Item 4DItem 4D Resolution No. 09-045, Amend the City of Southlake Insurance Trust Agreement
Background
Texas Insurance Code requires annual premium tax on health, life and accident.
Municipalities may be exempted if insurance provided through a single, non-profit trust
City of Southlake Insurance Trust established August 21, 2007.
Trust Agreement, Trustees approved
Savings of more than $52,000 in annual premium taxes
Reason for Amendment
Additional restrictions from Texas Comptroller of Public Accounts:
Cannot acquire real estate;
Cannot invest in any realty or personal property;
Cannot pay for liability insurance for trustees;
Cannot use funds to pay for professional services, judgments or litigation.
Amendment
Removes paragraphs 3.1 (i), (j) and (k) from Article III.
Removal of paragraphs does not hinder the operations and activities of the Trust for the purposes it is intended.
Staff recommends approval.
Questions? Kevin Hugman (817) 748-8193