2021-22 Exhibit_E_Personal_Liability_Coverage_for_Board_Members_DirectorsPersonal Liability Coverage for Board Members/Directors
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Personal Liability for Board Members/Directors Coverage Agreement
Exhibit E
No. LCA-SDRMA-2021-22
Agreement We will provide the Risk Financing described in this Memorandum. In
return you will pay the assessment, if any, and comply with all
Memorandum conditions.
I. Definitions Throughout this Memorandum "you" and "your" mean the Member
shown on the Declarations. "We", "us" and "our" mean Special District
Risk Management Authority (hereinafter SDRMA). In addition, certain
words appearing in bold face type are defined as follows:
A.Aircraft means any device used or designed for flight including self-
propelled missiles and spacecraft, except model or hobby aircraft
not used or designed to carry people or cargo.
B.Annual Aggregate Limit means the total amount we will pay for all
the Occurrences which happen in each 12-month period, beginning
with the inception date of this Memorandum, regardless of the
number of such Occurrences.
C.Bodily Injury means bodily harm, sickness or disease, including care,
loss of services and death resulting from that injury.
D.Business means any full or part-time trade, profession or
occupation, but shall not include activities pertaining to a Covered
Individual’s pursuit of or holding of an elected public office for the
named Member.
E.Business Property means property pertaining to or intended for use
in business.
F.Collective Aggregate Stop Loss Limit means the total amount
SDRMA will pay for all Occurrences under all Supplemental
Coverage Memorandums affording coverage to all SDRMA
Members during the Memorandum Period.
G.Covered Individual(s) means a person duly elected or appointed to
and holding an elected or appointed director or board member
position in any district/agency which is a Member of SDRMA.
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I.Definitions, continued
H.Member means the District, agency or entity identified in the
Declarations of which the Covered Individual is a duly elected or
appointed director or board member.
I.Motor Vehicle means:
1.A motorized land vehicle, including a trailer, semi-trailer or
motorized bicycle, designed for travel on public roads.
2.Any vehicle while being towed or carried on a vehicle described
in I.1.
3.Any other motorized land vehicle designed for recreational use
off public roads.
None of the following is a Motor Vehicle:
1.A motorized golf cart while on the golf course and used for golfingpurposes.
2. A motorized land vehicle, not subject to motor vehicle
registration, used only on a covered individual location.
3.Any watercraft or camp, home or utility trailer not being towed
or carried on a vehicle described in I1.
J.Nuclear Hazard means nuclear reaction, radiation, radioactive
contamination, or any result of these. This includes the negligent,
defective or improper design, construction or maintenance of a
nuclear facility, or any other act or omission which results in a
nuclear hazard.
K.Occurrence means an offense which results, during the
Memorandum period, in personal injury. Repeated or continuous
exposure to the same general conditions is considered to be one
occurrence.
L.Personal Injury means:
1.Bodily Injury, mental anguish or mental injury;
2.False arrest, false imprisonment, wrongful detention, or
malicious prosecution;
3.Wrongful entry into, or eviction of any person from, a room,
dwelling or premises that a person occupies, or other invasion
of the right of private occupancy by or on behalf of its owner,
landlord or lessor;
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I.Definitions, continued 4.A publication, including a publication placed on the internet or
on similar electronic means of communication or an utterance
that slanders or libels a person or organization or disparages a
person’s or organization’s goods, products or services;
5.A publication, including a publication placed on the internet or
on similar electronic means of communication or utterance that
violates a person’s right of privacy;
6.Assault and battery, not committed by or at the direction of, or
with the consent of the Covered Individual. However, this
limitation does not apply if committed or directed for the
purpose of protecting persons from injury or death, or property
from damage;
Parts 4 and 5 above do not apply to advertising, publishing,
broadcasting or telecasting done by or for the Member.
M.Property Damage means physical injury to or destruction of
tangible property covered by this Memorandum and resulting loss
of use.
N.Residence Premises means the one or two-family dwelling and
separate structures or that part of any other building where the
Covered Individual resides. Residence Premises includes the
grounds on which the dwelling and separate structures are located.
