2021-22 Exhibit_I_WC_and_Employers_Liab_Cov_Agreement
2021-22 Property/Liability Coverage Documents T. 800.537.7790
Special District Risk Management Authority F. 916.231.4111 Rev. 07/1/2021 www.sdrma.org
Workers’ Compensation and
Employers Liability Coverage Agreement
Exhibit I
Special District Risk Management Authority
Policy No. WCEL-LCA-SDRMA-2021-22
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 1 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
Workers’ Compensation and Employers Liability Coverage Agreement
No. WCEL-LCA-SDRMA-2021-22
Certain words appear in bold face type. These are defined in the
“Definitions” section of this Workers’ Compensation and Employers
Liability Coverage Agreement.
COVERAGE AGREEMENT We, the Special District Risk Management Authority (hereinafter
“SDRMA”), in return for the payment of the contributions as they
become due, agree to provide workers' compensation coverage and
employer liability coverage for the period indicated in the
DECLARATIONS attached hereto, subject to all of the terms and
conditions of this Agreement and the Sixth Amended Joint Powers
Agreement executed by us and the Agency (and amendments thereto
or amended versions thereof), from the date of this Agreement until
such coverage’s are terminated as provided in said documents.
I. APPLICATION OF
AGREEMENT
This Agreement applies to “Loss” sustained by the “Covered Party”
because of liability imposed upon the “Covered Party” by:
A. The “Workers’ Compensation Act” or the Workers’
Compensation Act of any state other than California, provided
that California is the injured employee’s normal state of
employment or residence; or
B. “Employers’ Liability”;
on account of “Bodily Injury” or “Occupational Disease” sustained by
an “Employee” of the “Covered Party”, while engaged in operations
of the “Covered Party”, as a result of an “Occurrence”, taking place
during the “Coverage Period” and while this Agreement is in force.
The indemnity afforded by this Agreement under Coverage
Agreement I. B. for “Loss” because of liability imposed for “Employers’
Liability” applies only as respects such operations in the states named
in the Declarations page, including “Employees” who are employed
and regularly engaged in such operations in the named states but who
may be temporarily outside the named state(s) in connection with
such operations within the named state.
As respects liability imposed by “Employers Liability”, SDRMA shall
have no obligation to indemnify the “Covered Party” for damages
imposed in any lawsuit brought in, or any judgment rendered by, any
court outside of the United States of America, its territories or
possessions, or Canada, or to any action on such judgment wherever
brought.
II. RETENTION AND
INDEMNITY
The maximum limits of liability for all SDRMA Covered Parties due to
an “Occurrence”, as a result of Employers Liability shall not exceed
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 2 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
$5,000,000, subject to a member deductible. An “Occurrence” arising
out of Workers’ Compensation, which is subject to statutory limits, is
also subject to a member deductible.
A. Workers’ Compensation
As respects “Loss” which the “Covered Party” sustains as a result of
each “Occurrence”, SDRMA shall retain “Loss” in the amount of the
program retention, as specified in the Coverage Limits identified in the
Declarations page issued by SDRMA, if any. Notwithstanding the
application of this Agreement to “Loss” sustained by the “Covered
Party” under Subsections A, B and C of this Coverage Agreement I, the
maximum amount of the “Covered Party’s” Retention, if any, and the
maximum limit of SDRMA’s liability hereunder, shall not exceed the
amounts specified in COVERAGE LIMITS of the Declarations page
issued by SDRMA.
1. How This Coverage Applies: This workers’ compensation coverage
applies to “Bodily Injury” by accident or “Occupational Disease.”
