HomeMy WebLinkAboutMLCMEMORANDUM OF LIABILITY COVERAGE ("MLC")
FOR THE
WASHINGTON COUNTIES RISK POOL ("WCRP")
JOINT SELF-INSURANCE LIABILITY PROGRAM
1. MLC NUMBER:
2. MLC PERIOD:
3. MEMBER COUNTY :
4. LIMIT OF LIABILITY
COVERAGE:
5. DEDUCTIBLE:
6. COVERAGES:
DECLARATIONS
1 617-RISKPOOL-KTCO
From 12:00:01 a.m. on October 1,2016
until 12:00:0 I a.m . on October 1, 2017
Kittitas County
Clo Board of County Commissioners
County CourlhOu e
205W5 lh Avc te l08
Ellensburg, Washington 98926-2887
$10,000,000 each occurrence
$25,000 each occurrence
The joint self-insurance liability coverage as is afforded by this MLC is only for the
coverages that are indicated below. WCRP 's liability under this MLC shall be
subject to all terms and conditions herein and any endorsements attached .
a. Bodily injury
b. PeJ"Sonal injury
c. Property damage
d. Errors and omissions
e. Advertising Injury
7. DEFINITION OF TERMS: Terms appearing in bold type in the provisions of this MLC shall be interpreted only
as defined in Section 6, DEFINITIONS.
8. MLC COMPOSITION : This MLC consists of this Declarations page, the Coverage Form and applicable
endorsements.
Dated this 28th day of September, 2016 .
WASHINGTON COUNTIES RISK POOL
By: 1:.LL -L~' ,< t ;: H "<
Keith Goehner, Py20J7 President
MEMORANDUM OF LIABILITY COVERAGE 1010 1/2016-10101120 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LI ABILITY PROGRAM
Created by Co
WASHINGTON
COUNTIES
RISK POOL
unties
2016-17
MEMORANDUM OF
LIABILITY COVERAGE
Washington Counties Risk Pool
2558 R.W. Johnson Road SW, Suite 106
Tumwater, WA 98512-6103
360-292-4500, FAX 360-292-4501
www.wcrp.info
MEMORANDUM OF
LIABILITY COVERAGE
FOR THE
WASHINGTON COUNTIES RISK POOL
JOINT SELF-INSURANCE
LIABILITY PROGRAM
NOTICE: THE FOLLOWING LIABILITY
COVERAGES ARE PROVIDED BY THE
WASHINGTON COUNTIES RISK POOL, A
JOINT SELF-INSURANCE PROGRAM
AUTHORIZED BY RCW 48.62.031, IN
CONSIDERA TION OF THE
ASSESSMENTS CONTRIBUTED BY THE
MEMBER COUNTIES AND THEIR
STATUS AS SIGNATORY PARTIES TO
THE INTERLOCAL AGREEMENT. THE
WASHINGTON COUNTIES RISK POOL IS
NOT AN INSURANCE COMPANY, AND
THIS DOCUMENT IS NOT AN
INSURANCE POLICY.
COVERAGE FORM
1. JOINT SELF -INSURING AGREEMENT: The
Washington Counties Risk Pool ("Pool" or "WCRP")
shall pay on behalf of the member county and other
protected parties identified in Section 2 below, subject
to the terms and conditions of this Memorandum of
Liability Coverage ("MLC"), all sums of monetary
dal1!ages which a protected party shall become
obligated to pay by reason of liability imposed by law or
by rea.<iOll of liabili\?i ,assumCd under an indemnilV
contract for bodily injury, personal injury, property
damage, errors and omissions, and advertising injury
caused. by an occurr~nce during the MLC period and
o,:c~rnng anywhere In the world, but only if a suit
arIsing out of such occurrence is brought in the United
States or Canada. The Pool may at its discretion
investigate any occurrence and settle any claim or suit
that may result and shall defend any suit against the
protected party seeking monetary damages on account
of any of the five coverages identified above or any
combination thereof. '
A. Monetary damages shall include:
I. All judgments, settlements, defense costs and
expenses incurred by the Pool, all costs taxed
against the protected party in any suit defended by
the Pool, and all interest on the entire amount of any
~udgment therein which accrues after entry of the
Judgment and before the Pool has paid or tendered
or deposited in court that part of the judgment
which does not exceed the limit of the Pool's
liability thereon;
2. Premiums on appeal bonds required in any
such suit, and premiums on bonds to release
attachments in any such suit for an amount not in
excess of the limit of liabil ity of this MLC, but the
Pool shall have no obligation to apply for or furnish
any such bonds; and
3. E:,penses incurred by the protecled party for
first aid to others at the time of an occurrence of
bodily injury to which this MLC applies; and
4.. ReasQnable ponse ' inClln',ed by the
protected party at the req uest of the P ool to assi I
the P'()OI in the investigation or defense of the claim
or suit, including ac~uall oss of earni ngs up to $250
per day because of time off from wo rk.
Howcyc!' the am011l11 l~e ~o?1 shall be obligated to pay
for monetary dall1a,ges IS I'muted as set forth in Secli o,n
3 ~clow and any defense pl'~vjped by lhe Pool is fully
s,ah~ fie9 ~nd ,~ ischatgec! \~h en the 1)0 I has used ul lh e
lilllll o f_ Imb!hty coverage III the payment of judgmen\-S.
s~t~lell;!el1f:S, t1~fcn se 'co f 01' exp n es under thIs MLC .
1, h,s applies to~ both claihlS and suits .pcnding, at that
tllll~lIlld any Illed thcrea Hcr arising ou t f dle slime
occurrence.
B. Monetary Damages shall not include :
1. Penalties; and
2. Nominal Damages.
C. Except as enumerated in this subsection, this MLC
does not apply to claims, suits, demands or actions
~eekjng-reJiefor redress in any form other than monetary
damages. /;Jor do.es this MLC pay for any fees , costs or
expenses (Illcludmg defense costs) which a protected
party may become obligated to pay as the result of an
adverse judgment for declaratory or equitable relief.
