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Session 710, H!nutes August 20, 1962 Page 12 terest in this because, in effect, the City due to the retrospective plan, its premium, will be affected by whatever claims are paid and if there are unduly high claims paid the City eventually will be paying anyway. Council~_n Baris said he thinks it is incumbent upon the City and this Council to make certain that the company which is awarded this contract is one which will not unduly delay the employees in getting their Just compensation. Councilman Epstein said she does not understand why Council- man Baris is concerned about the possibility that this company might be slow in making the payments, whereupon Councilman Baris explained it is only from the standpoint that in the recommendation on American Insurance Company the IndianapoIis firm has used the language that it has an excel- lent reputation for loss settlement practices, but that same languase is not used in their recoa~endation of Employers Hutual and he said he is just w~ndering whether they may kno~ something about the loss settlement practices which could have prevented them from giving the Employers Hutual an excellent rating in that regard. Councilman Grimm said he wonders whether the difference in wording may not be due to the fact that in one case they are talking about Workments Compensation which is covered by the laws as distinct from the General Liability situation where there may be more reason to kno~ what a companyts reputation for settlement of losses would be. Councilman Baris said he thinks companies build up their reputation as to sett!ement, whether it is in Workmen's Compensation or General Liability. Councilman Tandler pointed out that the fact remains that the consultants do recommend Em= ployers Hutual for this particular insurance contract. Councilman Baris observed that it seems to him a local person making recomnendations on this might have more first hand knowledge as to practices of local claims offices and practices of local administrative and engineering offices - this is one of the reasons, he said, that he thought the City should have gotten an organization (consulting firm) closer to University City to make the insurance survey rather than an outfit from Indianapolis who get much of their information out of Best's insurance reports, which is equally available to the City. In response to an inquiry by FLayor Kaufman, the City Hanager said the Cityrs binder will run out August 31st. Councilman Tandler asked whether it has been definitely determined, al- though the premium has been established for a three year period, that it is payable in three equal installments. The City Hanager said it is the practice to pay in three annual equal installments. Councilman Tandler said the City has a certain amount budgeted for insurance this year and he asked whether the City is apt to find itself in the position of being required to pay for a three year permium this year, whereupon the City Hanager answered negatively. City ~a~ager Henry continued to answer questions propounded by members of the Cotmcil. In response to a 'question by Councilman Epstein, Councilman Baris said he does not believe that policyholderfs rating relates to an insurance companyrs settlement policy. Councilman Baris said he has no first hand knowledge about Employers ~utual and is not saying anything against them and does not want anything that he has said to be a reflection