2013/10/07 George Hills Company, Inc. PARSAC InsuranceSUBROGATION/RECOVERY
SERVICE CONTRACT
This contract is made and entered into this 7th day of October, 2013 by and
between PARSAC and its Member Aqencies , hereinafter called PARSAC or
Membe(s), and GEORGE HILLS COMP lNc.AN Y hereinafter referred to as GHC.
GHC is a California Corporation doing business as licensed, independent insurance
adjusters and administrators, with John E. Chaquica, President in charge of daily
operations. The company's corporate office is located at 3043 Gold Canal Dr, Suite 200,
Rancho Cordova, California, 95670; telephone (916) 859a800.
lT lS HEREBY AGREED by and between the parties signing this agreement as
follows:
GENERAL
PARSAC is desirous of availing itself of subrogation recovery claims services.
GHC is a claim administrative firm experienced in the handling of subrogation clalms
and is ready and capable of performing such services. As such, GHC shall act as a
representative of PARSAC and Members for the investigation, adjustment, processing,
supervision and evaluation of-and ultimate recovery of-potential money from damage
claims against parties forwhom it is alleged to be legally responsible.
il. scoPE oF sERVlcEs
1) Meet with Participating Members and review organization structure and
ordinances.
2) Coordination Meeting with Department Heads to establish role and contact
information.
3) Development and review of Customized Policy and Procedures for Members
and staff.
4) Review reporting requirements.
5) lmplementation of Standard Forms.
1George Hills Company, lnc.Subrogation/Recovery Service Contract
GHC agrees to provide complete recovery handling services on each incident
which is or may be the subject of a potential recovery. ln addition, GHC places great
value on the on-boarding of subrogation services. Such services shall include the
following:
A. MEMBER SET-UP
B. RECOVERY CLAIM HANDLING SERVICES
GHC agrees to provide complete subrogation claim handling services on each
incident which is or may be the subject of a recovery. Such services shall include the
following:
1) Promptly set up a claim file upon receipt of the incident and maintain a claim
file on each potential or actual incident reported.
2) Assess and evaluate the nature and extent of each claim.
3) Prepare proofs of loss statement and forward to appropriate party.
4) lnitiate settlement discussion with appropriate party through resolution.
5) Provide an account manager and lead subrogation adjuster.
C. DATA
GHC agrees to perform the following:
1) Utilize its "State of the Art" claims information system.
2) Record all claim information including all financial data.
3) Provide PARSAC and Members Read only on-line access to the claims data
system, if desired by Members.
4) Provide monthly standard loss run.
5) Provide assistance to PARSAC and Members in developing customized
reports when requested (may require additional charge).
D. CLAIM REVIEW MEETINGS
GHC shall, upon request, meet and review with PARSAC or Members to discuss
claims inventory and claims results of past period and delivery of services by GHC.
I1I. SETTLEMENT OF CLA]M
It is ag reed that PARSAC and its Members have not oran ted authoritv to GHC for
the purpose of compromising and/or settling any recovery claims being handled by
GHC. On matters requiring settlement authority, the Member's designated claims officer
or employee approval must be obtained prior to compromise or settlement of any claim.
IV. SUBMISSION OF RECOVERY FUNDS
All recovery checks will be made payable to the respective ltrlember. Remittance
to Members will be made per each Membeis request (quarterly, monthly or weekly).
2George Hills Company, lnc.Subrogation/Recovery Service Contract
VIII. MEM BER RESPONSIBILITY
GHC covenants that it presently has no interest, direct or indirect, which would
conflict in any manner with the-performance of services required under this agreement.
GHC will conduct its .business so as to fulfill all legal and ethical requirements, and
standards of the industry and state and shall place the best interests of pARSAC and
Members above any other concems in the rendering of services. To this end, GHC will:
a) Adhere to its ethical obligations to PARSAC and Members to deliver honest,
competitive, and meaningful service and advice on the services offered.
b) Provide a summary of services and the related terms and conditions for any
additional services provided directly by GHC or its subsidiaries.
c) ln the event GHC receives a claim from PARSAC or Membe(s) in which
there arises a "conflict of interest" GHC shall immediately notify pARSAC and
Member(s) of such potential conflict so that PARSAC and Membe(s) may
have the option to choose an independent investigator and/or Claim
Administrator.