“Bodily Injury” by accident or “Occupational Disease” includes
resulting death.
a. The “Bodily Injury” or “Occupational Disease” must arise out
of an occurrence in the course of the injured “Employee’s”
employment by the “Covered Party.”
b. The employment must be necessary or incidental to the
“Covered Party’s” work in California.
c. “Bodily Injury” by accident or “Occupational Disease” must
occur during the “Coverage Period”.
d. “Occupational Disease” must be caused or aggravated by the
conditions of the employment. The employee’s last day of last
exposure to the conditions causing or aggravating such
“Occupational Disease” must occur during the “Coverage
Period”.
e. This Agreement shall apply to loss on account of “Bodily
Injury” by accident or “Occupational Disease” sustained by
volunteer workers while acting within the scope of their
duties for or on behalf of the “Covered Party,” provided that
prior to the “Occurrence,” the Governing Board of the
“Covered Party” has adopted a resolution as provided in
Division 4, Part 1, Chapter 2, Article 2, of the California Labor
Code, declaring such volunteer workers to be employees of
the “Covered Party” for purposes of “Workers’
Compensation Act.”; or provided that such volunteer workers
are statutorily deemed by the “Workers’ Compensation Act”
to be “Employees” for purposes of workers’ compensation.
2. SDRMA Will Pay: SDRMA will pay promptly when due the benefits
required of the “Covered Party” by the “Workers' Compensation Act”
of the State of California or of another state not named in the
Declarations page issued by SDRMA provided that California is the
state of the injured “Employee’s” normal employment or residence.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 3 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
A. Workers’
Compensation, continued
3. SDRMA Will Defend: SDRMA has the right and duty to defend at
its expense any claim, proceeding or suit against the “Covered Party”
for benefits payable under this coverage. SDRMA has the right to
investigate and settle these claims, proceedings or suits. SDRMA has
no duty to defend a claim, proceeding or suit that is not covered under
this coverage.
4. SDRMA Will Also Pay: SDRMA will also pay these costs, in addition
to other amounts payable under this coverage, as part of any claim,
proceeding or suit SDRMA defends:
a. Reasonable expenses incurred at our request, but not for loss
of earnings;
b. Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to the amount payable under this
coverage;
c. Litigation costs taxed against the “Covered Party”;
d. Interest on a judgment as required by law until SDRMA offers
the amount due under this coverage; and
e. Expenses SDRMA incurs, including defense costs.
5. Other Insurance: SDRMA will not pay more than its share of
benefits and costs covered by both this coverage and other insurance
or self-insurance. Subject to any limits of liability that may apply, all
shares will be equal until the loss is paid. If any insurance or self-
insurance is exhausted, the shares of all remaining insurance will be
equal until the loss is paid.
6. Payments The “Covered Party” Must Make: The “Covered Party”
is responsible for any payments in excess of the benefits regularly
provided by the “Workers' Compensation Act,” including those
required because of:
a. The “Covered Party’s” serious and willful misconduct;
b. The “Covered Party’s” knowingly employing an “Employee”
in violation of law;
c. The “Covered Party’s” failure to comply with a health or
safety law or regulation;
d. The “Covered Party’s” discharge, coercion, or other
discrimination against any Employee in violation of the
“Workers' Compensation Act” or any other law.
e. Of claims relating to or in any way arising out of California
Labor Code Section 132(a);
f. The “Covered Party’s” liability under Section 4557 of Division
IV of Labor Code of the State of California, by reason of injury
to an employee less than sixteen years of age and illegally
employed at the time of injury.
If SDRMA makes any payments other than or in excess of the benefits
regularly provided by the “Workers’ Compensation Act” on the
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 4 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
A. Workers’
Compensation, continued
“Covered Party’s” behalf, the “Covered Party” will promptly
reimburse SDRMA.
7. Recovery From Others: SDRMA has the right on behalf of the
Covered Party, and the rights of persons entitled to the benefits of
this coverage, to recover SDRMA’s payment from anyone liable for an
injury covered by this coverage. In seeking such recovery, SDRMA
shall be acting as the designated representative of that Covered Party.
All rights of recovery shall remain with the Covered Party such that
there is no automatic assignment or transfer of the original claim. At
SDRMA’s request, the Covered Party shall assign its rights of recovery
to SDRMA. All sums recovered under this provision, whether the
Covered Party has assigned its rights to SDRMA or not, shall be applied
to reimburse SDRMA for payments made pursuant to this agreement.