However, subject to all of the other terms and
conditions of this MLC, the Pool shall pay defense
costs for suits requesting declaratory or equitable relief
in addition to a request for monetary damages.
D. If, under any circumstances, it is determined that
any employee of the member county is injured in the
course of his or her employment but is not entitled to
receive (or elects not to accept) the benefits provided
by the workers' compensation law, then this MLC shall
cover the legal liability of the member county for such
bodily injury, disease, or death and pay on behalf of
the member county all sums which the member
county shall become legally obligated to pay as damages
and expenses, except as otherwise provided by the
MLC.
E. An occurrence that takes place during more than
one MLC period will be deemed for all purposes to have
taken place during the most recent MLC period in which
any part of the occurrence took place, and shall be
treated as a single occurrence during such MLC period.
No occurrence will be deemed to have taken place after
!h~ protected party has knowledge of the alleged bodily
IDJury, property damage, personal injury, errors and
omissions, or advertising injury that gave rise to the
occurrence.
MEMORANDUM OF LIABILITY COVERAGE 1 DID 1 120 J 6-1 DID 1 120 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 2
2. PROTECTED PERSONS AND
ORGANIZA nONS: This MLC shall provide liability
coverage to:
A. The county identified as a member county in the
Declarations;
B. All past and present employees, elected and
appointed officials, and volunteers, whether or not
compensated, while acting or in good faith purporting to
act within the scope of their of'f1c ial duties for the
~le~ber county or on its behalf, including, but not
Ilmllcd to, all commissions, agencies, districts,
·authorities, boards (including the ,govern ing board ) or
similar entities which o perate uncler the member
county's supervision or control. This includes, but is not
limited to, the following:
I. The "local health officer" as defined by RCW
70.05.050, and the "administrative officer" as
defined by RCW 70.05.040.
2. With respect to any automobile owned or
leased by the member county or loaned to or hired
for use by it or on its behalf, any person while
operating, maintaining or using such automobile
with the permission ofthe member county and any
person or organization legally responsible for such
permissive operation, maintenance or use, but this
coverage does not apply to:
a. Any person or organization, or any agent
or employee thereof, operating an automobile
sales agency, repair shop, service station,
storage garage or public parking place with
respect to an occurrence arising out of the
operation thereof; or
b. The owner or any lessee, other than the
member county, of any automobile hired by
or loaned to the member county or to any
agent or employee of such owner or lessee;
provided, however, that such liability coverage as is
provided by this MLC involving the operation,
maintenance or use of an automobile shall be
excess to any other collectible liability coverage or
insurance available to the protected party.
3. The Pool, all directors, officers, employees, and
agents of the Pool, all persons serving at the
request of the Pool, and all persons serving at the
request of the Pool as members, directors, officers,
employees, agents, or trustees of another pool,
corporation, partnership, joint venture, trust,
employee benefit plan, or other enterprise, but only
while acting in an official capacity therefor.
4. Spouses of protected parties but only for
vicarious liability for an occurrence imposed by
virtue of the community property laws of the state.
3. LIMIT OF LIABILITY COVERAGE:
A. The total limit of liability co y rage of the Pool
under this MLC for monetary damages resulting from
anyone occurrence shall not exceed Ten Million
Dollars ($10,000,000). This shall be true regardless of:
I. The number of persons or organizations who
are protected parties under this MLC;
2. The number of coverages provided under this
MLC;
3. The number of claims made and suits brought
against any or all protected parties; and
4. The number of persons or organizations
making claims or bringing suits.
B. In dt .tcrmil\l ng the limit of liability o rlhe Pool, all
injuries, damages and losses arising out ofcontinuQus or
repeated exposure to substantially the same general
conditions will be considered as arising out of one
occurrence.
C. There is no limit to the number of occurrences
during the MLC period for which claims may be made.
4. DEDUCTIBLE: After the Pool pays monetary
damages on behalf of the member county or other
protected parties, the member county shall reimburse
the Pool for the total expended by the Pool up to the
amount of the member county's deductible specified in
the Declarations.
5. EXCLUSIONS: This liability coverage does not
apply to:
A. Air C:l'nft ACli hies . Liability arlsmg out of the
ownership, maintenance, loading or unloading or
operation of any aircraft, airfields and runways, or
hangers or buildings in connection with aircraft
ownership, maintenance, loading or unloading or
operation of any aircraft.
B. Emplo yment Relations.
I. Any obligation of the protected party under a
workers' compensation, disability benefits or
unemployment compensation law or any similar
law.
2. Except as provided in section 1.0 and except
for claims brought under the Jones Act, 46 USC §
688, bodily injury to an employee of any member
county arising out of and in the course of
employment by the member county. This
exclusion shall not apply to a third-party claim
brought by an employee of one member county
against a separate member county.
3. Bodily injury suffered or caused by any person
knowingly employed by the member county in
violation of any law as to age, or under
MEMORANDUM OF LIABILITY COVERAGE 1010112016-10101/2017
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 3
the age of fourteen (14) years regardless of any such
law.
4. Any claim recoverable under the insurance
prov is ions of ,any workers' com pensation or
occu p,iition al disease law or under the Uni ted States
Longshoreanc;ll-larborWorkers' Co mpen sation Act
or afly o ther insurance avail able fo r the prQte,ction
oftbe m e m ber ('ount)'.
5. Any premium, assessment, penalty, fine or
other obligation imposed by any workers'
compensation law.
6. Any cl im fo r bodily injury with respect to
which the member county is deprived of any
defense or defenses or is otherwise subject to
penalty because of default in p l'eLlli ll 111 paym ent
under, or any other failure to <;ornp ly with the
provisions ofthe workers' compensation laws of the
State of Washington.
