Intercare Holdings Insurance Services, Inc 5/8/2026

Page 7 of 22 SECTION 2 – S COPE OF WORK 2.1 INTENT The City of Everett is seeking a third-party administrator (TPA) to provide claims administration services for its public entity liability, automobile liability, and employment practices liability. The TPA may handle routine claim processing functions, including, but not limited to, receiving accident information, coordinating with external insurance agencies or individuals, handling claim subrogation, claims adjustment, negotiating settlements with claimants, and maintaining records of accident and claim expenses. As described in Section 2.3 below, the city purchases excess liability policies through an insurance broker with self-insured retention. All matters are considered confidential, and any settlement proposals require prior approval by the city and, depending on the proposal, its insurers. 2.2 BACKGROUND The city annually receives numerous third-party property damage liability claims, including those for third- party liability, bodily injury, auto, personal injury, no-fault auto, and property and content losses. Many of these are below the city’s self-insured retention for the applicable city insurance policies. These may be settled directly by the city, with the assistance of the selected TPA. Depending on the claim, there may be insurance reporting requirements. Based on historical analysis of claims submitted over the past five (5) years, approximately 13% related to bodily injury, 21% to auto property damage, and 66% to general liability. The selected TPA must be prepared and have the expertise to handle such claim types and volumes as required. Since claimants are taxpayers, losses must be settled quickly and fairly, while maintaining a common-sense approach to efficiency. 2.3 CITY OF EVERETT The City of Everett is a first-class charter municipal corporation that operates under an elected mayor, and a seven-member elected City Council. The City of Everett is the largest city in Snohomish County, the seventh-largest in the state, with a population estimate of 114,700 and roughly 49 square miles. The city employs approximately 1,300 people across various functions, as outlined in the organization chart below. The city maintains a self-insured retention (SIR) of $2,000,000 per occurrence for its Liability insurance program for General Liability, Auto Liability, Employee Benefits Liability, Law Enforcement Liability, and Public Officials & Employment Practices. The city maintains excess policies above the SIR with a limit of $30 million. The city has a Risk Manager, who will serve as the primary point of contact for the TPA and coordinate the assignment and handling of claims. The TPA may occasionally be required to participate in claims investigations or litigation in coordination with the Risk Manager, City Attorney’s Office, and/or outside Legal Counsel. The Risk Management division is part of the City Attorney’s Office and coordinates its efforts closely with all city departments. The city must pre-authorize any proposed claim settlement, and, depending on the proposal, its insurers. The city’s Transit Division is a member of the Washington State Transit Insurance Pool for liability coverage. The pool administers liability claims arising from transit and is not part of the city’s self-insurance program.