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DocuSign Envelope ID:A4C366A3-F5D9-473B-9218-AF49BCCA02E0 <br /> V. PROGRAM CONSIDERATION <br /> The overview of the current program with NCACC, does not provide the exposure, <br /> loss detail or premium detail to allow us to provide an 'in depth commentary. <br /> Based on what is provided and our experience with similar accounts we are <br /> offering some considerations and conceptual ideas. <br /> Overall it appears that Orange County has a favorable loss experience on both <br /> the Worker Compensation and the Liability & Property side. Given the above <br /> average loss experience we would expect your program to be priced aggressively <br /> by the NCACC. <br /> Property <br /> While we do not have the specific claim information on the property, based on the <br /> current deductible, we would estimate the rate to be between .065-.095 per $100 <br /> for the NCACC program. One advantage of participating in a pool is that <br /> individual risks can often get access to higher limits at a more reasonable cost <br /> than on a standalone basis. The disadvantages are the concerns of not having a <br /> dedicated limit for your county and/or the impact of poor loss experiences of other <br /> members on your program rates. Further, there is always the question of if the <br /> pool limit will be sufficient to cover all members affected in a single catastrophic <br /> occurrence. <br /> Upon review and analysis of detailed loss history, we can better determine what <br /> deductible levels are most appropriate when approaching the commercial market. <br /> We estimate a rate of .045-.07 per $100 in value for property contingent upon the <br /> deductible and coverage/limits elected. <br /> Some of-the areas we like to discuss with you further and address in your current <br /> program are the following: <br /> a. It appears that buildings listed on your statement of values with a value over <br /> $11V! are required to be appraised and if not the valuations will be on actual <br /> cash value. While we firmly believe in appraisals in helping determine insured <br /> values this should not be part of the policy as it would have a punitive impact <br /> on future losses. <br /> b. Currently on your policy all new buildings must be reported to be covered. <br /> While it may seem relatively simple to meet this requirement, we know the <br /> County has a lot of moving parts and different people involved in various <br /> functions that may not always communicate as quickly as needed. We would <br /> Orange County--ReqUesttr Broker Qualifications and(_'olicertual Proposal-September 23,2014 23 <br />