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<br />II. PREMIUMS: The costs of the CSAC Excess Workers' Compensation Program shall be <br />assessed to participating "Covered Parties" by the Board of Directors of the Authority <br />and are herein referred to as premiums. Such premiums shall be calculated in <br />accordance with Articles XIV(b)(2) and XIV(b)(3) of the "Joint Powers Agreement". <br /> <br />III. <br /> <br />This Memorandum shall apply to loss on account of "Bodily Injury" or <br />"Occupational Disease" sustained by volunteer workers performing duties for or on <br />behalf of the "Covered Party" while acting within the scope of their duties on behalf of <br />the "Covered Party" providing that the Governing Board of the "Covered Party" has <br />adopted a resolution, prior to the "occurrence", as provided in Division 4, Part 1, <br />Chapter 2, Article 2, of the California Labor Code declaring such volunteer workers to <br />be employees of the "Covered Party" for purposes of the workers' compensation law. <br /> <br />IV. <br /> <br />ADMINISTRATION AND REPORTING OF CLAIMS: The "Covered Party" shall be <br />responsible for the investigation, settlement, defense or appeal of any claim made or <br />suit brought, or proceeding instituted against the "Covered Party", and the "Covered <br />Party" shall have the duty to give immediate notice to the Authority upon learning of <br />any of the following: <br /> <br />A. Any "occurrence" for which total reserves exceed 50% of the "Covered <br />Party's" Retention. <br /> <br />B. Any "occurrence" which causes serious injury to two or more <br />"employees"; <br /> <br />C. Any "occurrence" which results in: <br /> <br />1. A fatality; <br />2. An amputation of a major extremity; <br />3. Any serious head injury (including skull fracture or loss of sight of either <br />or both eyes); <br />4. Any injury to the spinal cord; <br />5. Any disability where it appears reasonably likely that there will be <br />disability of more than one (1) year; <br />6. Any second or third degree burn of 25% or more of the body; <br />7. A permanent total disability as defined in the Workers' Compensation Act <br />of the State of California; <br /> <br />D. The reopening of any case in which a further award might exceed 50% of <br />the "Covered Party's" SIR. <br /> <br />The "Covered Party" shall not make any voluntary settlement or voluntarily make a <br />lump sum payment or commutation or one time payment in lieu of periodic indemnity <br />payments to "employees" or their dependents involving "loss" to the Authority <br />except with the written consent of the Authority. <br /> <br />Form 7/1/2004 <br /> <br />Page 5 of 8 <br /> <br />«.-..--.--...-. .- <br />