The Covered Party will do everything necessary to protect those rights
for SDRMA and will help SDRMA enforce them.
8. Statutory Provisions: These statements apply where they are
required by law:
a. As between SDRMA and an injured worker, SDRMA has notice
of the injury when the “Covered Party” has notice.
b. The “Covered Party’s” default or the “Covered Party’s”
bankruptcy or insolvency after an injury occurs will not relieve
SDRMA of SDRMA’s duties under this coverage.
c. SDRMA is directly and primarily liable to any person entitled
to the benefits payable by this coverage. These persons may
enforce SDRMA’s duties; so may an agency authorized by law.
Enforcement may be against SDRMA or against the “Covered
Party” and SDRMA.
d. Jurisdiction over the “Covered Party” is jurisdiction over
SDRMA for purposes of the “Workers' Compensation Act.”
SDRMA is bound by decisions against the “Covered Party”
under that law subject to the provisions of this Agreement
that are not in conflict with that law.
Nothing in these paragraphs relieves the “Covered Party” of the
“Covered Party’s” duties under this Agreement.
9. Exclusions: This Coverage shall not apply to:
a. The “Covered Party’s” obligation to pay salary in lieu of
temporary disability benefits as required by Labor Code
Section 4850 or the “Covered Party’s” obligation to pay wages
or salary as required by Education Code Sections 44984 and
45192, except to the extent that the “Covered Party” would
be obligated to pay temporary disability benefits if Labor Code
Section 4850 or Education Code Sections 44984 and 45192 did
not apply;
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 5 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
A. Workers’
Compensation, continued
b. The “Covered Party’s” obligations pursuant to Labor Code
Section 4856;
c. Punitive or Exemplary Damages, fines, penalties assessed
against or imposed upon “Covered Party”:
1. On account of “Bodily injury” or “Occupational Disease”
sustained by any “Employee”; or
2. On account of the conduct of the “Covered Party” or any
of its agents (i) in the investigation, trial or settlement of any
claim for benefits under the applicable “Workers’
Compensation Act” or for damages at law, or (ii) in failing to
pay or delaying the payment of any such benefits or damages;
or
3. On account of violation of any statute or regulation; or
4. On account of “Bodily Injury” or “Occupational Disease”
intentionally caused or aggravated by the “Covered Party”; or
5. On account of “Bodily Injury” arising out of termination of
employment; or
6. On account of “Bodily Injury” arising out of the coercion,
demotion, reassignment, discipline, defamation, harassment
or humiliation of, or discrimination against any “Employee”.
B. Employers Liability
1. How This Coverage Applies: This employers liability insurance
applies to “Bodily Injury” by accident or “Bodily Injury” by
“Occupational Disease.”
a. The “Bodily Injury” and/or “Occupational Disease” must arise
out of and occur in the course of the injured employee’s
employment by the “Covered Party.”
b. The employment must be necessary or incidental to the
“Covered Party’s” work in the State of California or in work by
the employee who is regularly engaged in such operations in
California but who may be temporarily outside of California in
connection with such operations.
c. “Bodily Injury” by accident or “Occupational Disease” must
occur during the coverage period.
d. “Bodily Injury” by “Occupational Disease” must be caused or
aggravated by the conditions of the “Employees”
employment with the “Covered Party.” The employee’s last
day of last exposure to the conditions causing or aggravating
such “Bodily Injury” by “Occupational Disease” must occur
during the policy period.
e. If the “Covered Party” is sued, the original suit and any related
legal actions for damages for “Bodily Injury” by accident or by
“Occupational Disease” must be brought in the United States
of America, its territories or possessions, or Canada.
2. SDRMA Will Pay: SDRMA will pay all sums the “Covered Party”
legally must pay as damages because of “Bodily Injury” by accident or
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 6 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
B. Employers Liability,
continued
“Occupational Disease” to the “Covered Party’s” “Employees,”
provided that the “Bodily Injury” by accident or “Occupational
Disease” is covered by this employers liability coverage.
