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AUG 3 01976 <br />Cpp PORATE <br />Of FICEOF C TY OF7SOUTH BEND <br />INDEPENDENT CONSULTANTS <br />POLICYHOLDERS COUNSEL, INC. <br />20 N O R T H W A C K E R D R I V E <br />CHICAGO, ILLINOIS 60606 <br />V10 <br />August 27, 1976 <br />Peter H. Mullen, <br />Controller <br />City of South Bend <br />County -City Building <br />South Bend,•Indiana 46601 <br />Dear Mr. Mullen: <br />RE: ORDINANCE #5957 -76 <br />SECTION 16 -2 B <br />ESTABLISHED 1898 . <br />(312) 372 -8225 <br />We have reviewed the above ordinance and offer several sug- <br />gestions for improvement and amendment so that the intent of <br />the ordinance can be more realistically applied to today's <br />insurance climate. <br />We suggest that part (b) be amended to read: "All contracts <br />for insurance coverage shall be periodically subject to com- <br />petitive proposals." <br />By adding the word "periodically" this tends to negate the <br />need for "bidding" the insurance whenever there is a renewal. <br />We suggest that paragraph (d) be omitted entirely. In today's <br />insurance market, we do not believe that you will receive any <br />proposals should you follow the procedure as outlined. Further, <br />it is possible that under such a procedure, the existing insur- <br />ance carrier will refuse to quote and you could very easily <br />end up without any insurance market or coverage at all. This <br />is actually a fact of life in today's casualty insurance market <br />for municipal units and can easily be verified in discussion <br />with any competent member of the insurance community. <br />With the paragraph deleted entirely from the ordinance, it <br />leaves the City with the option of either receiving competi- <br />tive proposals from many sources or limited to several <br />selective sources depending upon current market conditions. <br />risk management <br />Professional Counsel in / insurance <br />employee benefits <br />