Member agrees to the following:
1) Member shall cooperate with GHC as may be reasonably necessary for GHC
to perform its services.
2) Member agrees to provide direction to GHC as requested.
3) Member shall identify primary contact person for account as well as for billing
and loss run submission. ln addition, Member shall be responsible for
reporting all changes thereto.
George Hills Company, Inc.Subrogation/Recovery Service Contract
V, FILE RETENTION
GHC shall retain records in accordance with the Member's record retention policy
up to a maximum of seven (7) years. At that time GHC, unless requested by the
Member to retain at its own expense, shall destroy by shredding the files in accordance
with the timeline stated in Attachment A.
VI. CONFIDENTIALITY
All data, documents, discussions, or other information developed or received by
or for GHC in performance of this agreement are confidential and not to be disclosed to
any person except as authorized by Member or Member's designee, or as required by
law.
VII. CONFLICT OF INTEREST
IX. COMPENSATION
Member agrees and is solely responsible to pay GHC for services described in
Section ll - Scope of Services.
1) Subrogation Fee:20o/o of all recoveries, or$100 minimum, per claim.
2) PARSAC is not responsible and has no obligation to pay GHC for services
described in Section ll - Scope of Services,
X. PAYMENTSCHEDULE
The above compensation shall apply to services provided during the term of this
contract. Such change, if any, shall be submitted to PARSAC and Members by June '1"1
each year. Submission shall be in writing and subject to mutual agreement.
XII. TERMINATION
PARSAC, Members, and GHC shall have the right to terminate this agreement
with or without cause, by giving not less than ninety (60) days written notice of
termination.
xill. FAtR EMPLOYIUENT
It is the policy of GHC to provide fair and equal treatment to all staff members.
GHC is an Equal Opportunity Employer and does not discriminate in any way against
any person on the basis of age, race, sex, color, national origin, national ancestry,
physical disability, medical condition, religion, creed, madtal status, sexual orientation,
gender identification or any other classification deemed protected by law.
XIV. INDEPENDENTCONTRACTOR
ln performing claims administrative services herein agreed upon, GHC shall have
the status of an independent GHC and shall not be deemed to be an officer, employee,
or agent of CLIENT.
XV. INDEMNIFICATION
GHC shall. hold harmless, defend and indemnify PARSAC and Members, its officels,
officials;" employees and volunteers from and against all claims, damages, losses and
expenses including aftorney fees which actually or allegedly arise out of the
4Subrogation/Recovery Service Contract
GHC will submit its bills to Members for payment within a reasonable period of
time, not to exceed thirty (30) days.
XI. TERM
The term of this contract shall be from _ 2013 to and including June 30,
2015.
George Hills Company, lnc.
performance of the work described herein, caused in whole or in part by any negligent
act or omission of GHC, its contractor, any subcontractor, anyone direc y or ind=irjcfly
employed by any of them, or anyone for whose acts any of them may be liable, except
where caused by the sole negligence, orwillful misconduct of pARSAc or Members, iis
officers, officials, employees and volunteers.
PARSAC and Members will defend, at no cost to GHC, those cases wherein GHC is
named in a filed or verified complaint simply by virtue of the fact it is the claims
administration firm on a given claim.
XVI. INSURANGE
GHC shall provide PARSAC with Certificates of lnsurance duly executed by the
insurance company or companies authorized to transact business in the State of
california, and said certificates shall certify that GHC has in full force and effect
$1,000,000 coverage applying to bodily injury, personal injury, property damage, errors
and omissions coverage, statutory workers compensation coverage, and shall also
maintain an employee fidelity bond in the amount of $500,000.
Thirty (30) days notice, in writing, prior to cancellation or reduction in coverage
will be provided.
XVII. EMPLOYEESOLICITATION
During the period of this contract, and for a period of one (1) year thereafter,
GHC agrees not to solicit for employment any PARSAC and Members, employee
contacted during the performance of this agreement; PARSAC and Members agree not
to solicit for employment, or employ, during the period of this contract, and for a period
of one (1) year thereafter, any employee of GHC contacted by pARSAC and Members
during the performance of this agreement.
