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Session 710, Minutes August 20, 1962 Page 11 two lowest bidders for the Workmen's Compensation coverage were the Employers Mutual Liability Insurance Company of Wisconsin and the Bituminous Casualty Company (Employers Mutual is a mutual company and the Bituminous Casualty is a stock company) and the City Manager reviewed the figures. The various companies required four to six weeks to prepare their bids and that is why the matter comes up in August instead of in July as the administrative forces would have preferred. He said that the Insurance Committee and other members of the Council have received a report from the consulting firm, the Insurance Audit and Inspection Company of Indianapolis, Indiana. It is the recommendation of the consulting firm that award for the Workmen's Compensation coverage be made to E~ployers Mutual Liability Insurance Company of Wisconsin which would app:oximate $25,197 for a three year term, and that award be made to the American Insurance Company of Newark, N.J. for the Comprehensive General Liability Insurance which would approximate $9,249.48 for a three year term. Questions propounded by members of the Council were answered by the City Manager. Councilman Tendlet inquired whether the Employers Mutual has subm/tted a satisfactory account of their engineering services and the other items requested on the questionnaire that went out with every bid form. The City Manager said that the form which was sent to each bidder, aside from the name of the agency and the address,asked for the financial and policyholder rating as published by Alfred M. Best - in the case of Employers Mutual it is AAAAA-A plus - then the number of salaried engin- eers in the St. Louis area - and they have stated they have three engin- eers locally - they state they provide continuing inspection services - they provide personal visits by a regular engineer and special hazards engineers - maintain a local claims department in Clayton and will assist in the settlement of all claims. At this Juncture, Councilman Baris asked, '~ho will they assist?" City Manager Henry said the questionnaire reads, "Does your office assist in the settlement of all claims?" And the City Manager added he hopes they will assist the City. Councilman Baris said this brings up a point that there seems to be some- thing missing in the recomnendations -- on the American Insurance Company the Indianapolis consulting firm says they "are in an enviable financial position and have an excellent reputation for engineering service and loss settlement practices." Councilman Baris said they do not say the same thing as far as the loss settlement practices for the Employers Mutual, and that to him, especially in Worhnen's Co~pensation matters is an ex- tremely important factor because it insures that the employees would get their settlemants as quickly as possible at a time when they are deprived of the ability to work. He said he wonders whether the omission was Just inadvertant on the part of the longodistance outfit or whether it has some meaning by its omission, Councilman Baris said he thinks the important thing is to determine whether the employees are going to be adequately and quickly compensated or whether they are going to have to forego any income for some time until they can get their claims allowed, City Manager Henry said the City is approximately in the middle in this type of situation - the City is interested in seeing that the employee gets what is due him promptly and correctly - on the other hand, the City has to protect itself or has to consider excessive claims (which have been knmm to arise in Workmen's Compensation) and has to protect its in-