The damages SDRMA will pay, where recovery is permitted by law,
include damages:
a. For which the “Covered Party” is liable to a third party by
reason of a claim or suit against the “Covered Party” by that
third party to recover the damages claimed against such
third party as a result of injury to the “Covered Party’s”
“Employee”; and
b. For care and loss of services; and
c. For consequential “Bodily Injury” or “Occupational Disease”
to a spouse, child, parent, brother, or sister of the injured
“Employee,” provided that these damages are the direct
consequence of “Bodily Injury” or “Occupational Disease”
that arises out of and in the course of the injured
“Employee's” employment by the “Covered Party”; and
d. Because of “Bodily Injury” or “Occupational Disease” to the
“Covered Party’s” “Employee” that arises out of and occurs in
the course of employment claimed against the “Covered
Party” in a capacity other than as employer.
3. Exclusions: This Coverage shall not apply to:
a. Liability assumed under a contract;
b. “Bodily Injury” or “Occupational Disease” to an “Employee”
while employed in violation of law with the “Covered party’s”
actual knowledge or the actual knowledge of any of the
“Covered Party’s” executive officers;
c. Any obligation imposed by a workers' compensation,
occupational disease, unemployment compensation, or
disability benefits law, or any similar law;
d. “Bodily Injury” or “Occupational Disease” intentionally
caused or aggravated by the “Covered Party”;
e. “Bodily injury” or “Occupational Disease” occurring outside
the United States of America, and or its territories or
possessions, and Canada. This exclusion does not apply to
“Bodily Injury” or “Occupational Disease” to a citizen or
resident of the United States of America or Canada who is
temporarily outside these countries;
f. “Bodily Injury” or “Occupational Disease” arising out of the
coercion, criticism, demotion, evaluation, reassignment,
discipline, defamation, harassment, humiliation,
discrimination against or termination of any “Employee,” or
arising out of any personnel practices, policies, acts or
omissions.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 7 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
B. Employers Liability,
continued
g. Punitive or Exemplary Damages, fines or penalties imposed
upon the “Covered Party”;
h. Liability of the “Covered Party” on account of the discharge,
coercion or other discrimination against any “Employee” in
violation of the “Workers’ Compensation Law”, including but
not limited to claims relating to or in any way arising out of
Labor Code Section 132a.
i. Liability arising out of operations for which the Covered Party
has violated or failed to comply with any Workers’
Compensation Law;
j. Liability arising out of operations for which the Covered Party
has rejected any Workers’ Compensation Law.
4. SDRMA Will Defend: SDRMA has the right and duty to defend at its
expense any claim, proceeding or suit against the “Covered Party” for
damages payable by this coverage. SDRMA has the right to investigate
and settle these claims, proceedings, and suits.
SDRMA has no duty to defend or continue defending after SDRMA has
paid its applicable limit of liability under this coverage.
5. SDRMA Will Also Pay: SDRMA will also pay these costs in addition
to other amounts payable under this coverage as part of any claim or
suit SDRMA defends:
a. Reasonable expenses incurred at SDRMA’s request, but not
loss of earnings;
b. Premiums for bonds to release attachments and for appeal
bonds in bond amounts up to the limit of our liability under
this coverage;
c. Litigation costs taxed against the “Covered Party”;
d. Interest on a judgment as required by law until SDRMA offers
the amount due under this coverage; and
e. Expenses SDRMA incurs, including defense costs.
6. Other Insurance: This coverage is excess over any insurance, self-
insurance or other self-insurance pool.
7. Limits of Liability: SDRMA’s liability to pay for damages is limited.
SDRMA’s limits of liability are shown in the Declarations page. They
apply as explained below.
a. The limit shown for “Employers Liability Coverage” is the most
SDRMA will pay for all damages covered by this insurance
because of “Bodily Injury” by accident to any one or more
employees due to any one accident.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 8 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
b. The limit shown for “Employers Liability Coverage” is the most
SDRMA will pay for all damages covered by this insurance and
arising out of “Bodily Injury” by “Occupational Disease,”
regardless of number of “Employees” who sustain “Bodily
Injury” by “Occupational Disease.”
c. SDRMA will not pay any claims for damages after SDRMA has
paid the applicable limit of SDRMA’s liability under this
insurance.