7. Past salary or wages due.
8. Benefits payable under an employee benefit
plan.
9. Liability imposed under the Employee
Retirement Income Security Act of 1974 and any
law amendatory thereof.
10. Liability of a protected pa rty for personal
injury, advertising injury or errors and
omissions if such liability is alleged by another
protected party and arises out of conduct that,
based upon an objective standard, is wanton,
willful, reckless, malicious, or grossly negligent.
This exclusion shall not apply to the member
county. Without limiting the foregoing in any
manner, the Pool shall have the right and duty to
defend any such suit brought against a protected
party.
C. Pollutants.
I. Liability arising out of the actual, alleged or
threatened discharge, dispersal, release or escape of
pollutants:
a. At or from premises owned, rented or
occupied by the protected party.
b. At or from any site or location used by or
for the protected party or others for the
handling, storage, disposal, processing or
treatment of waste.
c. Which are at any time transported,
handled, stored, treated, disposed of, or
processed as waste by or for the protected
party or any person.
d. At or from any site or location on which
the protected party or any contractor(s) or
subcontractor(s) working directly or indirectly
on its behalf are performing operations:
(I) If the p o llutants are brou ght on to the
site or lo cation in conne rio n with such
operations, or
(2) If the operations are to test for,
monitor, clean up, remove, contain, treat,
detoxify or neutralize pollutants.
This exclusion docs not apply to loss or iluury
caused by heat, s moke or fumes from a hostil e fir c
or liability for I)er 'o nal Injury or bo d ily iuj ur
and pr o perty d a mllge ari sing out of coli is ion, upset
or overturn of any automobile or mobile
equipment, or arising from acts or omissions of
member county noxious weed control boards
activated pursuant to Chapter 17.10 RCW, and
m ember cou nt · mil l yet ro,.1d'ide sprayi ng,
while performing or ill good ft)ith purport illg to
perform. their offieial dUlies .
2. Any loss, cost or expense arising out of any
governmental direction or request that a protected
party tests for, monitors, cleans up, removes,
contains, treats, detoxifies or neutralizes
pollutants.
D. Watercraft. Liability arising out of ownership,
maintenance or use, including loading or unloading, of
watercraft over forty-nine (49) feet in length.
E. Property LQSS . Property damage to:
I. Property owned by the member county, or
2. Property rented or leased by the protected
party where it has assumed liability for damage to
or destruction of such property unless it would have
been liable in the absence of such assumption of
liability, or
3. Property in the care, custody or control of the
protected party. This exclusion does not apply to
non-owned automobiles, recreational vehicles or
boats and trai lers that are in the care, custody or
control of the member county or in the member
county's custody as part of the operations of
impound lots or seizure activities.
F. Taking or PtO!) rty . Liability arising out of or in any
way connected with any operation of the principles of
eminent domain, condemnation proceedings or inverse
condemnation, by whatever name called, and whether
or not liability accrues directly against any member
county by virtue of any agreement entered into by or on
behalf of any member county.
G. _Certain Municipal Activi t ies. Liability arising out
of:
I. Public Housing, or
2. The activities of a Public Transit Authority, as
defined in RCW 36.57.020 or Public
Transportation Benefit Area Authority, as
defined in RCW 36.57 A.O 10(2), or
MEMORANDUM OF LIABILITY COVERAGE 10101/2016-10101/2017
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 4
3. Ferry Systems, or
4. S ~n.c li oned V hicIe Racing events at
desIg nated vehicle racing facilities, or
5. Horse RQo iu g licensed by the Washington
Horse Racing omm i!l~i on pursuant to Ch <lpter
67.1 6 RCW,lilr
6. Carnival or Mechanical Amusement Devices
or '
7. Rodeos.
T~i~ exclusion shall not apply to s p ectator liability
ansmg ?ut of vehicle racing, horse racing, carnival or
mechanIcal amusement devices, or rodeos.
H. P ublicatIo n of MAte ria l. Personal injury or
advertising injury arising out of:
I. Oral or written publication of material if done
by or at the direction of the protected pa'rty with
knowledge of its falsity, or
2. Oral or written publication of material whose
first publication took place before the beginning of
the MLC period.
However, any fact pertaining to anyone protected
party shall not be imputed to any other protected party
for th~ purpose of determining the application of this
exclusIOn.
I. R evenue Refunds. Refund of taxes, fees or
assessments.
J. P u n ilive Damages. Liability for punitive or
exemplary damages, except to the extent that the
member county is legally liable therefore because of
the conduct of its officers, employees or voiunteers. The
exception to this exclusion does not apply to any
agreement by a member county, pursuant to RCW
4.96.041 or otherwise, to pay an award for punitive or
exemplary damages entered against an officer,
employee, volunteer or any other individual or
organization other than the member county itself.
K. .I mpl'operrinancial Ga·il1. Liability arising in whole,
or m part, out of any protected party obtaining
remuneration or financial gain to which the protected
part~ .was not legally entitled. However, any fact
pertammg to anyone protected party shall not be
Imputed to any other protected party for the purpose of
determining the application of this exclusion.
L. PaH~-e . Duty~ Liability incurred by any protected
par~y aflsmg ~ut of the performance of any act or
services of police duty for any person or organization
other than the member county. This exclusion s h a II
not apply if the act or service arises as the result of a
mutual law enforcement assistance agreement or
contract with other units of government.
M; . wmfitl -Pena l Viblmions .a nd Fraud . Liabi lity
ans m& o ul of th e willful violation of nn pcnal SUllufe
or ordlllan.cc O!' liabiHLY for a 't$ or flll!ld co llll1lill ed by
or at Lhe dIrectIon of allY P"otcdcd party .
