you have not purchased terrorism coverage. The terrorism coverage has change to include Domestic terrorism. In the past it just coverage Foreign Government Terrorism. If you are interested in this coverage or learning more about Domestic Terrorism coverage please call us. The additional premium for this is $5,000.00. Please send the amount of $4,175 prior to 2/11/08 if you wish to renew your policy. If you would like to buy terrorism coverage for both foreign and domestic, please send a check for $9,175.00. Please let me know if you have any questions. Thank you for your continued business. We really appreciate it. jiSiincrely, omas, CISR ern States Insurance Agency m City of Kalispell c/o Western States Insurance Agency PO Box 8090 Kalispell, IVIT 59904 Airport General Liability Policy Period: 02/11/2008 — 02/11/2009 MEMIME� City of Kalisjoell T81S "INSURANCE PROPOSAL" IS NOT A LEGAL CONTRACT AND PROVIDES ONLY A GENERAL DESCRIPTION OF COVERAGES OFFERED. ANY INDICATION OF COVERAGES CONTAINED HEREIN ARE SUPERSEDED BY THE ACTUAL POLICY WORDING AND SUBJECT TO ALL TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICY. OTHER LIMITS OF COVERAGE THAN THOSE SPECIFICALLY OFFE9ED- HEREIN MAY BE AVAILABLE UPON REQUEST. VALIDITY PROVISION The terms offered herein will nonno||y remain valid for date of coverage subject to no adverse changes in underwriting information and further subject to underwriter acceptance. CONFIDENTIALITY CLAUSE This document contains information which ie proprietary, andisintended only for the use ofthe person, entity orentities named herein. Any unauthorized disclosure, copying ordistribution ofthis document is prohibited. LIABILITY LIMITS Higher Liability Limits may beavailable upon request. ��I�� City of Kalispell Policy Periocl,02/11/08 — 02111109 EXPIRING RENEWAL POLICY PREMIUM PREMIUM ACE ACE Starr Aviation Airport Commercial General Liability $4,395 $4,175 $4,065 TOTAL PREMIUMS: S4= Optional Limits of Liability $5,000 $5,000 $304 War, Hi -Jacking & Other Perils Optional Limits of Liability $5,000 $5,000 $4, 065 TRIA Coverage Optional Limits of Liability $7, 500 $7, 500 N/A Combined War & TRIA Payment Terms Option A Payment in full within fifteen (15) days of policy inception Option B Premium finance, terms will be provided upon selection of renewal program Page 3 of 9 L f M, I .T E D City of Kalispell A Policy Period.,02111108 — 02111109 AMIRSURE I I WK WARV Page 4 of 9 1- 1 M I T E D City of Kalispell NAMEDINSURED Policy Period.02111/08 — 02111109 City of Kalispell and any subsidiary, affiliated, managed, owned or controlled companies or entities now in existence or hereafter formed. PREMISES LIABILITY To pay on behalf of the Insured all sums the Insured should become legally obligated to pay as damages for Bodily Injury and Property Damage arising out of the aviation operations of the facility described in the policy. Limit of Liability: PREMISES MEDICAL PAYMENTS $5,000,000 Combined Single Limit Bodily Injury and Property Damage Each Occurrence To pay on behalf of the Insured all reasonable medical expense to persons who sustain Bodily Injury caused by an accident arising from a condition of the insured premises or aviation operations of the Insured. Limit of Liability - ACE: Limit of Liability - Starr: $5,000 Each Person $1,000 Each Person PRODUCTS/COMPLETED OPERATIONS LIABILITY To pay on behalf of the Insured all sums the Insured should become legally obligated to pay as damages for Bodily Injury and Property Damage arising out of aviation services, goods or products manufactured, sold, handled or distributed under the Insured's name, or work completed by or for the Insured, but only if such services, goods or products or work completed have been relinquished to others and the accident occurs away from the premises of the Insured. Limit of Liability - ACE: Limit of Liability - Starr: GROUND HANGARKEEPERS LIABILITY $1,000,000 Combined Single Limit Bodily Injury and Property Damage Each Occurrence and Annual