8. Recovery from Others: SDRMA has the right on behalf of the
Covered Party to recover SDRMA’s payment from anyone liable for an
injury covered by this coverage. In seeking such recovery, SDRMA
shall be acting as the designated representative of that Covered Party.
All rights of recovery shall remain with the Covered Party such that
there is no automatic assignment or transfer of the original claim. At
SDRMA’s request, the Covered Party shall assign its rights of recovery
to SDRMA. All sums recovered under this provision, whether the
Covered Party has assigned its rights to SDRMA or not, shall be applied
to reimburse SDRMA for payments made pursuant to this agreement.
The Covered Party will do everything necessary to protect those rights
for SDRMA and will help SDRMA enforce them.
9. Action Against SDRMA: There will be no right of action against
SDRMA under this coverage unless:
a. The “Covered Party” has complied with all the terms of this
Agreement, and
b. The amount the “Covered Party” owes has been determined
with SDRMA’s consent or by actual trial and final judgment.
This coverage does not give anyone the right to add SDRMA as a
defendant in an action against the “Covered Party” to determine the
“Covered Party’s” liability.
III. DEFINITIONS
1. “Bodily Injury”: The term “Bodily Injury” shall include death
resulting therefrom, but shall not include “Occupational Disease”.
2. “Communicable Disease”: Shall mean a disease caused by an
infectious organism, which is transmissible from one source to
another, directly or indirectly.
3. “Coverage Period”: Shall be the period referred to in the
Declarations page.
4. “Covered Party”: Shall mean the Member(s) identified as the
“Covered Party” on the Declarations page issued by SDRMA.
5. “Employee”: The word “Employee” shall mean, as respects liability
imposed upon the “Covered Party” by the “Workers’ Compensation
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 9 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
III. DEFINITIONS,
continued
Act” of any state, any person performing work which renders the
“Covered Party” liable under any “Workers’ Compensation Act”,
provided such person’s normal employment or residence is located in
a state named in the Declarations page issued by SDRMA.
6. “Employers Liability”: The phrase “Employers Liability” shall mean
the liability of a “Covered Party” as specified in Section “B. Employers
Liability” of Section II.
7. “Loss”: The word “Loss” shall mean only such amounts as are
actually paid or payable by SDRMA on behalf of the “Covered Party”
in payment of benefits under the applicable “Workers’ Compensation
Act”, or in payment of amounts imposed upon the “Covered Party” by
“Employers Liability”, in settlement of claims for such benefits or
damage, or satisfaction of awards or judgments for such benefits or
damages, including court costs, interest upon awards or judgments
and allocated investigation, adjustment and defense costs, but the
term “Loss”, shall not include as expenses, salaries paid to an
“Employee” of the “Covered Party”, nor fees and retainers paid to any
service organization.
8. “Occupational Disease”: The phrase “Occupational Disease” means
a disease or infection which is due to causes and conditions which are
characteristic of and peculiar to a particular trade, occupation, process
or employment and shall include cumulative injuries and/or death
resulting therefrom. “Bodily Injury” by “Occupational Disease” does
not include “Occupational Disease” that results directly from a
“Bodily Injury” by accident.
9. “Occurrence”: the term “Occurrence” shall mean an accident
resulting in “Bodily Injury” or “Occupational Disease” to an
“Employee.”
a. All “Bodily Injury” sustained by one or more “Employees” as
a result of a single accident, shall be deemed to arise from a
single “Occurrence”.
b. “Occupational Disease” sustained by one “Employee” shall be
deemed to arise from a separate “Occurrence” which shall be
deemed to take place on the last day of the last exposure, in
the employment of the “Covered Party,” to conditions
causing or aggravating the disease or the date upon which the
employee first suffered disability and either knew, or in the
exercise of reasonable diligence should have known, that such
disability was caused by his or her employment with the
“Covered Party”, whichever comes first.
