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T L QJIENGOVERNMEN'LAL R19K POOL March 21, 2002 Mr. Larry Schenk, City Attorney City of Paris P.O. Box 9037 Paris, TX 75461-9037 ~ ~J 19oc2~ 'A.i A %L:?; 4 c RE: Insurance Coverage - Contract - Texas Military Faciliries Coirunission Dear Mr. Schenk: The Pool defers to the City Attorney in matters pertaining to City policy. Any agreement should be reviewed and approved by the City Attorney for compliance with City policy. The coverage provided by the Pool includes liability assumed under contract. Punitive and exemplary damages are not excluded with the exceprion of purvtive and exemplary damages assumed by contract. It is strongly recommended that the City request additional named insured status under the contractors insurance policies. I would point out the following: The insuring agreement found in the liability coverage document for the Pool states: As respects Geileral Liability: "The Fund will pay on behalf of the Member or Covered Party all sums for which the Member or Covered Party shall be+come legally obligated to pay as damages arising out of an occurrence that takes place during the Fund Year and within the Agreement Territery: A. Because of bodily injury, property damage, adverHsing injury or personal injury to which this self-insurance applies as stated in the Agreement, including clauns within the completed operations hazard and products hazard." As respects Errors and Omissions Liability: "The fund will paV on behalf of the Member or Covered Party all monetary damages which the Member or Covered Party shall be legally obligated to pay for any civil claim or claims because of a wrongful act which occurs during the Fund Year and within the Agreement Territory." Texas Murrtcipwt LEncus IrrrsRCOVeRxnErrrnc. Risx PooL 1821 Rutherford Iane, First Floor • Austin, Texas 78754 •(512) 491-2300 •(S00) 537-6655 Texas Only P.O. Box 149194 • Austin, Texas 787149194