Aggregate $5,000,000 Combined Single Limit Bodily Injury and Property Damage Each Occurrence and Annual Aggregate To pay on behalf of the Insured all sums the Insured should become legally obligated to pay for the direct loss of or damage to any non -owned or non-leased/non-managed aircraft (including loss of use) which at the time of the loss is in the care, custody or control of the Insured for storage, repair, service, or refueling on the premises owned or leased by the Insured and is on the ground. Limit of Liability - ACE Deductible: Limit of Liability - Starr: Deductible: $1,000,000 Each Aircraft $1,000,000 Each Occurrence $1,000 Each Occurrence $5,000,000 Each Aircraft $5,000,000 Each Occurrence NIL Page 5 of 9 L ,M, f T• e D City of Kalispell + Additional Insureds + Notice of Cancellation + Supplementary Payments -ACE + Supplementary Payments - Starr Policy Period:02111108 — 02111109 All Employees Fred Leistiko Thirty (30) Days Ten (10) Day for non-payment of premium A lesser notice may result regarding War, Hijacking & Other Perils Coverage Bail Bonds: $250 Each Bond Loss of Earnings: $100 Each Day Bail Bonds: $5,000 Each Bond Loss of Earnings: $250 Each Day Page 6 of 9 AtfilRcURE "on wVMV M r � D City of Kalispell EXPANSION COVERAGES ADVERTISING LIABILITY Policy Period:02/11/08 — 02111109 To pay on behalf of the Insured all sums the Insured should become legally obligated to pay for injury sustained by any person or organization relating to the aviation operations of the Insured arising out of libel, slander, defamation, violation of privacy, piracy, unfair competition or infringement of copyright, title or slogan which occurs in the course of the Named Insured's aviation advertising activities. Limit of Liability: $5,000,000 Annual Aggregate Note: This liability limit is part of and not in addition to the Personal Injury Liability Limit. FIRE LEGAL LIABILITY To pay on behalf of the Insured all sums the Insured should become legally obligated to pay for Property Damage caused by fire to the premises rented or leased to the Insured. Limit of Liability: $50,000 Each Occurrence INCIDENTAL MEDICAL MALPRACTICE LIABILITY To pay on behalf of the Insured all sums the Insured should become legally obligated to pay as damages for Bodily Injury arising out of the rendering of, or the failure to render, assistance to air ambulance patients in assistance of medical personnel on board the aircraft. Limit of Liability: $5,000,000 Each Occurrence and Annual Aggregate MENTAL ANGUISH COVERAGE To pay on behalf of the Insured all sums the Insured should become legally obligated to pay as damages for Bodily Injury arising out of the policy coverages provided to include mental anguish (pain and suffering). PERSONAL INJURY LIABILITY To pay on behalf of the Insured all sums the Insured should become legally obligated to pay as damages for injury sustained by any person (excluding employees) or organization relating to the aviation operations of the Insured arising out of false arrest, detention or imprisonment, malicious prosecution, libel or slander, wrongful entry or eviction, or other invasion of the right of private occupancy. Limit of Liability: $5,000,000 Annual Aggregate Note. This liability limit is part of and not in addition to the Advertising Injury Liability Limit. Page 7 of 9 City of Kalispell Policy Period: 02/11/08 — 02111109 MARKET RESPONSE ® ACE Quote Contained Herein (Incumbent) ® AIG Quoted, Not Competitive (Annual Premium: $8,291) ® Aerospace Insurance Quoted, Not Competitive (Annual Premium: $7,150) ® Allianz Declined to Quote Global Aviation No Quote to Date ® Houston Casualty Declined to Quote ® Inter-Aero Quoted, Not Competitive (Minimum Premium: $10,000) ® Phoenix Aviation Declined to Quote ® Starr Aviation Quote Contained Herein USAIG Declined to Quote ® US Specialty Declined to Quote ® W. Brown No Quote to Date Page 8 of 9 , M I T E D City of Kalispell Policy Period:02/11/08 — 02111109 AlIRSURE Page 9 of 9 _ , I r =_ u