c. As to any “Covered Party” who was a member during the July
1, 2019 to July 1, 2020 coverage period, all “Communicable
Disease” sustained by one or more “Employees” as a result of
the outbreak of COVID-19 that began during the July 1, 2019
to July 1, 2020 coverage shall be deemed to be a part of the
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 10 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
same outbreak of a “Communicable Disease” that shall be
deemed to arise from the same outbreak of a “Communicable
Disease” that constitutes a single “Occurrence” during the
July 1, 2019 to June 30, 2020 coverage period. Otherwise,
“Communicable Disease” shall be treated like any other
“Occupational Disease” under Part (b) of this definition.
10. “Payroll”: Shall mean payroll computed in accordance with the
rules set forth in the California Workers’ Compensation Insurance
Manual published by the Workers’ Compensation Rating Bureau.
11.“Workers’ Compensation Act”: The phrase “Workers’
Compensation Act” shall mean the workers or workmen’s
compensation law and occupational disease law of each state or
territory described in parts ‘A.’ and ‘B.’ under Section I. APPLICATION
OF MEMORANDUM. It includes any amendments to that law which
are in effect during the policy period. “Workers’ Compensation Act”
also includes the United States Longshore and Harbor Workers
Compensation Act (33 USC Sections 901-950), but does not include
any other any federal workers or workman’s compensation law,
including, but not limited to, the Non-appropriated Fund
Instrumentalities Act (5 USC Sections 8171-8173), the Outer
Continental Shelf Lands Act (43 USC Sections 1331-1356a.), the
Defense Base Act (42 USC Sections 1651-1654), the Federal Coal Mine
Safety and Health Act (30 USC Sections 801-945); nor does “Workers’
Compensation Act” include any federal occupational disease law or
the provisions of any other law that provides non-occupational
disability benefits.
IV. THE COVERED PARTY’S
DUTIES IF INJURY OCCURS
Tell SDRMA at once if an injury occurs that may be covered by this
Agreement. The “Covered Party’s” other duties are to:
a. Provide for immediate medical and other services required by
the “Workers' Compensation Act.”
b. Give SDRMA or its claims management firm the names and
addresses of the injured persons and of witnesses and other
information SDRMA may need.
c. Promptly give SDRMA or its claims management firm all
notices, demands, and legal papers related to the injury,
claim, proceeding or suit.
d. Cooperate with SDRMA or its claims management firm and
assist SDRMA or its claims management firm as SDRMA or its
claims management firm may request in the investigation,
settlement, or defense of any claim, proceeding or suit.
e. Do nothing after an injury occurs that would interfere with
SDRMA’s right to recover from others.
f. Do not voluntarily make payments, assume obligations or
incur expenses except at the “Covered Party’s” own cost.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 11 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
V. CONTRIBUTION
1. Contribution(s) Due: The contribution(s) due for the coverages set
forth in this Agreement shall be determined pursuant to the terms and
conditions set forth in the Sixth Amended Joint Powers Agreement
and any amendments thereto. The rules, classifications, and rates
published by the Workers' Compensation Insurance Rating Bureau for
the applicable year shall be used in computing contributions.
2. Classifications: The Board of Directors of the SDRMA shall classify
the “Covered Party’s” payroll pursuant to the rules published by the
Workers’ Compensation Insurance Rating Bureau and procedures and
policies established from time to time.
3. Remuneration: Contribution for each work classification is
determined by multiplying a rate times a contribution basis.
Remuneration is the most common contribution basis. This
contribution basis includes payroll and all other remuneration paid or
payable during the coverage period for the services of:
a. All the “Covered Party’s” officers and “Employees” engaged
in work covered by this Agreement; and
b. All other persons engaged in work that could make SDRMA
liable under Part I (Workers' Compensation) of this
Agreement. If the “Covered Party” does not have payroll
records for these persons, the contract price for their services
and materials may be used as the contribution basis. This
paragraph will not apply if the “Covered Party” gives us proof
that the employers of these persons lawfully secured their
workers' compensation obligations.
c. With respect to directors who sit on the Board of the Member
who are paid either on the Member’s Payroll or through
accounts payable as independent contractors, the Member’s
contribution shall be in accordance with the rules and policies
established by SDRMA, subject to a minimum per Director per
year.
d. The contribution base for volunteers is the number of hours
worked times the federal minimum wage for each hour
worked. This contribution base applies to volunteers who
receive direct or indirect compensation from the Agency and
applies to volunteers who are covered for workers'
compensation benefits by resolution of the Agency Board of
Directors.