N. Asbestos.
.1.. Any liabil!ty for.p.r OI>c rty damage or bodily
m~u.ry at any tIme afls lllg o ut of the manu f<lclur e,
mmmg, use, sales, installation removal or
distribution of, or exposure to, asbestos, asbestos
products, asbestos fibers or asbestos dust; or
~. AI~r. obligatiQI1 of !lIC lll'oteded Jl tu'ly to
mde mili ty a ny .pa rty because of dapUlges arising o ul
~fS llCh pro pel·f·' di~mage o r l.J!)dlly injury. atany
lime H~ (l resu!t of the nl<l llll l.1£tuTC, m ining, usc,
sales, II1stallatlon, removal or distribution of, or
exposure to, asbestos, asbestos products, asbestos
fibers or asbestos dust; or
3. . Any obligation to defend any suit or claim
agall1st the protected party alleging bodily injury
or proper.ty d~mage and seeking damages, if such
SUit or claIm arrses from bodily injury 0 r property
damage resulting from or contributed to or by any
and all manufacture, mining, use, sales, installation
removal or distribution of, or exposure to asbestos'
asbestos products, asbestos fibers or asb~stos dust.'
0: W ill ful · ivil Vio lations . Liability arising out of the
WIllful or wanton violation of any civil statute
ordinance or regulation. '
P. War and U prisin!.!s. Liability due to war, whether or
!lot declared, or any act or condition incident to war. War
IIlcludes civil war, insurrection, rebellion or revolution.
Q. Expec t d or Intended A~ls . Bodily injury,
pr?perty damage, or errors and omissions expected
or ~ntended !rom the standpoint of the protected party.
ThiS exclUSIOn does not apply to bodily injury or
property damage resulting trom the use of reasonable
force to protect persons or property.
R. .official Bonds . Liability of the protected party or
a s!-lrety for the prot~cted party arising out of any claim,
SUit, demand, or actIOn to recover on an official bond.
S. Budget Overe-xpend ilUres . Liability of the
p~o~ected party or a surety for the protected party
arrslllg out of expenditures made, liabilities incurred or
warrants issued in excess of budget appropriations. '
T. ale of Alcoho lic Beverage . Liability arising out
of the sale of alcoholic beverages by any protected
party.
U. LandfilL transfer station and drop box QPttatiolls.
Bodily injury, property damage, personal injury and
advertising injury arising out of ongoing or completed
landfill, transfer station or drop box operations,
regardless of whether such operations are conducted by
MEMORANDUM OF LIABILITY COVERAGE 10101/2016-10101/2017
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 5
the member county or on its behalf; conducted for the
m e mbc l' county or Tor others" or c o nduc ted by a tenant
01' other e nli! Li nder ,onttacl with the m ember cou nl y.
T hi s exclllsio n d oes not a p ply to d a mage 0'1' i l~ury
ariBin,g Ollt of'fhe loading or un loading of ",plor vehicles
at a landfill, transfer station or drop box
location and to persons at landfill, transfer station or
drop box locations for that purpose.
V. Nuc lea r Energy .
This MLC shall not apply to bodily injury, personal
injury, property damage, errors and omissions or
advertising injury:
1. With respect to which the member county
under the MLC is also an insured under a nuclear
energy liability policy issued by Nuclear Energy
Liability Insurance Association, Mutual Atomic
Energy Liabi I ity Underwriters, Nuclear Insurance
Association of Canada or any of their successors, or
would be insured under any such policy but for its
termination upon exhaustion of its limit ofliability;
or
2. Resulting from the hazardous properties of
nuclear material and with respect to which:
a. Any person or organization is required to
maintain financial protection pursuant to the
Atomic Energy Act of 1954, or any law
amendatory thereof; or
b. The member county is, or had this policy
not been issued would be, entitled to indemnity
from the United States of America, or any
agency thereof, under any agreement entered
into by the United States of America, or any
agency thereof, with any person or
organization.
3. Resulting from the hazardous properties of
nuclear material, if:
a. The nuclear material:
(\) is at any nuclear facility owned by, or
operated by or on behalf of, the member
county; or
(2) has been discharged or dispersed
therefrom.
b. The nuclear material is contained in spent
fuel or waste at any time possessed, handled,
used, processed, stored, transported or
disposed of by or on behalf of the member
county; or
c. The bodily injury or property damage
arises out of the furnishing by a protected
party of services, materials, parts or
equipment in connection with the planning,
construction, maintenance, operation or use of
any nuclear facility, but if such facility is
located within the United States of America,
its territories or possessions or Canada, this
exclusion (c}ap il lies only to property d ;unag
to such nuclear facility and any property
tJlere'dl .
4. As used in this exclusion:
a. "Hazardous properties" include
radioactive, toxic or explosive properties;
b. "Nuclear material" means source material,
special nuclear material or by-product material;
c. "Source material", "special nuclear
material", and "by-product material" have the
meanings given them in the Atomic Energy Act
of 1954 or in any law amendatory thereof;
d. "Spent fuel" means any fuel element or
fuel component, solid or liquid, which has been
used or exposed to radiation in a nuclear
reactor;
e. "Waste" means any waste material:
(1) Containing by-product material other
than the tailings or wastes produced by the
extraction or concentration of uranium or
thorium from any ore processed primarily
for this source material content; and
(2) Resulting from the operation by any
person or organization of any nuclear
facility included under the first two
paragraphs of the definition of nuclear
facility;
f. "Nuclear Facility" means:
(\) Any nuclear reactor;
(2) Any equipment or device designed or
used for:
(a) Separating the isotopes of
uranium or plutonium;
(b) Processing or utilizing spent
fuel; or
(c) Handling,
packaging wastes;
processing or
(3) Any equipment or device used for the
processing, fabricating or alloying of
special nuclear material if at any time the
total amount of such material in the
custody of the protected party at the
premises where such equipment or device
is located consists of or contains more than
25 grams of plutonium or uranium 233 or
any combination thereof, or more than 250
grams of uranium 235;
MEMORANDUM OF LIABILITY COVERAGE 1 % 1 /2016-1 % 1/2017
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 6
(4) Any structure, basin, excavation
premises or place prepared or used for th~
storage or disposal of waste; and
(5) Includes the site on which any of the
foregoing is located, all operations
conducted on such site and all premises
used for such operations;
g. . ''Nuclear reactor" means any apparatus
deSIgned or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a
critical mass of fissionable material;
h. "Property damage" as used in this
exclusion includes all forms of radioactive
contamination of property.
