R93-166 AUTHORIZING AGREEMENT GALLAGHER-BASSETT SERVICES, INC.

Home Browse Search

, -5- It is expressly understood that GB shall not be required to advance its own funds to pay any of the CLIENT's _ obligations. In the event of cancellation or nonrenewal of this contract, CLIENT agrees to fund Citibank in an amount sufficient to fund all of the CLIENT's outstanding obligations. If, at any time, CLIENT fails to provide adequate funding, GB shall issue "stop payment" orders on outstanding payments. CLIENT agrees to indemnify GB for any losses resulting from CLIENT's, failure to fund its obligations. Any bank charges resulting from inadequate funding including, but not limited to, interest, stop payment charges and overdraft fees shall be the obligations of the CLIENT and shall be billed to the CLIENT when known. SCHEDULE I11 TERMS AND CONDITIONS A. Discretionarv Settlement Authoritv - The limit on any settlement payment by GB shall be TWO THOUSAND FIVE HUNDRED Dollars ($2,500). This amount may be changed by the CLIENT upon written notice to GB. It is agreed that GB shall have full authority in all matters pertaining to the payment, processing, investigation and administration of qualified claims on losses within this lim�t. Failure of GB to settle a qualified claim or loss within such limit shall not subject GB to liability to any party in the event of an adverse judgment entered by any court or the settlement of such claim or loss for an amount in excess of such limit. B. Terms of Cancellation or Nonrenewal - Either party shall have the right to cancel or renegotiate the contract after the initial one-year period by giving the other party written notice of intent to cancel or renegotiate at least thirty (30) days in advance. If timely notice of cancellation is given, this contract shall terminate upon the expiration of the current term. In the event of cancellation or nonrenewal of this contract, GB will continue to manage all pending claims, and claims occurring but not reported prior to the date of termination, only if CLIENT pays GB to continue handling open claims, at GB's prevailing rate on the date of termination. A reduced RISX- FACS� reporting package will be provided at CLIENT's expense as long as GB handles the claims. Should the CLIENT elect to have the files returned to them, GB will provide a tape or paper copy of the claim information in RISX-FACS. Upon delivery of this information to CLIENT, claim information will be deleted from the system. If the CLIENT fails to pay any amounts billed, including but not limited to GB's service fee during the contract period, the service fee to continue handling claims past termination date or bank charges, within 30 days, GB shall have the right to terminate the contract by giving the CLIENT ten (10) days' notice in writing. GB will then return all files to the CLIENT in an orderly manner. Costs for file transfer shall be the obligation of the CLIENT. C. Sole Claims Administrator - During the terms of this Agreement and except as otherwise agreed to by the parties hereto, CLIENT agrees that GB shall be the sole claims administrator with respect to CLIENT's program and that all new claims under CLIENT's program shall be forwarded to GB. CLIENT further agrees not to self-administer or adjust any such claims or to forward any such claims to any other service organization or individual without GB's prior written consent. D. Practice of �aw - GB will not perform any services which may constitute the unauthorized practice of law. Cont-LE(7�89)