ACFR - FY2021 FINAL 5-13-22 USE THIS ONE - Flipbook - Page 106
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 8 - Risk Management (Concluded)
The City property and auto coverage has a $1,000 deductible. An additional 2% deductible
is applied to any named windstorm. Property located within a flood zone must maintain
separate coverage. Automatic coverage increases property values for the remainder of the
policy term, up to $5,000,000 in total insurable values at no additional premium. General
liability is set at $1,800,000 per member with an aggregate of $5,400,000. Workers’
compensation group limits are set at $350,000 with a retention of $650,000. In addition to
all coverage, the city has elected to carry excess liability insurance for $3,000,000.
Terrorism is excluded for buildings valued at more than $50,000,000, not affecting our city.
Health Insurance
The City provides life and health insurance benefits to eligible regular full-time employees.
The program also offers limited coverage for dental and prescription drugs. Employees
pay only for dependent coverage under the health benefits program. Premiums are
deducted from the participating employee's biweekly pay.
The insurance plan provides life insurance coverage for $20,000 for eligible employees and
$50,000 for division and department heads, with additional coverage for accidental death
and dismemberment.
The amount of coverage is reduced to $10,000 for all employees at retirement. Coverage
is further reduced to $6,500 upon age 65 and $5,000 at age 70. Accidental death and
dismemberment coverage terminated after age 70. The life insurance coverage is funded
by purchasing a group insurance policy by the City.
As mentioned above, the City's health insurance plan is purchased through the pool. This
change to a group insurance pool became effective on October 1, 2003. Retirees and
terminated employees can participate in the health insurance plan at their own expense.
The City has joined a Preferred Provider Organization (PPO) to control costs.
Employees are encouraged to use participating providers, covered 80% under the plan, or
choose their provider. Coverage for expenses rendered by nonparticipating providers is
limited to 40%, with the employee paying 60% co-pay.
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