W. Railroad Lines . Bodily injury, personal injury,
property damage, errors and omissions, or
ad~ertising injury arising out of the operation or
maintenance or use of railroad lines, including bridges,
trestles or other structures supporting railroad lines.
However, this exclusion shall not apply to bodily
injury, personal injury, property damage, errors and
omissions, or advertising injury arising solely out of
the member county's ownership of a railroad line
including a bridge, trestle or other structure supporting
a railroad line, and only if such liability is asserted on
the basis of vicarious liability.
X. Conlractual Dispules . Any liability to a party to a
contract or agreement with a member county, whether
for bodily injury, property damage, errors and
o f!li.ssiO!ls, person~1 injury or advertising injury,
anslng In whole or In part, out of an alleged failure to
pay, an alleged failure to perform, or an alleged default,
under the contract or agreement, whether intentional or
accidental. This exclusion does not apply to claims for
monetary damages by reason of liability assumed under
an indemnity contract as contemplated in Paragraph 1 of
this MLC.
Y. Quantum Meru it . Any claim, whether for bodily
injury, property damage, errors and omISSIons,
personal injury, or advertising injury, which seeks to
hold a protected party liable for Quantum Meruit. For
purposes of this exclusion, Quantum Meruit is defined
as a remedy implied by law for the payment ofthe value
of services rendered in the absence of any contract or
agreement between the claimant and a protected party.
Z. Financial InsL rilmems . Any liability for bodily
injury, personal injury, property damage, errors or
omissions, or advertising injury arising in whole or in
part out of a member county's guarantee or, or offer to
guarantee, or sale of, or offer to sell: loans, mortgages,
bonds, securities or any other financial instruments.
AA. Debt Finanein g . Any liability, whether for bodily
injury, personal injury, property damage, errors or
omissions, or advertising injury, arising out of any
type of debt financing issued by or for the member
county. Debt financing includes, but is not limited to
bonds, debentures, guarantees of debt or notes. '
6. DEFINITIONS: When used in this MLC,
including endorsements forming a part hereof:
"accident" includes continuous or repeated exposure to
the same conditions resulting in bodily injury or
property damage the protected party n e it her
expected nor intended.
"advertising injury" means (I) libel, slander or
defamation, (2) any infri ngement of copyright or oftitle
or of slogan, (3) piracy or unfair competition or idea
~isa~propria~ion under. an implied contract, or {4 any
in vaSIO n of fight of privacy, cOll llnilletl or all eged to
ha~e been committed in any advertisement, publicity
artIcle, broadcast or telecast arising out oft h e protected
party's advertising activities.
"aircraft" means a vehicle designed for the transport of
persons or property principally in the air.
"assessment" shall have the meaning described in
Section 7 of this MLC.
"automobile" means a land motor vehicle, trailer or
semi-trailer designed for travel on public roads
(including any machinery or apparatus attached thereto),
but does not include mobile equipment.
"bodily injury" means physical trauma, sickness,
disease or shock sustained by any person which occurs
during the MLC period, including death at any time
resulting therefrom and, if arising out of the foregoing,
mental anguish and emotional injury.
"defense costs" means all fees and expenses caused by
and relating to the adjustment, investigation, defense or
litigation of a claim or suit including attorneys' fees,
court costs and interest on judgments accruing after
entry of judgment. Defense costs shall not include the
office expenses of the Pool or the member county or
the salaries of employees or officials of the Pool or any
protected party.
"disciplinary proceedings" means all proceedings
before the entity or entities established by constitutional
provision, statute, court rule or professional society or
association, to investigate, review or impose disciplinary
sanctions for professional misconduct.
"e.rrors and omissions" means any err or,
mIsstatement, misleading statement or act or omission,
neglect or breach of duty committed, attempted or
allegedly committed or attempted by a protected party.
"hostile fire" means a fire which becomes
uncontrollable or breaks out from where it was intended
to be confined.
"indemnity contract" means a contract or agreement
in which the member county has agreed to assume the
MEMORANDUM OF LIABILITY COVERAGE 1010 1/20 16-1010 1/20 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 7
,Iorl liabil Hy of another party to pay fIlonela'ry damages
for Bod!\}' Injury ~el: on. I Lnjury, Propl'rty
Ollmfl~e, Errors or Omiss ions or A dvcl'tislng Illju ry
t? 1\ t!lJrd person ,Of .or~anizat i ol\, Tort li nbi li ty; means II
Ilabilrty that ~ ou ld be Illl pos'ed b law in the absence of
any contract or agreement.
"in ' er e condemnntiori " mt:ans a claim by anyone
other than II protected party that a pl'oteeted P fir t
has la ke ,,' C!r diminished ,the value of land throug h land
LI ~e rcstnctlOns on suc h land or use of adjacent land o r
al~ space by II profected p,art y. .