4. Records: The “Covered Party” will keep records of information
needed to compute a contribution. The “Covered Party” will provide
us with copies of these records when SDRMA asks for them.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 12 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
5. Audit: The “Covered Party” will let us examine and audit all the
“Covered Party’s” records that relate to these coverages and this
Agreement. These records include ledgers, journals, registers,
vouchers, contracts, tax reports, payroll and disbursement records,
and programs for storing and retrieving data. SDRMA may conduct the
audits during regular business hours during the period of coverage and
within three years after the coverage period ends. Information
developed by audit will be used to determine final contribution.
VI. CONDITIONS
1. Inspection: SDRMA has the right, but is not obligated, to inspect the
“Covered Party’s” workplaces at any time. SDRMA inspections are not
safety inspections. They relate only to the insurability of the
workplaces and the contributions to be charged. SDRMA may give the
“Covered Party” reports on the conditions which SDRMA finds.
SDRMA may also recommend changes. While they help reduce losses,
SDRMA does not undertake to perform the duty of any person to
provide for the health or safety of the “Covered Party’s” “Employees”
or the public. SDRMA does not warrant that the “Covered Party’s”
workplaces are safe or healthful or that they comply with laws,
regulations, codes, or standards.
2. Transfer of The “Covered Party’s” Rights and Duties: The “Covered
Party’s” rights or duties under this policy may not be transferred
without our written consent.
3. Cancellation:
a. The “Covered Party” may cancel this coverage pursuant to the
terms of the Sixth Amended Joint Powers Agreement (and any
amendments thereto) and the Bylaws including the
“involuntary termination” provisions.
b. SDRMA may cancel this Agreement pursuant to the terms of
the Joint Powers Agreement (and any amendments thereto)
and the Bylaws.
VII. CALIFORNIA
AMENDATORY PROVISION
Rate Changes: This Agreement is issued by SDRMA and accepted by
the “Covered Party” with the agreement that the “Covered Party” will
accept any increase in contribution or in the rates of contribution
which may be promulgated by SDRMA’s Board of Directors and made
effective immediately at any time during the “Coverage Period” as
authorized by the Sixth Amended Joint Powers Agreement (or
amendments thereto or amended versions thereof) and/or the
Bylaws.
Statutory Provision: The “Covered Party’s” “Employee” has a first lien
upon any amount, which becomes owing to the “Covered Party” by
us on account of this Agreement, and in the case of the “Covered
Party’s” legal incapacity or inability to receive the money and pay it to
the claimant SDRMA will pay it directly to the claimant.
Workers’ Compensation and Employers Liability Coverage Agreement
2021-22 Workers’ Compensation and Employers Liability Coverage Agreement Page: 13 of 13 Tel 800.537.7790
Special District Risk Management Authority Fax 916.231.4111 Rev. 07/1/2021 www.sdrma.org
IN WITNESS WHEREOF, this Agreement has been executed by the Special District Risk Management
Authority (SDRMA) on the date shown below.
NOTICE: If proper, timely notice of intent to withdraw is not given, as required by the Sixth Amended and
Restated Joint Powers Agreement and/or the Bylaws, or successor documents thereto, your
District/Agency shall be responsible for the full program year's contributions and any assessments
applicable thereto, for the program year for which notice was not timely given, as well as any other
assessments to which a member District/Agency is or may legally be obligated.
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA)
Signed by: _______________________________________ __July 1, 2021________
Laura S. Gill Date
Chief Executive Officer
7656234.1