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HomeMy WebLinkAbout03.g. Deny claim for damages submitted by Ameriprise InsuranceCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS • POSITION PAPER Board Meeting Date: November 17, 2011 Subject: DENY CLAIM FOR DAMAGES SUBMITTED BY AMERIPRISE INSURANCE Submitted By Initiating Dept. /Div.: Shari Deutsch, Safety & Risk Administration, Safety & Risk Management Administrator Management REVIEWED AND RECOMMENDED FOR BOARD ACTION: Z�v S. Deutsch . M raves K. Alm Viames elly, General Manager ISSUE: The District has received a claim from Ameriprise Insurance for damages arising from a motor vehicle accident on June 24, 2011. RECOMMENDATION: Deny the claim. FINANCIAL IMPACTS: Denying the claim has no fiscal impact. ALTERNATIVES /CONSIDERATIONS: The alternative is to accept the claim and pay the claimant an as yet undetermined amount. BACKGROUND: On June 24, 2011 a District employee pulled the District vehicle into an intersection and collided with a vehicle traveling toward him from the cross street. The police report found the District's driver at fault. Ameriprise Insurance submitted a claim form noting repair costs to their insured vehicle (owned by Heidi Noh Kuhn) of $11,743.08. However, the company reported the total amount claimed as `pending'. In order to resolve the claim, staff requested documentation supporting the repair costs and asked the company to provide a total claim amount. On October 13, 2011 the Ameriprise adjuster responded with an email advising that he would mail a total demand amount. This demand has not yet arrived. The District must respond to claims within 45 days of receipt in order to limit a claimant's time limit to pursue further legal action to 6 months. If the District does not respond within those 45 days, a claimant has up to two years to pursue further legal action. The 45th day will be November 26th which makes November 17th the last meeting in which the Board can take action to protect this statute. Denying this claim does not preclude the District from settling in the future, should a reasonable demand be presented in a timely manner. The Budget & Finance Committee reviewed this matter at the November 14, 2011 meeting. RECOMMENDED BOARD ACTION: Deny the claim.