"member county" means the county identified as a
member of the Pool in the Declarations,
"mobile ~quipment" means a land vehicle (including
any machmery or apparatus attached thereto), whether
or not self-propelled, (I) not subject to motor vehicle
regist,ration, or (2) maintained for use exclusively on
premises owned by or rented to the member county
incJ,ud ing the ways, i~mediately adjoining, or (3)
des~gne,d for u,se pnnclpally off pu b li c roads, or (4)
desll?,~ed or ma~ntamed for the sole purpose of affording
~oblhty to eqUIpment of the following types forming an
mtegral part of or permanently attached to such vehicle:
power cra~es, shovels, loaders, diggers and drills;
concrete mixers (other than the mix-in-transit type);
bulldozers, graders, scrapers, rollers and other road
construction or repair equipment; air-compressors,
pu~~s and gen,erators, ,including spraying, welding and
bUlldmg cleanmg eqUIpment; farm machinery; street
sweepers or other cleaners; forklifts; and geophysical
exploration and well-servicing equipment.
"nominal damages" means a small or token sum
soug~t a~ damages where a legal ~ight has allegedly
been mfrmged but no real or substantial monetary loss is
claimed.
"occupying" means in, upon, or getting in, on out or
off. ' ,
"occurrence" means an accident, including continuous
or repeated exposure to substantially the same
conditions, which results in bodily injury, property
damage, or errors and omissions, With respect to
personal injury and advertising in j u r y ,
"occurrence" means an event, including continuous or
repeated exposure to substantially the same conditions,
"penalties" means any monetary fine, penalty or other
monetary award for anything other than compensatory
damages to an injured party or person andlor any award
of attorney fees and costs to a prevailing party seeking
a fi.ne, penalty or non-compensatory damages award
agall1st a member county. "Penalties" also includes
any mon,:tary award, cost, fine or penalty arising out of,
or occurrmg, in whole or in part, due to a violation of
the Open Public Meetings Act (RCW 42,30) or the
Public Records Act (RCW 42.56).
"personal injury" means: (I) False arrest, false
imprisonment, wrongful eviction, wrongful entry,
wrongful detention, malicious prosecution, or defective
service of process; (2) Libel, slander defamation of
ch ,aJ'3 ctcr. humili~l i()n or lhe i'llvAsion 'of the rights of
pl'I~acy. u~les an.sip!:I 'OU I of lId ~(!rt.is in g . broadcaslin g.
OJ' teh:castll1g ~CI1VI'IlCS; (3) Assl\u lt or bal1er), by an
emp loyee or3gellt Oflh memb er coun ty, provided that
th e. UlcmlJel ' count is held J'egally liable rhel'eror nnd
l~at lI~e a. sa ulL or l:Ial'lelY WI\S not colll lllilU:d by 01' 31 th
dIH:crl?" of the mcmber COUllt)'. except when
committed for the purpose of protecting life or property
owned by or otherwise in the care, custody or control of
the member county; (4) Discrimination or violation of
Civil Rights protected by 42 U,S,C, 1981, et seq., or
state Jaw; or (5) Violation of property rights.
:'p~llutants" means any solid, liquid, gaseous or thermal
Irritant or ~ontaminant, including smoke, vapors, soot
fumes, aCIds, alkalis, chemicals and waste and
hazardous waste. Waste includes materials to be stored
recycled, reconditioned, reclaimed or discarded. '
"property damage" means (1) physical injury to or
destructi~n o~tangi?le property which occurs during the
MLC penod, II1cludll1g the loss of use thereof at any time
resultmg the!efrom, or (2) loss of use of tangible
property which has not been physically injured or
destroyed, provided such loss of use is caused by an
occurrence during the MLC period.
:'pro!ecte~ party~' means any person or organization
Identified 111 SectIOn 2 of thiS MLC and includes the
member county,
"suit" means a civil proceeding in which monetary
damages are alleged because of bodily injury, property
damage, personal injury, errors and omissions or
advertising injury to which this MLC and its self-
insurance liability coverage applies, Suit includes an
arbitration proceeding alleging such damages to which
the protected party must submit or submit with the
Pool's consent.
"vehicle" means every device in, lIpon or by which any
person is or may be transported. "Vehicle" does not
include an animal.
7. CONDITIONS AND RESPONSIBILITY :
A. Compliance with Claims Handling Policies and
Procedures:
Every protected party shall comply with the Pool's
Claims Handling Policies and Procedures in all
respects.
B. Protected Party's Duties in the Event of
Occurrence, Claim or Suit:
1. In the event of an occurrence, written notice
containing particulars sufficient to identify the
protected party and also reasonably obtainable
information with respect to the time, place and
circumstances thereof, and the names an d
addresses of the injured and ofavailable witnesses
shall be given by or for the protected party to the'
MEMORANDUM OF LIABILITY COVERAGE I DID 1 120 16-1 DID 1 120 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 8
POOl. or any of its authorized agents as soon as
pracllcable.
2. If claim is made or suit is brought against the
~rOfCc~ed party. th e protected p31'( sha ll
Inll!1cdmtely forward to the .Pool every demand
~o!lce. s umm ~ns or other process received by it o r
Its repl'eselllative .
3. The membcl' count shaH ha c the right to
~aive the ~ov~~Hge afforded by thi s ML 's self-
IIlI>~rall~e habl.lily co~(e rage a 10 an): parli cula.r
clll~1l] or lawsUI t; provided , howcver, that any such
W:lIVCi' muSt
a. occur after the particular claim or lawsuit
is received by the Pool; and
b. be in a writing signed by the member
county's legislative authority on a form
which:
(I) s,hal.1 ~onta~n.a complete release of any
hability anslng out of or relating to
the underlying claim or lawsuit on the
part of the Pool, its directors and
officers, employees, agents,
attorneys, successors, or any other
person serving on behalf the Pool,
other member counties, or any
reinsurer of the Pool; and
(2) shall contain provisions in which the
member county holds harmless,
d~fends and indemnifies the Pool, its
directors and officers, employees,
agents, attorneys, successors, or any
other person serving on behalf the
Pool, other member counties, or any
reinsurer of the Pool from any and all
claims, demands, losses, and
liabilities to or by third parties arising
from, or connected with the
underlying claim or lawsuit.