XVIII. PERMITS. LICENSE S, CERTIFIGATES
GHC, at GHC's sole expense, shall obtain and maintain during the term of this
Agreement, all permits, llcenses, and certificates required in connection with the
performance of services under this Agreement, including appropriate business ljcense.
XIX. DISCLOSURE
GHC agrees to adhere to the established Conflict of lnterest Code for PARSAC
including annual disclosure of all investments and business positions in, and sources of
income from business entities that provide services, supplies, or materials related to the
performance of this Agreement as required by the Code.
XX. ARBITRATION
GHC and PARSAC agree that in t he event of any dispute with regard to the
provisions of the Agreement,the services rendered or the amount of GHC's
George Hills Company, lnc.Subrogation/Recovery Service Contract 5
compensation the dispute shall be submitted to arbitration upon mutual agreement of
the parties, under such procedures as the parties may agree upon, or, if the parties
cannot agree, then under the Rules of the American Arbikation Association.
xxr. NoTtcES
All notices to GHC shall be personally served or mailed, postage prepaid, to the
following address: George Hills Company, 3043 Gold Canal Dr., Ste. 200, Rancho
Cordova, CA 95670.
All notices to PARSAC shall be personally served or mailed, postage prepaid, to
the following address: PARSAC, 1525 Response Road, Suite 1; Sacramento, CA
95815.
GHC and PARSAC agree that the terms and conditions of the Agreement may
be reviewed or modified at any time. Any modifications to this Agreement, however,
shall be effective only when agreed to in writing by both the PARSAC and GHC.
XXII. ENTIRE AGREEMENT
GHC and PARSAC agree that this agreement constitutes the entire agreement of
the parties regarding the subject matter described herein and supersedes all prior
communications, agreements, and promises, either wriften or oral.
XXIII. TIME OF ESSEN
Time is of the essence in respect to all provisions of this Agreement that specify
a time for performance: provided, however that the foregoing shall not be construed to
limit or deprive a party of the benefits of any grace or use period allowed in this
Agreement.
XXIV. EXECUTION IN COUNTERPARTS
This agreement may be executed in counterparts, all of which combined shall be
deemed the original agreement.
t"l t )BY:
Date John E. Chaquica, President
GEORGE HILLS COMPANY INC
BY:
c
Date RECEIVED
OCT io lOrs
Joanne nie, General Manager
PARSAC
6George Hilts Company, IncfAR'SAGubrogation/Recovery Service contract
ro /s/r t
SUBROGATION/RECOVERY
SERVICE GONTRACT
By and between George Hills Company, PARSAC and its participating member entities.
XXIV. EXECUTION IN COUNTERPARTS
Member Agency:
4 3:
Date Signed
Aon A hrlsu4
Print Name
TI
Title
7George Hills Company, Inc.Subrogation/Recovery Service Contract
I
Claim Files with TPA
Claims lnvolving Minors
Litigated Claims Files
Formal Notice of Liability Claim
General Correspondence
lncident Reports
lnvestigative Files and Tapes
Loss Runs
ATTACHMENT A
TIME LINE FOR RECORD RETENTION
5 years after date closed
3 years from age 18 or 7 years whichever is
longer from closure
5 years after litigation is concluded
Closed + 2 years unless litigated
3 years
Closed + 2 years unless litigated
7 years
Current year end report + 7 years
George Hills Company, lnc. Subrogation/Recovery Service Contract
Attachment A - Timeline for Record Retention
8
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City of Menifee
ocl 2 r 2013lIIll.t{el
PUBTIC AGENCY RISI( SHARING
AUTHORITY OF CATIFORNIA
M E M ORANDUM
October 17,2013
Terri Willoughby, City of Menifee
Kin Ong, Risk Manager
Liability Subrogation Recovery Services Now Available!
Received
t
I
I
DATE
TO:
FROM:
RE:
PARSAC's liability claims administration firm, the George Hills Cornpany (GHC), recently
introduced a new subrogation recovery service. Subrogation is the process of recovering claims
expenses fiom a negligent third party and should be an integral part of every insured and self-
insured program. Unfortunately, subrogation opportunities are often overlooked or underutilized.
Common sources of recovery are auto accidents that caused damage to municipal infrastructure
such as light poles, traffic signats/signs, and fire hydrants. Subrogation may also be used to
recover non-claims expenses such as DUI fees, graffiti code enforcement, and emergency
rssponse. When proactively pursued, subrogation has potential to provide a significant source of
revenue.
