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h <br /> inquiry, complaint or request, Contractor shall notify the City of the same and <br /> Contractor's proposed response, affording the City a reasonable opportunity to comment <br /> on the same; <br /> 3.1.5 Provide to the City necessary information and reasonably cooperate with the City at <br /> the City's expense, in the preparation and filing of all reports required by any state or <br /> federal agency; , <br /> 3.1.6 Where required by law, attend and handle informal hearings, arbitrations and <br /> mediations, pre-hearing conferences, and other court proceedings; <br /> 3.1.7 Pursue subrogation, contribution, or indemnity for the City where Contractor <br /> believes that there is a reasonable chance for recovery. If other insurance appears to <br /> apply to a Claim, Contractor shall use best efforts to tender the Claim to the primary <br /> carrier prior to attempting to settle and prior to pursuing subrogation on the claim. <br /> 3.1.8 Provide SN services as requested or approved by the City. It is understood, <br /> however, that Contractor shall perform preliminary SN services to uncover or ascertain <br /> the fraud indicators, at no additional charge to the City. <br /> 3.1.9 Provide for the City's review of each Claim reported to Contractor, using <br /> Contractor's Clai.ms Management System; <br /> 3.1.10 Promptly notify the City of any Claims requiring notice. Notice may be given by <br /> Contractor electronically in the Claims Management System or as directed by the City. <br /> 3.2 Settlement Authority: For each Claim, Contractor shall have full discretion in <br /> performing its responsibilities hereunder, including without limitation, setting reserves <br /> within its Reserve Authority, and negotiating settlements within its Settlement Authority. <br /> However, Contractor shall obtain the City's authorization prior to setting any reserve in <br /> excess of its Reserve Authority or making any settlement in excess of Contractor's <br /> Settlement Authority. <br /> 3.3 Licensing: Contractor shall ensure that all of its employees are appropriately licensed, <br /> and will use its best efforts to ensure that all of its agents and independent contractors are <br /> appropriately licensed. Contractor shall comply with the Unfair Claims Settlement <br /> Practices laws and regulations of the various states. <br /> 3.4 Legal Resources: In conducting its investigations (on both litigated and non-litigated <br /> claims), Contractor shall use its own staff, to the extent reasonably practicable and legally <br /> permissible, as opposed to retaining outside resources, i.e. attomeys and third-party <br /> claims adjusters. Contractor shall obtain the City's authorization prior to retaining <br /> outside resources. Contractor shall review attorney activity and assist with discovery as <br /> well as pre-trial preparation of each case, including continued negotiation and settlement <br /> -3 - <br />