Until such time as the coverage for a particular
claim or lawsuit is waived under this Section
expenses and costs incurred associated with that
claim or lawsuit shall be paid by the Pool in
accordance with the terms and conditions of the
applicable MLC.
4. The protected party shall cooperate with the
Pool in all respects, including, upon the Pool's
request, in the appointment ofthe Pool's designated
defense co~nsel, assisting in the making of
settlements, m the conduct of suits and in enforcing
any right of con!rib~tion or indemnity against any
person or orgamzatlOn who may be liable to the
protected party because of injury or damage with
respect to which liability coverage is afforded under
this MLC; and the protected party shall attend
he~rings and trials. a!1d assist in securing and giving
eVidence and obtammg the attendance of witnesses.
The protected par t y shall not, except at its own
cost, voluntarily make
any payment, assume any obligation or incur any
expense other than for first aid to others at the time
of an occurrence of bodily injury.
5. It is a condition of coverage under this MLC
that any person or organization which is defined as
a protected party under Section 2 of this MLC be
acting or in good faith purporting to act within the
scope of their official duties for the member
county or on its behalf at the time of the
occurrence.
6. If a memb,er ~ounty denies the request of a
person or organizatIOn made pursuant to RCW
4,96.041 and does not authorize defense at the
expense of the member county or approval of
payment of any related monetary judgment, the
!"em~, r cou,nty hall ~mmediately advise the Pool
111. wntu1.g of Its determ ination. I fthe P-oo l disagrees
With the member county's determination the
member county at its own expense shall defe~d the
member county's determination and pay all sums
of monetary damages, including any attorney fees
an~ costs awarded to such person or organization,
whICh the member county may become obligated
to pay by reason of liability imposed by law for the
denial.
C. Action Against Pool: No action shall lie against the
Pool unless, as a condition precedent thereto, there shall
have been full compliance with all of the terms of this
MLC, the Interlocal Agreement creating the Pool and
the Membership Compact, the Pool's Bylaws and the Po~I's Claims Handling Policies and Proced'ures, nor
until the amount of the protected party's obligation to
pay shall h~ve been finally determined either by
Judgment agall1st the protected party after actual trial
or .by written agreement of the protected party, the
claimant and the Pool.
Any person or organization or the legal representative
thereof who has secured such judgment or written
agreement shall thereafter be entitled to recover under
this t-.:tLC to the extent of the liability coverage afforded
b.y thiS MLC. No person or organization shall have any
nght u!1der t~is MLC to join the Pool as a party to
any actIOn agamst the protected party to determine the
protected party's liability, nor shall the Pool be
impleaded by the protected party or its legal
representative. Bankruptcy or insolvency of the
protec.ted party or of the protected party's estate shall
not relIeve the Pool of any of its obligations hereunder.
D. Other Liability Coverage: The liability coverage
aff?rded by this M~C is ~econdary to and excess of any
valId and collectible Insurance or other liability
coverage which is available to the protected party.
~h~~ both this MLC and other joint self-insurance
lIability coverage apply to the loss on the same basis
unless a prior agreement between the two or mor~
member entities subject to the joint self-insurance
programs provides otherwise, the Pool shall not be liable
under this MLC for a greater proportion of the loss than
would be payable if each joint self-insurer
MEMORANDUM OF LIABILITY COVERAGE 1 DID 1/2016-1 DID 1/2017
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM - 9
co~t~iblltes an equa l share umil t he share of each john
se ll-lI1surer ,equals the lowest applicable limi t of li ability
u nder anyone liab il ity cOoverage doc Ullle\ll 01' the full
amount of rhe. Joss is paid and with I'espoot 10 any
~mount of loss 119t so . paid l~C remain ing joint self-
msur~~ then COnlmue tp cOl1tnbllte equal shar'es of the
~ernalllmg .am?u~t of 1I,l e, loss lI ntiJ each such, joint se lf·
Insurer has pa id l Is Ilmllln fu ll or Ihe fu ll arhoum of the
loss is paid, Provided however,-this paragraph shall not
~revent the !W0 or Inorc joint sci f-insutance proglitms
~r om ~gr,:elTlg 10 al l.o(.'Clle defense expenses and
1.~l d7mnlty In a di ffel'~l1f Illanller nol' shall Ihls. paragraph
lIm it any such allocnhon as may beJudle ially detenn i ned
at a latel' date.
E. Declarations: By acceptance of this MLC, the
member county agrees that the statements in the
[)ecla~t ions ar~ it~ agf<::e!n ents and represcntntio ns,
that t illS ML I~ ISS UC'd In l'eljallce 'upon 'the Iruth of
such re presentaHons and tha t th is ML ell1bodie~ all
ag~ee rl1en lS exi sti,ng between itself and the Pool or any
of Its a~cn ts relstmg to th isjo int self-insurance liability
coverage program.
~ •. Se l)}lrat~on o~ I nt 1'~Sts. Except ~ ith respect to ,lhe
lI,mll of Joint, self-ms~l'ance liability coverage and any
rights 01' dulles speclfieal! assigned to lhe mem ber
county, this MLC applies: .
1. As if each protected party were the only
protected party, and
2, Separately to each protected party against
whom claim is made or suit is brought.
G. Subrogation: In the event the Pool pays any claim
on behalf of a protected party, the Pool shall be
subrogated to the extent of such payment to all the rights
ofthe protected party against any person or other entity
legally responsible for damages arising under the claim.
The protected party shall render all reasonable
assistance, other than pecuniary assistance, to effect
recovery on the subrogated claims.
H. Non-renewal: If the Pool decides not to renew this
MLC, the Pool will mail or deliver to the member
county written notice of the nonrenewal not less than
thirty (30) days before the expiration date, Even if the
Pool does not comply with these terms, this MLC will
terminate:
I. On the expiration date, if:
a. The member county has notified the Pool
that it does not want to renew this MLC;
b. The Pool mails notice of the contributory
assessment for renewal due to the member
county not more than forty-five (45) days or
less than ten (10) days before the expiration
date ~hich states that the liability coverage will
end If the member county has not paid the
renewal assessment before such expiration
date.