II.Liability Coverages Coverage - Personal Liability:
We will pay those damages which a Covered Individual becomes legally
obligated to pay because of Personal Injury resulting from an
Occurrence to which this coverage applies.
With attorneys of our choice, we will defend a Covered Individual
against any covered claim or suit. We will also pay:
A.All costs we incur in the settlement of a claim or defense of a suit
with attorneys of our choice.
B. Assessments on bonds required in a suit we defend, but not for bond
amounts greater than the Personal Liability limit of liability. We are
not obligated to apply for or furnish a bond.
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II.Liability Coverages,
continued
C.Reasonable expenses incurred by a Covered Individual at our
request to help us investigate or defend a claim or suit. These
include loss of earnings (but not other income) of up to $60 per day.
D.Interest after entry of judgment on any amount that does not exceed
our limit of liability.
All defense costs we incur in the defense of any claim or suit are
included within the limits of risk financing stated in the
Declarations. We are not obligated to pay any costs, including
attorneys’ fees, of any claim or suit where you select an attorney not
chosen by us because there is a dispute between you and us over
coverage. We may investigate and settle any claim or suit that we
consider proper. Our obligation to defend any claim or suit ends
once we have paid our limit of liability in damages, defense costs or
both.
III.Exclusions This coverage does not apply to and SDRMA shall have no duty to
defend with respect to:
A.Liability of a Covered Individual assumed under any contract or
agreement relating to a Business of a Covered Individual.
B.Liability of any Person or organization other than a Covered
Individual assumed under any contract or agreement, whether
Business or non-business.
C. Liability under any agreement between a Covered Individual and a
corporation or association of property owners.
D.Personal Injury expected or intended by the Covered Individual.
E.Personal Injury caused by a violation of penal law or ordinance
committed by or with the knowledge or consent of any covered
individual.
F.Personal Injury to any resident of the Residence Premises.
G.Any loss, cost, or expense resulting from the clean-up,
detoxification, or treatment of any site used by you or any Person
acting on your behalf for the disposal, storage, handling, processing
or treatment of waste.
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III. Exclusions, continued
H.Liability which arises from or during the course of Business pursuits
of a Covered Individual.
I.Liability which results from the rendering or failure to render
business or professional services.
J.Liability which is either:
1.Caused intentionally by or at the direction of a Covered
Individual; or
2.Results from any occurrence caused by an intentional act of any
covered individual where the results are reasonably
foreseeable.
K.Liability of any Covered Individual arising out of home care services
provided to any person on a regular basis by or at the direction of:
1.Any Covered Individual;
2.Any employee of the Covered Individual;
3.Any other person actually or apparently acting on behalf of any
Covered Individual.
Regular basis means more than 20 hours per week.
L.Liability which results from a Covered Individual transmitting a
communicable (including sexually transmitted) disease.
M.Liability which results from an existing condition on a location owned
by or rented to a Covered Individual.
N.Liability which results from the ownership, maintenance, use,
loading or unloading of:
1.Aircraft
2.Motor vehicles
3.Jet skis and jet sleds or
4.Any other watercraft owned or rented to a Covered Individual
and which:
a.has more than 50 horsepower inboard or inboard-outdrive
motor power; or
b.is powered by one or more outboard motors with more than
25 total horsepower; or
c.is a sailing vessel 26 feet or more in length.
Exclusions G3, and G4, do not apply while jet skis, jet sleds or watercraft
are stored.
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III. Exclusions, continued
O.Liability which results from the entrustment of any Aircraft, Motor
Vehicles, jet skis, or jet sleds to any Person. Entrustment means the
permission you give to any person other than you to use any
personal Aircraft, Motor Vehicles, jet skis, or jet sleds owned or
controlled by you.
P.Liability which results from the entrustment of watercraft described
in G4, above.
Q.Liability which is caused directly or indirectly by war, including
undeclared war, civil war, insurrection, rebellion, revolution, or
warlike act by military personnel. Discharge of a nuclear weapon,
whether or not accidental, is deemed a warlike act.