GHC o llers a systematic approach to assist public entities in recovcring funds that may otl]erwtse
go unnoticed. The GHC team will help members establish a formal recovery program to include
recovery policies and procedures, reporting requirements, and standardized forms. Through this
program, the GHC leam will identify liable parties, evaluate recovery potential, and facilitate
recovery in accordance with the member agency's policy. Please see the enclosed program
description for more information.
The Executive Committee recently approved providing this value added service to mernbers by
coordinating a master agreement between GHC, PARSAC and members. There is no charge to
participate in this program and funds recovered through subrogation are paid directly to the
member. The service fee is 20o/o fee of the recovery or a $ 100 minimum, which will be billed to
the member. This program is available to all members, whether or not you are a current George
Hills client for claims administration. A brief orientation on the program will be provided at the
Board meeting on December 5,2013.
If your agency would like to receive this valuable service, please sign and retum the original,
executed signature page from the enclosed contract. Please retain the contract and a copy of your
signature page for your records. The fully counter-signed, original agteement will be maintained
at the PARSAC office. As always, feel free to let us know if you have any questions.
1525 Response Road, Suite One, Sacramento, CA 95815-5274
Phone (916) 927-7727 Facsimile (9t6) 927-3075 www.parsac,org
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SUBROGATION RECOVERY DIVISION
GH C's Subrogation Recouery Diuision
for the Public Sector - Timely & Tbsted
A "subrogation claim" is defrned as a loss caused by the negligent act of a rhird-party.
lVhile thc basic concepr is rclatively straightforward, subrogarion recovery in thepublic sec-
tor is an area of claim handling often ovcrlooked or forgorten. Ir involves both large and
small investigations as well as analysis oflosses for reducing expenses, Subrogation recovery
claims can be from:
Subrogarion recovery claims can also be from DUI Fees, Environment Spills, GrafEti
Code Enforccment, Fires and Explosions, Emergency Response, and Product Fail:re.
We'll help yur entit! recouer rnone! tl)at
tna! haue been ouerlooked (orforgotten)
George Hills Company's (GHC) Best Practice Subrogation Division works aggrcssively
to maximize recovery on behalfofclicnts. In ourdiligent pursuit ofsubrogation casc rcsolu-
tion at GHC, we encourage and cnsurc that debtors resolve debts quickly whilc applying
and adhering to law and administrative changes and methods. Our goal is to help dcbrors
achicve long-term compliance and detcr non-compliance. Scttlements are skillfully negori-
ated byour experienced staffwho rely on current federal and state laws to obtain the highcst
possiblc rccovery. W'e have an attorncy available to represent in litigation or to negoriarc a
setdement. \,)i'e invite you to learn how GHC's Subrogation Recovery Division:
. Ensures the protcction ofthe client and debtor's rights, privacy, and concems
. Resolves compliance issues in an impartial and profesional manner
. Understands all issues rclated to the cases we are resolving
o Takes cvery opportuniry to educate the debtor to avoid furure compliance issues
. Offcrs voluntary options to resolve dcbrs in order to minimize intrusion
. Empowers staffto take fair and appropriate actions to break the cyclc ofnon- compliance
. Urilizes the least inmrsive involuntary actions 6rst when voluntary options are exhausted
Contact us for a pe?fzrrnance-based reuiew ofyour public
entit!\ subrogation recouerl needs :
. Auro Debris Cleanup
. Sign Danlage
. Vehicle Damage
. Streetlight Pole Damage
. Traffic Signal Damage
Kathleen Williams, v'ccA,crE,FEMA c.(ifi.d
pgality Assurance and Subrogation
Recooery Specialist
George Hills Company, Inc.
3043 Gold Canal Drive, Suite 200
Rancho Cordova, CA 95670
(916)859-4808
. Fire Hydrant Damage
. Fence Damage
. Underground Service Alcrt Damage
. Electric Pole Damage
. Transformer Damagc
Charles Torretta, scr,r, ucse
Senior Adjastet and Subrogation
Recorcry Specialist
George Hills Company, Inc.
1043 Gold Canal Ddve, Suite 200
Rancho Cordova, CA 95670
(916)859-4813