~. On the effect! c dnte of any ill urance policy
ISS lied as repl~cemellt for:an liabilIty coverage
offered by Lhls., ML • with r peet to liability
covera~e to whfch thu insllrancc policy and 'this
ML both apply,
If notice is mail ed, proof of mailing will be
suffic ient proof of notice.
I. a nc e l !l~t ion : This Ml; may be e811celled by the
Poal by' Ills lllIIg 10 the lI u~m ber count at lli address
sll.own in 'Lhis ML ,written nOli ce stating ~vhen such
cancellatiOIl shall bC 'cfl'E:ctive, The mailing of notice as
af\>resaid s!lsl1 be .~u.fJ1cienl proof of Tlotice. Delivery
of s uch wfltten JlOl!ce t t he Pool shull be equivalent to
11;1 ailing,
J, W iUI ~rawal: After the initial sixty-month period of
membership , a m e mbe r county may withdraw at the
end of any Pool fiscal year, provi ded it has given the
Poo l a twe l c-ll1 onth written not ice of its intent to
withdraw.
K. C h a nges: Noti ce to any a gem or knowledg
possCScSed by an agent or by any o lher person hall nOl
effect a waiver or a change in any part of this MLC or
st~p the Pool from assert ing a ny right under th e terms of
thiS MLC; nor shall the t erlllS of this MLC be waived or
chan ~ed> except by endorsement issued to form a part
ofth ls M Le.
L. Assessability: The Pool, in accordance with RCW
48,62.141, is an assessable joint self-insurance pool.
The Pool may at any time, even after cancellation or
non-renewal by the member county or by the Pool,
further assess the member county for amounts needed
to fund MLC periods during which the Pool covered
the member county. Assessments shall be prorated in
accordance with procedures and methods determined
by the Pool's Board of Directors.
M. Inspection and Audit: The Pool shall be permitted
but not obligated to inspect the member county's
property and operations at any time. Neither the Pool's
right to make inspections nor the making thereof nor any
report thereon shall constitute and undertaking, on
behalf of or for the benefit of the member county or
others" to determine or warrant that such property or
operatIOns are safe or healthful, or are in compliance
with any law, rule or regulation.
The Pool may examine and audit the member county's
books and records at any time during the MLC period
and extensions thereof and within three (3) years after
the fina! termination ofthis MLC, as far as they relate to
the subject matter of this joint self-insurance liability
coverage.
N. Assessment: All assessments, reassessments or
other form of contribution for this MLC shall be
computed in accordance with the Pool's rules rates
rating plans, and assessment formulas applicabl~ to th~
liability coverage afforded herein.
An assessment designated in this MLC as an "advance
assessment" is a deposit assessment only which shall be
MEMORANDUM OF LIABILITY COVERAGE I % I /20 16-1 % 1/20 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM -10
credited to the amount of the earned assessment due at
the end ofthe MLC period. At 'rIle close ofrc::tch pe rlod
(or part thef'eof termi nating with the end of the ML C
period designated in the declarations 8S tile audit period ,
the earned assC!lsment sball be computed for such per iod
an d upon l10Lice he reof to the me mber co ullly shall
bec6nw due and payable. I f rbe lotnl earned assessment
for the MLC period is less than the assessment
previously paid, the Pool shall return to the member
county the unearned portion paid by the member
county.
The me mber county shall maintain records of such
infor matio n as is necessary for ass e ssm e n t
computation, and shall send copies of such records to the
Pool at the end of the MLC period and at such times
duri ng the MLC period as the Pool may direct.
O. ASSi gnment: No protected party shall assign any
righ t claim or interest it may have und er thi s MLC. No
creditor, assignee or third-party beneficiary of any
protected party shall have any right, claim or title to
any part, share, interest, fund, assessment or asset ofthe
Pool. If, however, a protected party shall die, such
liability coverage as is afforded by this MLC shall apply
(1) to the protected party's legal representative, as the
protected party, but only while acting within the
scope of his duties as such, and (2) with respect to the
property of the protected party, to the person having
proper temporary custody thereof, as the protected
party, but only until the appointment and qualification
of the legal representative.
P. Financial Responsibility Laws: When this MLC
is certified as proof of financial responsibility for the
future under the provisions of any motor vehicle
financial responsibility law, such liability coverage as is
afforded by this MLC for bodily injury liability or for
property damage liability shall comply with the
provisions of such law to the extent of the coverage and
limits of liability required by such law. A protected
party shall reimburse the Pool for any payment made by
the Pool which it would not have been obligated to make
under the terms of this MLC except for the agreement
contained in this paragraph.
Q. Applicable Law: This MLC shall be governed by
and construed in accordance with the laws of the State
of Washington.
R. Member County Decision Making Authority:
The member county's legislative authority, or in the
case of a charter county having an executive officer, its
county executive, shall be the final authority and
representative ofthe member county.
S. Settlement Authority: Ultimate settlement
authority for any claim or lawsuit lies with the Pool's
Executive Committee; however, the Pool's Executive
Director may authorize a settlement amount that does
not exceed a member county's deductible by more than
$50,000. Settlement amounts exceeding a member
county's deductible by more than $50,000 must be
authorized by a two-thirds majority of the Executive
Committee. Polling for this purpose may be made by
email or telephone authorization and shall be
confirme d at the next meeting of the Executive
omminee.
MEMORANDUM OF LIABILITY COVERAGE 10101/2016-1010 I 120 17
For the WASHINGTON COUNTIES RISK POOL JOINT SELF-INSURANCE LIABILITY PROGRAM -11