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Ordinance No. 894ORDINANCE NO. 899 AN ORDINANCE PROVIDING FOR THE CONSTITUTION OF A CITY INSURANCE ASSOCIATION FOR THE CITY OF BAYTOWN, TEXAS, SUBJECT TO THE ANNUAL REVIEW AND GENERAL DIRECTION OF THE GOVERNMENT OF THE CITY OF BAYTOWN; PRESCRIBING MEMBERSHIP QUA€.IFICATIONS AND REQUIREMIENTS; PROVIDING FOR GENERAL PROCEDURE OF ASSOCIATION OPERATIONS; EFFECT- ING INITIAL ORGANIZATION OF THE ASSOCIATION; PROVIDING A RE- PEALLING CLAUSE; PROVIDING A SEVERABILTTY CLAUSE; AND PRO- VIDING FOR THE EFFECTIVE DATE THEREOF. 11HEREAS, the City Council of the City of Baytown hereby finds and declares that it is in the public interest and necessary for the advancement of the general welfare, comfort and convenience of the City and its inhabitants that an insurance pool be constituted immediately to insure the City of Baytown against casualty and liability losses; NOW, THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN: Section 1: Creation: There is hereby constituted THE CITY OF BAYTOWN INSURANCE ASSOCIATION, hereinafter called ASSOCIATION. The pur- pose of the ASSOCIATION shall be to arrange for insurance coverage for the City of Baytown on the terms and conditions herein stated. Section 2: Qualifications. All members of the ASSOCIATION shall: A. (1) Be recording agents and represent stock companies directly with a rating of A -AAAA, or better, as indicated by Best Insurance Guide and said members must have authority to issue and countersign policies in the companies which they represent. A. (2) As used herein the term "agent" shall mean a natural person. Not more than one person employed directly or indirectly in an agency shall participate in the operation of the ASSOCIATION or receive benefits thereunder. B. (1) Have had a proprietary interest in and actively managed and operated a general fire and casualty insurance busi- ness as a licensed recording agent in the City of Baytown for the five consecutive years immediately preceding each member's application for membership in the ASSOG- IATION. Agents in newly annexed areas may qualify if they meet this requirement within the newly annexed area either prior to or after annexation. Agents participating at the time of adoption of this ordinance shall not be ex- cluded by this five year requirement. B. (2) All persons, at time of application for membership and thereafter, who become members of the ASSOCIATION must maintain a business office separate and apart from any residential rooms or lodging. B. (3) Members of the ASSOCIATION shall not engage in full - time employment in any occupation outside the insurance industry, except combined real estate business. Any agent who is supervised or controlled by or connected or associa- ted with a bank, mortgage loan company, savings and loan association or a managing general agency owned or con- troller by or connected or associated with a bank, mortgage loan company or savings and loan association shall not be eligible due to possible conflict of interest. C. Carry Errors and Omissions Insurance Coverage with limit of at least $50,000.00. D. Reside within the corporate limits of the City of Baytown and own a fee interest in real property within the corporate limits of the City of Baytown. Section 3: ComooC;ti­t. 3. (A) The ASSOCIATION shall consist of all said agents comply- ing withtha Section 2 Qualifications and who file application in the office of the City Clerk of the City of Baytown on or before June 1, 19 of each year. Application forms shall be furnis'cd by the City Clerk during regular business hours under such regulations as he may prescribe. Section 4: Management and Procedure. 4. (A) The ASSOCIATION shall meet on the first Monday after the 15th day of June of each year at 2:00 p.m. at the City Council Cham- bers in the City Hall of the City of Baytown, unless such Monday falls on a City legal holiday, in which event the meeting shall be on the business day next following. 4. (B) The ASSOCIATION shall review all applications for member- ship and approve all applications found in compliance with the terms of this ordinance. 4. (C) An ASSOCIATION CO- ORDINATOR shall be elected from among the membership approved for the year ensuing. Each member present shall be entitled to one vote and an affirmative majority of those present and voting shall constitute the election of the ASSOCIATION CO-ORDINATOR. 4. (D) The ASSOCIATION CO- 0 1"DINATOR shall appoint such committees as he deems needed for the proper management of the ASSOCIA- TION. He small act as chairman of all ASSOCIATION meetings, whether of the T,'lole or in committee, serve as liasion be- tween the ASSOCIA ION, the Mayor, the City Council, and other officers of the City, and perform such other duties as he may be assigned by the ASSOCIATION or by the City Council. Section 5: Attendance. 5. IA) All members will be required to attend the initial meeting each year as well as all other meetings called by the ASSOCIATION CO- ORDINATOR, except as provided in Section 5, (B). Notice of meetings called by the ASSOCIATION CO- ORDINATOR shall be given to all members by such means and at such times as the ASSOCIATION may prescribe. 5. (B) Any member having called - meetings absences totalling more than 20% of the total number of called meetings with- in one calendar year prior to any time of calculation of the number of said absences shall automatically forfeit all member rights for the following year and such members shall not be permitted participation in that following year. Section 6: Policy Assignment Procedure: 5. (A) Each year, at a time designated by the ASSOCIATION CO- ORDINATOR and sufficiently early to assure continuity of complete insurance protection for the City, all members shall draw for the right to write a one -third (1/3) share of the total fire schedule. The fire insurance policy shall be written for a three year period at rates developed by the ASSOCIATION Fire Committee, subject to the specifications of the City of Baytown as determined by its Council or de- signated officers and in conformance with the Insurance Code of Texas. To instigate this procedure, drawing will be made for two broken terms policies of one and two years and one three year policy. Agents holding policies then in force shall not be eligible for any fire schedule drawing until all their existing fire policies have expired. b. (B) All other casualty insurance policies and all City officer fidelity bonds may be written by the ASSOCIATION CO -OR- DINATOR, subject to the specifications of the City and in conformance with applicable State law. Section 7: Commissions. All earned commissions on all policies, ex- cluding contingent commissions, shall be distributed equally among all the ASSOCIATION members at such time and in such manner as the ASSOCIATION may determine. Section 8: Existing PoIicies. Existing policies, and all contracts connected therewith, shall expire at normal schedules, unless renewed here- under, or otherwise cancelled pursuant to the terms of said policies and con- tracts. Section 9: Repeal. All ordinances, resolutions, rules or regulations in force when this ordinance becomes effective and which are in conflict here- with or inconsistent herewith are hereby repealed, insofar as said ordinances, resolutions, rules or regulations are inconsistent with or in conflict with this ordinance. Section 10: Severabilit . If any word, phrase, clause, sentence paragraph, section or part of this ordinance shall be held by any court of competent jurisdiction to be invalid or unconstitutional it shall not affect the validity or enforceability of any other word, phrase, clause, sentence, paragraph, section or part of this ordinance. Section 11: Effective Date. That this ordinance shall take effect from and after the date of its passage by a majority of the City Council of the City of Baytown. INTRODUCED, HEAD and PASSED by a majority of the City Council of the City of Baytown, on this 19th day,,vf Qc.tober, 1967. Seaborn Cravey, ,�Mayo4 ATTEST: Edna Oliver, City Clerk