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The city manager shall obtain and maintain in force such policies and contracts of insurance or fidelity bonds as are necessary to protect the city from severe financial or property loss subject to the following policy:
(a) The city may assume the risk of loss when:
(1) In the judgment of the city manager, insurance coverage is not obtainable at a reasonable premium;
(2) In the judgment of the city manager, the estimated amount of a potential single property loss from a particular risk is less than $100,000.00;
(3) Deductible or excess coverage is obtainable provided that the total dollar amount of loss retention annually or per occurrence for all policies in force shall not exceed $5 million.
(b) The city may obtain full or partial insurance coverage for its exposure to all liability claims other than those arising from workers compensation; provided, however, such liability coverage includes the cost of claims investigation and litigation when such costs are not anticipated in the city budget.
(c) When coverage is obtained through a licensed agent or broker or association thereof, such procurement and other services shall be governed by a written agreement with the city.
(d) Placement of insurance coverage shall be limited to companies which maintain policyholder reserves in excess of $12 million and are rated B+ or better in "Bests" published ratings of insurance companies.
(Ord. 4274 § 2 (part), 1995)