R.Liability which arises out of the sale or transfer of real property
including but not limited to the following:
1.Known or unknown property or structural defects;
2.Known or hidden defects in the plumbing, heating, and electrical
systems;
3.Known or unknown soil conditions or drainage problems;
4.Concealment or misrepresentation of any known defects.
IV.Conditions A.Limit of Risk Financing. The Limit of liability shown in the
Declarations for Personal Liability is the Annual Aggregate Limit.
This is the most we will pay in each 12-month period regardless of
the number of:
1.Covered Individuals;
2.Claims made or suits brought; or
3.Persons or organizations making claims or bring suits.
The Annual Aggregate Limit will be reinstated at each annual or
anniversary date of this Memorandum.
However, in no event will SDRMA’s liability under all Supplemental
Coverage Memorandums issued to all SDRMA Members during the
Memorandum Period exceed the “Collective Aggregate Stop Loss”
shown in the Declarations.
B.Separate Financing. This Risk Financing applies separately to each
Covered Individual. This Condition does not increase our limit of
liability for any one 12-month period.
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IV.Conditions, continued C.Duties After Loss. In case of an Occurrence the Covered Individual
will perform the following duties:
1.Give written notice to us or our agent as soon as possible
stating:
a.the number and name of the Covered Individual.
b.the time, place and circumstances of the Occurrence.
c.names and addresses of claimants and witnesses.
2.Promptly send us any legal papers received relating to a claim
or suit.
3.Cooperate with and assist us in any matter relating to a claim or
suit.
4.Under Damage to Property of Others Coverage, send us a sworn
statement of loss within 60 days of the loss. Also, exhibit any
damaged property which is within the Covered Individual’s
control.
5.The Covered Individual will not, except at the Covered
Individual’s own cost, voluntarily make any payment, assume
any obligation or incur any expense except First Aid Expenses.
D.Suit Against Us. We may not be sued unless there has been full
compliance with the terms of this Memorandum. No one has any
right to make us a party to a suit to determine the liability of a Person
we insure. We may not be sued under Personal Liability Coverage
until the obligation of the Covered Individual has been determined
by final judgment or agreement signed by us.
E.Bankruptcy of a Covered Individual. Bankruptcy or insolvency of a
Covered Individual will not relieve us of our duties under this
Memorandum.
F.Other Risk Financing - Personal Liability. This Risk Financing is excess
over any other valid and collectible Risk Financing and/or other
insurance. But if other Risk Financing is specifically written as excess
coverage over this Memorandum, the limit of this Memorandum
applies first.
G.Entire Contract. This Memorandum, the Declarations and any
endorsements include all the agreements between you and us
relating to this Risk Financing.
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IV.Conditions, continued H.Memorandum Period. This Memorandum applies only to loss for
Personal Injury which occurs during the Memorandum period as
shown in the Declarations.
I.Concealment of Fraud. This entire Memorandum is void if any
Covered Individual has knowingly and willfully concealed or
misrepresented any material fact or circumstance relating to this
Risk Financing before or after the loss.
J.Coverage Changes. We may change this Memorandum or replace it
to conform to coverage currently in use. If we broaden coverages
without charge during or within 60 days prior to the Memorandum
period, the broadened coverage will apply immediately. If we
restrict any coverages, these restrictions will not apply until the next
renewal date. The change or new Memorandum will be delivered to
you or mailed to you at your mailing address shown on the
Declarations at least 30 days before its effective date.
No other change or waiver in this Memorandum is valid except by
endorsement, new Declarations, or new Memorandum issued by us.
If an assessment adjustment is necessary, we will make the
adjustment as of the effective date of the change.
K.Cancellation.
1.You may cancel this Memorandum by:
a.Returning it to us, or
b.Notifying us in writing when cancellation is to take effect.
2.We may cancel this Memorandum by mailing or delivering written
notice to you, or your representative. Such notice will be
mailed or
delivered to the last address known to us. The mailing of it will
be
sufficient proof of notice.
3. We may cancel this Memorandum for the following reasons:
a.Non-payment of assessment, whether payable to us or our
agent. We may cancel at any time by notifying you at least
10 days before the date cancellation takes effect.
b.Any reason, when this Memorandum has been in effect for
less than 60 days and is not a renewal with us. We shall
notify you at least 10 days before the date cancellation
takes effect.
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IV.Conditions, continued If the Memorandum period is longer than one year and has been in
effect for 60 days or more we may cancel at the anniversary date for
any reason. We will notify the Member at least 30 days before the
cancellation takes effect.
4.If this Memorandum has been in effect for 60 days or more, or
at anytime if it is a renewal with us, we may cancel only for one
or more of the following reasons:
a.A Covered Individual has been convicted of a crime having
as one of its necessary elements an act increasing any
hazard covered under this Memorandum.
b.Discovery of fraud or material misrepresentation by the
Covered Individual or the Covered Individual's
representative in either obtaining this Memorandum or
pursuing a claim under this Memorandum.
c.Discovery of grossly negligent acts or omissions by the
Covered Individual's representative which substantially
increases any of the hazards covered under this Memorandum.
We will notify you in writing at least 30 days before the cancellation
takes effect.
L.Return of Assessment. Cancellation of or changes in this
Memorandum may result in an assessment refund. If so, we will
send it to you within 30 days after cancellation or change takes
effect.
1.If you cancel this Memorandum, we will return the short rate
unused share of the assessment.
2.If we cancel this Memorandum, we will return the pro-rated
unused share of the assessment.
M.Non-Renewal. We may elect:
1.Not to renew this Memorandum; or
2.To condition its renewal on a reduction of limits or a reduction
or elimination of coverages.
We may do so by delivering to you or mailing to you at your mailing
address shown in the Declarations, written notice at least 30 days
before the expiration date of this Memorandum. The mailing of it
will be sufficient proof of notice.
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IV.Conditions, continued If this Memorandum is written for a period of less than one year we
agree not to refuse to renew except at the end of an annual period
beginning with the original or renewal effective date.
N. Assignment. Your interest in this Memorandum may not be
transferred to another person without our written consent. If you
should die, we cover:
1.Any member of your household who is a Covered Individual at
the time of your death, but only while a resident of the
Residence Premises.
2.Your legal representative, but only with respect to your premises
covered under the Memorandum at the time of death.
3.Any Person having proper custody of your Covered Individual
property until a legal representative is appointed.
O.Subrogation. A Covered Individual may waive in writing before a
loss all rights of recovery against any Person. If not waived, we may
require an assignment of rights of recovery for a loss to the extent
that payment is made by us.
If we seek an assignment, a Covered Individual will help us to secure
these rights and do nothing to impair them.
P.Conflict of Terms. If there are tenants of this Memorandum which
conflict with laws of the state where issued, the terms are amended
to conform to such laws.
Q.Memorandum Fees. If you pay a Memorandum Fee it is not fully
earned when the Memorandum is issued. It is not part of the
assessment. It is not returnable. However, you may apply it as a
credit toward Memorandum fees required for other Risk Financing
accepted by us.
R. Other Risk Financing. This Memorandum shall not apply to any claim
for which coverage or defense is provided under any other Special
District Risk Management Authority coverage.
S.Deductible.
1.Our obligation under LIABILITY COVERAGES of this
Memorandum to pay damages on behalf of the Covered
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IV.Conditions, continued Individual applies only to the amount of damages in excess of
any deductible amount stated in the Declarations.
2.The deductible amount stated in the Declarations applies to all
damages sustained by any person or organization as the result
of any one claim.
3.The deductible amount stated in the Declarations applies to
each claim and includes loss payments and adjustment,
investigative and legal fees and costs, whether or not loss
payment is involved.
4.The terms of this Risk Financing, including those with respect to
a.our rights and duty to defend any claims seeking damages,
and b. your duties in the event of a potential or actual claim
apply irrespective of the application of the deductible amount.
5.We may pay any part or all of the deductible amount to effect
settlement of any claim and upon notification of the action
taken, you shall promptly reimburse us for such part of the
deductible amount as has been paid by us.
** * * *
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
Signed by: ____________________________________________ __July 1, 2021__
Date Laura S. Gill
Chief Executive Officer
7656247.1